University of Business and Technology
Prishtina, Kosova.
APPLIED BUSINESS STATISTICS
prof. Giuseppe Scandurra
University of Naples “Parthenope” – Napoli – Italy
e-mail: [email protected]
Chap 1-1
Lectures’ calendar
17th of may, Lectures from 17:30-21:00
18th of may, Lectures from 17:30-21:00
19th of may, Lectures from 17:30-21:00
20th of may, Lectures from 17:30-21:00
21th of may, Lectures from 09:00-12:30 (exam).
Assessment:
Assessment will be based on a written final
exam
Chap 1-2
Descriptive statistics: data, data description, data plots and summary stats.
Brief overview of descriptive statistics: (3 ½ hours)
Graphical descriptive techniques: using charts and graphs, stem and leaf diagrams, and box
plots to summarize data.
Numerical descriptive measures: statistically summarize data distributions using measures of
central tendency and variability (range, standard deviation, variance).
Inferential statistics: probability and distributions; hypothesis testing; interval estimation.
Introduction to probability theory, including discussion of different discrete and continuous
distributions, random sampling, expected values, simple and joint probabilities, and contingency
tables (3 ½ hours)
Confidence intervals and hypothesis testing (one-sample and two-sample tests), including both
parametric (e.g., differences of means) (5 hours)
Forecasting: regression and time series analysis
Simple linear (bivariate) regression and correlations (and related non-parametric techniques)
(e.g., Spearman rank correlation) (2 hour)
Linear multiple regression and time series analysis (3 ½ hours)
Chap 1-3
Chapter 1
The Where, Why, and How of
Data Collection
Chap 1-4
Chapter Goals
After completing this chapter, you should be
able to:
Describe key data collection methods
Know key definitions:
Population vs. Sample Primary vs. Secondary data types
Qualitative vs. Qualitative data Time Series vs. Cross-Sectional data
Explain the difference between descriptive and
inferential statistics
Describe different sampling methods
Chap 1-5
Tools of Business Statistics
Descriptive statistics
Collecting, presenting, and describing data
Inferential statistics
Drawing conclusions and/or making decisions
concerning a population based only on
sample data
Chap 1-6
Descriptive Statistics
Collect data
e.g. Survey, Observation,
Experiments
Present data
e.g. Charts and graphs
Characterize data
e.g. Sample mean = x i
Chap 1-7
Data Sources
Primary Secondary
Data Collection Data Compilation
Print or Electronic
Observation Survey
Experimentation
Chap 1-8
Survey Design Steps
Define the issue
what are the purpose and objectives of the survey?
Define the population of interest
Formulate survey questions
make questions clear and unambiguous
use universally-accepted definitions
limit the number of questions
Chap 1-9
Survey Design Steps
(continued)
Pre-test the survey
pilot test with a small group of participants
assess clarity and length
Determine the sample size and sampling
method
Select Sample and administer the survey
Chap 1-10
Types of Questions
Closed-end Questions
Select from a short list of defined choices
Example: Major: __business __liberal arts
__science __other
Open-end Questions
Respondents are free to respond with any value, words, or
statement
Example: What did you like best about this course?
Demographic Questions
Questions about the respondents’ personal characteristics
Example: Gender: __Female __ Male
Chap 1-11
Populations and Samples
A Population is the set of all items or individuals
of interest
Examples: All likely voters in the next election
All parts produced today
All sales receipts for November
A Sample is a subset of the population
Examples: 1000 voters selected at random for interview
A few parts selected for destructive testing
Every 100th receipt selected for audit
Chap 1-12
Population vs. Sample
Population Sample
a b cd b c
ef gh i jk l m n gi n
o p q rs t u v w o r u
x y z y
Chap 1-13
Why Sample?
Less time consuming than a census
Less costly to administer than a census
It is possible to obtain statistical results of a
sufficiently high precision based on samples.
Chap 1-14
Sampling Techniques
Samples
Non-Probability Probability Samples
Samples
Simple Systematic
Judgement Random
Convenience Cluster
Stratified
Chap 1-15
Statistical Sampling
Items of the sample are chosen based on
known or calculable probabilities
Probability Samples
Simple Stratified Systematic Cluster
Random
Chap 1-16
Simple Random Samples
Every individual or item from the population has
an equal chance of being selected
Selection may be with replacement or without
replacement
Samples can be obtained from a table of
random numbers or computer random number
generators
Chap 1-17
Stratified Samples
Population divided into subgroups (called strata)
according to some common characteristic
Simple random sample selected from each
subgroup
Samples from subgroups are combined into one
Population
Divided
into 4
strata
Sample
Chap 1-18
Systematic Samples
Decide on sample size: n
Divide frame of N individuals into groups of k
individuals: k=N/n
Randomly select one individual from the 1st
group
Select every kth individual thereafter
N = 64
n=8 First Group
k=8
Chap 1-19
Cluster Samples
Population is divided into several “clusters,”
each representative of the population
A simple random sample of clusters is selected
All items in the selected clusters can be used, or items can be
chosen from a cluster using another probability sampling
technique
Population
divided into
16 clusters. Randomly selected
clusters for sample
Chap 1-20
Key Definitions
A population is the entire collection of things
under consideration
A parameter is a summary measure computed to
describe a characteristic of the population
A sample is a portion of the population
selected for analysis
A statistic is a summary measure computed to
describe a characteristic of the sample
Chap 1-21
Inferential Statistics
Making statements about a population by
examining sample results
Sample statistics Population parameters
(known) Inference (unknown, but can
be estimated from
sample evidence)
Sample Population
Chap 1-22
Inferential Statistics
Drawing conclusions and/or making decisions
concerning a population based on sample results.
Estimation
e.g.: Estimate the population mean
weight using the sample mean
weight
Hypothesis Testing
e.g.: Use sample evidence to test
the claim that the population mean
weight is 120 pounds
Chap 1-23
Data Types
Data
Qualitative Quantitative
(Categorical) (Numerical)
Examples:
Marital Status
Political Party Discrete Continuous
Eye Color
Examples: Examples:
(Defined categories)
Number of Children Weight
Defects per hour Voltage
(Counted items) (Measured
characteristics)
Chap 1-24
Data Types
Time Series Data
Ordered data values observed over time
Cross Section Data
Data values observed at a fixed point in time
Chap 1-25
Data Types
Sales (in $1000’s)
2003 2004 2005 2006 Time
Atlanta 435 460 475 490 Series
Boston 320 345 375 395 Data
Cleveland 405 390 410 395
Denver 260 270 285 280
Cross Section
Data
Chap 1-26
Data Measurement Levels
Highest Level
Measurements
Ratio/Interval Data Complete Analysis
Rankings Higher Level
Ordered Categories Ordinal Data Mid-level Analysis
Categorical Codes Lowest Level
ID Numbers Nominal Data Basic Analysis
Category
Names
Chapter Summary
Reviewed key data collection methods
Introduced key definitions:
Population vs. Sample Primary vs. Secondary data types
Qualitative vs. Qualitative data Time Series vs. Cross-Sectional data
Examined descriptive vs. inferential statistics
Described different sampling techniques
Reviewed data types and measurement levels
Chap 1-28
