The Course Aim, Purpose and Learning Outcomes Course Aim and Purpose: This course has aims provide a practical and approach to in the use of statistics in order for the students to gain an understanding about: - Basic statistical theory Management statistics used in different organizations; and Statistical techniques used to undertake research. Learning Outcomes: It is intended for a student to gain an understanding: - how to use computers to undertake statistical tasks how to explore and understand data How to display data. how to investigate the relationship between variables. about statistical confidence intervals how to use and select basic statistical hypothesis tests

1. © 2003 Prentice-Hall, Inc.
Statistics for Managers
David Towers
Tel: 012437668
dptowers@yahoo.co.uk

2. © 2003 Prentice-Hall, Inc.
My Experience and Background
 AALCO – MIS System and ISO 9000 work in largest metal
supplier in UK
 Aberdeen College – College Statistician. Supplying MI for
Strategic Management, Funding, PI, Marketing
 Nortel Networks – Statistician -Improving Quality by
Using Statistics to develop Performance Metrics
 BACS – Senior Statistician. Forecasting trends for the
worlds Largest Bank Clearing House
 Progression LLC – Management Consultancy
 Sheffield Hallam University - MIS for Strategic
Management

3. © 2003 Prentice-Hall, Inc.
The Course Aim, Purpose and
Learning Outcomes
Course Aim and Purpose:
This course has aims provide a practical and approach to in the
use of statistics in order for the students to gain an
understanding about: -
 Basic statistical theory
 Management statistics used in different organizations; and
 Statistical techniques used to undertake research.
Learning Outcomes:
It is intended for a student to gain an understanding: -
 how to use computers to undertake statistical tasks
 how to explore and understand data
 How to display data.
 how to investigate the relationship between variables.
 about statistical confidence intervals
 how to use and select basic statistical hypothesis tests

4. © 2003 Prentice-Hall, Inc.
Why is this course important for
Graduate Students
You will learn
 How to provide and analyze Management
information used in Business Government and
Educational organizations
 How to apply basic statistics techniques to
conduct in the business and academic
environment

5. © 2003 Prentice-Hall, Inc.
How you will be graded
Grading may subject to change
The overall course grade will be derived
from the following assessments:
50% - Final Exam
20% - Mid Term Exam
10% - Weekly Homework submitted on time.
10% - Chapter Tests (If you do not do homework
you will fail test)
10% - Data Analysis Assignment

6. © 2003 Prentice-Hall, Inc.
Course Content
1. Introduction to statistics and data
2. Presenting Numerical and Categorical Data
in Tables and Charts
3. Numerical Descriptive Measures
4. The Normal Distribution Fundamentals of
Hypothesis Testing

7. © 2003 Prentice-Hall, Inc.
About this course
 This course attempts not to be a traditional
statistics course of formulas and definitions.
 This course will also follow book Business Basic
Statistics
(8th
Edition) Prentice Hall 2003

8. © 2003 Prentice-Hall, Inc.
Statistics for Managers
Chapter 1
Data and its context

9. © 2003 Prentice-Hall, Inc.
Chapter Topics
 What is Statistics?
 Why a Manager Needs to Know About
Statistics
 Some Important Definitions
 Descriptive Versus Inferential Statistics
 Why Data are Needed
 Types of Data and Their Sources
 Data and its Context

10. © 2003 Prentice-Hall, Inc.
What is Statistics?
 Control, Minimize as see past the
Variability
 Methods to display, compare and model

11. © 2003 Prentice-Hall, Inc.
In pairs think why Managers Need to
Know About Statistics?
 To Know How to properly ______ Information
 To Know How to Draw (come to) conclusions
about Populations Based on Sample _____
 To Know How to Improve Processes
 To Know How to Obtain Reliable ________
Fill in the above blanks with: -
Improve, present, Information, forecasts

12. © 2003 Prentice-Hall, Inc.
Some Important Definitions
 A Population (Universe) is the Whole Collection of
Things Under Consideration
 A Sample is a Portion of the Population Selected for
Analysis
 A Parameter is a Summary Measure Computed to
Describe a Characteristic of the Population
 A Statistic is a Summary Measure Computed to
Describe a Characteristic of the Sample

13. © 2003 Prentice-Hall, Inc.
Population and Sample
Population Sample
Use parameters to
summarize features
Use statistics to
summarize features
Inference on the population from the sample

14. © 2003 Prentice-Hall, Inc.
In pairs, identify if the following are Samples or
Populations and would the summary measure
be a parameter or statistic?
Example
 Everyone living in the world
 15 MDM students in a batch of 20
 All the people over 18 in a
commune
 All the people you meet in the Psar
 All the motos in the car park
 All the stars you can see in the sky
 All the women in Cambodia
 All the people in the Psar
Population/
Sample
Summary
Measur
e

15. © 2003 Prentice-Hall, Inc.
Statistical Methods
 Descriptive Statistics
 Collecting and describing data
 Inferential Statistics
 Drawing conclusions and/or making decisions
concerning a population based only on sample
data

16. © 2003 Prentice-Hall, Inc.
Descriptive Statistics
 Collect Data
 E.g., Survey
 Present Data
 E.g., Tables and graphs
 Characterize Data
 E.g., Sample Mean =
iX
n
∑

17. © 2003 Prentice-Hall, Inc.
Inferential Statistics
 Estimation
 E.g., Estimate the
population mean weight
using the sample mean
weight
 Hypothesis Testing
 E.g., Test the claim that the
population mean weight is
120 poundsDrawing conclusions and/or making decisions
concerning a population based on sample results.

