Assignment – 2 (Sample Question)
1. Define Business Statistics? How does it help a manager?
or, Explain how statistics plays an important role in management planning and decision-making.
or, Discuss the role of statistics as a managerial tool.
or, Explain the utility of statistics as managerial tool.
2. Discuss the limitations of Statistics.
3. Define Statistics and Statistical method.
4. Explain the uses of statistical method in business and management.
or, Explain the uses of statistical methods in modern business organizations.
5. “Statistics is what statisticians do.” Elaborate
6. Give the uses and abuses of Statistics.
7. “Statistics is all-pervading”. Elaborate
8. “Figures do not lie, but liars use figures to lie” Comment.
9. “Statistics is like clay with which you can make a God or Devil as you please.” Explain this statement.
10. With the help of a few Examples explain the role of Statistics as a managerial tool.
11. To be a statistical data which characteristics are essential?
or, Discuss the Properties of Statistics.
12. Statistics are numerical statements of facts but all facts numerically stated are not statistics. Explain
Assignment Instruction:
1. Assignment should be hand written.
2. This is an individual assignment.
3. Prepare all questions.
4. Communicate with me in group if you have any confusion regarding the questions.
5. Assignment Submission Date :
For All Section of 13th Batch (Section A, B, C & D):
February 06, 2011, Sunday, (From 9 AM to 12 AM)
Friday, January 28, 2011
Tuesday, January 25, 2011
Assignment -1, Business Statistics
Statistical Data :
A set of numerical data which are comparable to each other and affected to a marked extent by multiplicity of causes.
Example :
1. The average passed rate of JSC exam is 78.5%.
2. Today's average temperature is 11 degree celcious.
3. Average age of students of this class is 21 years.
.
.
.
10.
Non-Statistical Data :
A single or isolated data which is not comparable is called non-statistical data.
Example :
1. The age of Rahim is 22 years.
2. The price of a mango is Tk.20.
3. Rose is a beautiful flower.
4. My father monthly salary is Tk. 30000.
.
.
.
10.
A set of numerical data which are comparable to each other and affected to a marked extent by multiplicity of causes.
Example :
1. The average passed rate of JSC exam is 78.5%.
2. Today's average temperature is 11 degree celcious.
3. Average age of students of this class is 21 years.
.
.
.
10.
Non-Statistical Data :
A single or isolated data which is not comparable is called non-statistical data.
Example :
1. The age of Rahim is 22 years.
2. The price of a mango is Tk.20.
3. Rose is a beautiful flower.
4. My father monthly salary is Tk. 30000.
.
.
.
10.
Lecture Sheet, Chapter-1, Business Statistics
Business Statistics - I
Chapter – 1 (Introduction)
The word Statistics originated from:
Latin word ‘Status’
Italian word ‘Statista’ Statistics
German word ‘Statistik’
‘Status’ and ‘Statistik’ means – State and Statista means – Activities related to States. So, Statistic originated for doing the activities of the States.
Statistics & Statistical method:
The word statistics refers either to quantitative information or to a method of dealing with quantitative information.
The methods by which statistical data are analyzed are called statistical method.
Statistical methods in general are nothing but a refinement of everyday thinking.
Definition of Statistics (Data) :
“ The classified facts relating the condition of people in a State especially those facts which can be stated in numbers or in tables of numbers or in any tabular or classified arrangements.”
- Webster
“By Statistics we mean quantitative data affected to a marked extent by multiplicity of causes.”
- Yule and Kendall
“Statistics is the scienceof decision making in the field of uncertainty.” - W.I. King
By Statistics we mean aggregate of facts affected to a marked extent by multiplicity of causes, numerically expressed, enumerated or estimated according to reasonable standards of accuracy, collected in a systematic manner for a pre-determined purpose and placed in relation to each other.
Definition of Statistics (Method) :
“ Statistics may be defined as a science of collection, presentation, analysis and interpretation of numerical data.” - Croxton and Cowden
Stages of Statistical investigation :
1. Collection- Dta are collected for statistical analysis
2. Organization- editing, classify, tabulation.
3. Presentation- Data presented in orderly manner to facilitates statistical analysis.
4. Analysis- Methods used in analyzing ranging from simple observation of data to complicated analysis.
5. Interpretation – Drawing conclusions from the data collected and analyzed.
Characteristics of Statistics:
1. Statistics are aggregate of facts.
2. Statistics are affected to a marked extent by multiplicity of causes.
3. Statistics are numerically expressed.
4. Statistics are enumerated or estimated according to reasonable standards of accuracy.
5. Statistics are collected in a systematic manner.
6. Statistics are collected for a pre-determined purpose.
7. Statistics should be placed in relation to each other.
Classification of Statistics :
1. Descriptive Statistics : Displaying data using graphs, tables, and charts so that they are easier to understand is called descriptive statistics.
