BUSINESS

STATISTICS

Shikha Singh
Chapter 1
INTRODUCTION TO
STATISTICS
What is statistics?

 Statistics is a mathematical science that is

concerned with the techniques by which
information (data) is collected, organized,
presented, analyzed and interpreted.
application

 Accounting
 Finance
 Marketing
 Production
 Economics

Business Statistics
 Business Statistics is a science assisting you to
make good business decisions under
uncertainties based on some numerical and
measurable scales.




Data, Information & Knowledge
 ELEMENTS, VARIABLES & OBSERVATIONS

 Elements: Entities on which data is collected


 Variable: A characteristic of interest for the elements.

 Observation: The set of measurements obtained for a
particular element.
Population & Sample

 Population: A population is the set
representing all observations of interest to
the sample collector.

 Sample: A subset of measurements selected
from the population of interest.
 Descriptive & Inferential Statistics
 Descriptive Statistics consists of procedures
used to summarize the information in a set
of measurements and to describe the
characteristics of the set.

 InferentialStatistics consists of the
procedures used to make inferences about
population characteristics from information
contained in a sample.


 Methods of Sampling
 Convenience Samples – The most easily accessible
observations/measurements.


 Judgment Samples –Individual selecting the

sample items uses experience.


 Random Samples – Every element of the

population has a known, and usually equal
chance of being chosen for inclusion in the
sample.

Types of Random samples
 Simple random sample - Each item is selected
entirely on the basis of chance.


 Systematic sample - We select the sample

elements at a uniform interval of a listed order
or at uniform points in time or distance.

 Stratified sampling can be used whenever the
population can be partitioned into smaller sub-
populations, groups, or strata, each of which is
homogeneous according to the particular
characteristic of interest.

Types of Random samples (cont..)
Cluster Sample


 Elements in the target population are selected in

groups rather than individually at the initial step
in sampling.

 The groups to be included in the sample are
selected by simple random sampling. Thus each
group in the target population is assigned a
serial no.

 Often used when the elements in the population
are not easily identified individually but are
grouped together (clustered) and more easily
identified as members of the clusters.

 DATA
REPRESENTATION
Types of Data


 Internal & External Data
 Primary and Secondary Data
 Qualitative & Quantitative data
 Discrete & Continuous data
 Frequency distribution
Frequency distribution Bar Histogram
Relative Frequency distribution
Graph Percentage frequency 
Relative Frequency distribution Ogive
distribution
Pie CFD 
Percentage frequency Chart Scatter
CRFD
distribution Diagram
CPFD
Tabular Representation

 Frequency Distribution
 Step 1: Determine the desired no. of classes
 Step 2: Determine the class Width / Class
Interval
 Step 3: Locate the Class limits or Class
boundaries (true class limits)

 Relative frequency distribution
 The proportion of observations belonging to one
class.


 Percentage frequency distribution

 The percentage of observations belonging to one
class
 Cumulative frequency distribution



 Graphical Representation
 Histogram
 Frequency Polygon
 Frequency Curve
 Ogive
 Pie Diagram
 Scatter Diagram
THANK YOU