Chapter 1
Data and Statistics
Learning Objectives
1.
Obtain an appreciation for the breadth of statistical applications in business and economics.
2.
Understand the meaning of the terms elements, variables, and observations as they are used in
statistics.
3.
Obtain an understanding of the difference between qualitative, quantitative, crossectional and time
series data.
4.
Learn about the sources of data for statistical analysis both internal and external to the firm.
5.
Be aware of how errors can arise in data.
6.
Know the meaning of descriptive statistics and statistical inference.
7.
Be able to distinguish between a population and a sample.
8.
Understand the role a sample plays in making statistical inferences about the population.
1  1
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Solutions:
1.
Internal data on salaries of other employees can be obtained from the personnel department.
External data might be obtained from the Department of Labor or industry associations.
2.
a.
9
b.
4
c.
Country and room rate are qualitative variables; number of rooms and the overall score are
quantitative variables.
d.
Country is nominal; room rate is ordinal; number of rooms is ratio and overall score is interval.
3.
a.
Average number of rooms = 808/9 = 89.78 or approximately 90 rooms
b.
Average score = 732.1/9 = 81.3
c.
2 of 9 are located in England; approximately 22%
d.
4 of 9 have a room rate of $$; approximately 44%
4.
a.
10
b.
All brands of minisystems manufactured.
c.
Average price = 3140/10 = $314
d.
$314
5.
a.
5
b.
Price, CD capacity, and the number of tape decks are quantitative. Sound quality and FM tuning
sensitivity and selectivity are qualitative.
c.
Average CD capacity = 30/10 = 3.
d.
7
(100)
70%
10
=
e.
4
(100)
40%
10
=
6.
Questions a, c, and d provide quantitative data.
Questions b and e provide qualitative data.
7.
Statistics can be referred to as numerical facts.
In a broader sense, statistics is the field of study
dealing with the collection, analysis, presentation and interpretation of data.
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 Winter '09
 carl
 Economics, Statistics, a. b. c.

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