2. Inferential Statistics : Statistical inference involves generalizations and statements about the probability of their validity. For example, the process of estimating the average grade of four section of a class would be a problem in inferential statistics.
Statisticians also refer to this category as statistical inference. The generalization made on one section result is not completely valid.
Statistics is Science or Art ?
Statistics is Science:
Science refers to a systematized body of knowledge. It studies cause and effect relationship and attempts to make generalizations in the form of scientific principles or laws. It describes facts objectively and avoids judgments as good or bad. Science, in short, is like a lighthouse that gives light to the ships to find out their own way but does not indicate the direction in which they should go.
The design of scientific experiments and the evaluation of their results makes use of principles and practices growing out of the science of statistics. More appropriately, statistics may be regarded as a scientific method because it is really a tool which can be used in scientific studies.It is science only in a limited sense – as a special branch of knowledge.
Statistics is Art :
Art, refers to the skill of handling facts so as to achieve a given objective. It is concerned with ways and means of presenting and handling data, making inferences logically and drawing relevant conclusions.
Statistics as a science is not similar to exact sciences like Physics, Chemistry, Zoology, etc. This is because statistical phenomena are generally affected by multiplicity of causes which cannot always be measured accurately. In other words, the science of statistics by its nature is less precise than the natural sciences.
Statistics is Science and Art :
Wallis and Roberts remarked that “ Statistics is not a body of substantive knowledge but a body of methods for obtaining knowledge”.
If science is knowledge, the art is action. It involves the application of given methods to obtain facts, drive results, and finally to use them for devising action. Considering the scope, method and function it can be defined as a social science.
Functions of Statistics :
1. It presents facts in a definite form (Definiteness) : Statistics present facts in a precise and definite form and thus help proper comprehension of what is isolated. Example, the ratio of female students has gone up from 812 in 2009 to 1020 in 2010. It conveys a definite meaning.
2. It simplifies mass of figure (Condensation) : Condensing mass of data into a few significant figure. Example, sector wise budget allocation.
3. It facilitates comparison : Unless figures are compared with others of the same kind they are often devoid of any meaning.
4. It helps in formulating and testing hypothesis : Statistical methods are extremely useful in formulating and testing hypothesis and to develop new theories.
5. It helps in prediction: Statistical methods provide helpful means of forecasting future events. i.e. GDP Growth, Population growth.
6. It helps in the formulation of suitable policies : Statistics provide the basic material for framing suitable policies. Example, rice import decision in 2011 depend on internal production.
Scope of Statistics
I. Statistics and State – Budget formation, population data, Govt. revenue and expenditure.
II. Statistics in Business and Management ( Uses of Statistics in Business)
1. Marketing – what can be sold, marketing strategy.
2. Production – What to produce, How to produce, How much produce, Whom to produce.
3. Finance – Financial forecasts, break even analysis, investment decision.
4. Banking – Money market situation, SLR, CRR, Credit worthiness.
5. Investment – selecting securities which are safe.
6. Purchase- where to buy, how much to buy, at what time to buy, at what price to buy.
7. Accounting – Auditing function used sampling and estimation procedure, cost accounting used regression.
8. Control- make budget for the coming year regarding cost.
9. Credit- how much credit extend to customer, formation of further credit policy.
10. Personnel – Wage rate, incentive plan, labour turnover rate,, training program.
11. Research and Development – finding out how exiting product can be improved, what new lines can be added, and optimal use of resource made.
III. Statistics and Economics
1. Measure of GNP
2. Financial Statistics
3. Business cycle studies
4. Studies of competition
5. Statistical surveys
6. Operational studies
7. Analysis of population
8. Solving Economic problem
IV. Statistics and Physical Sciences – Astronomy, geology and physics.
V. Statistics and Natural Sciences- Biology, Medicine, Meteorology, Botany.
VI. Statistics and Research
VII. Statistics and other uses- Brokers, Social workers, Labor unions, Trade association.
VIII. Statistics and the Computer – SPSS Software
Importance of Statistics :
1. Statistics helps to the welfare of the society- Statistical survey’s are conducted to find out the reason of unemployment, poverty, crime etc.
