Business Statistics Intro

Question 1

Define Statistics

Answer 1

Statistics is the branch of mathematics that examines ways to process and analyse data. Statistics provides procedures to collect and transform data in ways that are useful to business decision makers. To understand anything about statistics, you first need to understand the meaning of a variable.

Question 2

4 fundamental terms of statistics

Answer 2

Population
Sample
Parameter
Statistic

Question 3

Population

Answer 3

A population consists of all the members of a group about which you want to draw a conclusion.

Question 4

Sample

Answer 4

A sample is the portion of the population selected for analysis

Question 5

Parameter

Answer 5

A parameter is a numerical measure that describes a characteristic of a population

Question 6

Statistic

Answer 6

A statistic is a numerical measure that describes a characteristic of a sample (measures calculated from sample data) ROMAN LETTERS REFER TO
STATISTICS

Question 7

What are the 2 types of statistics?

Answer 7

Descriptive statistics

Inferential statistics

Question 8

Descriptive statistics

Answer 8

Collecting, summarizing and presenting data

Question 9

Inferential statistics

Answer 9

Drawing conclusions about a population based on sample data/results (i.e. estimating a parameter based on a statistic)

Question 10

3 steps of descriptive statistics

Answer 10

Collect data (ex. survey)
Present data (ex. tables and graphs)
Characterize data (ex. sample mean)

Question 11

Steps of inferential statistics

Answer 11

Estimation (ex. estimate the population mean weight (parameter) using the sample mean weight (statistic))
Hypothesis Testing (ex. test the claim that the population mean weight is 100 kilos)

Question 12

4 important sources when collecting data

Answer 12

Data distributed by organisation or individual

Designed experiment

Survey

Observational study

Question 13

2 classifications of data sources

Answer 13

Primary

Secondary

Question 14

2 types of data

Answer 14

Categorical (defined categories)

Numerical (quantitative)

Question 15

2 types of numerical variables

Answer 15

Discrete (counted items)

Continuous (measured characteristics)

Question 16

Categorical data

Answer 16

Simply classifies data into categories (e.g. marital status, hair colour, gender)

Question 17

Numerical discrete data

Answer 17

Counted items – finite number of items (e.g. number of

children, number of people who have type-O blood

Question 18

Numerical continuous data

Answer 18

Measured characteristics – infinite number of items

e.g. weight, height

Question 19

4 Levels of Measurement and Measurement Scales from highest to lowest

Answer 19

Ratio data
Interval data
Ordinal data
Nominal data

Question 20

Ratio data

Answer 20

Differences between measurements are meaningful and a true zero exists

Distance, area, height, weight, age, weekly food spending

Question 21

Interval data

Answer 21

Differences between measurements are meaningful but no true zero exists

Year, temperature in degrees Celsius, standardized exam score

Question 22

Ordinal data

Answer 22

Ordered categories (rankings, order or scaling)

Rankings in a tennis tournament, student letter grades, Liker scales

Question 23

Nominal data

Answer 23

Categories (no ordering or direction)

Gender, eye color, hair color,