IIE Learn Module Outline QUAT6221/d/w

QUANTITATIVE TECHNIQUES
QUAT6221
MODULE OUTLINE 2021

This guide enjoys copyright under the Berne Convention. In terms of the Copyright Act, no 98 of
1978, no part of this manual may be reproduced or transmitted in any form or by any means,
electronic or mechanical, including photocopying, recording or by any other information storage
and retrieval system without permission in writing from the proprietor.

The Independent Institute of Education (Pty) Ltd is registered with the

Department of Higher Education and Training as a private higher education
institution under the Higher Education Act, 1997 (reg. no. 2007/HE07/002).
Company registration number: 1987/004754/07.

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IIE Learn Module Outline QUAT6221/d/w

Table of Contents
Introduction.................................................................................................................................. 3
Using this Module Outline ........................................................................................................... 4
This Module on Learn................................................................................................................... 5
Icons Used in this Document and on Learn ................................................................................. 6
Module Resources........................................................................................................................ 7
Module Purpose ........................................................................................................................... 8
Module Outcomes........................................................................................................................ 8
Assessments: ................................................................................................................................ 9
Module Pacer ............................................................................................................................. 12
Glossary of Key Terms for this Module ...................................................................................... 25

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Introduction
The primary objective of quantitative techniques in the business environment is to provide
essential tools to deal with the increasing amounts of information you are bombarded with, not
only in the business environment but also in your everyday life through newspapers, magazines,
television, radio and the Internet. The Internet literally puts data at our fingertips. By pressing a
few buttons on a computer, information from across the world can be found and accessed within
minutes.

A sound knowledge of mathematics and statistics is the cornerstone for various quantitative
activities and good decision making in economics, business, industry, education, defence,
science, medicine and engineering. It is included in this degree program because it plays a vital
role in all the business fields including financial analysis, economics, accounting, auditing,
banking, production and marketing research.

The reason for this is because data is everywhere and no matter what your career; you will at
some stage be required to make decisions that involve data using statistical techniques. An
understanding of statistical methods will help you make these decisions more effectively.

Your knowledge of quantitative techniques in business will also develop many other
fundamental skills, including computing, logical thinking, decision making and communication
skills, which are highly valued by employers in all sectors and are essential to most of the other
subjects in your course.

H. G. Wells, a science fiction author, wrote in 1903: "Statistical thinking will one day be as
necessary for efficient citizenship as the ability to read and write." He was quite prophetic
because anyone who lacks fundamental numeracy, statistical reasoning, and thinking skills may
find they are unprepared to meet the needs of future employers or to understand information
presented in the news and media. From experience, most companies and organisations have
realised that success depends on the level of analytical, quantitative and statistical skills of their
workforce and they therefore seek employees with a sound mathematical training.

Quantitative Techniques can therefore be defined as statistical and programming techniques,

which help decision makers to solve many business and industry problems. It is used to provide,
organise and analyse data using various quantitative analysis tools, testing the significance of
data and using the results to make informed business decisions.

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IIE Learn Module Outline QUAT6221/d/w

Using this Module Outline

This module outline has been developed to support your learning. Please note that the
content of this module is on Learn as well as in the prescribed material. You will not succeed
in this module if you focus on this document alone.

• This document does not reflect all the content on Learn, the links to different resources,
nor the specific instructions for the group and individual activities.
• Your lecturer will decide when activities are available/open for submission and when these
submissions or contributions are due. Ensure that you take note of announcements made
during lectures and/or posted within Learn in this regard.

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This Module on Learn

Learn is an online space, designed to support and maximise your learning in an active manner.
Its main purpose is to guide and pace you through the module. In addition to the information
provided in this document, you will find the following when you access Learn:

• An assessment brief;
• A list of prescribed material;
• A variety of additional online resources (articles, videos, audio, interactive graphics, etc.)
in each learning unit that will further help to explain theoretical concepts;
• Critical questions to guide you through the module’s objectives;
• Collaborative and individual activities (all of which are gradable) with time-on-task
estimates to assist you in managing your time around these;
• Revision questions, or references to revision questions, after each learning unit.

