Jan Stallaert Professor OPIM OPIM 5103 Statistics Jan Stallaert Professor OPIM

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.

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.

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

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.

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.

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

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.

Looking at Data Example: House Data

Types of Data

Displaying Numerical Data Histogram example

Displaying Numerical Data

EXCEL Tutorial: Histograms Here’s a PDF document

Displaying Bivariate Numerical Data Scatterplots

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

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

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

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

EXCEL Tutorial: PivotTables Here’s a PDF document