1.Please type classpoint.

app in your
web browser.
2.Join using the code that appears in
the screen.
3.Please write your complete name.
How are you feeling right now?
(just type that 1 word )

2
2
 When you have completed this chapter, you will be able to:
1. Understand why we 3.Distinguish between 5. Distinguish among
study statistics. a qualitative variable the nominal, ordinal,
and a quantitative interval, and ratio
2. Explain what is
variable levels of
meant by measurement.
descriptive 4. Distinguishbetween a
discrete variable and a 6. Define the terms
statistics and
inferential statistics continuous variable. parameter, statistic,
sample,population,
census and survey.
Quick Review
A researcher is interested in the travel
time of X University students to college.
A group of 50 students is interviewed.
Their mean travel time in 16.7 minutes.
For this study the mean of 16.7 minutes
is an example of a(n)

A. Parameter
B. Statistic
C. Population
D. Sample
A researcher is curious about the IQ of
students at the X University. The entire
group students is an example of a:

A. Parameter
B. Statistic
C. Population
D. Sample
Statistical techniques that summarize and organize
the data are classified as:

A.Population
B. Sample statistics
C. Descriptive statistics
D. Inferential statistics
Five-point Likert scales (strongly disagree,
disagree, neutral, agree, strongly agree) are
frequently used to measure motivations and
attitudes. A Likert scale is a:

A. Discrete variable.
B. Ordinal variable.
C. Categorical variable.
D. All of the above options (A, B and C)
A researchers studies the factors that
determine the number of children future
couples decide to have. The variable ‘number
of children’ is a :

A. Discrete variable
B. Continuous variable
C. Categorical variable
D. Ordinal variable
 statistics Statistics
statistics refers to
numerical facts such as Statistics is science of
averages, medians, collecting, analyzing,
percentages, presenting,
and maximums that help and interpreting data.
us understand a variety
of business and
economic situations.
 What is Statistics?

Statistics is the science of collecting,

organizing, presenting, analyzing, and
interpreting data to assist in making more
effective decisions.
 Who uses Statistics?
Statistical techniques are used extensively by
marketing, accounting, quality control,
consumers, professional sports people,
hospital administrators, educators, politicians,
physicians, and many others.
Who uses Statistics?
 Why study Statistics?

Decision Makers Use Statistics To:

▪ Present and describe business data and information properly

▪Draw conclusions about large groups of individuals or items, using

information collected from subsets of the individuals or items.

▪Make reliable forecasts about a business activity

▪Improve business processes

 Descriptive Statistics Inferential Statistics
Phases - comprise those methods
- comprise those
of concerned with organizing,
presenting, summarizing,
methods concerned with
the analysis of sample
Statistics and analyzing a set of
data without drawing
data leading to
predictions or inferences
conclusions or inferences about the population.
about a population.
• Collect data
– e.g., Survey
• Present data
– e.g., Tables and graphs


• Characterize data
X i
– e.g., Sample mean =
n
 Examples of Common Research Questions
that will require Descriptive Statistics

1. What is the total monthly sales of books at the XU

Bookcenter?
2. What is the distribution of employees in a shoe factory in terms
age?
3. What are the common products sold online?
4.How many of the call center agents are college graduates?
 • Estimation
– e.g., Estimate the population
mean weight using the sample
mean weight
• Hypothesis testing
– e.g., Test the claim that the
Drawing conclusions
about a large group of population mean weight is 120
individuals based on a pounds
subset of the large
group.
Examples of Common Research Questions
that will require Inferential Statistics

1. Is there a significant decrease in the weight before and

after enrolling in a Zumba class?
2. Is there a significant linear relationship between weather
temperature and sales of ice cream?
3. Is there a significant association between gender and the
choice of brand of shoes?
4. Is there a significant difference in the mean lifespan
between Oppo and Samsung cellphones?
Statistical techniques that summarize and organize
the data are classified as:

A.Population
B. Sample statistics
C. Descriptive statistics
D. Inferential statistics
 Basic Vocabulary of Statistics

Population: A collection, or set, of individuals or objects or

events whose properties are to be analyzed.
Two kinds of populations: finite or infinite.

Sample: A portion or part or subset of the population of interest.

