Introduction statistical techinique in business and eonomics by douglas a lind
- 2. Origin of Statistics • Not precisely known how the word statistics was originated • Believed to have been derived from the Latin word “Status” meaning political state • In early days the word statistics had been believed to be use as an indicator or yardsticks of country's economic, political and social conditions . • But in the modern time it is used in almost all aspects of human related activities 1/5/2018 2Introduction to Statistics
- 3. Meaning of Statistics • The word statistics is used in three different senses: 1. Statistics as Singular 2. Statistics as Plural 3. Statistics as a Plural of Statistic 1/5/2018 3Introduction to Statistics
- 4. Meaning of Statistics • Statistics as singular: -branch of knowledge that deals with the collection, organization, classification, presentation, summarization, analysis, and interpretation of statistical data in any field of inquiry • Statistics as plural: - refer to numerical facts and figures collected in a systematic manner with a definite purpose in any field of study - In this sense, statistics are also aggregates of facts which are expressed in numerical form Example: Statistics on industrial production, statistics or population growth of a country in different years etc. • Statistics as a plural of statistic: - used as the plural of the word “Statistic” which refers to a numerical quantity like mean, median, variance etc…, calculated from sample value Example: If we select 15 student from a class of 80 students, measure their heights and find the average height. This average would be a statistic. 1/5/2018 4Introduction to Statistics
- 5. Definition of Statistics According to R.A. Fisher - “ The science of statistics is essentially a branch of applied mathematics and may be regarded as mathematics applied to the observational data.” According to Croxton & Cowden - “The science, which deals with the collection , presentation, and analysis of numerical data” A modern and more comprehensive definition - “Statistics is a branch of knowledge refers to the body of techniques and methodology developed for the collection, classification, organization, presentation and analysis of statistical data and for the use of such data in decision making in any field of enquiry” 1/5/2018 5Introduction to Statistics
- 6. Business Statistics • “ Statistical methods and techniques used to analyze data collected from various fields of business and management is called business statistics” • The main purpose of this course is to familiar the business students with the most commonly used statistical methods of analysis and enable them to use business data effectively in making decision 1/5/2018 6Introduction to Statistics
- 7. Types of Statistics • Usually divided into two categories • Descriptive Statistics: - methods of organizing, summarizing, and presenting data in an informative way • Inferential Statistics: - methods used to determine something about a population on the basis of a sample Population: Complete set of individuals, objects or measurements having some common characteristics. Example: All workers of a factory, All employees of a firm, etc Sample: A representative part of the population of interests. 1/5/2018 7Introduction to Statistics
- 8. Importance of Statistics Statistics in Planning Statistics in Economics Statistics in Business 1/5/2018 8Introduction to Statistics
- 9. Characteristics of Statistics • Should deals with aggregate of individuals rather than with individual alone • Should be expressed a numerical figure • Should have the property of being varied by multiplicity of causes • Statistics collected should be reasonable standards of accuracy • Statistics should be obtained for pre- determined purposes • Statistics collected should allow comparison with other data 1/5/2018 9Introduction to Statistics
- 10. Limitation of Statistics • Deals with quantitative characteristics • Does not deals with individual • Results are true only in general and on an average • Can be misused by ignorant or wrongly motivated 1/5/2018 10Introduction to Statistics
- 11. Abuses of Statistics • Trite quotation: ‘ There are lies, damned lies and statistics’ • Statistics can be abused in 1) data collection incomparable data, biased sample, etc 2) data presentation failure to present complete classification system, inappropriateness in graphic representation, etc 3) data analysis use of absolute number instead of percentage, use of percentage instead of absolute number, etc 4) interpretation interpretation based on averages instead of individual cases, etc 1/5/2018 11Introduction to Statistics
- 12. Assignment • Define statistics. How was it originated? Make brief review of various definitions of statistics and in light of this definitions ; give your own definitions. • “Planning without statistics is a ship without rudder and a compass.” In light of the statement explain the importance of statistics as an effective aid to national planning of Bangladesh. • Are statistical methods likely to be any use to a business firm? Illustrate your answer with some typical business problem. • Comment on the following statement: “ All statistics are numerical statements but all numerical statements are not statistics” 1/5/2018 12Introduction to Statistics
- 13. References • Islam, M.N.“An Introduction to Statistics and Probability” 3rd edition, • Lind, D.A.,William G.M. “Statistical Techniques in Business & Economics” 12th edition • Roy, M.K. “ Business Statistics” 1st edition • Pillai, R.S.N., V. Bagavathi, “ Statistics” 1st edition • Shukla, M.C., S.S. Gulshan, “Statistics; Theory and Practice” 1st edition • Jalil,M.A., R. Ferdous, “Basic Statistics” Methods and Applications, 1st edition 1/5/2018 13Introduction to Statistics