Business Statistics
References
Business Statistics by Kalyani Publications
Business Statistics by T R Jain, S C
Aggarwal and Mukesh Trehan, V K
Publications
Statistical Methods by S P Gupta, Sultan
Chand Publications
ORIGIN
The term Statistics has its origin in
Latin Word “STATUS”, Italian word
STATISTA or German Word
STATISTIK. All mean “Political state”
Statistics
Numerical Facts and Figures like
Per capita income
Agricultural production during a year
Inflation rate etc.
Body of principles and procedures
developed for collection,
classification, summarization and
interpretation of numerical data
Statistics
Plural Singular
sense Sense
Numerical Statistical
Data Methods
Statistics in plural sense
“By statistics we mean aggregate of
facts affected to a marked extent by
multiplicity of causes numerically
expressed, enumerated or estimated
according to reasonable standards of
accuracy collected in a systematic
manner for a pre-determined purpose
and placed in relation to each other.”
by Horace Secrist
Features or characteristics of
Statistics in Plural sense
Aggregate of Facts
Numerically expressed
Affected by multiplicity of causes
Reasonable accuracy
Placed in relation to each other
Pre-determined purpose
Enumerated or estimated
Collected in a systematic manner
Statistics in Singular sense
In singular sense, statistics refers to
statistical methods or techniques
relating to collection, classification,
presentation, analysis and
interpretation of quantitative data.
Features of Statistics as
singular sense
Collection of data
Organization of data
Presentation of data
Analysis of data
Interpretation of data
Scope
Subject
Nature Limitations
Matter
Nature of statistics
Art as well as science
Subject matter
Descriptive statistics
Inferential statistics
Limitations of statistics
Study of numerical facts only
Study of aggregates only
Not the only method
Homogeneity of data
Results are true on an average only
Without reference results may prove wrong
Can be used by experts only
Misuse of statistics
Only means and not solution
Frequency Distribution
Consider a data set of 26 children of ages 1-6 years. Then the
frequency distribution of variable ‘age’ can be tabulated as
follows:
Frequency Distribution of Age
Age 1 2 3 4 5 6
Frequency 5 3 7 5 4 2
Grouped Frequency Distribution of Age:
Age Group 1-2 3-4 5-6
Frequency 8 12 6
Cumulative Frequency
Cumulative frequency of data in previous page
Age 1 2 3 4 5 6
Frequency 5 3 7 5 4 2
Cumulative Frequency 5 8 15 20 24 26
Age Group 1-2 3-4 5-6
Frequency 8 12 6
Cumulative Frequency 8 20 26
Data Presentation –Categorical
Variable
Bar Diagram: Lists the categories and presents the percent or count of
individuals who fall in each category.
Figure 1: Bar Chart of Subjects in
Treatm ent Groups
Treatment Frequency Proportion Percent
Group (%)
30
Number of Subjects
25
1 15 (15/60)=0.25 25.0
20
15
2 25 (25/60)=0.333 41.7
10
3 20 (20/60)=0.417 33.3
5
0 Total 60 1.00 100
1 2 3
Treatm ent Group
Data Presentation –Categorical
Variable
Pie Chart: Lists the categories and presents the percent or count of
individuals who fall in each category.
Figure 2: Pie Chart of Treatment Frequency Proportion Percent
Subjects in Treatment Groups Group (%)
1 15 (15/60)=0.25 25.0
25% 2 25 (25/60)=0.333 41.7
33% 1
2 3 20 (20/60)=0.417 33.3
3 Total 60 1.00 100
42%
Graphical Presentation –Numerical
Variable
Histogram: Overall pattern can be described by its shape, center,
and spread. The following age distribution is right skewed. The
center lies between 80 to 100. No outliers.
Mean 90.41666667
Figure 3: Age Distribution
Standard Error 3.902649518
16 Median 84
14 Mode 84
Number of Subjects
12 Standard Deviation 30.22979318
10
Sample Variance 913.8403955
8
Kurtosis -1.183899591
6
4 Skewness 0.389872725
2 Range 95
0 Minimum 48
40 60 80 100 120 140 More
Maximum 143
Age in Month
Sum 5425
Count 60
Graphical Presentation –Numerical
Variable
Box-Plot: Describes the five-number summary
Figure 3: Distribution of Age
160
140
120
q1
100 min
80 median
60 max
q3
40
20
0
Box Plot
1