Kindly note:
• Unless you are completing this as a distance module, Learn does not replace your
contact time with your lecturers and/or tutors.
• QUAT6221 is a Learn module, and as such, you are required to engage extensively
with the content on the Learn platform. Effective use of this tool will provide you
with opportunities to discuss, debate, and consolidate your understanding of the
content presented in this module.
• You are expected to work through the learning units on Learn in your own time –
especially before class. Any contact sessions will therefore be used to raise and
address any questions or interesting points with your lecturer, and not to cover every
aspect of this module.
• Your lecturer will communicate submission dates for specific activities in class and/or
on Learn.

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Icons Used in this Document and on Learn

The following icons are used in all your modules on Learn:

Icon Description

A list of what you should be able to do after working through the learning unit.

Specific references to sections in the prescribed work.

Questions to help you recognise or think about theoretical concepts to be

covered.

Sections where you get to grapple with the content/ theory. This is mainly
presented in the form of questions which focus your attention and are aimed at
helping you to understand the content better. You will be presented with online
resources to work through (in addition to the textbook or manual references) and
find some of the answers to the questions posed.

Opportunities to make connections between different chunks of theory in the

module or to real life.

Real life or world of work information or examples of application of theory, using

online resources for self-exploration.

REMEMBER:

You need to log onto Learn to:

• Access online resources such as articles, interactive graphics, explanations, video clips, etc. which
will assist you in mastering the content; and
• View instructions and submit or post your contributions to individual or group activities which are
managed and tracked on Learn.

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Module Resources
Prescribed Material (PM) for 1. Wegner T. 2020. Applied Business Statistics Methods and
this Module Excel-Based Applications. 5th ed. JUTA. ISBN Number:
9781485130499.

2. The IIE. QUAT6221 Workbook

Recommended Readings, Please note that a number of additional resources and links
Digital, and Web Resources to resources are provided throughout this module on the
Learn platform. You are encouraged to engage with these as
they will assist you in mastering the various objectives of
this module. They may also be useful resources for
completing any assignments. You will not, however, be
assessed under examination conditions on any additional or
recommended reading material.
Module Overview You will find an overview of this module on Learn under the
Module Information link in the Course Menu.
Assessments Find more information on this module’s assessments in this
document and on the Student Portal.

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Module Purpose
This module covers the basic concepts and principles of Statistics. The application of key
statistical concepts and techniques are explained.
Module Outcomes
MO1 Demonstrate an understanding of mathematical principles and relationships.
MO2 Use rules and principles to solve statistical problems.
MO3 Apply statistical techniques in a variety of contexts.

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Assessments:
QUAT6221/d
Integrated Curriculum Engagement (ICE)
Minimum number of ICE activities to complete 4
Weighting towards the final module mark 10%

Tests/Examination Test 1 Test 2 Examination

Weighting 25% 30% 35%
Duration 1 hour 1 hour 2 hours
Total marks 60 60 120
Open/closed book Closed book Closed book Closed book
Resources required Calculator + Calculator + Calculator +
Formulae sheet Formulae sheet Formulae sheet
Learning Units covered LU1 - 2 LU3 - 6 ALL

QUAT6221w
INTEGRATED CURRICULUM ENGAGEMENT (ICE)
Minimum number of ICE activities to complete 4
Weighting towards the final module mark 10%

Tests/Examination Assignment 1 Assignment 2 Examination

Weighting 25% 30% 35%
Duration 1 hour 1 hour 2 hours
Total marks 100 100 120
Open/closed book Open book Open book Closed book
Resources required Calculator + Calculator + Calculator +
Formulae sheet Formulae sheet Formulae sheet
Learning Units covered LU1 - 2 LU3 - 6 ALL

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Assessment Preparation Guidelines

