Name : Satrio Anugrah Ramadhan

Student ID : 008202100023
Study Program : Accounting 2021 - Class 1
Subject : Statistics, Problem Solving, and Decision Making for Accountants

Assignment Week 1 (Introduction to statistics)

1. Summary
2. Do the exercises : Problems for Sections 1.1 1.2 page 45; 49; and 52 No 1.1; 1.3; 1.4; 1.8;
1.12; and 1.23

Assignment 1 (Summary)
 Definition of Statistic
Statistics is the science of collecting, organizing, presenting, analyzing, and interpreting
quantitative or numerical data.

 Uses of Statistics
 Statistics will be very useful in order to understand and process these numerical
information, because Numerical information is everywhere.
 Statistical Techniques are used to make decisions that affect our daily lives.
 Knowledge of statistical methods will help us understand how decisions are made and give
us a better understanding of how they affect us.

 Statistical Method
 Descriptive Statistics
Descriptive Statistics uses numerical or graphics procedures to summarize a collection of
data in a clear and understandable way to describe or reach conclusions about that same
group only.
 Involve collecting cata, presenting data, and characterizing data.
 The purpose is to describe data.
 Inferential Statistics
Inferential Statistics uses sample data to reach conclusions about the population from
which the sample was taken.
 Involve estimation and hypothesis testing.
 The purpose is to make decisions about population characteristics.

 Define Variable and Constant

 Variable is a characteristic or condition that can change or take on different values.
 Constant is a characteristics of objects, people, or events that does not vary.
 Define Population, Sample, Parameter, and Statistic
 Population (Universe) is All items of interest
 Sample is Portion of population)
 Parameter is a descriptive measure of the population.
– Usually represented by Greek letters
 Statistic is descriptive measure of a sample.

 Define Data
 Quantitative Data is Measured on a numeric scale.
 Number of defective items in a lot.
 Salaries of CEO's of oil companies.
 Ages of employees at a company.
 Qualitative Data is Classified into categories.
 College major of each student in a class.
 Gender of each employee at a company.
 Method of payment (cash, check, credit card).

 Levels of Measurement and Measurement Scales

 Nominal is Categories (no ordering or direction).
 Operation : Classifying and Counting
 Stastistical Method : Nonparametic
 Level : Lowest level (Weakest form of measurement)
 Examples : Marital status, Type of car owned
 Ordinal is Ordered Categories (rankings, order, or scaling).
 Operation : All of the above plus Ranking
 Stastistical Method : Nonparametic
 Level : Higher Level
 Examples : Service quality rating, Standard & Poor’s bond rating, Student letter
grades
 Interval is Differences between measurements but no true zero.
 Operation : All of the above plus Addition, Subtraction
 Stastistical Method : Parametic
 Level : Higher Level
 Examples : Differences between measurements but no true zero
 Ratio is Differences between measurements, true zero exists.
 Operation : All of the above plus Multiplication, and Division
 Stastistical Method : Parametic
 Level : Highest Level (Strongest forms of measurement)
 Examples : Height, Age, Weekly Food Spending

 Collection Of Data
 Types of Data According to Source
 Primary Data – Data that comes from original source – Data from personal accounts
  Secondary Data – Data that has been previously gathered by other individuals or agencies
– Data from newspapers, pamphlets, book

 Methods of Data Collection

 Direct or Interview Method - person to person exchange between the interviewer and the
interviewee
 Indirect or Questionnaire Method - written responses are given to prepared questions
 Registration Method - enforced by certain laws/rules
 Observation Method
 Experiment Method

 Statistical Computer Packages

 Typical Software
 SAS
 SPSS
 MINITAB
 Excel
 Need Statistical Understanding
 Assumptions
 Limitations
 Assignment 2 (Exercise)

1.1. A home delivery restaurant has segmented its delivery in north, south, east and west zones.
a. Explain why the four zones are an example of a categorical variable.
Answer : The four zones are an example of a categorical variable or qualitative variable,
because the four zones have values that can only be placed into categories such as yes
and no.
b. Explain why the four zones are an example of a nominal scaled variable.
Answer : The four zones are an example of a nominal scaled variable, because the four
zones are data recorded at the nominal level of measurement represented as labels or
names, where they have no order or no ranking implied, and they can only be classified
and counted.

