1 - 1 © 2001 Prentice-Hall, Inc. Statistics for Business and Economics Statistics, Data, & Statistical Thinking Chapter 1

1 - 2 © 2001 Prentice-Hall, Inc. Learning Objectives 1.Define Statistics 2.Describe the Uses of Statistics 3.Distinguish Descriptive & Inferential Statistics 4.Define Population, Sample, Parameter, & Statistic

1 - 3 © 2001 Prentice-Hall, Inc. What Is Statistics? Why? 1.Collecting Data e.g. Survey e.g. Survey 2.Presenting Data e.g., Charts & Tables e.g., Charts & Tables 3.Characterizing Data e.g., Average e.g., Average Data Analysis Decision- Making © T/Maker Co.

1 - 4 © 2001 Prentice-Hall, Inc. Application Areas Economics Economics Forecasting Forecasting Demographics Demographics Sports Sports Individual & Team Performance Individual & Team Performance Engineering Engineering Construction Construction Materials Materials Business Business Consumer Preferences Consumer Preferences Financial Trends Financial Trends

1 - 5 © 2001 Prentice-Hall, Inc. Statistical Methods Statistical Methods Descriptive Statistics Inferential Statistics

1 - 6 © 2001 Prentice-Hall, Inc. Descriptive Statistics 1.Involves Collecting Data Collecting Data Presenting Data Presenting Data Characterizing Data Characterizing Data 2.Purpose Describe Data Describe Data  X = 30.5 S 2 = Q1Q2Q3Q4 $

1 - 7 © 2001 Prentice-Hall, Inc. Inferential Statistics 1.Involves Estimation Estimation Hypothesis Testing Hypothesis Testing 2.Purpose Make Decisions About Population Characteristics Make Decisions About Population Characteristics Population?

1 - 8 © 2001 Prentice-Hall, Inc. Key Terms 1.Population (Universe) All Items of Interest All Items of Interest 2.Sample Portion of Population Portion of Population 3.Parameter Summary Measure about Population Summary Measure about Population 4.Statistic Summary Measure about Sample Summary Measure about Sample

1 - 9 © 2001 Prentice-Hall, Inc. Key Terms 1.Population (Universe) All Items of Interest All Items of Interest 2.Sample Portion of Population Portion of Population 3.Parameter Summary Measure about Population Summary Measure about Population 4.Statistic Summary Measure about Sample Summary Measure about Sample P in Population & ParameterP in Population & Parameter S in Sample & StatisticS in Sample & Statistic

© 2001 Prentice-Hall, Inc. Statistical Computer Packages 1.Typical Software SAS SAS SPSS SPSS MINITAB MINITAB Excel Excel 2.Need Statistical Understanding Assumptions Assumptions Limitations Limitations

© 2001 Prentice-Hall, Inc. Conclusion 1.Defined Statistics 2.Described the Uses of Statistics 3.Distinguished Descriptive & Inferential Statistics 4.Defined Population, Sample, Parameter, & Statistic

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