Format of the Assessment Preparation Hints
(The Focus/Approach/Objectives) (How to Prepare, Resources to Use,
etc.)
ASSIGNMENT 1 These assignments will deal with To prepare effectively for this
ASSIGNMENT 2 both practical and theory. A assignment you can include the
formulae sheet should be used. following in your preparation:
NB: For
QUAT6221w • Ensure that you work
ONLY through all the review
questions in the LUs
assessed;
• Check if you are confident
that you could answer
questions relating to all of
the Learning Objectives for
the LUs assessed;
• Work through Mock
Assessments or previous
assessments;
• Work through the examples
in the prescribed book.
Test 1 This test will deal with both practical To prepare effectively for this test
and theory. A formulae sheet will be you can include the following in
handed out. your preparation:

• Ensure that you work

through all the review
questions in the LUs tested;
• Check if you are confident
that you could answer
questions relating to all of
the Learning Objectives for
the LUs tested;
• Work through Mock
Assessments or previous
assessments;
• Work through the examples in
the prescribed book.

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Assessment Preparation Guidelines

Format of the Assessment Preparation Hints
(The Focus/ Approach/ Objectives) (How to Prepare, Resources to Use,
etc.)
Test 2 This test will deal with both practical To prepare effectively for this test
and theory. A formulae sheet will be you can include the following in
handed out. your preparation:

• Ensure that you work

through all the review
questions in the LUs tested;
• Check if you are confident
that you could answer
questions relating to all of
the Learning Objectives for
the LUs tested;
• Work through Mock
Assessments or previous
assessments;
• Work through the examples in
the prescribed book.
Examination This examination will deal with both To prepare effectively for this
practical and theory. A formulae examination you can include the
sheet and statistical tables will be following in your preparation:
handed out.
• Ensure that you work
through all the review
questions in the LUs tested;
• Check if you are confident
that you could answer
questions relating to all of
the Learning Objectives for
the LUs tested;
• Work through Mock
Assessments or previous
assessments;
• Work through the examples in
the prescribed book.

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Module Pacer
Module Code Programme Contact Sessions Credits
QUAT6221 BCO2; BDK2; BET2; BHU2; BLG2; 48
BIB1; BAA1; BBR1
15
QUAT6221d BIB1d; BLG2d 36
QUAT6221w BCO2w 12
Learning Unit 1 Introduction to Statistics

Overview:

In this learning unit, we explore the role of statistics in our everyday lives, focusing on the
terminology specific to the study of statistics. We then look at uncertainty and probability in
decision making and the differences between descriptive and inferential statistics. Finally,
we examine different types of data and the ways in which to collect, organise, analyse,
interpret and present data and distinguish between probability sampling and non-probability
sampling.

Please work through Theme 1 on Learn, together with the relevant sections of your
prescribed source/s.

The challenge you may experience in this learning unit relates to the classification of
different sets of data as qualitative or quantitative and the classification of the quantitative
data sets as either discrete or continuous.

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Learning Unit 1: Theme Breakdown

Sessions: Learning Objectives: Prescribed Material (PM)
PM 1: Textbook
QUAT6221 LO1: Explain the meaning of data and
Sessions: 1–4 statistics.
LO2: Describe the role of uncertainty in
QUAT6221d decision making.
Sessions: 1–3 LO3: Distinguish between various terms
and concepts utilised in statistical
Academic Week: analysis.
1 LO4: Distinguish between descriptive and
Related inferential statistics.
Outcomes: LO5: Differentiate between different
MO2 types of data.
MO3 LO6: Distinguish between probability
sampling and non-probability
sampling.

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Learning Unit 2 Descriptive Statistics

Overview:

In this learning unit, we shall explore the tools that can be used to summarise and present
data. We shall then examine ways in which to compute and interpret relevant averages from
this data, as well as different measures of location and dispersion. We will also look at group
and ungrouped data

Please work through Themes 1 and 2 on Learn, together with the relevant sections of your
prescribed source/s.

The challenge you may experience in this learning unit relates to the computing and
interpreting of measures of location and dispersion.

