STATISTICS

Chapter All

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Definition of Statistics
Statistics means numerical information expressed in quantitative terms.

Statistics is the science of estimates and probabilities.

Statistics is a systematic collection, interpretation, and analysis of data to answer to question or to solve a problem.

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Importance of Statistics in Business

There are three major functions in any business enterprise in which the statistical methods are useful. These are as follows:

(i)

This may relate to either special projects or to the recurring activities of a firm over a specified period.

The planning of operations:

(ii) The setting up of standards:

This may relate to the size of employment, volume of sales, fixation of quality norms for the manufactured product, norms for the daily output, and so forth.

(iii) The function of control:

This involves comparison of actual production achieved against the norm or target set earlier. In case the production has fallen short of the target, it gives remedial measures so that such a deficiency does not occur again.

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How Statistics helps a HR Manager for Decision Purpose ?

An investment counselor calculates the rate of return on a specific kind of investment for the most recent year. He compares this with rates obtained on the same investment in other years. He also compares this rate with the current rates on other investments. Can you see how he might use these statistics to make intelligent investment decision?

The personnel manager uses data on the proportion of members of minorities in various job categories to determine compliance with affirmative action committee decisions.

The head of marketing, reviews statistics on income distribution in specific locales to set prices for a new product. Based on obtained data, decisions may be made to set prices differently for different areas.

The head of personnel reviews production requirements for each month to determine such things as vacation schedules, overtime, and needs for part-time employees.

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Distinguish Data & Information

Data
Meaning: Data is raw, unorganized facts that need to be processed. Data can be something simple and seemingly random and useless until it is organized.

Information
When data is processed, or

organized,

structured

presented in a given context so as to make it useful, it is called Information.

Example:

Each student's test score is one piece of data

The class' average score or the school's average score is the information that can be

concluded from the given data.

Definition:

Latin 'datum' meaning "that which is given". Data was the plural form of datum singular (M150 adopts the general use of data as singular. Not everyone agrees.)

Information is interpret

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Distinguish Primary Data & Secondary Data

Primary Data
Needs more funds. Investigating Agency collects the data. Requires longer time for collection. Requires elaborate organization. No extra precautions are required.

Secondary Data
Needs comparatively less funds. Some other investigating agency collects it for its own use. Requires less time for collection. No need of any organizational set up. Secondary data need more care and attention.

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Distinguish Population and Sample

Population: the universal set of all objects under study.

Population

is an accessible group of people who meets a well-defined set of

eligibility criteria.

Sample: Any subset of the population.

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Distinguish Discrete Variable and Continuous Variable

A continuous variable can assume all values in some range of real numbers.

A discrete variable can only assume certain values.

For example, the height of a building is a continuous variable. Such a height could be 17 meters, or 15.3 meters, or 19.385787512 meters, or meters. Any positive real value is a possible height of a building.

On the other hand, the number of shirts I own is a discrete variable. I might own 0, 1, 2, 3, 4, or any other nonnegative integer number of shirts, but I can't own 3.5 shirts, and I certainly can't own shirts. So the number of shirts I own is a discrete variable, because the number of shirts I own can only be certain real numbers.

Most of the time, discrete variables are those which can only assume integer values, and continuous variables are those which can assume real number values. (This is, indeed, only most of the time--but this may give you a good idea of the difference between discrete and continuous data.)

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Why a HR Manager uses the Mean, Median and More

The mean is the most commonly used measure of finding the average.

The median is the middle number in a data set.

The mode is probably the least common way of finding the average, and in most cases is the least useful.

Here are the contestants' scores on this week's episode of our favorite show, Prancing with the B-List Celebrities: Evan L Nicole S 52 50

Pamela A 47 Chad O Erin A Jake P Niecy N Kate G 44 39 38 36 32

Now, let's find the three averages and the range for the contestants' scores.
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Stat Mean

How to Find

Explanation Add all the scores and divide by 8, the number of contestants. The mean is 42.25. First put the scores in order, then find the middle value. In this set, the middle value lies between 44 and 39, so add these middle numbers together and divide by 2. The median is 41.5.

Median

Mode Range

No mode

No score occurs more than once, so there is no mode for this data set. Subtract the smallest score from the largest. The range is 20 points.

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Why a HR Manager uses the Standard Deviation, Variance and Coefficient Variability

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