Williams
CONTEMPORAR
Y
BUSINESS
STATISTICS
Chapter 1
Data and Statistics
Applications in Business
and Economics
Data
Data Sources
Descriptive Statistics
Statistical Inference
Statistical Analysis
using Microsoft Excel
Applications in
Business and Economics
Accounting
Public accounting firms use statistical sampling
procedures when conducting audits for their
clients.
Finance
Financial advisors use a variety of statistical
information, including price-earnings ratios and
dividend yields, to guide their investment
recommendations.
Marketing
Electronic point-of-sale scanners at retail checkout
counters are being used to collect data for a
variety of marketing research applications.
3
Applications
in Business and Economics
Production
A variety of statistical quality control charts
are used to monitor the output of a production
process.
Economics
Economists use statistical information in
making forecasts about the future of the
economy or some aspect of it.
Data
Earn/
Company
Observatio
n
Stock
Exchange
Annual
Sales($M) Sh.($)
Dataram
AMEX 73.10 0.86
EnergySouth
OTC
74.00 1.67
Keystone
NYSE
365.70
0.86
LandCare
NYSE
111.40
0.33
Psychemedics AMEX 17.60 0.13
Element
s
Data Set
Datum
8
10
Data Sources
Existing Sources
Data needed for a particular application might
already exist within a firm. Detailed
information is often kept on customers,
suppliers, and employees for example.
Substantial amounts of business and economic
data are available from organizations that
specialize in collecting and maintaining data .
Government agencies are another important
source of data.
Data are also available from a variety of
industry associations and special-interest
organizations.
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Data Sources
Internet
The Internet has become an important
source of data.
Most government agencies, like the Bureau
of the Census (www.census.gov), make their
data available through a web site.
More and more companies are creating web
sites and providing public access to them.
A number of companies now specialize in
making information available over the
Internet.
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Data Sources
Statistical Studies
Statistical studies can be classified as either
experimental or observational.
In experimental studies the variables of interest
are first identified. Then one or more factors
are controlled so that data can be obtained
about how the factors influence the variables.
In observational (nonexperimental) studies no
attempt is made to control or influence the
variables of interest.
A survey is perhaps the most common type of
observational study.
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Time Requirement
Searching for information can be time
consuming.
Information might no longer be useful by the
time it is available.
Cost of Acquisition
Organizations often charge for information even
when it is not their primary business activity.
Data Errors
Using any data that happens to be available or
that were acquired with little care can lead to
poor and misleading information.
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Descriptive Statistics
15
16
17
14
12
10
8
6
4
2
50
60
70
80
90
Parts
100 Cost
110($)
18
19
Statistical Inference
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2. A sample of 50
engine tune-ups
is examined.
22
23
Data Set
A
1
2
3
4
5
6
7
8
9
Customer
Sam Abrams
Mary Gagnon
Ted Dunn
ABC Appliances
Harry Morgan
Sara Morehead
Vista Travel, Inc.
John Williams
B
Invoice #
20994
21003
21010
21094
21116
21155
21172
21198
C
D
Parts
Labor
Cost ($)
Cost ($)
185
91
205
71
192
104
178
85
242
62
148
78
165
69
190
74
Formula Worksheet
1
2
3
4
5
6
7
8
9
C
D
E
Parts
Labor
Cost ($) Cost ($)
185
91
205
71
192
104
178
85
242
62
148
78
165
69
190
74
25
Value Worksheet
1
2
3
4
5
6
7
8
9
C
D
E
Parts
Labor
Cost ($) Cost ($)
185
91
205
71
192
104
178
85
242
62
148
78
165
69
190
74
79
26
End of Chapter 1
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