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Introduction

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6 views

Introduction

It will be helpful for marketing students.

Uploaded by

riponshaha13
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 31

What is statistics?

“Statistics can be fun or at


least they don't need to
be feared”
Why do we study Statistics?

Data are everywhere,

Statistical techniques are used to make


decisions that affect our lives,

No matter what your career, you will make


professional decisions that involve data.
Statistics
The word statistik comes from the Italian word
statista (meaning ‘‘statesman’’). It was first used
by Gottfried Achenwall (1719- 1772), a professor
at Marlborough and Gottingen.

Dr. E. A. W. Zimmerman introduced the work-


statistics into England. Its use was popularized
by Sir John Sinclair in his work Statistical
Account of Scotland 1791- 1799. Long before the
eighteenth century, however, people had been
recording and using data.
Statistics is the science of
collecting,
organizing,
presenting,
analyzing, and
interpreting data to assist in making more
effective decisions.

Statistics is a collection of numerical information.


Example :
• The mean time for downloading a movie is 4
hours.
Characteristics of Statistics
1. Statistics are aggregate of facts
Single and isolated figures are not statistics.
(unrelated & non-comparable) Example : a single
figure relating to production, sale, birth.
2. Statistics are affected to a marked extent by
multiplying of causes
Example : production of rice is affected by the rainfall,
method of cultivation, etc. prices, imports, exports,
sales , profits, etc.
3. Statistics are numerically expressed.
‘the population of Bangladesh is rapidly increasing’;
or ‘the production of wheat is not sufficient’; do
not constitute statistics. (vague)
4. Statistics are enumerated or estimated according to
reasonable standards of accuracy.
 actual counting and measurement
 estimate.
Example : approximate vs accurate
 standard of accuracy should be attained.
5. Statistics are collected in a systematic manner.
 suitable plan.
 systematic manner.
[

6. Statistics are collected for a predetermined


purpose.
 well defined and specific.
Example: collect data on prices (wholesale or retail
prices; relevant commodities)
7. Statistics should be placed in relation to each
other.
 Comparable (period-wise or region wise). For
instance, the per capita income of BD.
 Homogeneous. For instance, small shop vs big
departmental store.

‘‘ All statistics are numerical statements of facts


but all numerical statements of facts are not
statistics”.
Types of Statistics
1. Descriptive statistics
 Collecting,
 Organizing (tables, charts),
 Analyzing (mean, median, SD)
 presenting data.

For example: census report, cricket players average.


2. Inferential Statistics
 Draw conclusions. Based on samples.

For example: Opinion polls and television ratings.


Population -all items of interest.
 N represents the population size
Sample -representative part.
 n represents the sample size
Parameter - specific characteristic of a population.
Statistic - specific characteristic of a sample.
ex- mall shoppers.
Population vs. Sample
Population Sample

5 11
5 9 8 11 16
1 22
57 4 1
5 8 25 22
16

Values calculated using Values computed from


population data are called sample data are called
parameters statistics
Types of Data
Data

Categorical Numerical

Examples:
 Marital Status Discrete Continuous
 Are you registered to
vote? Examples: Examples:
 Eye Color
 Number of Children  Weight
(Defined categories or
groups)
 Number of bedrooms  GPA
(Counted items, gaps) (Measured characteristics,
range)
Measurement Levels
G ender
Nominal level
Data that is
classified into E ye
categories and Color
cannot be arranged
in any particular
order.

Nominal data
Nominal level variables must be:

Mutually exclusive
An individual, object, or
measurement is included in only
one category.

Exhaustive
Each individual, object, or
measurement must appear in
one of the categories.
Ordinal level: involves data arranged in some
order, but the differences between data values
cannot be determined or are meaningless.

During a taste test


of 4 soft drinks,
Coca Cola was 4
ranked number 1,
2
Dr. Pepper number
2, Pepsi number 3, 3
and Root Beer 1
number 4.
Interval level
Similar to the ordinal level, with the additional
property that meaningful amounts of differences
between data values can be determined. There is no
natural zero point.

Temperature on
the Fahrenheit
scale.
Ratio level: the interval level with an
inherent zero starting point. Differences and
ratios are meaningful for this level of
measurement.

M iles t rav eled by sales


M ont hly income
represent at iv e in a mont h
of surgeons
Qualitative Data Quantitative Data
Statistics in Business and Management
Marketing
Data on population, purchasing power, competition,
transportation cost, etc. should precede any attempt to
establish a new market.
Banking
General economic conditions and on every line of
business.
Personnel
The personnel department frames personnel policies
based on fact. (wage rates, incentive plans, cost of
living, training programs, etc)
 Research and Development
what new product lines can be added and how the
optimal use of resources made.
Reason for Studying Statistics
1. The first reason is that numerical information is
everywhere. To be an educated consumer.
2. To effectively conduct research. Ex- Nurses
3. To be able to read journals.
4. To complete graduation.
5. Develop critical and analytic thinking skills.
Limitations of Statistics
1. Statistics does not deal with isolated
measurements.
Not all quantitative data are statistical. Example : the
wage earned by an individual worker.
2. Statistics deal with only quantitative
characteristics.
Numerical statement of facts. Honesty, efficiency,
intelligence, cannot be studied directly.
But intelligence through marks.
3. Statistical results are true only on an average.
The conclusions are not universally true; only under
certain conditions.
4. Statistics is only a means.
Statistics is only a means and not an end. necessary
to take into account the county’s culture, religion,
philosophy, personal, political or other non-
quantitative considerations.
5. Statistics can be misused
Incomplete information, may lead to fallacious
conclusions. Thus, argument regarding 99%
smoker die before reaching 60 years.

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