BSA Unit (1)

BUSINESS STATISTICS & ANALYSIS
UNIT-1
Statistics
• The origin of the word ‘Statistics’ can be traced back to
either the Latin word ‘Status’ or the Italian word ‘Statista’
or German word ‘Statistik’.
• All the three words mean, ‘an organised political state.’
• It was referred to as the ‘Science of King’. as it was used
as a tool for government record collection.
Meaning of Statistics
• Statistics is the study and manipulation of data,

including ways to gather, review, analyze, and draw
conclusions from data. The two major areas of statistics
are descriptive and inferential statistics.
• Statistics is a branch of applied mathematics that involves
the collection, description, analysis, and inference of
conclusions from quantitative data.
1. AL Bowley defines statistics as "Statistics is numerical
statement of facts in any development of enquiry placed
in relation to each other".
2. Croxton and Cowden defines “ Statistics is the science

of collection, presentation, analysis and interpretation of
numerical data .”
Types of Statistics
• Descriptive statistics summarize and organize characteristics of a data
set. A data set is a collection of responses or observations from a sample
or entire population.
• In quantitative research, after collecting data, the first step of statistical
analysis is to describe characteristics of the responses, such as the
average of one variable (e.g., age), or the relation between two variables
(e.g., age and creativity).
• Inferential statistics uses probability theory to develop suitable estimation
methods for drawing conclusion from samples about the corresponding
populations. This usually results in a more or less accurate estimation,
whose precision is determined by confidence intervals.
Is Statistics a Science or an Art
Science Art
• Statistical methods are • The successful

systematic and have a application of these
general application which methods requires skills
makes it a science. and experience of using
the statistical tools.
• “How an investigation
should be conducted.” • “Which statistical method
are used to solve special
type of problem.”
Applications and Scope of Statistics:
1. Statistics in Planning
2. Statistics in Mathematics
3. Statistics in Economics
4. Statistics in Social Sciences
5. Statistics in Trade
6. Statistics in Research Work
7. Statistics in Government
8. Statistics in Accounting & Auditing
9. Statistics in Commerce
10.Statistics in Education
11.Statistics in Physical Science
12.Statistics in Business Management
Functions of Statistics
Comparison
Condensation Forecasting
(two or more
(reduce data) (Prediction)
data)
Estimation
Test of
(Sample Hypothesis
Observation)
Advantages of Statistics
• Direct control over data collection and the possibility to ask for
data according to statistical definitions.
• Statistics allow you to evaluate claims based on quantitative
evidence and help you differentiate between reasonable
conclusions.
• That aspect is particularly vital these days because data are so
plentiful along with interpretations presented by people with
unknown motivations.
• It helps in planning almost everything.
• Statistics helps in collecting quantitative data.
• It helps in the decision-making process.
In statistics, the central tendency is
the descriptive summary of a data set.
Through the single value from the
dataset, it reflects the centre of the
CENTRAL data distribution.
TENDENCY The central tendency is stated as the

statistical measure that represents the
single value of the entire distribution
or a dataset. It aims to provide an
accurate description of the entire data
in the distribution.
Definition of Mean
• Mean is the average of the given numbers and is
calculated by dividing the sum of given numbers by the
total number of numbers.
• Mean = (Sum of all the observations/Total number of

observations)
• x̄=∑ x/n
Definition of Median
• In statistics,is the middle value of the given list of data
when arranged in an order. The arrangement of data or
observations can be made either in ascending order or
descending order.
• Odd Number of Observations - n+1/2 th item
• Even Number of Observations - (n/2 th + n+1/2 th)/2 item
Definition of Mode
• A mode is defined as the value that has a higher
frequency in a given set of values. It is the value that
appears the most number of times.
• In statistics, the mode is the number that occurs most
often. A data set can have one or more modes.
• Mode = L + (f 1– f 0/2f 1– f 0– f 2 ) h.
MEASURES
OF CENTRAL
TENDENCY
The Partition Values are the measures used to divide the total number of
observations from a distribution into a certain number of equal parts.
Quartiles, Deciles, and Percentiles are some of the most often used partition
values.
Quartiles are three values that split sorted data into four parts, each with an
Partition
equal number of observations. Quartiles are a type of quantile. First quartile:
Also known as Q1, or the lower quartile. Second quartile: Also known as Q2,
or the median. Third quartile: Also known as Q3, or the upper quartile.
Values Deciles are the values that split any collection of observations into a total of
10 equal parts when divided by a given number of observations. As a result,
a total of nine deciles are available. The following is a visual depiction of
these deciles: – D1, D2, D3, D4, ……… D9.
The percentiles are the last, but certainly not the least. Centiles are another
term used to refer to percentiles. Any given observation is divided into 100
equal parts by a centile or a percentile, which is the simplest definition of the
terms. It is possible to depict these percentiles or centiles in the following
ways: – P1, P2, P3, P4, ……… P99.

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BUSINESS STATISTICS & ANALYSIS

• Statistics is the study and manipulation of data,

2. Croxton and Cowden defines “ Statistics is the science

• Statistical methods are • The successful

TENDENCY The central tendency is stated as the

• Mean = (Sum of all the observations/Total number of

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