18. © 2003 Prentice-Hall, Inc.
Why We Need Data
 To Provide Input to Survey
 To Provide Input to Study
 To Measure Performance of Ongoing Service or
Production Process
 To Evaluate Conformance to Standards (Is the target
being achieved)
 To Assist in Formulating Alternative Courses of Action
(Plan how to take action when the target is not
achieved)
 To Satisfy Curiosity

19. © 2003 Prentice-Hall, Inc.
Data Sources
Observation
Experimentation
Survey
Print or Electronic
Data Sources

20. © 2003 Prentice-Hall, Inc.
Types of Data
Nominal Ordinal
Categorical
(Qualitative)
Numerical
(Quantitative)
Data

21. © 2003 Prentice-Hall, Inc.
Hand outs
 Your Handouts will be on the internet before
the lecture.
 You will need to down load the files and print
them so you can take them to the Lecture
 However, today is your first lecture so we
have prepared some paper copies

22. © 2003 Prentice-Hall, Inc.
Three Types of Variables
Data Type Example
Categorical
(Qualitative)
Nominal Hair Color, Political Party
Data in Groups Ordinal
(Data in
Order)
Age: Child, Young, Old
Education Level: None, High
School, Degree, Post Grad
Numerical
(Quantitative)
Age in years 1 year, 2 years
1 man 2 men 3 men…
Salary $360….$200000
Always has Units
•In pairs work out what type of variables is Make of Car, Subject, Profit in dollars,
Religion, Gender, Managerial level e.g.CEO, Director, Manager, Supervisor), Height in
meters, Flowers, Rank in Army (General, major,normal soldier)
•Give me examples you are not sure about and let the class work the Data Type

23. © 2003 Prentice-Hall, Inc.
What are the Data?
 Data Values – not matter what Kind are useless
without their context
 Who (or what) is being surveyed? Essential
 What Information is being collected? Essential
 When ( was the data collected – It may not say)
 Where ( was the data collected – It may not say)
 Why ( was the data collected – It may not say)
 How ( was the data collected – It may not say)

24. © 2003 Prentice-Hall, Inc.
Example 1
Levi Strauss & Company, the makers of jeans, surveyed
students. The Students were shown a list of clothing.
They were asked : -
“Which clothes would be most popular this year?”
 Who or what is being surveyed?
A) Students B) Jeans C) Levi Strauss
 What Information is being collected?
A) Clothes Popularity B)Jeans C) Students
 Why was the data collected?
A) Advertising B)Marketing C) Don’t Know

25. © 2003 Prentice-Hall, Inc.
Example 2
Advertisements in the New York Times claimed that
84% of frequent business travelers prefer Midway
Metrolink flights to Chicago rather than flights on
American, United, or T W A.
 What Information was collected?
A) Airline Preference B) Travel Frequency C) Business
Travelers
 Why was the data collected?
A) Advertising B)Marketing C) Don’t Know
 Who or what is being surveyed?
A) Business Executives B) Business Travelers C) Experienced
Travelers

26. © 2003 Prentice-Hall, Inc.
Example 3:
A survey sponsored by the Gun Industry found that
54% of adults in the U.S. felt that it would not be
fair to ban Handguns
 Why was the data collected?
A) Advertising B)Marketing C) To Persuade Government
 Who or what is being surveyed?
A) Robbers B) Soldiers C) U.S. Adults
 What Information was collected?
A) Gun Preference B) Frequency Guns Used C) Show me
the question!

27. © 2003 Prentice-Hall, Inc.
Example 1: In 2004, Toyota Car Company did Market Research by telephone to
identify what their customers living in Cambodia wanted in their next car. The
interviewer just asked 4 questions: -
1. Sex (Select Male or Female)
2. The Type of Car the respondents wanted (Select Sports Car, 4x4 Car, Luxury
Car, Other)
3. The exact price they would pay for a Car the respondents would bay (Answer
number of $ dollars)
4. The age of the customer (Answer given by selecting 18-25, 25-40,40-45,45-60,
Older than 60)
Who/What is
getting surveyed
Categorical-
Nominal
Categorical
Ordinal
Numerical-
Scale
What information
is collected in the
telephone survey?
e.g. Sex
Why
Where
When
How
x

28. © 2003 Prentice-Hall, Inc.
Example 2: In May, a student wanted survey the Motos in a University car
park to see what other students drove. He looked at each moto and
recorded the following information on paper
 How Old the Motos (He ticked either New, Old , Very Old)
 Country the moto was made in
 The name of the firm that made the moto
 Distance Driven in miles
Complete the following table
Who/What is
getting surveyed
Categorical-
Nominal
Categorical
Ordinal
Numerical-
Scale
What information
is collected in the
survey?
e.g. How old the moto was
Why
Where
When
How
X