1. Jan Stallaert Professor OPIM
OPIM 5103 Statistics
Jan Stallaert
Professor OPIM

2. Educational Goals for the Course
“Poets”
Learn some basic principles of data analysis.
Learn enough so that you will know what your consultant is telling you.
“Engineers”
Sharpen quantitative skills.
Practice explaining technical material by helping non-technical people in your group.
Both groups should get something out of this class.

3. Technical Goal Understand Multiple Regression
Relationships between variables.
Is weight or length more important for determining a car’s gas mileage?
Predict one variable using others.
What profit should you expect when building a house with X sq. ft. and Y bedrooms.
Evaluate performance in the face of mitigating circumstances.
Set production goals for subordinates with different staff sizes, regional economic conditions, etc.
You run across questions every day that you don’t know the answer to.

4. From here to there... Looking at data Thinking about a process
Graphs
Numerical Summaries
Thinking about a process
Probability
What happens in the future?
Inference
Making guesses
Testing theories
Data Collection
Can we generalize our results?
Did one thing “cause” another?
Relationships: two variables
Correlation
Regression
Relationships: several variables
Multiple regression

5. Class Resources Textbook PowerPoint presentation Lectures
Does a better job explaining theory.
Not as many examples.
PowerPoint presentation
Usually available before our meetings
Lectures
My chance to explain what the reading is supposed to say.
Homeworks/Examples
Most of your learning occurs here.

6. Intro to MS Excel I assume you know how to: Create formulas in cells
Copy, cut and paste cells within a workbook
Make simple charts
E.g., Pie charts, bar charts
Have the Data Analysis Add-in installed
Do basic formatting
E.g., numbers, percentages, etc.

7. Descriptive statistics Inferential statistics
Statistical Methods
Descriptive statistics
Collecting and describing data
Inferential statistics
Drawing conclusions and/or making decisions concerning a population based only on sample data

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 and/or making decisions concerning a population based on sample results.

9. Looking at Data
Example:
House Data

10. Types of Data

11. Displaying Numerical Data
Histogram example

12. Displaying Numerical Data

13. EXCEL Tutorial: Histograms
Here’s a PDF document

14. Displaying Bivariate Numerical Data
Scatterplots

15. Displaying Categorical Data
Example: bar chart, pie chart, Pareto diagram

16. Displaying Categorical Data
Example: bar chart, pie chart, Pareto diagram

17. Displaying Categorical Data
Example: bar chart, pie chart, Pareto diagram

18. Displaying Bivariate Categorical Data
Contingency table
Style vs. basement
style 1
Grand Total 14 25 39 2 3 41 44 17 91
108
Basement

19. EXCEL Tutorial: PivotTables
Here’s a PDF document