2. Statistics helps decision making- Social and economic decision depends on present and future data.
3. Statistics is the guideline for planning- in plan formulation, implementation and control.
4. Statistics helps in administrative work- Budget, Industrial policy formation.
5. Statistics helps other sciences- Helps Zoology, Physics and Social science in research and measuring accurateness of results.
6. Statistics helps in industry and commerce – Demand forecasting, market price share value, inflation, production cost etc.
7. Statistics is important for industrial Analysis- Production, Demand-Supply, Balance of Trade, Balance of payment.
Limitation of Statistics :
1. Statistics does not deal with isolated measurement.
2. Statistics deals only with quantitative characteristics.
3. Statistical results are true only on an average
4. Statistics is only a means.
5. Statistics can be misused.
Statistics are numerical statements of facts but all facts numerically stated are not statistics.
Distrust of Statistics :
1. Figures are convincing and, therefore, People are easily led to believe them.
2. Data can be manipulated.
3. Data presentation misled the reader.
Chapter – 1 (Introduction)
The word Statistics originated from:
Latin word ‘Status’
Italian word ‘Statista’ Statistics
German word ‘Statistik’
‘Status’ and ‘Statistik’ means – State and Statista means – Activities related to States. So, Statistic originated for doing the activities of the States.
Statistics & Statistical method:
The word statistics refers either to quantitative information or to a method of dealing with quantitative information.
The methods by which statistical data are analyzed are called statistical method.
Statistical methods in general are nothing but a refinement of everyday thinking.
Definition of Statistics (Data) :
“ The classified facts relating the condition of people in a State especially those facts which can be stated in numbers or in tables of numbers or in any tabular or classified arrangements.”
- Webster
“By Statistics we mean quantitative data affected to a marked extent by multiplicity of causes.”
- Yule and Kendall
“Statistics is the scienceof decision making in the field of uncertainty.” - W.I. King
By Statistics we mean aggregate of facts affected to a marked extent by multiplicity of causes, numerically expressed, enumerated or estimated according to reasonable standards of accuracy, collected in a systematic manner for a pre-determined purpose and placed in relation to each other.
Definition of Statistics (Method) :
“ Statistics may be defined as a science of collection, presentation, analysis and interpretation of numerical data.” - Croxton and Cowden
Stages of Statistical investigation :
1. Collection- Dta are collected for statistical analysis
2. Organization- editing, classify, tabulation.
3. Presentation- Data presented in orderly manner to facilitates statistical analysis.
4. Analysis- Methods used in analyzing ranging from simple observation of data to complicated analysis.
5. Interpretation – Drawing conclusions from the data collected and analyzed.
Characteristics of Statistics:
1. Statistics are aggregate of facts.
2. Statistics are affected to a marked extent by multiplicity of causes.
3. Statistics are numerically expressed.
4. Statistics are enumerated or estimated according to reasonable standards of accuracy.
5. Statistics are collected in a systematic manner.
6. Statistics are collected for a pre-determined purpose.
7. Statistics should be placed in relation to each other.
Classification of Statistics :
1. Descriptive Statistics : Displaying data using graphs, tables, and charts so that they are easier to understand is called descriptive statistics.
2. Inferential Statistics : Statistical inference involves generalizations and statements about the probability of their validity. For example, the process of estimating the average grade of four section of a class would be a problem in inferential statistics.
Statisticians also refer to this category as statistical inference. The generalization made on one section result is not completely valid.
Statistics is Science or Art ?
Statistics is Science:
Science refers to a systematized body of knowledge. It studies cause and effect relationship and attempts to make generalizations in the form of scientific principles or laws. It describes facts objectively and avoids judgments as good or bad. Science, in short, is like a lighthouse that gives light to the ships to find out their own way but does not indicate the direction in which they should go.
The design of scientific experiments and the evaluation of their results makes use of principles and practices growing out of the science of statistics. More appropriately, statistics may be regarded as a scientific method because it is really a tool which can be used in scientific studies.It is science only in a limited sense – as a special branch of knowledge.