Learning Unit 2 Theme Breakdown

Sessions: Learning Objectives: Prescribed Material (PM)
PM 1: Textbook
QUAT6221 LO1: Identify the tools used to
Sessions: 5–11 summarise data.
LO2: Present data using appropriate
QUAT6221d graphs.
Sessions: 4–8 LO3: Identify the features that describe
Academic Week: and summarise data numerically.
2-3 LO4: Differentiate between grouped and
Related ungrouped data.
Outcomes: LO5: Compute and interpret measures of
MO1 location, relative standing,
MO2 dispersion and shape for:
MO3 ▪ Ungrouped data.
▪ Grouped data.

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Learning Unit 3 Basic Probability

Overview:

Nothing in life is certain. In everything we do, we gauge the chances of successful outcomes,
from business to medicine to the weather. A probability provides a quantitative description
of the chances or likelihoods associated with various outcomes.

In this learning unit, we will review all the basic probability calculations that you must be
capable of performing in a standard business environment today.

Please work through Themes 1 and 2 on Learn, together with the relevant sections of your
prescribed source/s.

The challenge you may experience in this learning unit relates to the application of the
addition and the multiplication rules to calculate probabilities.

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Learning Unit 3: Theme Breakdown

Sessions: Learning Objectives: Prescribed Material (PM)
PM1: Textbook
QUAT6221 LO1: Discuss the concept ‘probability’
Sessions: 12 - 16 and the reasons why it is important; Notes on this LU:
LO2: Examine basic probability concepts, • Bayes Theorem should
QUAT6221d including experiments, sample NOT be considered as
Sessions: 9 - 13 spaces, possible outcomes and part of this module
Academic Week: events; • All excel related
3-4 LO3: Describe the properties of references and
Related probability; exercises will not be
Outcomes: LO4: Distinguish between events that are assessed.
• MO1 mutually exclusive and events that
• MO2 are not mutually exclusive;
LO5: Distinguish between independent
and dependent (conditional) events;
LO6: Apply the addition and
multiplication rules to calculate
probabilities;
LO7: Apply the correct counting rules to
determine how many different ways
one can choose or do certain
events;
LO8: Distinguish between the counting
rules of permutations and
combinations.

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Learning Unit 4 Probability Distributions

Overview:

Future events are far from certain in the business world. This is especially true for smaller
businesses, which tend to be more volatile than larger organisations, or newer businesses
without a proven track record of sales and costs. For this reason, probability distributions
can be a great tool for estimating future returns and profitability. A probability distribution is
a statistical model that shows the possible outcomes of a particular event or course of
action, and the statistical likelihood of each event.

In this learning unit, we will review the use of mathematical functions to find probabilities
where the outcomes of a specific random variable follow known probability patterns.

Please work through Themes 1 and 2 on Learn, together with the relevant sections of your
prescribed source/s.

The challenge you may experience in this learning unit relates to the use of the appropriate
distribution to find the correct probabilities associated with a given value of the random
variable

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Learning Unit 4: Theme Breakdown

Sessions: Learning Objectives: Prescribed Material (PM)
PM1: Textbook
QUAT6221 LO1: Discuss the concept of a probability
Sessions: 17—21 distribution and a random variable; Notes on this LU:
LO2: Distinguish between discrete and • All excel related
QUAT6221d continuous random variables; references and
Sessions: 14—17 LO3: Distinguish between discrete and exercises will not be
Academic Week: continuous probability distributions; assessed
5-6 LO4: Correctly choose the distribution for
Related the problem under consideration;
Outcomes: LO5: Use the binomial distribution to find
• MO1 the correct probabilities associated
• MO2 with a given value of the random
variable;
LO6: Use the Poisson distribution to find
the correct probabilities associated
with a given value of the random
variable;
LO7: Describe the nature of the normal
distribution;
LO8: Apply the standard normal
distribution and z-values to
determine probabilities.

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Learning Unit 5 Introduction to Sampling Distributions

Overview:

Market research involves the collection of data to obtain insight and knowledge into the
needs and wants of customers and the structure and dynamics of a market. In nearly all
cases, it would be very costly and time-consuming to collect data from the entire population
of a market. It is not feasible to contact every member of the population, so only a sample,
or subset, of that population is used when conducting statistical research.

