Business statistical standards for decision making

Research about

Statistical terminology
By

Doaa Abul Magd Ibrahim

Israa Khaliefa Ali

Remon Awad Younan

Kerolous Tharwat Fawzy

Ahmed Mahmoud Abdl Aziz

Under the guidance of

Dr. Amira El-desokey

1. Definition of Statistics
Statistics is a branch of applied mathematics that involves the collection, description,
analysis, and interpretation of data drawn from a sample of a larger population. Statistical
sampling is used in medicine, finance, marketing, and many other fields to increase
understanding and inform decision-making

2. Types of Statistics
The two major areas of statistics are descriptive statistics and inferential
statistics. describes the properties of sample and population data.
uses those properties to test hypotheses and draw conclusions.

- Summarizes and describes data.

- Examples include mean, median, mode, tables, and charts.

- Uses data from a sample to make conclusions about a population.

- Examples include hypothesis testing and confidence intervals.

3. Importance of Statistics
Statistics is important because it helps in decision making, simplifies large amounts of
data, predicts future trends, and is widely used in business, medicine, education,
economics, and scientific research.

4. Expressions of Statistics

 Aggregate data: statistical summaries of data, meaning that the data have been
analyzed in some way.

 Association: the concept that there is a relationship between two or more

variables that can be defined statistically.

 Big data: a popular term used across academia, industry, and other arenas to
describe the increased availability of all types of data. Big data is typically
described as being huge in volume, high in velocity (how fast it is created), and
diverse in variety.

 Categorical variable: an observable characteristic that describes subjects by

categories. Also called a discrete or nominal variable. Example: Female vs. Male

 Causality: generally, the concept that outcomes are the direct result of certain
events or actions that have taken place. It is often discussed alongside
"association" and "correlation," which are used to describe whether there is a
relationship between variables and the strength of that relationship.!
 Correlation: the measure to which two variables demonstrate a linear relationship
to one another (e.g., positive and negative correlation). Correlation is a form of
association. Correlation is often used very casually, but it is important to note that
correlation between two variables does not mean that the presence of one causes
a change in the other.

 Data: fundamentally, data = information. We typically use the term to refer to

numeric files that are created and organized for analysis. There are two types of
data: aggregate and microdata.

 Data aggregation: a collection of datapoints and datasets.

 Data analytics: generally used to refer to the techniques and tools required to
analyze massive amounts of data.

 Database: a collection of data organized for research and retrieval.

 Data point or datum: singular of data, generally refers to a single data value.

 Dataset: a term used loosely to refer to a collection of related data items. This
term is used very loosely.

 Derived statistics: statistics calculated on the basis of other statistics. Example:

the crime rate is a derived statistic based on the number of crimes committed in
relation to the population of the area under investigation.

 Descriptive statistics: counts, averages (means), percentages, and so on that

summarize the quantitative information obtained during the data collection effort.
These simplify raw, observed data points into understandable and meaningful
information, but does not state anything beyond the observed data points.
Descriptive statistics are usually contrasted with inferential statistics.

 Indicator: typically used as a synonym for statistics that describe something about
the socioeconomic environment of a society, such as per capita income,
unemployment rate, or median years of education.

 Inferential statistics: statistics used to draw inferences about a population based

on information collected on a sample of the population.

 Median value: the "middle" value of a dataset when all values are sorted from
lowest to highest. The median value is valuable because it minimizes the impact
of very low or very high outliers on the dataset's average.

 Microdata: individual response data obtained in surveys and censuses—these are

data points directly observed or collected from a specific unit of observation. Also
known as raw data. ICPSR is an excellent resource for obtaining microdata files.
Watch this video on microdata from the US Census Bureau to learn more:
  Percent: a proportional measure that compares a portion of a total to the actual
total. This helps you understand the relationship between a slice to the whole. It is
often used when you want to assess how significant a portion or amount is to an
established total.

 Quantitative data/variables: information that can be handled

numerically. Example: the number of US consumers who purchased personal care
products and services. Virtually all the data in Sage Data would be considered
quantitative.

 Ratio: proportional measure that compares the difference between numbers from
different categorical variables. It is often used when you want to understand and
compare the relationship between two distinct groups.

 Secondary data: information or data collected for others to analyze and use for
their own research purposes. This is the most common form of data people
encounter or use in their day-to-day.

 Survey: a data collection method using a population of people that are studied or
interviewed at a particular point in time for the purposes of making inferences or
conclusions about the population. T

 Time series data: data points recorded in chronological order.

5. Fields of Statistics

Statistics is prominent in finance, investing, business, and a wide scope of sectors. Much
of the information you see and the data you’re given is derived from statistics used in all
facets of a business.

 Statistics in investing include average trading volume, 52-week low, 52-week high,
beta, and correlation between asset classes or securities.

 Statistics in economics include gross domestic product (GDP), unemployment,

consumer pricing, inflation, and other economic growth metrics.

 Statistics in marketing include conversion rates, click-through rates, search

quantities, and social media metrics.

