1. Statistics for Managers using Microsoft Excel 6th Edition
Chapter 1 Introduction
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2. 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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3. Why Learn Statistics Internet articles / reports Magazine articles
Make better sense of the world
Make better business decisions
Internet articles / reports
Magazine articles
Newspaper articles
Television & radio reports
Business memos
Business research
Technical journals
Technical reports
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4. 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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5. Two Different Branches Of Statistics Are Used In Business
The branch of mathematics that transforms data into useful information for decision makers.
Descriptive Statistics
Collecting, summarizing, presenting and analyzing data
Inferential Statistics
Using data collected from a small group to draw conclusions about a larger group
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6. 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 about a large group based on data from a smaller group
To make reliable forecasts about business 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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7. Descriptive Statistics
Collect data
e.g., Survey
Present data
e.g., Tables and graphs
Characterize data
e.g., The sample mean
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8. 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 smaller group.
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9. 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.
DATA
Data 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 associated with an analysis.
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10. 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 characteristic of a population.
STATISTIC
A statistic is a numerical measure that describes a characteristic of a sample.
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11. Population vs. Sample Population Sample
Measures used to describe the population are called parameters
Measures used to describe the sample are called statistics
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12. 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)
To make reliable forecasts about business activities (Chapters 13 – 16)
To improve business processes (Chapter 18)
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13. Chapter Summary In this chapter, we have
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
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14. Printed in the United States of America.
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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