ASSIGNMENT

DRIVE FALL 2016

PROGRAM MBA

SEMESTER I

SUBJECT CODE & NAME MBA 103- Statistics for Management

BK ID B1731

CREDIT & MARKS 4 CREDITS, 30 MARKS

Q1- Ans- Meaning of Statistics -

The practice or science of collecting and analyzing numerical data in large

quantities, especially for the purpose of inferring proportions in a whole from those

in a representative sample.

a branch of mathematics dealing with the collection, analysis, interpretation,

and presentation of masses of numerical data.

a collection of quantitative data.

Statistics, that a word is often used, has been derived from the Latin word

Status that means a group of numbers or figures; those represent some

information of our human interest. We find statistics in everyday life, such as in

books or other information papers or TV or newspapers. Although, in the

beginning it was used by Kings only for collecting information about states and

other information which was needed about their people, their number, revenue of

the state etc. This was known as the science of the state because it was used only

by the Kings. So it got its development as Kings subject or Science of Kings or

we may call it as Political Arithmetics. It was for the first time, perhaps in Egypt

to conduct census of population in 3050 B.C. because the king needed money to

erect pyramids. But in India, it is thought, that, it started dating back to Chandra

Gupta Mauryas kingdom under Chankya to collect the data of births and deaths.
TM has also been stated in Chankyas Arthshastra. But now-a-days due to its

pervading nature, its scope has increased and widened. It is now used in almost in

all the fields of human knowledge and skills like Business, Commerce, Economics,

Social Sciences, Politics, Planning, Medicine and other sciences, Physical as well

as Natural.

Statistics has two meanings, as in plural sense and in singular sense.

Oxford Dictionary

The term Statistics has been defined in two senses, i.e. in Singular and in Plural

sense.

In plural sense, it means a systematic collection of numerical facts and in singular

sense; it is the science of collecting, classifying and using statistics.

Characteristics of Statistics-

Some of the most important characteristics of statistics are as follows:-

1. It consists of aggregates of facts:-

In the plural sense, statistics refers to data, but data to be called statistics must

consist of aggregate of certain facts.

A single and isolated fact or figure like, 60 Kgs. weight of a student or the death of

a particular person on a day does not amount to statistics.

For a data may amount to statistics it must be in the form of a set or aggregate of

certain facts, viz. 50, 65, 70 Kgs. Weight of students in a class or profits of a firm

over different times etc. is liable to be effected by multiplicity of causes.

2. It is effected by many causes:-

It is not easy to study the effects of one factor only by ignoring the effects of other

factors. Here we have to go for the effects of all the factors on the phenomenon

separately as well as collectively, because effects of the factors can change with

change of place, time or situation.

Here, the overall effect is taken and not of one factor only as in other natural

sciences. For example, we can say that result of class XII in board examination

does not depend on any single factor but collectively on standard of teachers,

teaching methods, teaching aids, practicals performance of students, standard of

question papers and as well as of evaluation.

3. It should be numerically expressed:-

A data to be called statistics should be numerically expressed so that counting or

measurement of data can be made possible. It means that the data or the fact to
constitute statistics must be capable of being expressed in some quantitative form

as weights of 60, 70, 100 and 90 Kg. or profits of Rs. 10,000, Rs. 20,000 etc. Thus

these data must contain numerical figures so that those may be called as numerical

statement of facts.

4. It must be enumerated or estimated accurately:-

As stated above that the statements should be precise and meaningful. For getting

reasonable standard of accuracy the field of enquiry should not be very large. If it

is infinite or very large, even enumeration of data is impossible and reasonable

standard of accuracy may not be achieved. To achieve it we have to make on

estimate according to reasonable standard of accuracy depending upon the nature

and purpose of collection of data. E.g. we may measure the height of buildings in

metres but we cannot measure the length of small things like bricks in the same

unit of metre.

5. It should be collected in a systematic manner:-

Another characteristic of statistics is that the data should be collected in a

systematic manner. The data collected in a haphazard manner will lead to

difficulties in the process of analysis, and wrong conclusions. A proper plan should

be made and trained investigators should be used to collect data so that they may
collect statistics. If it is not done, in such cases reliability of data gets decreased.

So to get correct results the data must be collected in a precise manner.

6. It should be collected for a predetermined purpose:-

Before we start the collection of data, we must be clear with the purpose for which

we are collecting the data. If we have no information about its purpose, we may not

be collecting data according to the needs. We may need some more relevant data to

achieve the required purpose, which we would miss in the event of its ignorance.

Suppose we want to get data on imports and exports, we have to know about

various segments such as electronics, consumer articles, grains and such other

segregations also. If some person on govt. duty is counting the vehicles passing

through a road in a unit time is statistics, but same work done by any other person

not related to this field, is not statistics because the former is doing it for the

Government which wants to make it four lane road-if needed.

7. It should be capable of being placed in relation to each

other:-
It is last but not less important of the characteristics of the statistics. The collection

of data is generally done with the motive to compare. If the figures collected are

not comparable, in that case, they lose a large part of their significance.

