A PowerPoint Presentation Package to Accompany Applied Statistics in Business & Economics 2 nd ed. by David P. Doane and Lori E. Seward Prepared by Lloyd R. Jaisingh Morehead State University Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Overview of Statistics What is Statistics? Why Study Statistics? Uses of Statistics Statistical Challenges Writing and Presenting Reports Critical Thinking Statistics: An Evolving Field Chapter11 1-2

What is Statistics? What is Statistics? Statisticsis the science of collecting, organizing, analyzing, interpreting, and presenting data.Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data. Astatisticis a single measure (number) used to summarize a sample data set. For example, the average height of students in this class.A statistic is a single measure (number) used to summarize a sample data set. For example, the average height of students in this class. Astatisticianis an expert with at least a master’s degree in mathematics or statistics or a trained professional in a related field.A statistician is an expert with at least a master’s degree in mathematics or statistics or a trained professional in a related field. 1-3

Why Study Statistics? Why Study Statistics? Communication Computer Skills Understanding the language of statistics facilitates communication and improves problem solving. The use of spreadsheets for data analysis and word processors or presentation software for reports which improves upon your existing skills. 1-4

Why Study Statistics? Why Study Statistics? Information Management Technical Literacy Statistics help summarize large amounts of data and reveal underlying relationships. Career opportunities are in growth industries propelled by advanced technology. The use of statistical software increases your technical literacy. 1-5

Why Study Statistics? Why Study Statistics? Career Advancement Quality Improvement Statistical literacy can enhance your career mobility. Statistics helps firms oversee their suppliers, monitor their internal operations and identify problems. 1-6

Uses of Statistics Uses of Statistics Two primary kinds of statistics: Descriptive statistics Descriptive statistics – the collection, organization, presentation and summary of data. Inferential statistics Inferential statistics – generalizing from a sample to a population, estimating unknown parameters, drawing conclusions, making decisions. 1-7

Uses of Statistics Uses of Statistics Overview of Statistics (Figure 1.1) Overview of Statistics (Figure 1.1) Statistics Collecting and Describing Data Making Inferences from Samples Sampling and Surveys Visual Displays Numerical Summaries Probability Models Estimating Parameters Testing Hypotheses Regression and Trends Quality Control 1-8

Some Areas where Statistics is Used Some Areas where Statistics is Used Auditing Auditing Marketing Marketing Health Care Health Care Quality Control Quality Control Purchasing Purchasing Medicine Medicine Forecasting Forecasting Product Warranty Product Warranty 1-9

Statistical Challenges Statistical Challenges Is technically current (e.g., software-wise).Is technically current (e.g., software-wise). Communicates well.Communicates well. Is proactive.Is proactive. Has a broad outlook.Has a broad outlook. Is flexible.Is flexible. Focuses on the main problem.Focuses on the main problem. Meets deadlines.Meets deadlines. Knows his/her limitations and is willing to ask for help.Knows his/her limitations and is willing to ask for help. Can deal with imperfect information.Can deal with imperfect information. Has professional integrity.Has professional integrity. The Ideal Data Analyst The Ideal Data Analyst 1-10

Statistical Challenges Statistical Challenges Working with Imperfect DataWorking with Imperfect Data – clearly state the assumptions and the limitations of the analysis. Dealing with Practical ConstraintsDealing with Practical Constraints – examples: collecting data which is risky, sensitive questions, cost, time factor, cannot sample the entire population, etc. Upholding Ethical Standards Upholding Ethical Standards – safeguards should be in place to protect professional integrity and to minimize ethical breaches. Using Consultants Using Consultants – when you or your team or your company lacks certain statistical skills or when an independent view is needed. 1-11

Statistical Challenges Statistical Challenges Skills Needed for Success in Business Skills Needed for Success in Business (Table 1.1) For initial job success For long-range job success Common weaknesses Report-writingManagerial accountingCommunication skills Accounting principles Managerial economicsWriting skills MathematicsManagerial financeImmaturity StatisticsOral communicationUnrealistic expectations 1-12

Writing and Presenting Reports Writing and Presenting Reports Rules for Power Writing Writing Style Avoid Jargon Make It Attractive Watch Your Spelling and Grammar Organizing a Technical Report Tables and Graphs Rules for Presenting Oral Reports The three Ps: Pace, Plan, and Practice 1-13

Critical Thinking Critical Thinking critical thinking Statistics is an essential part of critical thinking because it allows us to test an idea against empirical evidence. Empirical DataEmpirical Data represent data collected through observation and experiments. 1-14

Statistics: An Evolving Field Statistics: An Evolving Field Statistics is a relatively young field, having been developed mostly during the 20 th century.Statistics is a relatively young field, having been developed mostly during the 20 th century. Its mathematical frontiers continue to expand with the aid of computers.Its mathematical frontiers continue to expand with the aid of computers. Major recent developments include - Exploratory data analysis (EDA) - Computer-intensive statistics - Design of experiments - Robust product design - Advanced Bayesian methods - Graphical Methods…and moreMajor recent developments include - Exploratory data analysis (EDA) - Computer-intensive statistics - Design of experiments - Robust product design - Advanced Bayesian methods - Graphical Methods…and more 1-15