In this learning unit, we will explore the different methods of sampling and the concept of
sampling distribution.

Please work through Themes 1 and 2 on Learn, together with the relevant sections of your
prescribed source/s.

The challenge you may experience in this learning unit relates to the calculation and the
interpretation of probabilities using the sampling distribution of the mean.

Learning Unit 5: Theme Breakdown

Sessions: Learning Objectives: Prescribed Material (PM)
PM1: Textbook
QUAT6221 LO1: Describe the purpose and concept
Sessions: 22 — 26 of sampling distributions; Notes on this LU:
LO2: Define the concept ‘sampling • Sampling distribution
QUAT6221d error’ and calculate its value; of the difference
Sessions: 18 —21 LO3: Explain how the sampling between two sample
Academic Week: distribution of the mean is created means and two
6-7 and the shape and parameters of proportions should
Related the distribution; NOT be considered.
Outcomes: LO4: Distinguish between different • All excel related
• MO1 sampling distributions, using the references and
• MO2 central limit theorem where exercises will not be
appropriate; assessed
LO5: Calculate and interpret
probabilities using the sampling
distribution of the mean;
LO6: Calculate and interpret
probabilities associated with a
sample proportion.

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Learning Unit 6 Hypothesis Testing

Overview:

At times, we wish to examine statistical evidence, and determine whether it supports or

contradicts a claim that has been made (or that we might wish to make) concerning the
entire population. This is done in a fashion analogous to the approach taken in the South
African system of criminal justice: We take a statement, presume it to be ‘innocent’, i.e. true,
and ask how strongly the evidence contradicts our initial presumption. A trial can therefore
be seen as a hypothesis test with a null hypothesis of ‘innocent’ and an alternative
hypothesis of ‘guilty’.

In this learning unit, we will explore hypothesis testing.

Please work through Themes 1 and 2 on Learn, together with the relevant sections of your
prescribed source/s.

The challenge you may experience in this learning unit relates to the conducting of a test of
hypothesis concerning values of population mean and population proportion.

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Learning Unit 6: Theme Breakdown

Sessions: Learning Objectives: Prescribed Material (PM)
PM1: Textbook
QUAT6221 LO1: Explain the reasoning behind a
Sessions: 27 - 31 hypothesis; Notes on this LU:
LO2: Distinguish between a null • Hypothesis testing
QUAT6221d hypothesis and an alternative concerning the
Sessions: 22 - 25 hypothesis; difference between
Academic Week: LO3: Distinguish between a one and a two sample means and
7-8 two tailed test; two proportions
Related LO4: Explain the two types of errors that should NOT be
Outcomes: might occur during hypothesis considered.
• MO1 testing; • The p-value approach
• MO2 LO5: Explain the steps in general to hypothesis testing,
hypothesis testing procedures; hypothesis test for σ2,
LO6: Conduct a test of hypothesis matched pairs t-test
concerning values of population and hypothesis test for
mean and population proportion. two variances should
NOT be considered.
• Using z and t values for
intervals involving the
mean; only using z for
intervals involving
proportions.
• All excel related
references and
exercises will not be
assessed.

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Learning Unit 7 Chi-square tests

Overview:

Do all brands have an equal market share? Is there any association between family size and
size of washing machine bought? The answers to these questions require the help of chi-
square (2) analysis. The first marketing question involves a decision situation in which it is
important for a marketing manager to know whether the pattern of frequencies that are
observed fits well with the expected ones. The appropriate test is the chi-square test for
goodness-of-fit. In order to answer the last question, we test a hypothesis to determine if
two variables are related to each other. In this case, the appropriate test is the chi-square
test for independence of association.

In this learning unit, we will explore the chi-square test for goodness of fit and the chi-square
test for independence of association.

Please work through Themes 1, 2 and 3 on Learn, together with the relevant sections of your
prescribed source/s.

The challenge you may experience in this learning unit relates to the conducting of the
goodness-of-fit test of hypothesis (equality of proportions and percentages).

