Elementary Statistics for Business

1. Elementary Statistics for
Business
-Dr. M. S. Dhanawade

2. Agenda
• Overview of Statistics
• Branches of Statistics
• Basics Terms of related to statistics
• Graphical Presentation of Statistical Data
• Measure of Central Tendency
• Introduction to Business Analytics

3. What is
Statistics?

4. Statistics & Management Science
• Marketing:
Statistical analysis are frequently used in providing information for making
decision in the field of marketing.
It is necessary first to find out…….
What are the needs and wants of masses?
What product can be marketed?
Who can be prospect buyers of the product?
Who can be prospect user of the product ?
What can be most Appropriate strategy ?
A skill full analysis of data on production purchasing power, man power,
habits of compotators, habits of consumer, transportation cost should be
consider to take any attempt to establish a new market.

5. Statistics & Management Science
Operations and Supply Chain Management:
In the field of Operations statistical data and method play a very
important role. The decision about…….
What to produce?
How to produce?
How much to produce?
When to produce?
How to minimize the production and Logistics cost?
Answers are based largely on statistical analysis.
Finance:
The efficient financial management are depend very heavily on
statistical analysis of large amount of historical financial data.

6. Statistics & Management Science
Purchase:
The purchase department in discharging their function makes use of
statistical data to frame suitable purchase policies such as……
What to buy?
What quantity to buy?
What time to buy?
Where to buy?
From whom to buy?
Control:
The management control process combines statistical and accounting
method in making the overall budget for the coming year including
sales, materials, labor and other costs and net profits and capital
requirement.

7. Statistics & Management Science
Business Research:
Business research can be defined as the scientific and
systematic method of collecting, organizing, analyzing
and interpreting the data with the aim of finding
probable solutions to the problems in businesses.
Business Research is primarily based on the data (text
or numerical).

8. Data and Statistics
Data (Primary/Secondary) consists of information received/
collected coming from observations, counts, measurements,
or responses.
Statistics is the science of collecting, organizing, analyzing,
and interpreting data in order to make decisions.
Population is the collection of all outcomes, responses,
measurement, or counts that are of interest.
Sample is a subset of a population.

9. Populations & Samples
• Example:
• In a recent survey, 980 MBA students at institutes
affiliated to SPPU were asked there opinion about
revised syllabus 2019.
All students from all institutes affiliated to
SPPU (population) Approx. 16000
students
Students ho are considered
as respondents in survey
(sample) 980 students

10. Branches of Statistics
Branches of Statistics
DESCRIPTIVE
STATISTICS
INFERENTIAL
STATISTICS

11. Descriptive statistics
• Involves the organization, summarization, and
describing the data
• Representation of the raw data in processed and
organized way.
• Representation of processed data by using various
graphs and figures.

12. INFERENTIAL STATISTICS
• Involves using a sample to draw conclusions
about a population.
• Hypothesis Formulation and Hypothesis
Testing.

13. Data
Classification

14. Collection of Data
• Primary Data –
Primary data is the data collected for the first time through
personal experiences or evidence, particularly for
research. It is also described as raw data or first-hand
information.
• Secondary Data-
Secondary data are second-hand data that is
already collected and recorded by some
researchers for their purpose and not for the
current research problem

15. Types of Data
Data sets can consist of two types of data: qualitative
data and quantitative data.
Data
Qualitative
Data
Quantitative
Data
Consists of
attributes,
labels, or
nonnumerical
entries.
Consists of
numerical
measurements or
counts.

16. Graphical Presentation of Statistical
Data
• Graphical Representation is a way of analyzing
numerical data. It exhibits the relation between
data, ideas, information and concepts in a
diagram.
• It is easy to understand and it is one of the most
important learning strategies.
• It always depends on the type of information in a
particular domain.
• There are different types of graphical
representation depending upon the objectives
and type of data…. Some of them are as follows:
Contd…

17. • Line Graphs – Line graph or the linear graph is
used to display the continuous data and it is useful
for predicting future events over time.
• Bar Graphs – Bar Graph is used to display the
category of data and it compares the data using
solid bars to represent the quantities.
• Histograms – The graph that uses bars to
represent the frequency of numerical data that are
organized into intervals. Since all the intervals are
equal and continuous, all the bars have the same
width.
• Pie Chart- Pie chart represents the composition of
the samples/elements/events etc…..

18. • Frequency Table – The table shows the
number of pieces of data that falls within the
given interval.
• Cross Tabulation– It gives the frequency
breakup within the category, between the
categories and among the categories.
• Conversion of Data-
Interval Ordinal Ratio Nominal

19. Measure of Central Tendency
Measures of central tendency are numbers
that describe what is average or typical
within a distribution of data.
There are three main measures of central
tendency: mean,
median and
mode

20. Mean
In mathematics and statistics, the arithmetic
mean, or simply the mean or average when
the context is clear, is the sum of a collection
of numbers divided by the number of
numbers in the collection. The collection is
often a set of results of an experiment, or a
set of results from a survey.

21. Median
The median is the value separating the higher
half of a data sample, a population, or a
probability distribution, from the lower half. In
simple terms, it may be thought of as the
"middle" value of a data set.
For example, in the data set {1, 3, 3, 6, 7, 8, 9},
the median is 6, the fourth number in the
sample.

22. Mode
• The mode is the value that appears most
often in a set of data.
• The value with highest frequency is
Mode.

23. Introduction to Business Analytics
Business analytics concept is combination of
management, business and computer science. As
management functions can be easily driven by
Business Analytics like……..
• Demand forecasting.
• Sales Projections.
• Customer/Consumer Analysis (Profiling).
• STP in Marketing
Further it is also helpful to take short term and
long term decision of business.

24. Thank You …

25. ANY
QUESTIONS