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Business Statistics: A First Course, 5e ? 2009 Prentice-Hall, Inc. Business Statistics: A First Course, 5e ? 2009 Prentice-Hall, Inc. Business Statistics: A First CourseFifth Edition Learning Objectives In this chapter you learn: How Statistics is used in business The sources of data used in business The types of data used in business The basics of Microsoft Excel The basics of Minitab Why Learn Statistics? So you are able to make better sense of the ubiquitous use of numbers: Business memos Business research Technical reports Technical journals Newspaper articles Magazine articles Chap 1-* What is statistics? A branch of mathematics taking and transforming numbers into useful information for decision makers Methods for processing analyzing numbers Methods for helping reduce the uncertainty inherent in decision making Chap 1-* 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 Chap 1-* Types of Statistics Statistics The branch of mathematics that transforms data into useful information for decision makers. Descriptive Statistics Collecting, summarizing, and describing data Inferential Statistics Drawing conclusions and/or making decisions concerning a population based only on sample data Chap 1-* Descriptive Statistics Collect data e.g., Survey Present data e.g., Tables and graphs Characterize data e.g., Sample mean = Chap 1-* Inferential Statistics Estimation e.g., Estimate the population mean weight using the sample mean weight Hypothesis testing e.g., Test the claim that the population mean weight is 120 pounds Drawing conclusions about a large group of individuals based on a subset of the large group. Chap 1-* Basic Vocabulary of Statistics VARIABLE A variable is a characteristi
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