2
Business Statistics Exam 1 with precise detailed solutions || || || || || || ||
Uses of Statistics: - ✔✔Statistics is one of the tools used to make decisions in business
|| || || || || || || || || || || || || || ||
We apply statistical concepts in our lives
|| || || || || ||
As a student of business or economics, basic knowledge and skills to organize, analyze, and
|| || || || || || || || || || || || || || ||
transform data and to present the information.
|| || || || || ||
Who Uses Statistics? - ✔✔Statistical techniques are used extensively by marketing,
|| || || || || || || || || || ||
accounting, quality control, consumers, professional sports people, hospital administrators,
|| || || || || || || || ||
educators, politicians, physicians, etc...
|| || ||
Descriptive Statistics - ✔✔Descriptive Statistics - methods of organizing, summarizing, and
|| || || || || || || || || || ||
presenting data in an informative way.
|| || || || || ||
EXAMPLE 1: The United States government reports the population of the United States was
|| || || || || || || || || || || || || ||
179,323,000 in 1960; 203,302,000 in 1970; 226,542,000 in 1980; 248,709,000 in 1990, and
|| || || || || || || || || || || || ||
265,000,000 in 2000. || ||
EXAMPLE 2: According to the Bureau of Labor Statistics, the average hourly earnings of
|| || || || || || || || || || || || || ||
production workers was $17.90 for April 2008.
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Inferential Statistics - ✔✔Inferential Statistics: A decision, estimate, prediction, or
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generalization about a population, based on a sample. || || || || || || ||
Population - ✔✔A population is a collection of all possible individuals, objects, or
|| || || || || || || || || || || || ||
measurements of interest. || ||
Sample - ✔✔A sample is a portion, or part, of the population of interest
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, 2
Why take a sample instead of studying every member of the population? - ✔✔Prohibitive
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cost of census
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Destruction of item being studied may be required
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Not possible to test or inspect all members of a population being studied
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Qualitative or Attribute variable - ✔✔Qualitative or Attribute variable - the characteristic
|| || || || || || || || || || || ||
being studied is nonnumeric.
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EXAMPLES: Gender, religious affiliation, type of automobile owned, state of birth, eye color
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are examples.
||
Quantitative variable - ✔✔Quantitative variable - information is reported numerically.
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EXAMPLES: balance in your checking account, minutes remaining in class, or number of
|| || || || || || || || || || || || ||
children in a family. || || ||
Discrete variables - ✔✔Discrete variables: can only assume certain values and there are
|| || || || || || || || || || || || ||
usually "gaps" between values.
|| || || ||
EXAMPLE: the number of bedrooms in a house, or the number of hammers sold at the local
|| || || || || || || || || || || || || || || ||
Home Depot (1,2,3,...,etc).
|| || ||
Continuous variable - ✔✔Continuous variable can assume any value within a specified
|| || || || || || || || || || || ||
range.
EXAMPLE: The pressure in a tire, the weight of a pork chop, or the height of students in a
|| || || || || || || || || || || || || || || || || || ||
class.
Nominal level - ✔✔Nominal level - data that is classified into categories and cannot be
|| || || || || || || || || || || || || || ||
arranged in any particular order.
|| || || ||
EXAMPLES: eye color, gender, religious affiliation.
|| || || || ||
Business Statistics Exam 1 with precise detailed solutions || || || || || || ||
Uses of Statistics: - ✔✔Statistics is one of the tools used to make decisions in business
|| || || || || || || || || || || || || || ||
We apply statistical concepts in our lives
|| || || || || ||
As a student of business or economics, basic knowledge and skills to organize, analyze, and
|| || || || || || || || || || || || || || ||
transform data and to present the information.
|| || || || || ||
Who Uses Statistics? - ✔✔Statistical techniques are used extensively by marketing,
|| || || || || || || || || || ||
accounting, quality control, consumers, professional sports people, hospital administrators,
|| || || || || || || || ||
educators, politicians, physicians, etc...
|| || ||
Descriptive Statistics - ✔✔Descriptive Statistics - methods of organizing, summarizing, and
|| || || || || || || || || || ||
presenting data in an informative way.
|| || || || || ||
EXAMPLE 1: The United States government reports the population of the United States was
|| || || || || || || || || || || || || ||
179,323,000 in 1960; 203,302,000 in 1970; 226,542,000 in 1980; 248,709,000 in 1990, and
|| || || || || || || || || || || || ||
265,000,000 in 2000. || ||
EXAMPLE 2: According to the Bureau of Labor Statistics, the average hourly earnings of
|| || || || || || || || || || || || || ||
production workers was $17.90 for April 2008.
|| || || || || ||
Inferential Statistics - ✔✔Inferential Statistics: A decision, estimate, prediction, or
|| || || || || || || || || ||
generalization about a population, based on a sample. || || || || || || ||
Population - ✔✔A population is a collection of all possible individuals, objects, or
|| || || || || || || || || || || || ||
measurements of interest. || ||
Sample - ✔✔A sample is a portion, or part, of the population of interest
|| || || || || || || || || || || || ||
, 2
Why take a sample instead of studying every member of the population? - ✔✔Prohibitive
|| || || || || || || || || || || || || ||
cost of census
|| ||
Destruction of item being studied may be required
|| || || || || || ||
Not possible to test or inspect all members of a population being studied
|| || || || || || || || || || || ||
Qualitative or Attribute variable - ✔✔Qualitative or Attribute variable - the characteristic
|| || || || || || || || || || || ||
being studied is nonnumeric.
|| || || ||
EXAMPLES: Gender, religious affiliation, type of automobile owned, state of birth, eye color
|| || || || || || || || || || || || ||
are examples.
||
Quantitative variable - ✔✔Quantitative variable - information is reported numerically.
|| || || || || || || || || ||
EXAMPLES: balance in your checking account, minutes remaining in class, or number of
|| || || || || || || || || || || || ||
children in a family. || || ||
Discrete variables - ✔✔Discrete variables: can only assume certain values and there are
|| || || || || || || || || || || || ||
usually "gaps" between values.
|| || || ||
EXAMPLE: the number of bedrooms in a house, or the number of hammers sold at the local
|| || || || || || || || || || || || || || || ||
Home Depot (1,2,3,...,etc).
|| || ||
Continuous variable - ✔✔Continuous variable can assume any value within a specified
|| || || || || || || || || || || ||
range.
EXAMPLE: The pressure in a tire, the weight of a pork chop, or the height of students in a
|| || || || || || || || || || || || || || || || || || ||
class.
Nominal level - ✔✔Nominal level - data that is classified into categories and cannot be
|| || || || || || || || || || || || || || ||
arranged in any particular order.
|| || || ||
EXAMPLES: eye color, gender, religious affiliation.
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