Business Statistics and Logic
UNIT - I
DR. MD SARWAR ALA M
ASSISTAN T PROFESSOR
DEPARTMENT O F MA NAGEMENT
SC HOO L OF MANAGE ME NT A ND BUSINESS STUDIE S
Introduction to Statistics
Statistics derived from:
Status (Latin), Statista (Italian), Statistik (German)
Political State
The literacy rate among girls has increased by 5%
In the last year.
The average household income has increased by 10%.
Continued
A study of methods and techniques which are used in data collection,
organization, presentation, analysis and interpretations.
Statistics mean data or figures pertaining to any given situation.
These may be Quantitative or Qualitative Data
Quantitative Data (Numerical observations)
Continuous or Discrete Data
Continued
Continuous variable: Which can assume any value between any two
points in a measurement scale. E.g., Height, Weight, Temperature etc.
Discrete variable: Which can assume only fixed values like integers.
Continued
Qualitative Data: Nominal, Ranking
Characteristics of Statistics
They must be aggregate of facts.
Individual data and isolated figures can’t be called statistics.
They are affected by multiplicity of factors.
There are several factors that affect a phenomenon.
E.g., Purchase decision of customers
Continued
They must be numerically expressed.
A statement can be called as statistics, only if it is expressed numerically.
Liking, Disliking, Satisfaction, Dissatisfaction are not numerical statements.
They are enumerated or estimated according to a reasonable standard
of accuracy.
Statistics: Enumeration or Estimation
Continued
They (data) must be collected in a systematic manner for a predetermined
purpose.
The purpose should be specific and well defined.
They (data) must be placed in relation to each other.
The numerical facts should be comparable if they are to be called statistics.
Descriptive and Inferential Statistics
Descriptive Statistics
It refers to various measures that are used to describe the characteristic
features of the population.
Simple frequency tables, charts, and graphs are examples of descriptive
statistics.
Measures of Central Tendency, Measures of Dispersion are also
descriptive statistics.
Continued
E.g., The average marks of the students in a class.
Male – Female percentage in an occupation.
You can’t make generalization based on descriptive statistics.
Continued
Inferential Statistics
The statistical process of drawing valid inferences about the
characteristics of population data on the basis of sample data.
Population means the totality of items in any field of study/research.
E.g., Generalising the performance of the entire class based on the
average marks of a sample of students.
Functions of Statistics
To present facts in a proper form
General statement in a precise and definite form.
To simplify unwieldy and complex data
Classification of data according to some common characteristics
To provide techniques for making comparison
Comparative study of different phenomena over time or space
Continued
To study relationship between different phenomena
Study relationship between different variables.
To forecast future values
Forecasting future values of a variable.
To measure uncertainty
With the help of probability theory
To test a hypothesis
Formulating and testing hypothesis
To draw valid inferences
Population and Sample
Importance of Statistics
In State decisions
Data related to manpower, crimes, income, health (previously).
Statistical data related to Prices, production, consumption, income, and
expenditure.
E.g. For government’s five year plan, availability of raw materials,
capital goods, financial resources, distribution of population etc.
Continued
Statistics in Economics
Analysis of data on consumption may reveal the pattern of consumption on
various commodities by different sections of the society.
Data on prices, consumption, wages, savings, and investments are vital in
formulating various economic policies.
Statistical tools like index numbers, time series analysis, regression analysis
etc. are used in economic planning.
Continued
Statistics in Business and Management
Statistical Data Timely Availability of relevant information
Managerial decision making.
Sales, purchase, production, operations, marketing, finance etc.
Taking decisions under uncertainty
