interpret and use Financial Statistics FNSINC602A interpret and use Financial Statistics

Amazing statistics Note to MG….suggest downloading the video in the above link and hyperlinking to the file – it will be smoother http://www.youtube.com/watch?v=YmwwrGV_aiE Direct Link to Video “Did You Know”

. 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 decision makers. In its broad role as the science of decision making in the face of uncertainty, statistics is the scientific method that enables us to make decisions as responsibly as possible. Who might these decision makers be?

Why do statistics matter? In simple terms, they are the evidence on which policies are built. They help to identify needs, set goals and monitor progress. Without good statistics, the development process is blind: policy-makers cannot learn from their mistakes, and the public cannot hold them accountable. (World Bank, 2000: vii) quoted on http://www.abs.gov.au/ausstats/abs@.nsf/lookup/1500.0chapter22010

The decision making process Collect pertinent information that is as reliable as possible Select the parts of the available information that are most helpful to making rational decisions Decide as sensibly as possible on the basis of the available evidence Assess the risk entailed in the particular decision made, and evaluate the corresponding risks of alternative actions

Types of statistics Descriptive statistics The collection, condensation and display of information. This is simply collecting and recording what has happened. Essentially, it is the meaningful presentation of data such that its characteristics can be effectively observed in graphs, tables, summary measures and other readily apparent formats

Statistical Inference Taking a sample and drawing conclusions about the population based on this sample data. Also using historical data to predict trends into the future The foundation for inferential statistics is based on the mathematics of probability theory. Inferential methods use sample data to calculate statistics that provide estimates of characteristics of the entire population. The sort of questions we can examine using statistical inference are: Relationship between certain diseases and any particular factors? Any difference between males and females in mathematical ability? Does attending class make any difference to students final results? Is there a link between smoking and lung cancer? How does advertising expenditure relate to sales? Questions like these can be answered using appropriate statistical testing techniques and statisticians have a vast range from which to select, although in some cases it is difficult to decide which test is most appropriate.

Statistical language The Australian Bureau of Statistics site provides a wealth of educational material. Make sure you bookmark the glossary for future reference! http://www.abs.gov.au/websitedbs/a3121120.nsf/home/statistical+language Look at: What is a Population? Census and Sample What are data? Data Sources

How can owners and managers obtain statistics to help them better run their business? Collect information themselves Conduct a census – of whom? It depends on what the manager wants to know. Customers are a good place to start because without them, the business will surely fail. Conduct a survey – of whom, how? This data would be described as Primary data.

Information already collected by someone else. Primary Data Information collected by the person or organisation that will be using the data. Secondary Data Information already collected by someone else. Primary data – includes the researcher who wants to undertake statistical analysis involving information that has not yet been collected. Before commencing the project, the aim of the study must be identified, along with a suitable method for collecting the data. These may include; Personal interviews, mail surveys, telephone interviews. Secondary data – in this case the researcher has little or no control over the design or method of data collection, which may turn out to be unsatisfactory since it may be inappropriate. However, if every thing is in order, much time and cost can be saved. A good source of secondary data is the ABS

Some of the secondary data available on the ABS website below Attempt first 3 questions of quiz only!

Some of the secondary data available on the ABS website below Attempt first 3 questions of quiz only!

These online study skills were prepared specifically for students at another college. It makes reference to their learning platform; the OLS, which is not relevant for us. However, the study skills advice remains worthwhile.

These online study skills were prepared specifically for students at another college. It makes reference to their learning platform; the OLS, which is not relevant for us. However, the study skills advice remains worthwhile.

Let’s try two of the links below…….. for the first one take it back to 1971 then press play. http://www.abs.gov.au/websitedbs/d3310114.nsf/home/Population%20Pyramid%20-%20Australia http://www.abs.gov.au/websitedbs/d3310114.nsf/Home/Animated+Historical+Population+Chart These online study skills were prepared specifically for students at another college. It makes reference to their learning platform; the OLS, which is not relevant for us. However, the study skills advice remains worthwhile.

What you need to do to be exam ready! Delivery & assessment handout Text – Business Statistics second edition by Greg Dickman Calculator - Sharp EL735S or EL738 Class - join us every week Self Practice questions - undertake revision and complete set self practice tasks

Questions? OK .. Let’s work through Basic Maths calculations – from the Handout for week 1 Also developing our problem solving skills PowerPoint file….. “Revision Basic Maths Problems2”

Any Questions?

Suggested Questions from Textbook…… Problem 1.2 page 3 Q 1 and 2 Problem 1.6 page 6

Useful sites for an introduction to statistics References http://www.investopedia.com/articles/financial-theory/11/lie-with-financial-statistics.asp#axzz21DAqiPAi http://www.abs.gov.au/websitedbs/a3121120.nsf/4a256353001af3ed4b2562bb00121564/07a8378ae6cfe8b4ca2575dd0002ba7a!OpenDocument http://www.abs.gov.au/websitedbs/a3121120.nsf/89a5f3d8684682b6ca256de4002c809b/61944a9fc35d3c0eca257959007b684a!OpenDocument http://www.abs.gov.au/websitedbs/a3121120.nsf/89a5f3d8684682b6ca256de4002c809b/c93b602ff801d081ca257949000febbb!OpenDocument http://otenstudyskills.tafensw.edu.au/content/plan.htm Useful sites for an introduction to statistics http://www.wiziq.com/tutorial/122513-Basic-Concept-of-statistics http://www.statsoft.com/textbook/elementary-statistics-concepts/button/1/ http://www.sagepub.com/upm-data/49259_ch_1.pdf