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Business Stats & Decision Making 1 MNIMS
Business Stats & Decision Making 1 MNIMS
Unit 1
Chapter 1
Functions
Calculations for summarisation, Forecasting, drawing inference
for population using sample data, Estimation
• Limitations of statistics
• it can help for the data for which we can gather the
quantitative piece of information .
• Can't help with the individual items it can be used for entire
data.
• It won't help us to predict with 100% accuracy, mathematically
also its not possible
• It should be used with the proper knowledge, hey if you use it
with incomplete knowledge hey then wrong statistics may
mislead
Importance of Statistics
• Hey today first importance of it could be It is helping ask to
simplify the data (quantitative data ). This way simplification
can help anybody to present data in a way that a Lehman
person can understand.
• Decide In what circumstances, how inference can be drawn
based on the partial information.
• It also measures the risk associated with any findings.
Basic Difference in the Sample and Census
When researchers gather data from the whole population ( for a given
measurement of interest), they call it a census.
For various reasons, researchers often prefer to work with a sample of the
population instead of the entire population. For example, in conducting
quality control experiments to determine the average life of lightbulbs, a
lightbulb manufacturer might randomly sample only 75 lightbulbs during a
production run. Because of time and money limitations, a human resources
manager might take a random sample of 40 employees instead of using a
census to measure company morale.
For Example: Census of India, Conduct the Full enumeration survey (Census Survey)
by considering each and every individuals.
For Example: NSSO they
conduct Sample Survey.
Content Given in the book:
If a business analyst is using data gathered on a group to describe or reach
conclusions about that same group, the statistics are called descriptive
statistics.
Let say you are working with Sample data and developed some
insights by summarising it with statistical measure( like mean,
variance, percentile, range etc.). In this way of narration, those
statistical measures can be said Descriptive statistics.
Let say you are working with Sample Data. Actually Your aim is
to narrate the story with population data but you don’t have
Population data/ It is not feasible for you to collect it.
Maybe I can afford to approach few hundreds of Hostar users from my personal or
professional spheres.
Say for example I have conducted a study with 100 Hotstar users.
Data revels that 85 % people prefer to watch ‘ Hotstar Special’. Here Percentage is
Statistics
Median age of the sample is 35 years. Here, Median is Statistics.
Example of descriptive statistics: A sample study on 100 WhatsApp users in
India, reveals the following with respect to usage of WhatsApp in a typical
day.
Usage category Number of
Respondents
Less than one
15
hour
1 to 2 Hours 35
more than 2
50
Hours
Here, statistics can help to describe the WhatsApp usages of sample-respondents.
• 15 out of 100 sample respondents use WhatsApp for less than one hour a day
• 35 out of 100 sample respondents use WhatsApp for 1 to 2 Hours day
• 50 out of 100 sample respondents use WhatsApp for more than 2 Hours a day
Example of Inferential statistics: A sample study on 100 WhatsApp users in
India, helps us to infer the following as far as usage hours of Indian-
WhatsApp users are concerned.
Usage category Number of
Respondents
Less than one
15
hour
1 to 2 Hours 35
more than 2
50
Hours
Here, population of study is ‘all Indian WhatsApp user. From the above following can be inferred
for entire population of study.
• 15 % of the Indian-WhatsApp users utilise WhatsApp for less than 1 Hour a day
• 35 % of the Indian-WhatsApp users utilise WhatsApp for 1 to 2 Hours a day
• 50 % of the Indian-WhatsApp users utilise WhatsApp for More than 2 Hours a day
A descriptive measure of the population is called a parameter. Parameters
are usually denoted by Greek letters. Examples of parameters are population
mean ( 𝜇), populationvariance ( 𝜎 2 ), and population standard deviation (𝜎 ). A
descriptive measure of a sample is called a statistic. Statistics are usually
denoted by Roman letters. Examples of statistics are sample mean ( 𝑥), ҧ
sample variance (𝑠 2 ), and sample standard deviation (s)
Let say My Senior Ask me to Prepare the report (summarised report of four ppt
slides) on the Active registered companies of Uttarakhand based on the data released
by Ministry of Corporate affairs in 2019
1,80,95,355.35
ACTV INR
Let say if ask me that question again and this time I don’t want
to give precise answer and if I say “ my age is somewhere
between 30-35”.
This is continuous observation.
In Categorical Variables, Observation list can be prepared by
identifying distinct categories/ characteristics.
Sample can be said ‘Good Boy’ when you form sample using
appropriate sampling technique.
Please Remember
Parameters: when Measure (mathematical, statistical) adopted for population data for
the purpose of narrating a story on population they can be said Parameters.
Statistics: Measures used for preparing a story on sample data then such measures can
be said Statistics.
Inferential statistics: Help to narrate the story about population based on sample data