INTRODUCTION

Question 1

What is statistics?

Answer 1

It is a science of data- it involves collecting, analyzing, presenting and interpreting data

Question 2

What is business statistics?

Answer 2

is the science of “good” decision making under uncertainties based on some numerical and measurable scales. Decision making processes must be based on data, not on personal opinion nor on belief

Question 3

What is data?

Answer 3

Data are the facts and figures that are collected, summarized, analyzed, and interpreted.

Question 4

What is the main objective of business statistics

Answer 4

to make inferences (e.g., prediction, making decisions) about certain characteristics of population based on information contained in a random sample from the entire population.

Question 5

What condition is necessary to make sure a sample is representative of the entire population

Answer 5

The condition for randomness

Question 6

What is the importance of learning business statistics?

Answer 6

• To summarize business data
• To draw conclusion from data
• To make reliable forecast about business activities
• To improve business process (quality control)

Question 7

What are the applications of statistics in business and economics

Answer 7

• Accounting- Public accounting firms use statistical sampling procedures when conducting audits for their clients.

• Finance- Financial analysts use a variety of statistical information, including price- earnings ratios to guide their investment recommendations.
• Marketing- Electronic point-of-sale scanners at retail checkout counters are being used to collect data for a variety of marketing research applications
• Production- A variety of statistical quality control charts are used to monitor the output of a production process
• Economics- Economists use statistical information in making forecasts about the future of the economy or some aspect of it

Question 8

Define Population

Answer 8

a set of all elements of interest in a particular study.

Question 9

Define a sample

Answer 9

a subset of the population.

Question 10

Define a parameter

Answer 10

A descriptive measure of a population E.g. proportion of households who watched CCTV Chinese New Year show. A parameter is an unknown value, and therefore it has to be estimated

Question 11

Define a statistic

Answer 11

a descriptive measure of a sample E.g. The proportion of 500 people in a sample who watched CCTV
Chinese New Year

Question 12

What are the two types of statistics?

Answer 12

Descriptive

Inferential

Question 13

Describe descriptive statistics

Answer 13

the discipline of quantitatively describing the main features of a collection of data. Its aim is to look for the patterns of data and to present the information in a convenient form. These convenient forms are tabular, graphical, and numerical methods used to summarize data

Question 14

Describe inferential statistics

Answer 14

the process of using information obtained from analyzing a sample to make estimates about characteristics of the entire population. Its main aim is to drawing conclusions and/or making decisions concerning a population based on sample results. It includes estimation and hypothesis testing

Question 15

What is the Difference between descriptive and inferential statistics

Answer 15

Descriptive statistics are distinguished from inferential statistics , in that descriptive statistics aim to summarize a data set, rather than use the data to learn about the population that the data are thought to represent

Question 16

What is a data set

Answer 16

a collection of data.

Question 17

What are the two main ways data is classified?

Answer 17

Based on source

Based on nature

Question 18

What are the classifications of data based on source

Answer 18

1. Primary data- Data that has been collected from first-hand-experience. It has not been published yet and is more reliable, authentic and objective. Examples: Experiments, surveys
2. Secondary Data:- Data collected from a source that has already been published in any form. Examples: Published Printed/electronic Sources (journals, books, magazines,), websites and weblogs e.t c

Question 19

What is the importance of primary data?

Answer 19

1. Validity- Primary data has not been changed or altered by human beings, therefore its validity is greater than secondary data.
2. Authenticity- Primary sources are more authentic because the facts have not been overdone. Although primary source can be less authentic if the source hides information or alters facts due to some personal reasons.
3. Reliability- Reliability improves with using primary data. If a researcher uses experimental method and questionnaires the results will be highly reliable. On the other hand, if he relies on the data available in books and on internet he will collect information that does not represent the real facts.

Question 20

What is the importance of secondary data

Answer 20

• Sometimes it is difficult to obtain primary data; in these cases getting information from secondary sources is easier and possible.
• Sometimes primary data does not exist in such situation one has to confine the research on secondary data.
• Sometimes primary data is present but the respondents are not willing to reveal it in such case too secondary data can suffice: for example, if the research is on the psychology of transsexuals first it is difficult to find out transsexuals and second they may not be willing to give information you want for your research, so you can collect data from books or other published sources.