Scribd
Upload
95 views12 pages

Business Statistics Lesson 1

Uploaded by

Jacy Vyke
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
95 views12 pages

Business Statistics Lesson 1

Uploaded by

Jacy Vyke
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 12

BUSINESS

STATISTICS
BY MS ANGELA JOHN
COURSE OUTLINE

1. Introduction to Business Statistics


2. Introduction to data Collection Methods
3. Overview of Central Tendency
4. Dispersion and Skewness
5. Correlation and Regression
6. Index Numbers
7. Time Series Analysis
8. Probability Theory
9. Probability Distribution
10. Sampling and Sample Methods
11. Business Equations and Graphs
INTRODUCTION TO BUSINESS
STATISTICS
• OBJECTIVE: The aim of the present lesson is to enable the students to understand the
meaning, definition, nature, importance and limitations of statistics.
• AREAS TO BE COVERED: Introduction, Meaning and Definitions of Statistics, Types of
Data and Data Sources, Types of Statistics, Scope of Statistics, Importance of Statistics in
Business, Limitations of statistics, Summary
INTRODUCTION TO BUSINESS
STATISTICS
 Statistics is the numerical presentation of facts. Or numerical information expressed in
quantitative terms.
• For example at the macro level, statistics can be data on gross national product and shares of
agriculture, manufacturing, and services in GDP (Gross Domestic Product).
• And at the micro level, statistics can be individual firms, howsoever small or large, produce
extensive statistics on their operations. The annual reports of companies contain variety of data
on sales, production, expenditure, inventories, capital employed, and other activities.
INTRODUCTION TO BUSINESS
STATISTICS
CHARACTERISTICS OF STATISTICS
I. Aggregate of facts/data
II. Numerically expressed
III. Affected by different factors
IV. Collected or estimated
V. Reasonable standard of accuracy
VI. Predetermined purpose
VII. Comparable
VIII.Systematic collection.
INTRODUCTION TO BUSINESS
STATISTICS
TYPES OF DATA AND DATA SOURCES.
• Statistical data are the basic raw material of statistics.
• Statistical data therefore, refer to those aspects of a problem situation that can be measured,
quantified, counted, or classified.
 Data is classified into two main categories
i. Quantitative data (discrete and continuous)
ii. Qualitative data (nominal and rank data)
INTRODUCTION TO BUSINESS
STATISTICS
TYPES OF DATA AND DATA SOURCES.
 There are two types of data sources namely secondary and primary data source.
I. Secondary data .They already exist in some form: published or unpublished in an identifiable
secondary source.
II. Primary data. Those data which do not already exist in any form, and thus have to be collected for
the first time from the primary source(s).
INTRODUCTION TO BUSINESS
STATISTICS
• TYPES OF STATISTICS
There are two major divisions of statistics, namely:
I. Descriptive statistics deals with collecting, summarizing, and simplifying
data, which are otherwise quite unwieldy and voluminous.
II. Inferential statistics, also known as inductive statistics, goes beyond
describing a given problem situation by means of collecting, summarizing,
and meaningfully presenting the related data. Instead, it consists of methods
that are used for drawing inferences, or making broad generalizations, about a
totality of observations on the basis of knowledge about a part of that totality.
INTRODUCTION TO BUSINESS
STATISTICS
SCOPE OF STATISTICS
 Apart from the methods comprising the scope of descriptive and inferential branches of statistics,
statistics also consists of methods of dealing with a few other issues of specific nature. These are mainly
concerned with:
1) It often becomes necessary to examine how two paired data sets are related.
2) Situations occur quite often when we require averaging (or totaling) of data on prices and/or
quantities expressed in different units of measurement
3) Many a time, it becomes necessary to examine the past performance of an activity with a view to
determining its future behaviour
4) Obtaining the most likely future estimates on any aspect(s) relating to a business or economic
activity has indeed been engaging the minds of all concerned.
INTRODUCTION TO BUSINESS
STATISTICS
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:
a) The planning of operations: This may relate to either special projects or to the recurring
activities of a firm over a specified period.
b) 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.
c) The function of control: This involves comparison of actual production achieved against
the norm or target set earlier
INTRODUCTION TO BUSINESS
STATISTICS
LIMITATIONS OF STATISTICS
There are certain phenomena or concepts where statistics cannot be used
Statistics reveal the average behaviour, the normal or the general trend
Since statistics are collected for a particular purpose, such data may not be
relevant or useful in other situations or cases
Statistics are not 100 per cent precise as is Mathematics or Accountancy .
INTRODUCTION TO BUSINESS
STATISTICS
LIMITATIONS OF STATISTICS
In statistical surveys, sampling is generally used as it is not physically
possible to cover all the units or elements comprising the universe
At times, association or relationship between two or more variables is
studied in statistics, but such a relationship does not indicate cause and
effect‘ relationship
A major limitation of statistics is that it does not reveal all pertaining to a
certain phenomenon

You might also like