Statistics is Art :
Art, refers to the skill of handling facts so as to achieve a given objective. It is concerned with ways and means of presenting and handling data, making inferences logically and drawing relevant conclusions.
Statistics as a science is not similar to exact sciences like Physics, Chemistry, Zoology, etc. This is because statistical phenomena are generally affected by multiplicity of causes which cannot always be measured accurately. In other words, the science of statistics by its nature is less precise than the natural sciences.
Statistics is Science and Art :
Wallis and Roberts remarked that “ Statistics is not a body of substantive knowledge but a body of methods for obtaining knowledge”.
If science is knowledge, the art is action. It involves the application of given methods to obtain facts, drive results, and finally to use them for devising action. Considering the scope, method and function it can be defined as a social science.
Functions of Statistics :
1. It presents facts in a definite form (Definiteness) : Statistics present facts in a precise and definite form and thus help proper comprehension of what is isolated. Example, the ratio of female students has gone up from 812 in 2009 to 1020 in 2010. It conveys a definite meaning.
2. It simplifies mass of figure (Condensation) : Condensing mass of data into a few significant figure. Example, sector wise budget allocation.
3. It facilitates comparison : Unless figures are compared with others of the same kind they are often devoid of any meaning.
4. It helps in formulating and testing hypothesis : Statistical methods are extremely useful in formulating and testing hypothesis and to develop new theories.
5. It helps in prediction: Statistical methods provide helpful means of forecasting future events. i.e. GDP Growth, Population growth.
6. It helps in the formulation of suitable policies : Statistics provide the basic material for framing suitable policies. Example, rice import decision in 2011 depend on internal production.
Scope of Statistics
I. Statistics and State – Budget formation, population data, Govt. revenue and expenditure.
II. Statistics in Business and Management ( Uses of Statistics in Business)
1. Marketing – what can be sold, marketing strategy.
2. Production – What to produce, How to produce, How much produce, Whom to produce.
3. Finance – Financial forecasts, break even analysis, investment decision.
4. Banking – Money market situation, SLR, CRR, Credit worthiness.
5. Investment – selecting securities which are safe.
6. Purchase- where to buy, how much to buy, at what time to buy, at what price to buy.
7. Accounting – Auditing function used sampling and estimation procedure, cost accounting used regression.
8. Control- make budget for the coming year regarding cost.
9. Credit- how much credit extend to customer, formation of further credit policy.
10. Personnel – Wage rate, incentive plan, labour turnover rate,, training program.
11. Research and Development – finding out how exiting product can be improved, what new lines can be added, and optimal use of resource made.
III. Statistics and Economics
1. Measure of GNP
2. Financial Statistics
3. Business cycle studies
4. Studies of competition
5. Statistical surveys
6. Operational studies
7. Analysis of population
8. Solving Economic problem
IV. Statistics and Physical Sciences – Astronomy, geology and physics.
V. Statistics and Natural Sciences- Biology, Medicine, Meteorology, Botany.
VI. Statistics and Research
VII. Statistics and other uses- Brokers, Social workers, Labor unions, Trade association.
VIII. Statistics and the Computer – SPSS Software
Importance of Statistics :
1. Statistics helps to the welfare of the society- Statistical survey’s are conducted to find out the reason of unemployment, poverty, crime etc.
2. Statistics helps decision making- Social and economic decision depends on present and future data.
3. Statistics is the guideline for planning- in plan formulation, implementation and control.
4. Statistics helps in administrative work- Budget, Industrial policy formation.
5. Statistics helps other sciences- Helps Zoology, Physics and Social science in research and measuring accurateness of results.
6. Statistics helps in industry and commerce – Demand forecasting, market price share value, inflation, production cost etc.
7. Statistics is important for industrial Analysis- Production, Demand-Supply, Balance of Trade, Balance of payment.
Limitation of Statistics :
1. Statistics does not deal with isolated measurement.
2. Statistics deals only with quantitative characteristics.
3. Statistical results are true only on an average
4. Statistics is only a means.
5. Statistics can be misused.
Statistics are numerical statements of facts but all facts numerically stated are not statistics.
Distrust of Statistics :
1. Figures are convincing and, therefore, People are easily led to believe them.
2. Data can be manipulated.
3. Data presentation misled the reader.
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