It means, the figures collected should be homogeneous for comparison and not

heterogeneous. For example, Heterogeneous data like sale of Rs. 20,000 result of

80% cases and mileage of 80 kms can never be placed in relation to each other and

compared for analysis and interpretation which is the ulterior motive of the science

of statistics. It can be concluded that all statistics are numerical data but all

numerical data are not statistics unless they satisfy all the essential characteristics

of statistics, depicted as above.

Q3 Ans - Meaning of Sampling - Sampling is a process used in statistical

analysis in which a predetermined number of observations are taken from a larger

population. The methodology used to sample from a larger population depends on

the type of analysis being performed, but may include simple random

sampling or systematic sampling.

 UNIVERSE

SAMPLING

FRAME

POPULATIO
N
SAMPLE

SAMPLING FRAME

SAMPLE
 Probability Sampling Methods Simple Random Sampling and

Other Sampling Methods

Sampling Methods can be classified into one of two categories:

Probability Sampling:

Sample has a known probability of being selected

Non-probability Sampling: Sample does not have known probability of

being selected as in convenience or voluntary response surveys

Probability Sampling

In probability sampling it is possible to both determine which sampling units

belong to which sample and the probability that each sample will be selected. The

following sampling methods are examples of probability sampling:

1. Simple Random Sampling (SRS)

2. Stratified Sampling

3. Cluster Sampling
4. Systematic Sampling

5. Multistage Sampling (in which some of the methods above are combined

in stages)

Of the five methods listed above, students have the most trouble distinguishing

between stratified sampling and cluster sampling.

Stratified Sampling is possible when it makes sense to partition the population

into groups based on a factor that may influence the variable that is being

measured. These groups are then called strata. An individual group is called a

stratum. With stratified sampling one should:

partition the population into groups (strata)

obtain a simple random sample from each group (stratum)

collect data on each sampling unit that was randomly sampled from each

group (stratum)

Stratified sampling works best when a heterogeneous population is split into

fairly homogeneous groups. Under these conditions, stratification generally

produces more precise estimates of the population percents than estimates that

would be found from a simple random sample. Table shows some examples of

ways to obtain a stratified sample.

 Cluster Sampling is very different from Stratified Sampling.

With cluster sampling one should

divide the population into groups (clusters).

obtain a simple random sample of so many clusters from all possible

clusters.

obtain data on every sampling unit in each of the randomly selected clusters.

It is important to note that, unlike with the strata in stratified sampling, the clusters

should be microcosms, rather than subsections, of the population. Each cluster

should be heterogeneous. Additionally, the statistical analysis used with cluster

sampling is not only different, but also more complicated than that used with

stratified sampling.
 Each of the three examples that are found in Tables were used to illustrate how

both stratified and cluster sampling could be accomplished. However, there are

obviously times when one sampling method is preferred over the other. The

following explanations add some clarification about when to use which method.

With Example 1: Stratified sampling would be preferred over cluster

sampling, particularly if the questions of interest are affected by time zone. For

example the percentage of people watching a live sporting event on television

might be highly affected by the time zone they are in. Cluster sampling really

works best when there are a reasonable number of clusters relative to the entire

population. In this case, selecting 2 clusters from 4 possible clusters really does not

provide much advantage over simple random sampling.

With Example 2: Either stratified sampling or cluster sampling could be

used. It would depend on what questions are being asked. For instance, consider

the question "Do you agree or disagree that you receive adequate attention from

the team of doctors at the Sports Medicine Clinic when injured?" The answer to

this question would probably not be team dependent, so cluster sampling would be

fine. In contrast, if the question of interest is "Do you agree or disagree that

weather affects your performance during an athletic event?" The answer to this

question would probably be influenced by whether or not the sport is played

outside or inside. Consequently, stratified sampling would be preferred.

 With Example 3: Cluster sampling would probably be better than stratified

sampling if each individual elementary school appropriately represents the entire

population as in aschool district where students from throughout the district can

attend any school. Stratified sampling could be used if the elementary schools had

very different locations and served only their local neighborhood (i.e., one

elementary school is located in a rural setting while another elementary school is

located in an urban setting.) Again, the questions of interest would affect which

sampling method should be used.

The most common method of carrying out a poll today is using Random Digit

Dialing in which a machine random dials phone numbers. Some polls go even

farther and have a machine conduct the interview itself rather than just dialing the

number! Such "robo call polls" can be very biased because they have extremely

low response rates (most people don't like speaking to a machine) and because

federal law prevents such calls to cell phones. Since the people who have landline

phone service tend to be older than people who have cell phone service only,

another potential source of bias is introduced. National polling organizations that

use random digit dialing in conducting interviewer based polls are very careful to

match the number of landline versus cell phones to the population they are trying

to survey.

Non-probability Sampling-
 The following sampling methods that are listed in your text are types of non-

probability sampling that should be avoided:

1. volunteer samples

2. haphazard (convenience) samples

Since such non-probability sampling methods are based on human choice rather

than random selection, statistical theory cannot explain how they might behave and

potential sources of bias are rampant. In your textbook, the two types of non-

probability samples listed above are called "sampling disasters."