Learning Unit 7: Theme Breakdown

Sessions: Learning Objectives: Prescribed Material (PM)
PM1: Textbook
QUAT6221 LO1: Recognise a suitable distribution to
Sessions: 32—36 apply the chi-square test to; Notes on this LU:
LO2: Conduct the goodness-of-fit test of • The concept of
QUAT6221d hypothesis; (equality of proportions ‘theoretical probability
Sessions: 26—28 and percentages); distribution’ should be
Academic Week: LO3: Conduct the test of independence; covered as part of the
9 - 10 (Contingency). course content but will
Related NOT be examined.’
Outcomes:
• MO1
• MO2

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Learning Unit 8 Regression and Correlation Analysis

Overview:

In this learning unit, you will explore the methods used in statistics to make forecasts
regarding business decisions. These methods, referred to as regression analysis and
correlation analysis respectively, focus on the relationship between variables, and the
strength of that relationship.

Please work through Themes 1, 2 and 3 on Learn, together with the relevant sections of your
prescribed source/s.

The challenge you may experience in this learning unit relates to the computation and
interpretation of the components of a linear regression function.

Learning Unit 8: Theme Breakdown

Sessions: Learning Objectives: Prescribed Material (PM)
PM 1: Textbook
QUAT6221 LO1: Explain what linear regression
Sessions: 37–43 is and why it is important.
LO2: Interpret the
QUAT6221d components of a linear
Sessions: 29–33 regression function.
LO3: Explain correlation analysis.
Academic Week: LO4: Explain how to interpret the
10 - 11 correlation coefficient (r).
Related LO5: Apply the coefficient of
Outcomes: determination (r2).
MO2 LO6: Calculate the components of a
MO3 linear regression function.
LO7: Calculate the correlation
coefficient (r).
LO8: Calculate the coefficient of
determination (r2).

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Learning Unit 9 Index Numbers

Overview:

In this learning unit, you will learn how to use index numbers to measure economic activity
over a specific period of time, focussing on changes in prices, quantity and value. Such index
numbers provide decision makers with a more accurate picture of the behaviour of
economic variables over time.

Please work through Themes 1, 2 and 3 on Learn, together with the relevant sections of your
prescribed source/s.

The challenge you may experience in this learning unit relates to the calculation of the
unweighted composite price and quantity indexes, and the interpretation thereof.

Learning Unit 9: Theme Breakdown

Sessions: Learning Objectives: Prescribed Material (PM)
PM 1: Textbook
QUAT6221 LO1: Explain the significance of ‘index
Sessions: 44—48 numbers’ in the real world.
LO2: Differentiate between simple and
QUAT6221d composite index numbers.
Sessions: 34—36 LO3: Differentiate between unweighted
Academic Week: and weighted index numbers.
12 LO4: Calculate and interpret index
Related numbers such as the specific
Outcomes: weighted composite price and
MO2 quantity indexes of Laspeyres
MO3 and Paasche.

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Glossary of Key Terms for this Module

Addition rule P (A or B) means A happens or B happens or both (A and B) can happen.
(or rule)
Bar graph A graphical representation of a categorical distribution with a bar drawn for
each category. The length of the bar depends on the frequency of a
category.
Binomial Discrete distribution that gives the probability of ‘x’ successes in ‘n’ trials.
distribution
Box-and- A graph that consists of a box that represents the interquartile range and
whisker plot inside the box a vertical line shows the position of the median. The whiskers
extend from the sides of the box to the smallest value on the left and to the
largest value on the right.
Categorical Consists of non-numerical measurements.
variable
Central Limit As the sample size increases, regardless of the population distribution from
Theorem which it was taken, the sampling distribution of the mean becomes more
normal.
Central Summary measures that describe the middle of a data set using a single
tendency number.
Chi-square Tests a hypothesis by comparing a set of expected frequencies with a set of
statistic observed frequencies.
Chi-square A hypothesis test for association between two categorical variables.
test of
independenc
e
Cluster A sampling method by which a population is divided into groups or clusters.
sampling A random sample of n clusters is selected from which the elements of the
sample are then selected.
Coefficient The ratio of the standard deviation to the mean, expressed as a percentage.
of variation
Complement The complement of an event A is the collection of all possible outcomes not
rule contained in event A.
Compound Measures change for a basket of related items from the base period to the
(or current period.
composite)
Index
Conditional The probability that an event B will occur given (or if) that event A has
probability already happened.

