Slide 1Chapter 1 Data and StatisticsApplications in Business and EconomicsSlide 4DataData and Data SetsElements, Variables, and ObservationsData, Data Sets, Elements, Variables, and ObservationsScales of MeasurementSlide 10Slide 11Slide 12Slide 13Slide 14Slide 15Slide 16Slide 17Qualitative and Quantitative DataQualitative DataQuantitative DataCross-Sectional and Time Series DataData SourcesSlide 23Slide 24Slide 25Data Acquisition ConsiderationsDescriptive StatisticsSlide 28Example: Hudson Auto RepairSlide 30Slide 31Slide 32Slide 33End of Chapter 11 1 Slide Slide© 2003 Thomson/South-Western© 2003 Thomson/South-Western2 2 Slide Slide© 2003 Thomson/South-Western© 2003 Thomson/South-WesternChapter 1Chapter 1 Data and Statistics Data and StatisticsApplications in Business and EconomicsApplications in Business and EconomicsDataDataData SourcesData SourcesDescriptive StatisticsDescriptive StatisticsStatistical InferenceStatistical Inference3 3 Slide Slide© 2003 Thomson/South-Western© 2003 Thomson/South-WesternApplications in Applications in Business and EconomicsBusiness and EconomicsAccountingAccountingPublic accounting firms use statistical sampling Public accounting firms use statistical sampling procedures when conducting audits for their procedures when conducting audits for their clients.clients.FinanceFinanceFinancial analysts use a variety of statistical Financial analysts use a variety of statistical information, including price-earnings ratios and information, including price-earnings ratios and dividend yields, to guide their investment dividend yields, to guide their investment recommendations.recommendations.MarketingMarketingElectronic point-of-sale scanners at retail checkout Electronic point-of-sale scanners at retail checkout counters are being used to collect data for a counters are being used to collect data for a variety of marketing research applications.variety of marketing research applications.4 4 Slide Slide© 2003 Thomson/South-Western© 2003 Thomson/South-WesternProductionProductionA variety of statistical quality control charts A variety of statistical quality control charts are used to monitor the output of a production are used to monitor the output of a production process.process.EconomicsEconomicsEconomists use statistical information in Economists use statistical information in making forecasts about the future of the making forecasts about the future of the economy or some aspect of it.economy or some aspect of it.Applications in Applications in Business and EconomicsBusiness and Economics5 5 Slide Slide© 2003 Thomson/South-Western© 2003 Thomson/South-WesternDataDataElements, Variables, and ObservationsElements, Variables, and ObservationsScales of MeasurementScales of MeasurementQualitative and Quantitative DataQualitative and Quantitative DataCross-Sectional and Time Series DataCross-Sectional and Time Series Data6 6 Slide Slide© 2003 Thomson/South-Western© 2003 Thomson/South-WesternData and Data SetsData and Data SetsDataData are the facts and figures that are are the facts and figures that are collected, summarized, analyzed, and collected, summarized, analyzed, and interpreted.interpreted.The data collected in a particular study are The data collected in a particular study are referred to as the referred to as the data setdata set..7 7 Slide Slide© 2003 Thomson/South-Western© 2003 Thomson/South-WesternElements, Variables, and ObservationsElements, Variables, and ObservationsThe The elementselements are the entities on which data are the entities on which data are collected.are collected.A A variablevariable is a characteristic of interest for the is a characteristic of interest for the elements.elements.The set of measurements collected for a The set of measurements collected for a particular element is called an particular element is called an observationobservation..The total number of data values in a data set The total number of data values in a data set is the number of elements multiplied by the is the number of elements multiplied by the number of variables.number of variables.8 8 Slide Slide© 2003 Thomson/South-Western© 2003 Thomson/South-WesternData, Data Sets, Data, Data Sets, Elements, Variables, and ObservationsElements, Variables, and ObservationsElementElementssVariableVariablessData SetData SetDatumDatumObservatioObservationn StockStock Annual Annual Earn/Earn/CompanyCompany Exchange Sales($M) Sh.($) Exchange Sales($M) Sh.($)DataramDataramAMEXAMEX73.1073.10 0.86 0.86EnergySouthEnergySouth OTC OTC74.0074.00 1.67 1.67KeystoneKeystone NYSE NYSE 365.70 365.70 0.86 0.86 LandCareLandCare NYSE NYSE 111.40 111.40 0.33 0.33PsychemedicsPsychemedicsAMEXAMEX17.6017.60 0.13 0.139 9 Slide Slide© 2003 Thomson/South-Western© 2003 Thomson/South-WesternScales of MeasurementScales of MeasurementScales of measurementScales of measurement include: include:•NominalNominal•OrdinalOrdinal•IntervalInterval•RatioRatioThe scale determines the amount of The scale determines the amount of information contained in the data.information contained in the data.The scale indicates the data summarization The scale indicates the data summarization and statistical analyses that are most and statistical analyses that are most appropriate.appropriate.10 10 Slide Slide© 2003 Thomson/South-Western© 2003 Thomson/South-WesternScales of MeasurementScales of MeasurementNominalNominal•Data are Data are labels or nameslabels or names used to identify an used to identify an attribute of the element.attribute of the element.•A A nonnumeric labelnonnumeric label or a or a numeric codenumeric code may may be used.be used.11 11 Slide Slide© 2003 Thomson/South-Western© 2003 Thomson/South-WesternScales of MeasurementScales of MeasurementNominalNominal•Example:Example: Students of a university are classified by Students of a university are classified by the school in which they are enrolled the school in which they are enrolled using a nonnumeric label such as using a nonnumeric label such as Business, Humanities, Education, and so Business, Humanities, Education, and so on.on. Alternatively, a numeric code could be Alternatively, a numeric code could be used for the school variable (e.g. 1 used for the school variable (e.g. 1