1. Statistics for Managers Using Microsoft Excel® 7th Edition, Global Edition
Let’s Get Started
Copyright ©2014 Pearson Education

2. Learning Objectives In this chapter you learn:
That the volume of data that exists in the world makes learning about statistics critically important
That statistics is a way of thinking that can help you make better decisions
What business analytics is and how these techniques represent an opportunity for you
How the DCOVA framework for applying statistics can help you solve business problems
How to make best use of this book
How to prepare for using Microsoft Excel® with this book
Copyright ©2014 Pearson Education

3. In Today’s Business World You Cannot Escape From Data
In today’s digital world ever increasing amounts of data are gathered, stored, reported on, and available for further study.
You hear the word data everywhere.
Data are facts about the world and are constantly reported as numbers by an ever increasing number of sources.
Copyright ©2014 Pearson Education

4. Each Business Person Faces A Choice Of How To Deal With This Explosion Of Data
They can ignore it and hope for the best.
They can count on other people’s summaries of data and hope they are correct.
They can develop their own capability and insight into data by learning about statistics and its application to business.
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5. Statistics Is Evolving So Businesses Can Use The Vast Amount Of Data Available
The emerging field of Business Analytics makes “extensive use of:
Data
Statistical and quantitative analysis
Explanatory & predictive models
Fact based management
to drive decisions and actions.”
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6. In this book we will use DCOVA
To Properly Apply Statistics You Should Follow A Framework To Minimize Possible Errors
In this book we will use DCOVA
Define the data you want to study in order to solve a problem or meet an objective
Collect the data from appropriate sources
Organize the data collected by developing tables
Visualize the data by developing charts
Analyze the data collected to reach conclusions and present results
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7. Using The DCOVA Framework Helps You To Apply Statistics To:
Summarize & visualize business data
Reach conclusions from those data
Make reliable forecasts about business activities
Improve business processes
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8. Developing Operational Definitions Is Crucial To Avoid Confusion / Errors
An operational definition is a clear and precise statement that provides a common understanding of meaning
In the absence of an operational definition miscommunications and errors are likely to occur.
Arriving at operational definition(s) is a key part of the Define step of DCOVA
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9. Operational Definitions Of Terms
VARIABLE
A characteristic of an item or individual.
DATA
The set of individual values associated with a variable.
STATISTICS
The methods that help transform data into useful information for decision makers.
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10. Are These Numbers Useful In Making Decisions
A survey of 1,179 adults 18 and over reported that 54% thought that 15 seconds was an acceptable online ad length before seeing free content.
A survey of more than 3,000 full-time traditional-age students found that the students spent 51% of their time on socializing, recreation, and other activities; 9% of their time attending class/lab; and 7% of their time studying.
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11. Without Statistics You Can’t
Determine if the numbers in these studies are useful information
Validate claims of causality
See patterns that large amounts of data sometimes reveal
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12. Two Different Branches Of Statistics Are Used In Business
The branch of mathematics that transforms data into useful information for decision makers.
Descriptive Statistics
Collecting, summarizing, presenting and analyzing data
Inferential Statistics
Using data collected from a small group to draw conclusions about a larger group
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13. Business Analytics: The Changing Face Of Statistics
Use statistical methods to analyze and explore data to uncover unforeseen relationships.
Use management science methods to develop models that impact an organization’s strategy, planning, and operations.
Use information systems methods to collect and process data sets of all sizes, including very large data sets that would otherwise be hard to examine efficiently.
Copyright ©2014 Pearson Education

14. Business Analytics Has Already Been Applied In Many Business Decision-Making Contexts
Human resource managers (HR) understanding relationships between HR drivers, key business outcomes, employee skills, capabilities, and motivation.
Financial analysts determining why certain trends occur to predict future financial environments.
Marketers driving loyalty programs and customer marketing decisions to drive sales.
Supply chain managers planning and forecasting based on product distribution and optimizing sales distribution based on key inventory measures.
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15. The Growth Of “Big Data” Spurs The Use Of Business Analytics
“Big Data” is still a fuzzy concept.
Very large data sets are arising because of the automatic collection of high volumes of data at very fast rates.
Older statistical techniques are often times impractical with big data.
Copyright ©2014 Pearson Education

16. How To Use This Book
The Using Statistics scenario at the beginning and end of each chapter provide
A real business situation that the chapter’s topics can help address
Context which is an important part of the learning process
Downloadable example Excel® worksheets are provided throughout each chapter
Numerous case studies are provided so you can
Apply what you have learned
Enhance your analytical & communication skills
Copyright ©2014 Pearson Education

17. Microsoft Excel Is The Primary Data Analysis Application In Microsoft Office
Excel uses worksheets (spreadsheets) to both store data and present analysis results
A worksheet has rows and columns
The intersection of a specific row and column is called a cell and is where data is stored
Standard business practice is to store the data associated with a variable in a column
Excel saves files that it calls workbooks
A workbook is a collection of worksheets and chart sheets
An excel file is typically saved in an .xlsx or .xls format
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18. How Can I Use Excel With This Book
Excel can be used to learn and apply the statistical methods discussed in this book
Excel can be used by utilizing the Excel add-in PHStat
PHStat is available free for users of this book
PHStat simplifies the task of operating Excel
Excel can also be used via In-Depth Excel
In-Depth Excel instructions use templates for a specific statistical solution
The Excel Guides explain how to use either method
Copyright ©2014 Pearson Education

19. Computing Skills Needed For This Book
Basic Computing Skills Specifics
Identification of Excel Title bar, minimize/resize/close buttons, scroll bars,
application window objects formula bar, workbook area, cell pointer.
Office Ribbon parts: tab, group, gallery, launcher
button
Shortcut (popup) menu
Knowledge of mouse Click (also called select), check and clear, doubleclick,
operations right-click, drag/drag-and-drop
Identification of dialog box Command button, list box, drop-down list, edit box,
Objects option button, check box
Basic Microsoft Office Skills Specifics
Excel data entry Organizing worksheet data in columns, entering
numerical and categorical data
File operations Open, save, print
Worksheet operations Create, copy
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20. Excel Skills Needed For The In-Depth Excel Approach
Skill Specifics
Formula skills Concept of a formula, cell references absolute and relative cell references, how to enter a formula, how to enter an array formula
Workbook presentation How to apply format changes that affect the display of worksheet cell contents
Chart formatting correction How to correct the formatting of charts that Excel improperly creates
Discrete histogram creation How to create a properly formatted histogram for a discrete probability distribution
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21. Chapter Summary In this chapter we have seen:
That the volume of data that exists in the world makes learning about statistics critically important
That statistics is a way of thinking that can help you make better decisions
What business analytics is and how these techniques represent an opportunity for you
How the DCOVA framework for applying statistics can help you solve business problems
How to make best use of this book
How to prepare for using Microsoft Excel with this book
Copyright ©2014 Pearson Education

22. Printed in the United States of America.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.
Printed in the United States of America.