GSBUSSTA

Business Statistics
Prof. Johnny Amora
Faculty and Statistician
De La Salle-College of Saint Benilde
Taft Avenue, Manila
Email: johnny.amora@gmail.com

Statistics Lecture

Introduction: Contents
Definition

of Statistics
Population vs Sample
Parameter vs Statistics
Descriptive Statistics vs Inferential
Statistics

General Uses of Statistics

Statistics Lecture

 Steps

in Statistical Inquiry
Classification of Data
Levels of Measurements

Statistics Lecture

Definition of Statistics
1. A set of numerical data

2. Values obtained from a set of numerical

data
3. Branch of Mathematics that deals with the
collection, organization, presentation,
analysis, and interpretation of data.

Statistics Lecture

Population vs Sample
Population

sample

Statistics Lecture

A collection of all the elements

under consideration in any
statistical study.

A subset of the
population
from
which the information
is collected.
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Population vs Sample[continued]
Identify the population and the sample of each of the
following situations:
A manufacturer of mobile phones wants to determine if
customers satisfied with the performance of their
products(phones). Toward this goal, 1000 of his 5,000
customers are contacted and each is asked, Are you
satisfied of the phone you purchased?
A Dean of a college wants to know the teaching
performance of his newly hired teacher. Toward this goal,
100 of the 500 total number of students under the teacher
in a semester are asked to answer the question: What is
the level of performance of your teacher?
Statistics Lecture

Parameter vs Statistics
Population
, 2

Sample
(drawn from the
population)

x, s 2

is a symbol for population mean.

is a symbol for population standard deviation.
2 is a symbol for population variance.

x is a symbol for sample mean

s is a symbol for sample standard deviation.
s2 is a symbol for sample standard deviation
Statistics Lecture

Parameter vs Statistic [continued]

Identify the parameter and the statistic
In order to estimate the true proportion of male students
at a certain university who smoke cigarettes, the Guidance
Coordinator pooled a sample of 500 male students and
determined that the proportion of male students from the
sample who smoke cigarettes is 15%.

In order to estimate the true average monthly income of

household heads in a certain municipality, a researcher
pooled a sample of 1000 household heads and determined
that the average monthly income of household heads from
the sample is P10,500.
Statistics Lecture

Descriptive Statistics vs Inferential Statistics

DESCRIPTIVE STATISTICS a collection of

methods that are used to summarize and
describe the important characteristics of the
data (sample).

INFERENTIAL STATISTICS
a set of
procedures used to make inferences about the
population characteristics from the information
contained in a sample.
Statistics Lecture

Descriptive Statistics
Population

sample

Describe the population based on

the data obtained from the
population.

Describe the sample based on

the data obtained from the
sample. (e.g., 50% of the sample
of 1000 voters against EVAT.)

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Descriptive Statistics vs Inferential Statistics

Descriptive

Inferential

A politician wants to know the exact

percentage of votes cast for him in
the last election.

A politician wants to estimate, based

on an opinion poll, his chance for
reelection in the upcoming election.

A university registrar wants to

determine the average yearly drop-out
rate of students in the past 5 years.

A university registrar wants to predict,

based on past data, the average drop-out
rate in the next ten years.

A store manager would like to determine

the average monthly sales in the past six
months.

A store manager would like to predict,

based on last years sales, the average
monthly sales for this year.

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General Uses of Statistics

1. Summarizes data for public use

2. Aids in decision making

Provides comparison

Justifies a claim or assertion

Predicts future outcomes

Estimates unknown quantities

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Steps in Statistical Inquiry

Choosing the
problem and
stating the
hypothesis

Interpreting
results/drawing
conclusions

Data Collection

Processing and
analyzing data
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Formulating the
research design

Coding the Data

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Data
refers
to
the
information
collected, organized, analyzed,
and interpreted by researchers.

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Classification of Data
QUANTITATIVE - any attribute that we
measure in numbers.
Examples: Height: 100cm, 5m, 5ft
Weight: 60kg, 140 lb, etc.
QUALITATIVE have labels or names assigned to
their respective categories.
Examples:
Sex: male, female
color: red, blue, yellow
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VARIABLE
a characteristic or attribute of
persons, animals, or objects which
can assume different values.

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Measurement
the process of determining the
value or label, either qualitative or
quantitative, of a particular variable
for a particular unit of analysis.

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Levels of Measurement

Nominal Level
Ordinal Level
Interval Level
Ratio Level

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Nominal level
o
o

One that has two or more categories, but

there is no intrinsic ordering to the categories.
The categories are distinct, non-overlapping,
and exhaustive.
Examples: GENDER: male, female
CIVIL STATUS: single, married, widowed

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Ordinal Level
One that has two or more categories, but there is
clear ordering to the categories.
o The categories must be distinct, non-overlapping,
and exhaustive
o The difference between each pair of categories
cannot be determined, or the difference between
each pair of categories are not equal.
o

Examples:

Size of T-shirt: small, medium, large

Job Satisfaction: very satisfied, satisfied, dissatisfied, very dissatisfied
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Interval Level
Contains the properties of the ordinal level, but the
difference between each pair of categories/values
are equally spaced.
o Zero point is arbitrary; that is, the number zero does
not imply the absence of characteristics under
consideration.
o

Examples: IQ, temperature in degree centigrade

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Ratio Level
o

Contains the properties of the interval level,

but it has the zero point; that is, the number
zero indicates the absence of the
characteristics under consideration.

Examples: height, weight,

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Notes on Levels of Measurement

o

Variables which are measured at the

nominal or ordinal levels are called
categorical variables

Variables which are measured at the

interval or Ratio levels are called
continuous variables.

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