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Confidence An interval developed from sample data such that if all possible intervals
interval with the same width were constructed, a proportion of these intervals,
known as the confidence level, would contain the true population
parameter.
Confidence The proportion of all possible confidence intervals from a sampling
level distribution that will contain the true population parameter.
Confidence The proportion of all possible confidence intervals that will contain the true
limits population parameter.
Contingency A table used to classify sample observations according to two or more
table variables. Also known as a cross-classification table.
Continuous Data obtained through a measurement, not a count, and can assume any
data value in an interval.
Correlation Measures the strength of a relationship between two variables.
coefficient
Counting These rules involve counting the number of successful outcomes and the
rule total number of outcomes in an experiment.
Critical value The value that corresponds to a significance level in hypothesis testing to
determine the cut-off point between the rejection area of the null
hypothesis and the not to reject area.
Cumulative Total frequency up to the upper-class boundary of given interval.
frequency
Cyclical A wavelike pattern in a time series that repeats itself over periods longer
component than one year.
Data A collection of observations about a variable.
Dependent Two events A and B are dependent if the occurrence of event A impacts on
event the probability of event B occurring.
Descriptive Summarises sample data.
statistics
Discrete A variable which can be measured only by means of counting or whole
variable numbers.
Dispersion The spread or variability of the data around an average.
Distribution A collection of measurements.
Elements The people or objects about which information is collected.
Event One outcome or a collection of outcomes from an experiment.
Expected The pattern of expected responses in a chi-square test.
frequencies
Experiment An experiment or investigation is a repeatable process or action that causes
an event to happen.
Factorial n! = n(n – 1)(n – 2)(n – 3)…3 × 2 × 1

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Forecasting The time period for which forecasts must be made.

period
Frequency The count or number of observations in a category or interval.
Frequency A classification of data elements into class intervals in a manner that displays
distribution the number of observations (frequency) per class interval.
Grouped Data summarised into distinct groups or class intervals.
data
Histogram A continuous series of rectangles or bars constructed across class intervals.
Independent Events whose occurrence does not affect the probability of occurrence of
events another event.
Independent An X-variable whose values impact the values of another variable known as
variable the dependent (Y) variable.
Index A value that is used to measure change in price and/or quantity from one
number time period to another.
Inferential Analysis and estimation of population parameters based on sample statistics.
statistics
Interquartile A measure of dispersion that is determined by subtracting the first quartile
range value from the third quartile value of a set of data.
Interval scale Quantitative data to which you can add or subtract values to obtain the
differences, but no true zero exists.
Irregular Random fluctuations in a time series caused by unpredictable occurrences.
variation
Least The sum of the squared deviations of the data values from the line of best fit
squares is minimised.
criterion
Linear trend An increase or decrease trend in a time series in which the rate of change is
constant.
Margin of A measurement of how close a point estimate is expected to be to a
error population parameter within a specified level of confidence. This determines
the value that has to be added to or subtracted from a point estimate to
determine a confidence interval.
Mean A numerical measure of central tendency obtained by dividing the sum of all
the data values by the number of data elements.
Median A numerical measure of central; obtained by identifying the centre value of a
number of data values after having arranged the data values in a decreasing
or increasing numerical order.
Mode A numerical measure of central tendency obtained by identifying the data
value that appears most often in a data set.

