Statistics

Introduction
Decision makers make better decisions
when they use all available information in
an effective and meaningful way. The
primary role of statistics is to provide
decision makers with methods for
obtaining and analyzing information to
help make these decisions. Statistics is
used to answer long-range planning
questions, such as when and where to
locate facilities to handle future sales.
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What is important statistics?

What is statistics?

Statistics is defined as the science of

collecting,
organizing,
presenting,
analyzing and interpreting numerical
data for the purpose of assisting in
making a more effective decision.

Concepts
Population
Is a collection of all distinct
individuals or objects or items
under study. The number of entities
in
a
population,
Called
the
Population Size, is denoted by
N. A descriptive measure of a
population is called a Parameter.

Sample
Is a part of a population and the
sample size is denoted by n. A sample
should be a representative of the
population.
A descriptive measure of a population
is called a Statistic.

Variable
Variable
is
any
characteristic,
number or quantity than be
measured or counted.
Data
Consist
of
information
coming from observations,
counts, measurements, or
responses. Is the collection
of facts such as values of
measurements

Types of Variable
Qualitative Variable
Consists of attributes, labels, or nonnumerical
entries.
Major

Place of birth

Eye color

Larson/Farber 4th ed.

Types of Variable
Quantitative Variable
Numerical measurements or counts.
Age

Weight of a letter

Temperature

Larson/Farber 4th ed.

Branches of Statistics
Descriptive Statistics
Involves organizing,
summarizing, and
displaying data.

Inferential Statistics
Involves using sample
data to draw
conclusions about a
population.

e.g. Tables, charts,

averages

Larson/Farber 4th ed.

PHASES OF STATISTICAL ANALYSIS

1. Initial Data Manipulation
Assembling data
Checks of data quality - graphical and numeric

2. Preliminary Analysis:
Identifying Data Structure:

PHASES OF STATISTICAL ANALYSIS

Definite Analysis
Analyze your results.
This is include
formulating graphs.

Presentation of Conclusions

Applications in
Management

Accounting
Public accounting firms use statistical
sampling procedures when conducting
audits for their clients.

Legal Sciences
one of the fields of law in
which we find some of the
applications of statistics is that
of criminology, studies crime
prevention.

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Applications in
Management
Business

Statistics helps businessman to plan

production according to the taste of
the costumers, the quality of the
products can also be checked more
efficiently
by
using
statistical
methods.

Economics
In
economics
research
statistical methods are used
for collecting and analysis the
data and testing hypothesis.

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Applications in
Management

Marketing
Electronic point-of-sale scanners at
retail checkout counters are used to
collect data for a variety of marketing
research applications.
Production
A variety of statistical quality
control charts are used to monitor
the output of a production process.

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Applications in
Management

Demographics

It deals with the study of the population through

various censuses, the age distribution or gender,
geographical location, profession, Marriages,
Divorces, religion, nationality,

Medicine
In the field of medicine
statistics is used to collect
information about patients and
diseases and to make decisions
about the use of new drugs or
treatment.
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SOFTWARE STATISTICS
IBM SPSS
It is used by market researchers,
health
researchers,
survey
companies, government, education
researchers, marketing organizations
and others.

R
This software is free and can be
obtained from the R Project
website. It does basic statistics,
resampling, regression, logistic
regression

MATLAB
It is used by market researchers,
health
researchers,
survey
companies,
government,
education researchers, marketing
organizations and others.

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Statgraphics
is a powerful yet intuitive
software
program
for
data
analysis,
data
visualization,
statistical
modeling,
and
predictive analytics.
Minitab is a software package
that helps you to analyse data.
Analysing data is an important
part of Six Sigma, Pareto
Diagrams.
Microsoft Excel is your best tool
for storing and manipulating
data,
calculating
basic
descriptive statistics such as
means and standard deviations,
and
conducting
simple
mathematical operations on your

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