ACCY/MGMT 208
Chapter 1 & 2
Chapter 1
Statistics
– Transforms data into useful information for decision makers
Descriptive Statistics
– Collecting, summarizing, visualizing, presenting and analyzing data
– Collect data = survey
– Summarize, visualize, present data = tables and graphs
– Analyze data = the sample mean
Inferential Statistics
– Using data collected from a small group to draw conclusions about a larger group
– It uses a sample of the group
– Estimation = estimate the population mean weight using the sample mean weight
– Hypothesis testing = test the claim that the population mean weight is 120 lbs
Roles Statistics Play
– Visualize and summarize business data
Descriptive methods used to create charts and tables
– Draw conclusions from business data
Inferential methods used to reach conclusions about a large group based
on a small group
– Make reliable forecasts about business activities
Inferential methods utilizing statistical models based on business data
– Improve business processes
Involves managerial approaches like Six Sigma (where to focus efforts)
Trends Driving Importance
– Increasing amount of readily available data and the amount that can be collected, stored,
and managed
– Increasing accessibility of computerized statistical tools making calculations easier
(Excel)
Variable
– A trait, property, or characteristic of an item or individual
Name, Age, GPA
Data
– The set of individual values associated with a variable
