6/5/2024

INTRODUCTION TO STATISTICS
LESSON 1

LEARNING OUTCOMES

◼ 1. Establish the differences between

descriptive & inferential statistics.

◼ 2. Differentiates quantitative variable from

a qualitative variable.

◼ 3. Identify the four (4) measurement

scales used for data analysis.

1
 6/5/2024

STATISTICS

◼ Statistics is a scientific method of dealing with data. It is the science of

collecting, organizing, presenting, analyzing and interpreting a set of numerical
data in order to arrive at some relevant information that are needed in making
more effective decisions.
◼ statistics on enrollment, poverty incidence in a particular province, statistics on supply
and demand of prime commodities, price statistics, statistics on stock markets.
◼ Statistical techniques are used extensively by marketing, accounting, quality
control, consumers, professional sports people, hospital administrators, educators,
politicians, physicians, and many others.

WHY LEARN STATISTICS

2
 6/5/2024

WHY LEARN STATISTICS

Important uses in business

◼ To summarize business data
◼ To draw conclusions from business data
◼ To make reliable forecasts about business activities
◼ To improve business processes

BUSINESS ANALYTICS HAS ALREADY BEEN APPLIED IN

MANY BUSINESS DECISION-MAKING CONTEXTS
◼ Human resource managers (HR) understanding relationships between HR
drivers, key business outcomes, employee skills, capabilities, and motivation.
◼ Financial analysts determining why certain trends occur to predict future
financial environments.
◼ Marketers driving loyalty programs and customer marketing decisions to
drive sales.
◼ Supply chain managers planning and forecasting based on product
distribution and optimizing sales distribution based on key inventory
measures.

3
 6/5/2024

TO PROPERLY APPLY STATISTICS YOU SHOULD FOLLOW

A FRAMEWORK TO MINIMIZE POSSIBLE ERRORS
◼ Define the data you want to study in order to solve a problem or meet an
objective
◼ Collect the data from appropriate sources
◼ Organize the data collected by developing tables
◼ Visualize the data by developing charts
◼ Analyze the data collected to reach conclusions and present results

TWO DIFFERENT BRANCHES OF STATISTICS ARE USED IN

BUSINESS
Statistics
The branch of mathematics that transforms data into useful
information for decision makers.

Descriptive Statistics Inferential Statistics

Collecting, summarizing, Using data collected from a
presenting and analyzing small group to draw
data conclusions about a larger
group

4
 6/5/2024

MAJOR AREAS OF STATISTICS

◼ Descriptive Statistics comprises those methods used to collect, organize,

present and describe numerical data. It provides information only about
the data gathered and in no way draws inferences or conclusions about a
much larger set of data.
◼ Inferential Statistics comprises those methods and techniques in making
generalizations, predictions, or inferences about the larger group
(population) based on the information obtained from the smaller group
(sample).

MAJOR AREAS OF STATISTICS

◼ Descriptive Statistics
◼Collect data
◼e.g., Survey
◼Present data
◼e.g., frequency distribution tables, graphical presentations
◼Characterize data
◼e.g., numerical calculations such as mean, median, mode, standard
deviation, etc.

5
 6/5/2024

MAJOR AREAS OF STATISTICS

◼ Inferential Statistics
◼ Estimation
◼ e.g., Estimate the population mean weight using the sample mean weight
◼ Hypothesis testing
◼ e.g., Test the claim that the population mean weight is 120 pounds

MAJOR AREAS OF STATISTICS

◼ A politician wants to know the exact percentage of votes cast for him in the
last election.
◼ Mrs. Ramos wants to determine her average weekly expenditures on
groceries during the past five months.
◼ Based on an opinion poll, a politician would like to estimate his chance for
reelection in the upcoming election.
◼ Based on last year’s grocery bills, Mrs. Ramos would like to predict the
average weekly expenditures on groceries for the upcoming year.

6
 6/5/2024

BASIC VOCABULARY OF STATISTICS

DCOVA

◼ Variables are characteristics of an item or individual and are what you

analyze when you use a statistical method.
◼ Data are the different values associated with a variable.
◼ Operational definition are universally accepted meanings that are clear to
all associated with an analysis

TYPES OF VARIABLES
DCOVA

7
 6/5/2024

TYPES OF VARIABLES

◼ Categorical (qualitative) variables have values that can only be placed

into categories, such as “yes” and “no.”

◼ Numerical (quantitative) variables have values that represent quantities.

◼ Discrete variables arise from a counting process
◼ Continuous variables arise from a measuring process

MEASUREMENT SCALE

◼ Measurement is a process
of assigning value to a variable

Rat
Inter io
Ordi val
nal
Nomi
nal

8
 6/5/2024

MEASUREMENT SCALES
DCOVA
Variables

Categorical Numerical

Discreet Continuous

Nominal Ordinal Interval Ratio

MEASUREMENT SCALES

◼ Nominal. Observations can be named without particular order or ranking

imposed on the data. Words, letters, and numbers are used to classify the
data

9
 6/5/2024

MEASUREMENT SCALES

◼ Ordinal. Describes ranking or order. The difference or ratio between two

rankings may not always be the same
◼ Examples:
Competition Placement:
1 – Champion
2 – 1st Runner Up
3 – 2nd Runner Up
4 – 3rd Runner Up

MEASUREMENT SCALES

◼ Interval. Indicates an actual amount. The order and the difference between
the variables can be known. Its limitation is it has no “true zero”
◼ Examples:
Temperature
60 ºC
20 ºC
10 ºC
-15 ºC

10
 6/5/2024

MEASUREMENT SCALES

◼ Ratio. It has the same properties as the interval level. The order and difference
can be described. Additionally, it has a true zero and the ratio between two points
has a meaning.
◼ Examples:
Mass
80 kg
40 kg
10 kg
0 kg

EXERCISE

◼ Number of Telephones per household

◼ Length (in minutes) of the longest telephone call made in a month
◼ Whether someone in the household owns a Wi-fi capable cellphone
◼ Whether there is a high-speed internet connection in the household

11
 6/5/2024

EXERCISE

The following information is collected from students upon exiting the campus
bookstore during the first week of classes.
◼ Amount of time spent shopping in the bookstore
◼ Number of textbooks purchased
◼ Academic major
◼ Gender

EXERCISE

◼ Name of Internet service provider

◼ Time in hours spent surfing the Internet per week
◼ Number of emails received in a week
◼ Number of online purchases made in a month

12
 6/5/2024

EXERCISE

◼ A researcher collects demographic data from her participants. She asks

participants for their city of birth.
◼ She then asks participants to report the number of hours they spent exercising in
the past week.
◼ The researcher collects data on anxiety using the Beck Anxiety Scale. In this scale,
scores range from 0-44, but a score of zero simply means low anxiety rather than
a total lack of anxiety.
◼ The researcher asks participants to select their level of activity in general from the
following: sedentary, light physical activity, moderate physical activity, or vigorous
physical activity.

13