Ch01 - Statistics, Data & Statistical Thinking

Chapter 1
Statistics & Data
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Applications in Business and Economics

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Descriptive Statistics

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Inferential Statistics

Statistics

Data overload!
I need help!

Slide 1

Applications in
Business and Economics
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Accounting
Public accounting firms use statistical sampling procedures when conducting audits for their clients.
Economics
Economists use statistical information in making forecasts about the future of the economy or some aspect of it.

Statistics

Slide 2

Applications in
Business and Economics
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Marketing
Electronic point-of-sale scanners at retail checkout counters are used to collect data for a variety of marketing research applications.
Production
A variety of statistical quality control charts are used to monitor the output of a production process.

Statistics

Slide 3

Applications in
Business and Economics
 Finance
Financial advisors use price-earnings ratios and dividend yields to guide their investment recommendations. Statistics

Slide 4

Statistical Methods

St i i at st cal
M et hods D escri i pt ve
St i i at st cs

Statistics

Inf erent al i St i i at st cs

Slide 5

What Is Statistics?
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Statistics is the science of data. It involves collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical information.
• Descriptive Statistics utilizes numerical and graphical methods to look for patterns in the data set, to summarize the information revealed in the data set, and to present the information in the convenient form
• Inferential Statistics utilizes sample data to make estimates, decisions, predictions, or other generalizations about the population that the sample has come from
Let’s see an example

Statistics

Slide 6

Example: Hudson Auto Repair
The manager of Hudson Auto would like to have a better understanding of the cost of parts used in the engine tune-ups performed