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Multiplicatio P (A and B): Both A and B happen at the same time.

n rule (AND
rule)
Mutually Two events A and B are mutually exclusive if the occurrence of event A
exclusive precludes the occurrence of event B.
events
Nominal Defines some categorical characteristics such as gender, occupation, etc. in
scale no specific order.
Non- A non-random criterion is used in the sampling method.
probability
sampling
Normal A symmetrical or bell-shaped distribution.
distribution
Null The statement about the population parameter that will be tested.
hypothesis
Observed The pattern of observed responses obtained from a sample.
frequencies
Ogive A graph depicting the total number of observations per interval that have
values less than the upper boundary of each interval.
One-tailed A hypothesis test in which the rejection area is located in one tail of the
test sampling distribution – one direction only.
Ordinal scale Nominal data ranked in one or other order.
data
Outcome The result of a single trial in an experiment.
Outlier Unusually large or small value.
Parameter A numerical measure of description computed from the entire population.
Percentiles Percentiles divide a data set into 100 segments. A specific nth percentile can
be interpreted as n% of the values in the data set that are smaller than this
value, the rest (100 – n%) are higher than this value.
Pie chart A circle graph divided into ‘slices’. Each slice represents a category to be
displayed.
Point A single sample statistic that is used to estimate its corresponding population
estimate parameter.
Poisson The probability of ‘x’ occurrences of an event over a given interval of time or
distribution measurement.
Polygon It is a line graph that plots the frequency for each class interval at the
midpoint of each class interval.
Population A set of all objects or individuals of interest from which a sample can be
drawn.
Primary data New data collected from scratch.

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Probability The chance that a particular event will occur/not occur.

Probability A list of all possible outcomes of a course of action together with their
distribution corresponding probabilities.
Proportion The fraction of values from a data set that has a specific characteristic.
Qualitative Data for which the measurement scale is categorical.
data
Quantitative Numerical measurements that can be used in calculations.
data
Quartiles Dividing a data set into four equal sized segments.
Questionnair List of questions that are used to gather data from respondents.
e
Random A sample chosen in such a way that each element in the population has the
sample same (equal) chance of being included in the sample.
Ratio scale Highest measurement scale on which you can perform any calculations
because of the presence of a true zero.
Raw data List of the original observations of a variable.
Regression A technique which is used to identify relationships between variables for the
analysis purpose of predicting future values.
Relative The proportion of the total observations that fall within a given interval.
frequency
Sample A proportion or subset of a population.
Sample The set of all possible outcomes of an experiment.
space
Sampling A distribution of the statistics obtained from all possible samples of the same
distribution size that can be selected from a population. It describes how a particular
sample statistic varies about its true, unknown population parameter.
Sampling The difference between a statistic computed from a sample and a parameter
error computed from a population.
Scatter plot A graph of plotted points in which the vertical axis represents the dependent
variable (Y) and the horizontal axis represents the independent variable (X).
Each plotted point has coordinates whose values are obtained from the X
and Y variables.
Seasonal A number that measures the effect of the seasonal component in time
index series.
Seasonal A wavelike pattern that repeats itself within a period of one year.
variation
Secondary Already available data. The user is not the one that collected the original
data data.
Significance The maximum allowable probability of committing a Type I error denoted by
level α.

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Simple index Index number calculated for one product only.

number
Standard The square root of the average of the sum of squared differences between
deviation the mean and each data value.
Standard A value that measures the spread of the sample means around the
error population mean.
Statistic A summary measure computed from an analysis of a sample, such as an
average or standard deviation.
Statistics The subject that can be defined as the science of data.
Stratified A sampling method in which the population is divided into homogeneous
sampling groupings. A representative sample is then selected proportionally at
random from each group.
Test statistic A value calculated by making use of sample statistics to provide a
comparison basis for testing hypothesis.
Time series Measurements collected over a period of time.
data
Trend The general direction (increasing or decreasing) in which the time series is
component moving.
Trial A single execution of an experiment.
Two-tailed A hypothesis test in which the rejection area is split into both tails of the
test sampling distribution.
Uncertainty A decision environment in which the decision maker does not know what
outcome will occur if there is more than one possibility.
Unweighted No consideration is given to the relative importance of the different
index commodities in a basket.
number
Variable A variable describes an event and is said to be the characteristic of interest.
Variance The square of the relative distance between the data points and the mean of
a data set.
Variation Variation in a set of data if all the values in the data set are not the same
value.
Weighted A composite index that includes a measure of importance (weight) into the
index calculation.
number

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