M O D U L E 1
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STATISTICS FOR MANAGEMENT Ms. Prathima Bhat K.
Transcript of M O D U L E 1
STATISTICS FOR MANAGEMENT
Ms. Prathima Bhat K.
05 MBA 13 Ms. PRATHIMA BHAT K.
MODULE 1
INTRODUCTION
05 MBA 13 Ms. PRATHIMA BHAT K.
Meaning & DefinitionStatistics is concerned with scientific
method for collecting, organizing, summarizing and presenting and analyzing data as well as drawing valid conclusions and making reasonable decisions on the basis of such analysis.
05 MBA 13 Ms. PRATHIMA BHAT K.
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 predetermined purpose, and placed in relation to each other.
Meaning & Definition (Contd…)
05 MBA 13 Ms. PRATHIMA BHAT K.
Nature of Statistical Study
1. Formulation of the Problem2. Objectives of the Study3. Determining Sources of Data4. Designing Data Collection Forms5. Conducting the Field Survey6. Organizing the Data7. Analyzing the data8. Reaching Statistical Findings9. Presentation of Findings
05 MBA 13 Ms. PRATHIMA BHAT K.
Importance of Statistics in Business
1. The Planning the operations2. The setting up of standards3. The function of control4. Statistical Quality Control Methods5. Personnel Management6. Seasonal Behavior7. Export Marketing8. Maintenance of Cost Records9. Management of Inventory10. Expenditure on Advertisement & sales11. Mutual Funds12. Relevance in Banking and Insurance Institutions
05 MBA 13 Ms. PRATHIMA BHAT K.
1. Concepts - not amenable to measure
2. Normal / General Trend
3. May not be suitable in different cases (other than for which it is collected for)
4. Not 100% precise
5. Not physically possible to cover all samples
6. There may not be cause & effect relationship
7. May not reveal all data pertaining to one phenomenon.
Limitations of Statistics
05 MBA 13 Ms. PRATHIMA BHAT K.
1. Sources of Data not Given
2. Defective Data
3. Unrepresentative Sample
4. Inadequate Sample
5. Unfair Comparisons
6. Unwarranted Conclusions
7. Confusion of Correlation & Causation
8. Suppression of Unfavourable Results
9. Mistakes in Arithmetic
MISUSE OF STATISTICS
05 MBA 13 Ms. PRATHIMA BHAT K.
1. Descriptive Statistics
2. Inferential Statistics
SUBDIVISIONS WITHIN STATISTICS
05 MBA 13 Ms. PRATHIMA BHAT K.
Scope of Statistics
1. Planning
2. State
3. Mathematics
4. Economics
5. Business & Management
6. Accountancy & Auditing
7. Industry
1. Insurance
2. Astronomy
3. Physical Sciences
4. Social Sciences
5. Biology & Medical Sciences
6. Psychology & Education
7. War
Statistics in
05 MBA 13 Ms. PRATHIMA BHAT K.
Statistical Investigation
For any Statistical Study, whether it is in business, economics or social sciences, the basic problem is to collect facts and figures relating to particular phenomenon under study. The person who conducts the statistical enquiry i.e., counts or measures the characteristics under study for further statistical analysis is known as Investigator.
05 MBA 13 Ms. PRATHIMA BHAT K.
Distrust of Statistics
1. An ounce of truth produce tons of Statistics
2. Statistics can prove anything
3. Figures do not lie, liars figure
4. Statistics is an unreliable science
5. There are three types of lies – lies; damned lies; statistics.
05 MBA 13 Ms. PRATHIMA BHAT K.
Sources of data1. Primary Data
2. Secondary Data
Irrespective of the above the data can be classified as:
6. Qualitative Data
7. Quantitative Data
1. Measurements or scores
2. Frequencies
05 MBA 13 Ms. PRATHIMA BHAT K.
Formulation of a Grouped FD
Deciding the appropriate number of Class Grouping
n=1 + 3.322 log10 N
Choosing a suitable size or width of a Class Interval
Width = Highest Value – Lowest Value
Number of Class Groupings
5. Establishing the boundaries of each Class Interval
6. Classifying the data into appropriate classes
7. Counting the number of items in each class
05 MBA 13 Ms. PRATHIMA BHAT K.
Data Array
Frequency Distribution
Discrete or ungrouped
Grouped
Continuous
Concept of Relative Frequency
Class Limit
Class Interval
Class Frequency
Class mid-point
Exclusive Method
Inclusive Method
05 MBA 13 Ms. PRATHIMA BHAT K.
Cumulative Frequency Distribution
Two-way Frequency Distribution
Parts of a Statistical Table
Table Number
Title
Captions & Stubs
Main Body of the Table
Ruling & Spacing
Head Note
Footnote
Source note
05 MBA 13 Ms. PRATHIMA BHAT K.
Respondents: The persons from whom the information is collected.
Statistical Unit: Items on which the measurements are taken.
Preliminaries of Data Collection:
Objectives & scope of Enquiry
Statistical units to be used:
Sources of data
Method of data collection
Degree of accuracy aimed at final results
Type of enquiry
05 MBA 13 Ms. PRATHIMA BHAT K.
Table No______Title _________________
Total
Stub Entries
CaptionsCaptionsCaptionsCaptionsTotal
CaptionsCaptions Stub Heading
Main Body
Footnote:
Source:
05 MBA 13 Ms. PRATHIMA BHAT K.
Differences:
2. Need of Graph papers
3. Approximate Information
4. Represent geographical data
5. Easier
Diagrammatic & Graphical Representation
05 MBA 13 Ms. PRATHIMA BHAT K.
1. Neatness
2. Title & Footnote
3. Selection of Scale
4. Proportion between Width & Height
5. Choice of a Diagram
6. Source Note & Number
7. Index
8. Simplicity
Rules for constructing Diagrams
05 MBA 13 Ms. PRATHIMA BHAT K.
1. One Dimensional
1. Line Diagrams
2. Bar Diagrams
1. Simple
2. Sub-Divided
3. Percentage
4. Multiple
5. Deviation
Types of Diagrams
05 MBA 13 Ms. PRATHIMA BHAT K.
1. Two Dimensional
1. Rectangles
2. Squares
3. Circles
4. Angular or Pie Diagrams
Types of Diagrams (Contd…)
05 MBA 13 Ms. PRATHIMA BHAT K.
1. Three Dimensional
1. Cubes
2. Pictograms
Types of Diagrams (Contd…)
05 MBA 13 Ms. PRATHIMA BHAT K.
1. Neatness
2. Title & Footnote
3. Structural Framework
4. Scale
5. False Base Line
6. Line Designs
7. Source Note & Number
8. Index
9. Simplicity
Rules for constructing Graphs
05 MBA 13 Ms. PRATHIMA BHAT K.
1. Histograms
2. Frequency Polygon
3. Frequency Curve
4. Ogive or Cumulative Frequency Curve
Types of Graphs
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