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BUINESS STATISTICS

By:-
Shabana Shaikh 52
MMS -1 year
st
ACKNOWLEGDEMENT
Iwould like to express my special thanks of
gratitude to Prof-NADEEM M. who gave us the
golden opportunity to do this project of
Business Statistics. He helped us with valuable
suggestions and guidance in completing our
project. We came to know about so many new
things, we are really thankful..
INDEX

 INTRODUCTION TO STATISTIC
 MEASURES OF CENTRAL TENDENCY.
 MEASURES OF DISPERATION.
DEFINITION OF STATISTIC

A branch of mathematics dealing with the


collection, interpretation, and presentation
of masses of numerical data.
A collection of quantitative data.
ADVANTGES OF STATISTIC
 They are familiar to library staff and managers.
 They can be analysed relatively quickly.
 Information is collected in a standardised way.
 They are usually straightforward to analyse.
 They overcome the difficulties of encouraging participation by
users.
 They are often required and respect by decision makers within
the institution and beyond eg- funders, government.
 They support qualitative data obtained from questionnaires,
interviews etc with “hard facts”.
 They are useful for benchmarking purposes.
ADVANTGES OF STATISTIC

 They are not an appropriate method to understand


issues in great depth and identify ways to solve
problems highlighted.
 They are not suitable to evaluate user opinions, needs or
satisfaction with services.
 It may be time consuming to arrange methods of data
collection eg- contacting vendors, liaising with IT
departments.
NATURE OF A STATISTIC STUDY
 Formation of the problem.
 Objectives of the studies.
 Determining source of data.
 Designing data collection forms.
 Conducting the field survey.
 Organizing the data.
 Analyzing the data.
 Reaching the statistical findings.
 Presentation of findings.
STATISTIC IN BUSINESS
 Business Statistics refers to the application
of statistical tools and techniques
to business and managerial problems for
the purpose of decision
making. Statistics is simply the study of
numerical data, facts, figures and
measurements.
IMPORTANCE OF STATISTIC IN
BUSINESS
 Mutual funds.
 Expenditure on advertising sales.
 Relevance in banking and insurance.
 Statistical quality control method.
 Export marketing.
 Maintenance of cost records.
 Planning the operation.
 The setting up of standards.
Limitation of statistic
 Statistic does not study qualitative phenomenon.
 Statistic does not study individuals.
 Statistic data is only approximately and not
mathematically correct.
 Statistic is only one of the methods of studying a
problem.
 Statistic can be misused.
Misuse of statistic

 Statistic
is like a clay of which one can
make a god or devil.
 Statistics are the liars of first orders.
 Statistic can prove or disprove anything.
SUBDIVISIONS WITHIN STATISTIC

DISCRIPTIVE STATISTIC INFERENTIAL STATISTIC

 Used to summarize  Consists of procedure


and describe the used to make
characteristic of inferences about
set of data. population character
tics on the basis of
sample results.
MEASURES OF CENTRAL TENDENCY
MEASURES OF CENTRAL TENDENCY
MEANING
 A measures of central tendency is a single value that
attempts to describe a set of data by identifying the central
position within that set of data. As such, measures of central
tendency are sometimes called measures of central
location.
 The mean, median and mode are all valid measures of
central tendency but, under different conditions, some
measures of central tendency becomes tendency more
appropriate to use then others.
MEASURES OF CENTRAL TENDENCY

 Measures of central tendency provides information


about typical or average values of a data set.
 Mean, Median and Mode are the most commonly used
measures of central tendency.
 It is unique that a data set has one and only one mean.
 The value of the mean is influenced by all observations
in the data set.
SUB- TOPICS

 Calculation of a Weighted Mean.


 Calculation of Weighted Average Price.
 Arithmetic Mean in case of Grouped Data.
 Calculation of Arithmetic Mean by Direct Method.
 Calculation of Arithmetic Mean by Short-Cut Method.
 Calculation of Arithmetic Mean by Step-Deviation
Method
CALCULATION OF A WEIGHTED MEAN
CALCULATION OF WEIGHTED AVERAGE
PRICE
ARITHIMETIC MEANIN CASE OG GROUPED
DATA
CALCULATION OF ARITHMETIC MEAN BY
DIRECT METHOD.
CALCULATION OF ARITHMETIC MEAN BY
SHORT-CUT METHOD
CALCULATION OF ARITHMETIC MEAN BY
STEP-DEVIATION METHOD
ARITHMETIC MEAN
ARITHMETIC MEAN

ADVANATAGES DISADVANATGES
 Itsconcept is familiar  It
is affected by the extreme
to most people. values in the data set.
 Everydata set has  Itsis tedious to calculate for
one & only one mean. large data.
 Its
is useful for  Itscannot be calculated for
comparison. grouped data with opened
classes.
MEAN

 DEFINATION:-
 The Mean is the Mathematical Average.
 It is defined as the summation(addition) of
all the scores in your distribution divided by
the total number of scores.
 Statistically, it is represented by M.
EXAMPLE
Median
DEFINATION:-
Median is a measure of central tendency
which gives the value of the middle most
observation in the data.
For finding the median of ungrouped data
we first arrange the data values of the
observation in ascending order and count
the total number of observations.
MEDIAN

ADVANTAGES DISADVANTAGES
 Application of Qualitative
and Quantitative data.  It is not based on every
observations.
 It is not influenced by
present of extreme values.  Its is not capable of algebraic
treatment.
 It is especially useful in case
of continues series because  Tends to be rather unstable
mid point is not used for value if the number of
calculation. observations is small.
Mode
 The score in the distribution that occurs most frequently.
 Least used of the measures of central tendency provides the
least amount of information.
MODE

