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Unformatted text preview: 1 CHAPTER 1: INTRODUCTION TO STATISTICS Stats & Prob. for Bus. Mgmt (Stat1100) Jochem Introduction to Statistics b Overview b 1. What is Statistics? b 2. Some Motivation for doing Statistics. . Some Basic Concepts 2 b 3. Some Basic Concepts b 4. Types of Data Introduction to Statistics b 1. What is Statistics? b As simple as that: Statistics is to learn information (or, to derive knowledge) from a set of data. 3 Introduction to Statistics b 1. What is Statistics? b As simple as that: Statistics is to learn information (or, to derive knowledge) from a set of data. 4 X Y Z 123,231 Pittsburgh Low 285,123 Philadelphia High 1,121,121 New York City Medium New information or knowledge This may include simple things such as computing the mean of some numbers or finding the proportion of some category (e.g., yes vs. no answers) but may also include more complex concepts that allow us to learn from one small subsample something about the underlying population from which the data came from. Statistics b 1. What is Statistics? Introduction to Statistics Statistics 1. Descriptive Statistics Summary numbers that describe a data set, such as some measure of center (mean, median, mode) or some measure of variation (range, andard eviation, ariance) 5 Descriptive Inferential standard deviation, variance) 2. Inferential Statistics Creating an estimate or a prediction or testing a claim about some population based on a subsample from that population. (Ex: Do seniors take less credits than freshmen?, Do students that smoke live more often off- campus?, Is David Hasselhoff really more popular in Germany than in the U.S.? ;-) Introduction to Statistics b 1. What is Statistics? b Examples of Descriptive Statistics s 1. Computing a players batting average in Baseball. s 2. Computing the volatility of a stock (think, AIG vs. McDonalds) 6 s 3. Whats the relative position of Roethlisberger when ranking all NFL Quarterbacks the by number of times being sacked? s 4. How much more (or less) beer is sold in Heinz Field for each additional degree Fahrenheit? b 1. What is Statistics? b Examples of Inferential Statistics s 1. Finding out the presidents approval rating 7 Introduction to Statistics Source: http://www.rasmussen reports.com/public_con tent/politics/obama_ad ministration/obama_ap proval_index_month_b y_month b 1. What is Statistics?...
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