STATISTICS FOR BUS AND ECON Chap001.pptVIP

* * * * * * * * * * * * * * * * * * 1-* What Is Statistics? Chapter 1 Copyright ? 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin LEARNING OBJECTIVES LO1. Understand why we study statistics. LO2. Explain what is meant by descriptive statistics and inferential statistics. LO3. Distinguish between a qualitative variable and a quantitative variable. LO4. Describe how a discrete variable is different from a continuous variable. LO5. Distinguish among the nominal, ordinal, interval, and ratio levels of measurement. Why Study Statistics? Numerical information is everywhere Statistical techniques are used to make decisions that affect our daily lives The knowledge of statistical methods will help you understand how decisions are made and give you a better understanding of how they affect you. No matter what line of work you select, you will find yourself faced with decisions where an understanding of data analysis is helpful. Learning Objective 1 Understand why we study statistics. What is Meant by Statistics? Statistics is the science of collecting, organizing, presenting, analyzing, and interpreting numerical data to assist in making more effective decisions. LO1 What is Meant by Statistics? In the more common usage, statistics refers to numerical information Examples: the average starting salary of college graduates, the number of deaths due to alcoholism last year, the change in the Dow Jones Industrial Average from yesterday to today, and the number of home runs hit by the Chicago Cubs during the 2007 season. Often statistical information is presented in a graphical form for capturing reader attention and to portray a large amount of information. LO1 Formal Definition of Statistics Some examples of the need for data collection. Research analysts for Merrill Lynch evaluate many facets of a particular stock before making a “buy” or “sell” recommendation. The marketing department at Colgate-Palmolive Co., a manufacturer of soap