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Copyright 2011 Pearson Education 1-11-11-1

Statistics for Managers usingMicrosoft Excel6th Global Edition

Chapter 1

Introduction


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Learning Objectives

In this chapter you learn:

How business uses statistics

The basic vocabulary of statistics

How to use Microsoft Excel with this book


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Why Learn Statistics

Make better sense of the world

Internet articles / reports

Magazine articles

Newspaper articles

Television & radio reports

Make better business decisions

Business memos

Business research

Technical journals

Technical reports


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In Business, Statistics Has

Many Important Uses

To summarize business data

To draw conclusions from business data

To make reliable forecasts about business

activities

To improve business processes


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Two Different Branches Of

Statistics Are Used In Business

StatisticsThe branch of mathematics that transforms data intouseful information for decision makers.

Descriptive Statistics

Collecting, summarizing,presenting and analyzing data

Inferential Statistics

Using data collected from asmall group to draw conclusionsabout a larger group


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These Two Branches Are Used

In The Important Activities

To summarize business data

Descriptive methods used to create charts & tables

To draw conclusions from business data

Inferential methods used to reach conclusions abouta large group based on data from a smaller group


activities

Inferential methods used to develop, quantify, and

improve the accuracy of predictive models

To improve business processes

Involves managerial approaches like Six Sigma


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Descriptive Statistics

Collect data

e.g., Survey

Present data

e.g., Tables and graphs

Characterize data

e.g., The sample mean



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 ofindividuals based on a smaller group.



Basic Vocabulary of Statistics

VARIABLES

Variables are a characteristics of an item or individual and are what you

analyze when you use a statistical method.

DATAData are the different values associated with a variable.

OPERATIONAL DEFINITIONS

Data values are meaningless unless their variables have operational

definitions, universally accepted meanings that are clear to all associatedwith an analysis.



Basic Vocabulary of Statistics

POPULATION

A population consists of all the items or individuals about which

you want to draw a conclusion. The population is the large

group

SAMPLE

A sample is the portion of a population selected for analysis. The

sample is the small group

PARAMETER

A parameter is a numerical measure that describes a characteristicof a population.

STATISTIC

A statistic is a numerical measure that describes a characteristic of

a sample.



Population vs. Sample

Population Sample

Measures used to describe the

population are called parameters

Measures used to describe the

sample are called statistics



This Book Is Organized To Show

The Four Uses Of Statistics

To summarize business data (Chapters 2 & 3)

To draw conclusions from business data(Chapters 4 12)


activities (Chapters 13

16)

To improve business processes (Chapter 18)



Chapter Summary

Introduced the basic vocabulary of statistics and the

role of statistics in turning data into information to

facilitate decision making

Examined the use of statistics to:

Summarize data

Draw conclusions from data Make reliable forecasts

Improve business processes

Examined descriptive vs. inferential statistics

In this chapter, we have


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All rights reserved. No part of this publication may be reproduced, stored in a retrieval

system, or transmitted, in any form or by any means, electronic, mechanical, photocopying,

recording, or otherwise, without the prior written permission of the publisher.

Printed in the United States of America.

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