M1 - lesson 1

• Statistics refers to numerical facts
• Examples of statistics


  • Income of a family
  • Age of a student
  • Percentage of passes completed by a quarterback
  • Starting salary of a typical college graduate
• Statistics


  The science of collecting, analyzing, and making inference from data
• Descriptive statistics


  Organizing and summarizing data
• Inferential statistics


  Formal methods for drawing conclusions from "good" data
• Statistical inference uses probability to determine how confident we can be that our conclusions are correct.
• Areas where business statistics are used

  • Tax preparation
  • Budgeting
  • Proposals
  • Data mining
• Business statistics involve applying statistical tools in marketing, production, finance, research development, human resources planning, which is used to extract relevant information for decision making.
• 5 Major Importance of Statistics in Business

  • Uniformity
  • Rational Decision Making
  • Management Performance/Forecasting
  • Organization and Presentation of Data
  • Historical Research of a Business