CHAPTER 1:
A Preview of Business Statistics
to accompany
Introduction to Business Statistics
fourth edition,by Ronald M,Weiers
Presentation by Priscilla Chaffe-Stengel
Donald N,Stengel
? 2002 The Wadsworth Group
Chapter 1 - Key Terms
? Collection,summarization,analysis,and
reporting of numerical findings
? Statistics - Two Usages
– A,The study of statistics
– B,Statistics as reported sample measures
?1,Descriptive
?2,Inferential
? 2002 The Wadsworth Group
Chapter 1 - Key Terms
Inferential Statistics
POPU LA TI ON
SA MPL E
How
Ta ken
Cen su s Sel ected
Subset
Me a sure
Par a m eter
Statist ic
? 2 0 0 2 T h e Wa ds w or t h Gr oup
Types of Variables
? Qualitative Variables
– Attributes,categories
?Examples,male/female,registered to vote/not,
ethnicity,eye color....
? Quantitative Variables
– Discrete - usually take on integer values but can take
on fractions when variable allows - counts,how many
– Continuous - can take on any value at any point
along an interval - measurements,how much
? 2002 The Wadsworth Group
Example,Types of Variables
Problem 1.16
? For each of the following,indicate
whether the appropriate variable would
be qualitative or quantitative,If the
variable is quantitative,indicate
whether it would be discrete or
continuous.
? 2002 The Wadsworth Group
Problem 1.16
? a) Whether you own
an RCA Colortrak
television set
? b) Your status as a
full-time or a part-
time student
? c) Number of people
who attended your
school’s graduation
last year
? Qualitative Variable
– two levels,yes/no
– no measurement
? Qualitative Variable
– two levels,full/part
– no measurement
? Quantitative,Discrete
Variable
– a countable number
– only whole numbers
? 2002 The Wadsworth Group
Problem 1.16,continued
? d) The price of
your most recent
haircut
? e) Sam’s travel
time from his
dorm to the
Student Union
? Quantitative,Discrete
Variable
– a countable number
– only whole numbers
? Quantitative,Continuous
Variable
– any number
– time is measured
– can take on any value greater
than zero
? 2002 The Wadsworth Group
Problem 1.16,continued
? f) The number of
students on
campus who
belong to a social
fraternity or
sorority
? Quantitative,Discrete
Variable
– a countable number
– only whole numbers
? 2002 The Wadsworth Group
Scales of Measurement
? Nominal Scale - Labels represent various levels of a
categorical variable.
? Ordinal Scale - Labels represent an order that
indicates either preference or ranking.
? Interval Scale - Numerical labels indicate order and
distance between elements,There is no absolute zero and
multiples of measures are not meaningful.
? Ratio Scale - Numerical labels indicate order and
distance between elements,There is an absolute zero and
multiples of measures are meaningful.
? 2002 The Wadsworth Group
Example,Scales of Measurement
Problem 1.20
? Bill scored 1200 on the Scholastic Aptitude
Test and entered college as a physics major,
As a freshman,he changed to business
because he thought it was more interesting,
Because he made the dean’s list last
semester,his parents gave him $30 to buy a
new Casio calculator,Identify at least one
piece of information in the:
? 2002 The Wadsworth Group
Problem 1.20,continued
? a) nominal
scale of
measurement.
? 1,Bill is going to college.
2,Bill will buy a Casio
calculator.
3,Bill was a physics major.
4,Bill is a business major.
5,Bill was on the dean’s list.
? 2002 The Wadsworth Group
Problem 1.20,continued
? b) ordinal scale of
measurement
? c) interval scale of
measurement
? d) ratio scale of
measurement
? Bill is a freshman.
? Bill earned a 1200 on the
SAT.
? Bill’s parents gave him $30.
? 2002 The Wadsworth Group