Business Statistics

References
 Business Statistics by Kalyani Publications
 Business Statistics by T R Jain, S C
Aggarwal and Mukesh Trehan, V K
Publications
 Statistical Methods by S P Gupta, Sultan
Chand Publications
ORIGIN
 The term Statistics has its origin in
Latin Word “STATUS”, Italian word
STATISTA or German Word
STATISTIK. All mean “Political state”
Statistics
 Numerical Facts and Figures like
 Per capita income
 Agricultural production during a year
 Inflation rate etc.

 Body of principles and procedures

developed for collection,
classification, summarization and
interpretation of numerical data
 Statistics

Plural Singular
sense Sense

Numerical Statistical
Data Methods
Statistics in plural sense
 “By statistics we mean aggregate of
facts affected to a marked extent by
multiplicity of causes numerically
expressed, enumerated or estimated
according to reasonable standards of
accuracy collected in a systematic
manner for a pre-determined purpose
and placed in relation to each other.”
by Horace Secrist
Features or characteristics of
Statistics in Plural sense
 Aggregate of Facts
 Numerically expressed
 Affected by multiplicity of causes
 Reasonable accuracy
 Placed in relation to each other
 Pre-determined purpose
 Enumerated or estimated
 Collected in a systematic manner
Statistics in Singular sense
 In singular sense, statistics refers to
statistical methods or techniques
relating to collection, classification,
presentation, analysis and
interpretation of quantitative data.
Features of Statistics as
singular sense
 Collection of data
 Organization of data
 Presentation of data
 Analysis of data
 Interpretation of data
 Scope

Subject
Nature Limitations
Matter
Nature of statistics
 Art as well as science
Subject matter
 Descriptive statistics
 Inferential statistics
Limitations of statistics
 Study of numerical facts only
 Study of aggregates only
 Not the only method
 Homogeneity of data
 Results are true on an average only
 Without reference results may prove wrong
 Can be used by experts only
 Misuse of statistics
 Only means and not solution
Frequency Distribution
Consider a data set of 26 children of ages 1-6 years. Then the
frequency distribution of variable ‘age’ can be tabulated as
follows:

Frequency Distribution of Age

Age 1 2 3 4 5 6
Frequency 5 3 7 5 4 2
Grouped Frequency Distribution of Age:
Age Group 1-2 3-4 5-6

Frequency 8 12 6
Cumulative Frequency
Cumulative frequency of data in previous page
Age 1 2 3 4 5 6

Frequency 5 3 7 5 4 2

Cumulative Frequency 5 8 15 20 24 26

Age Group 1-2 3-4 5-6

Frequency 8 12 6
Cumulative Frequency 8 20 26
 Data Presentation –Categorical
Variable
Bar Diagram: Lists the categories and presents the percent or count of
individuals who fall in each category.

Figure 1: Bar Chart of Subjects in

Treatm ent Groups
Treatment Frequency Proportion Percent
Group (%)
30
Number of Subjects

25
1 15 (15/60)=0.25 25.0
20
15
2 25 (25/60)=0.333 41.7
10
3 20 (20/60)=0.417 33.3
5
0 Total 60 1.00 100
1 2 3
Treatm ent Group
 Data Presentation –Categorical
Variable
Pie Chart: Lists the categories and presents the percent or count of
individuals who fall in each category.

Figure 2: Pie Chart of Treatment Frequency Proportion Percent

Subjects in Treatment Groups Group (%)

1 15 (15/60)=0.25 25.0
25% 2 25 (25/60)=0.333 41.7
33% 1
2 3 20 (20/60)=0.417 33.3

3 Total 60 1.00 100

42%
Graphical Presentation –Numerical
Variable
Histogram: Overall pattern can be described by its shape, center,
and spread. The following age distribution is right skewed. The
center lies between 80 to 100. No outliers.

Mean 90.41666667
Figure 3: Age Distribution
Standard Error 3.902649518

16 Median 84
14 Mode 84
Number of Subjects

12 Standard Deviation 30.22979318

10
Sample Variance 913.8403955
8
Kurtosis -1.183899591
6
4 Skewness 0.389872725

2 Range 95
0 Minimum 48
40 60 80 100 120 140 More
Maximum 143
Age in Month
Sum 5425
Count 60
Graphical Presentation –Numerical
Variable
Box-Plot: Describes the five-number summary

Figure 3: Distribution of Age

160
140
120
q1
100 min
80 median
60 max
q3
40
20
0
Box Plot
1