1.3. The winners in an Olympic race are decided according to the recorded time up to the
hundredth decimal point.
a. Explain why the recorded time is a continuous numerical variable.
Answer : The recorded time is a continuous numerical variable because the recorded
time have numerical values that arise from a measuring process.
b. Explain why the recorded time is a ratio-scaled variable.
Answer : The recorded time is a ratio-scaled variable because the recorded time is data
recorded at the ratio level of measurement are based on a scale with a known unit of
measurement and a meaningful interpretation of zero on the scale (measurements
involves a true zero point)

1.4. For each of the following variables, determine whether the variable is categorical or
numerical. If the variable is numerical, determine whether the variable is discrete or
continuous. In addition, determine the measurement scale.
a. Number of cellphones in the household
Answer : The data is numerical variable (quantitative) that is discrete because the
outcome is counted, and the measurement scale is ratio scaled because the measurement
involves a true zero point.
b. Monthly data usage (in MB)
Answer : The data is numerical variable (quantitative) that is continuous because the
outcome arise from a measuring process, and the measurement scale is ratio scaled
because the measurement involves a true zero point.
c. Number of text messages exchanged per month
Answer : The data is numerical variable (quantitative) that is discrete because the
outcome is counted, and the measurement scale is ratio scaled because the measurement
involves a true zero point.
d. Voice usage per month (in minutes)
Answer : The data is numerical variable (quantitative) that is continuous because the
outcome arise from a measuring process, and the measurement scale is ratio scaled
because the measurement involves a true zero point.
e. Whether the cellphone is used for email
 Answer : The data is categorical variable (qualitative) because the answer can only be
placed into categories such as yes and no. The measurement scale is nominal scaled
because it has no ranking implied.

1.8. Suppose the following information is collected from Robert Keeler on his application for a
home mortgage loan at the Metro County Savings and Loan Association.
Classify each of the responses by type of data and measurement scale
a. Monthly payments: $2,227
Answer : The data is numerical variable (quantitative) that is continuous because the
outcome arise from a measuring process, and the measurement scale is ratio scaled
because the measurement involves a true zero point.
b. Number of jobs in past 10 years: 1
Answer : The data is numerical variable (quantitative) that is discrete because the
outcome is counted, the measurement scale is ratio scaled because the measurement
involves a true zero point.
c. Annual family income: $96,000
Answer : The data is numerical variable (quantitative) that is continuous because the
outcome arise from a measuring process, and the measurement scale is ratio scaled
because the measurement involves a true zero point.
d. Marital status: Married
Answer : The data is categorical variable (qualitative) because the answer can only be
placed into categories such as yes and no. The measurement scale is nominal scaled
because it has no ranking implied.

1.12.Assume that a research has been carried out to estimate the rate of return given by all the
Initial Public Offerings (IPOs) in the U.K. if they are sold on the first day of listing. The
researcher analyzed the returns given by 250 IPOs in the U.K. Categorize the data for
population and sample.
Answer : The population is Initial Public Offerings (IPOs) in the U.K. The sample is 250
IPOs in the U.K.

1.23. The registrar of a college with a population of N = 4,000 full-time students is asked by the
president to conduct a survey to measure satisfaction with the quality of life on campus. The
following table contains a breakdown of the 4,000 registered full-time students, by gender
and class designation:

Class Designation
Gender Fr. So. Jr. Sr. Total
Female 700 520 500 480 2,200
Male 560 460 400 380 1,800
Total 1,260 980 900 860 4,000
The registrar intends to take a probability sample of n = 200 students and project the results
from the sample to the entire population of full-time students.
a. If the frame available from the registrar’s files is an alphabetical listing of the names of
all N = 4,000 registered full-time students, what type of sample could you take? Discuss.
 Answer : The types of samples that I take are Simple Random Sample and Systematic
Sample because the available frames from the registrar's file are an alphabetical list of
names, where the population has homogeneous properties or every registrar from a frame
has the same chance of selection as every other registrar.
b. What is the advantage of selecting a simple random sample in (a)?
Answer : The advantage is that Simple random sampling is the most basic random
sampling technique and it is free from subjectivity or bias.
c. What is the advantage of selecting a systematic sample in (a)?
Answer : The advantage is that systematic sampling has a simpler method.
d. If the frame available from the registrar’s files is a list of the names of all N = 4,000
registered full-time students compiled from eight separate alphabetical lists, based on the
gender and class designation breakdowns shown in the class designation table, what type
of sample should you take? Discuss.
Answer : The type of sample I take is Stratified Sample because I can divide the N =
4,000 registered full-time students in the frame into separate subpopulations or strata.
The Strata is a class designation that has levels such as Freshman, Sophomore, Junior,
and Senior.
e. Suppose that each of the N = 4,000 registered full-time students lived in one of the 10
campus dormitories. Each dormitory accommodates 400 students. It is college policy to
fully integrate students by gender and class designation in each dormitory. If the registrar
is able to compile a listing of all students by dormitory, explain how you could take a
cluster sample.
Answer : I could take a cluster sample because the N = 4,000 registered full-time
students in the frame would be divided into cluster that contain several students. The
cluster is dormitory. Taking Cluster Samples, the method is to arrange a sampling frame
based on clusters first, determine how many clusters will be taken as samples. Choose a
cluster as a sample in a random way, researching every student in the sample cluster.