 Statistics in accounting include liquidity, solvency, and profitability metrics across

time.

 Statistics in information technology include bandwidth, network capabilities, and

hardware logistics.

 Statistics in human resources include employee turnover, employee satisfaction,

and average compensation relative to the market.
[Link] and Variables

A constant can be defined as a fixed value, which is used in algebraic expressions and
equations. A constant does not change over time and has a fixed value. For example, the
size of a shoe or cloth or any apparel will not change at any point.

Variables are terms which can change or vary over time. Its value does not remain
constant, unlike constants. For example, the height and weight of a person do not always
remain constant, and hence they are variables.

7. Types of Variables

Qualitative variables are specific attributes that are often non-numeric. Examples of
qualitative variables in statistics include gender, eye color, or city of birth. Qualitative
data is most often used to determine what percentage of an outcome occurs for any
given qualitative variable. Qualitative analysis often doesn't rely on numbers.

The second type of variable in statistics is quantitative variables. These are studied
numerically and only have weight when they’re about a non-numerical descriptor. This
information is rooted in numbers.
Quantitative variables can be further broken into two categories.

have limitations in statistics and infer that there are gaps between
potential discrete variable values.

. These values run along a scale. Discrete values have

limitations, but continuous variables are often measured into decimals. Any value
within possible limits can be obtained.

8. Types of Constants

Fixed values inherent in mathematical principles.

Values representing fundamental properties of nature.

Apply across various scientific and mathematical fields.

 Used in computing and statistics to represent fixed data
points.

9. Population and Sample

refers to the entire group of interest, usually large.

is a part of the population selected for study. usually smaller and easier to study.

Comparison Population Sample

Collection of all the units or

A subgroup of the members of the
Meaning elements that possess
population
common characteristics

Each and every element of a Only includes a handful of units of

Includes
group population

Characteristics Parameter Statistic

Complete enumeration or
Data Collection Sampling or sample survey
census

Identification of the Making inferences about the

Focus on
characteristics population

10. Relation between population and samples

A sample is always a subset of a population. For example, if the population is "all students
in a school," a sample might be "100 students selected for a survey".

[Link] to choose samples

 1. Clearly identify the entire group you want to study (e.g., all
customers, students in a school).

2. Do you need results that generalize broadly (probability sampling)

or specific insights into unique groups (non-probability)?.

a)Probability Sampling (Random): Every member has a known chance of

selection, ideal for generalizability.

o Simple Random: Everyone gets an equal chance (e.g., random

number generator).

o Systematic: Select from a random start at fixed intervals (e.g., every

10th person).

o Stratified: Divide into subgroups (strata) and sample from each

proportionally (e.g., by age, gender).

o Cluster: Divide into clusters (e.g., geographic areas) and randomly

select clusters to survey.

b)Non-Probability Sampling (Non-Random): Selection is not random; useful

for exploratory studies.

o Convenience: Easy-to-reach individuals.

o Purposive: Selecting participants for specific knowledge.

o Snowball: Participants refer others.

4. Use formulas considering population size, desired

confidence level (e.g., 95%), margin of error, and expected variability to ensure
reliability without waste.

5. Implement your plan using your chosen method (e.g., surveys,

interviews

11. Why We Use Sample Instead of Population

We use a sample because studying the whole population is often expensive,
time-consuming, and sometimes impossible. A well-chosen sample can give accurate and
reliable results.

[Link] of applying statistics

  Market Research: Analyzing consumer behavior to predict sales.

 Quality Control: Monitoring manufacturing to find defective products.

 Finance: Forecasting stock market trends and assessing investment risk.

 Retail: Using sales data (mean, median, mode) to manage inventory and demand.

 Medical Trials: Designing studies to test new treatments and understand disease.

 Epidemiology: Tracking disease prevalence and public health trends.

 Environmental Science: Monitoring pollution and climate change.

 Urban Planning: Analyzing population growth to plan infrastructure.

 Resource Allocation: Deciding where to build schools or provide services.

 Elections: Conducting polls to predict voting patterns.

 Weather: Probability used for rain forecasts ("90% chance of rain").

 Sports Analytics: Evaluating player performance and strategy.

 Personal Finance: Budgeting and risk assessment

Reference

B. S. EVERITT is Professor Emeritus of the Institute of Psychiatry, King’s College London.

He is the author of over 50 books on statistics and computing, including Medical Statistics
from A to Z, also from Cambridge University Press.

Cramer, D.,&Howitt, D. (2004). The Sage dictionary of statistics (Vols. 1-0). Sage
Publications, Ltd. [Link]

Jupp, V. (2006). The Sage dictionary of social research methods. Sage Publications, Ltd.
[Link]

Herzog, D. (2015). Data literacy: A user's guide. Sage Publications, Inc.

[Link]
Kitchin, R. (2014). The data revolution: Big data, open data, data infrastructures&their
consequences. Sage Publications Ltd. [Link]

Vogt, W. P. (2005). Dictionary of statistics & methodology. Sage Publications, Inc.

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