 Basic Vocabulary of Statistics

Parameter – a numerical characteristic of the

population

Statistic – a numerical characteristic of the sample

A researcher is interested in the travel
time of X University students to college.
A group of 50 students is interviewed.
Their mean travel time in 16.7 minutes.
For this study the mean of 16.7 minutes
is an example of a(n)

A. Parameter
B. Statistic
C. Population
D. Sample
Determine whether the given value is a
statistic or a parameter
A health and fitness club surveys 40
randomly selected members and found
that the average weight of those
questioned is 157 lb.

A) Statistic

B) Parameter
Determine whether the given value is a
statistic or a parameter
After inspecting all of 55,000 kg of meat
stored at the Wurst Sausage Company, it
was found that 45,000 kg of the meat
was spoiled.

A) Statistic

B) Parameter
 Basic Vocabulary of Statistics
VARIABLE
A variable is a characteristic of an item or
individual element in a population or sample.
Example: age or gender of the participants

DATA
Data are the different values associated with a variable.
Example: age - 5,48,52
gender of the participants – male, female
 Quantitative Data -
Types of ▪Qualitative
(categorical) variables
(Numerical) are
variables whose values
Variables have values that can can be expressed in
only be placed into numbers.
categories, such as
“yes” and “no.” No
numerical values exist.
 Car color Gender
Qualitative
Variable
Examples
brand of laptop
Eye
Color
Give an example of a qualitative variable
 Balance in your checking
Quantitative account
Variable Time (in minutes) remaining
Examples in class

Number of children in a
family
 Discrete Variables: A Continuous Variable
Types of can be measured using
can only assume certain
Quantitative values and there are some units of
Variables usually “gaps” between measurements, which
values. It can be counted, may take some
thus can assume a value decimal numbers
which is a whole number
 Discrete Variables Continuous Variables
Types of Number of employees The pressure in a tire

Quantitative
Data The weight of a pork chop
or the number of
hammers sold at the local
Home Depot
The height of students in a class.
A researchers studies the factors that
determine the number of children future
couples decide to have. The variable ‘number
of children’ is a :

A. Discrete variable
B. Continuous variable
C. Categorical variable
D. Ordinal variable
Types of
Variable
Variables

Quantitative Qualitative

Discrete Continuous
 a) Whether you
own an RCA
Colortrak
•For each of the following, television set
indicate whether the
appropriate variable would
be qualitative or quantitative.
If the variable is
quantitative, indicate
whether it would be discrete
or continuous.
 b)Your status as
a full-time or a
part-time
•For each of the following, student
indicate whether the
appropriate variable would
be qualitative or quantitative.
If the variable is
quantitative, indicate
whether it would be discrete
or continuous.
•For each of the following,
indicate whether the
appropriate variable would
be qualitative or quantitative.
If the variable is Number of people
quantitative, indicate who attended your
whether it would be discrete senior high
or continuous.
school’s
graduation
 Sam’s travel
time from his
•For each of the following,
dorm to the
indicate whether the Canteen
appropriate variable would
be qualitative or quantitative.
If the variable is
quantitative, indicate
whether it would be discrete
or continuous.
 Levels of Measurements

Ordinal Scale
Nominal Scale

Interval Scale Ratio Scale

 Levels of Measurements

Nominal Scale Ordinal Scale

consists of named categories the categories of a

but no implied ranking of variable can be ranked
categories

contains the property of identity, contains the property of identity, order,

order, and equality of scale but does equality of scale and the absolute zero
not possess the absolute zero property and multiples of measures
property and multiples of measures are meaningful.
are not meaningful.
Interval Scale Ratio Scale
 Levels of Measurements
Nominal Scale Ordinal Scale
Personal Computer Ownership Student Class designation
Brand of alcohol Product satisfaction
Internet Provider Faculty rank
Gender Student grades
Religious affiliation Level of agreement

Temperature (in degrees Celsius Height

and Fahrenheit) Weight
Salary( in pesos or dollars)
Standardized exam score Age ( in years or days)

Interval Scale Ratio Scale

Five-point Likert scales (strongly disagree,
disagree, neutral, agree, strongly agree) are
frequently used to measure motivations and
attitudes. A Likert scale is a:

A. Discrete variable.
B. Ordinal variable.
C. Categorical variable.
D. All of the above options (A, B and C)
In a 500m speed skating race, time results
would be considered an example of which
level of measurement?

A. Nominal
B. Ordinal
C. Interval
D. Ratio
Basic Business Statistics, 11e ©
Chap 7-46
2009 Prentice-Hall, Inc..