ADVANTAGES DISADVANATGES
 Easy to calculate &  Some time no mode or
understand. more then one mode in
a given set of
 Not effected by
distribution.
extreme value.
 Not commonly used
 Mode can be find by
 Not used for further
qualitative and
quantitative. mathematically
calculation.
COMPARISION OF THE MEAN
MEDIAN MODE
MEASURES OF DISPERSION
DEFINITIONS

“Dispersion is the measure of variation of


the items”.
INTRODUCTION

 Theconcept of dispersion is related to the extent of


scatter or variability in observations. The variability, in
an observation, is often measured as its deviation from
a central value. A suitable average of all such
deviation is called the measure of dispersion. Since
most of the measures of dispersion are based on the
average of deviations of observations from an
average, they are also known as the average of
second order. As opposed to this, the measures of
central tendency are known as the averages of first
order.
CHARACTERTISTIC OF MEASURES OF
DISPERATION
 It should be easy to Calculate & Understand.
 It
should be Rigidly defined & based on all the
observation.
 Itshould be capable of further mathematical
treatment.
 It
should not be unduly affected by extreme
observations.
 Itshould not be much affected by the fluctuations of
sampling.
RANGE

 The range of a distribution is the difference


between its two extreme observations, the
difference between the largest and smallest
observations. Symbolically, R=L-S Where R
denotes range, L and S denotes largest and
smallest observations, respectively. R is the
absolute measures of range. A relatives
measures of range, also termed as the
coefficient of range.
RANGE

ADVANTAGES DISADVANTAGES
 It is easy to understand and  It cannot be calculated for
easy to calculate. a distribution with open
 It gives a quick measure of ends.
variability.  It is not based on all the
observations and it is very
much affected by extreme
observations.
 It is not not capable of
being treated
mathematically.
INTERQUARTILE RANGE OR THE
QUARTILE DEVIATION
 Interquartile range is used as measures of
dispersion. Interquartile range is the range of
middle 50% of observations. If the observations
of a distribution are more densely concentrated
around median, interquartile range will be less
than half of the range.Furthr, if they do not have
any concentration around median then
corresponding interquartile range will be wide
and will tend to be equal to half of the range.
QUARTILE DEVIATION

ADVANTAGES DISADVANTAGES
 It is rigid defines and it  It is very much affected by
is easy to understand. the fluctuations of sampling.
 It is easy to compute.  It is not capable of being
 It can be calculated treated mathematically.
even for a distribution  It is based on all the
with open ends. observation, not a reliable
measures of dispersion.
INTERFRACTILE RANGE
The interfractile range indicates the spread of the given data
between two fractiles in a frequency distribution. It may be
noted that different names are given to fractiles on the basic of
the fraction or division of the data they measure.
MEAN DEVIATION
 The mean derivation is also known as the average deviation.it
is the average of absolute amounts by which the individual
items deviate from the mean. Since the positive deviations
from the mean are equal to the negative deviations, while
computing the mean deviation, we ignore positive and
negative signs.
 MD- MEAN DEVIATION
 |x|= deviation of an item from the mean * ignoring positive
and negative signs
 n= the total number of observation
MERITS OF MEAN DEVIATION

 A major advantages of mean deviation is that it


is simple to understand and easy to calculate.
 The values of extreme items have less effect on
the value of the mean deviation
 As deviations are taken from a central value, it is
possible to have meaningful comparisons of the
formation of different distributions.
LIMITATION OF MEAN DEVIATION
 It is not capable of further algebraic treatment.
 Strictly on mathematical considerations, the method is
wrong as it ignores the algebraic signs when the deviations
are taken from the mean.
 At times it may fail to give accurate results. The mean
deviation gives best results when deviations in the items,
median is not a satisfactory measures.
STANDARD DEVIATION

 Standarddeviation is the most commonly


used measures of dispersion.
 The values of the mean deviation and the
standard should be relatively similar.
 It is the square root of the variance.
 Has the same units as the original data.
 Shows variation about the mean.
STANDARD DEVIATION

ADVNTAGES DISADVANTAGES
 Possible to calculate the  Compare to other it is
combines standard difficult to compute.
deviation.
 Itgives more weight to
 Based on every item of
distribution. extreme values and
 It is used most
less to those which
prominently in further near to mean.
statistics work.
RELATIVES DISPERATION

 Relative measures of dispersion, are also known


as Coefficient of dispersion, are obtained as
ratio or percentages. These are pure numbers
independent of the units of measurement and
used to compare two or more sets of data
values.
IMPORTANT RELATIVE MEASURES OF
DISPERATION
 Co-efficient of Range.
 Co-efficient of Quartile deviation.
 Co-efficient of Mean deviation.
 Co-efficient of Standard deviation.
COEFFICIENT OF VARIATION

 Coefficient of variation expresses the standard


deviation as a percentage of the mean.
 It is not strictly a measure if dispersion as it
combine central tendency and dispersion.
 For any set of data, the co efficient variation is
given by
 Formula write
STANDARDISED VARIABLE
 A variable that has mean “O” variance “I” is called as
standard variable.
 Values of standardized variable are called as standard
scores.
 Values of standard variable i.e standard scores are unit
less.
 Construction
Z= VARAIABLE – MEAN OF VARAIBLE
/STANDARD DEVIATION OF VARIABLE
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