BUSINESS STATISTICS

STATISTICS
Mod
It is a branch of mathematics that deals with the methods of collection, presentation,
analysis and interpretation of data.

General Categories of Statistics

DESCRIPTIVE STATISTICS – it’s INFERENTIAL STATISTICS – it
concerned with the gathering, pertains to the methods dealing with
classification, and presentation of data making of inference, estimate or
and summarizing the values to describe prediction about a large set of data
the group characteristic. (population) using the information
gathered from a sample.

Population and Sample

POPULATION refers to groups or SAMPLES are elements of the
aggregate of people, animals, subjects, population selected through a process.
materials, events, or things of any form. They have of the same characteristics
with the population.

Parameter and statistic

PARAMETER - it is a descriptive STATISTIC – It is a descriptive measure
measure of the population. Greek of the sample. Roman letters are used
letters are used to represent for statistic, e.g. sample mean x,
parameters, e.g. population mean μ, sample standard deviation s, etc.
population standard deviation σ, etc.

Classification of data
DATA are any bits or collection of information, ideas, figures or concepts.
4 TYPES
RAW DATA - those data in their original form and structure
Try asking some Fourth Year students to give you his age, date of birth, ethnic group,
religion, birth order, occupation of his father, occupation of her mother, educational
background of his parents, place of birth, ambition, favorite subject, most liked Grade
school teacher and hobbies – any information he will feed you are basically RAW
DATA.

GROUPED DATA – those data placed in tabular form characterized by category or

class intervals with the corresponding frequency.

PRIMARY DATA – data are measured and gathered by the researcher who published
it
Example:
You submit a statistical data to
your Professor regarding the educational
profile of the teachers in your school
which you yourself had gathered through
interview.

SECONDARY DATA – data being republished by another researcher for agency.

Examples:

Variables
It is a characteristic or attribute of the experimental unit (persons, units or objects)
which assumes different values or labels.
The process of assigning value or label of a particular experimental unit is called
MEASUREMENT.
Classification of variables
QUALITATIVE VARIABLES – are observations that are non-numerical e.g. eye color,
hair color, etc.
QUANTITATIVE VARIABLES – When measured from the experimental units, they
yield numerical responses.
Examples : height, age, income, family size
Age - 15, 18, 29, 45, 54, 60
Family size – 2, 4, 5, 8
Height – 150 cms, 164 cms
Types Of Quantitative Variables
DISCRETE VARIABLES – assume a CONTINUOUS VARIABLES – cannot
finite or countable infinite values such take finite values. These values are
as 0, 1, 2, 3, etc. related with points on an interval of the
real line.
Ex: number of students population of
teachers score in a test female Senators Ex: Height - 23.3 cm, 23.456 m, 123.8 ft
Mass – 28.56 kgs, 8.36 lbs

Level of measurement
NOMINAL LEVEL is the crudest form of measurement. The numbers or symbols are
used for the purpose of categorizing forms into groups. The categories are mutually
exclusive, that is, being in one category automatically excludes another.
Ex: Gender (F – Female; M – Male)
Faculty (1 – Tenured; 0 – Non-tenured)
Response (1- Yes, 0 - No)

ORDINAL LEVEL is a sort of improvement of nominal level because data are ranked
from the “bottom to the top” or from the “low to high” manner. Statements such as
“greater than” or “lesser than” may be used in this level.
Examples:
Administrative Student Attitude
Performance 1 – Strongly Disagree
• Excellent -1 2 – Slightly Disagree
• Very Satisfactory - 2 3 – Disagree
• Good - 3 4 – Moderately Agree
• Fair - 4 5 – Strongly Agree
• Poor - 5
INTERVAL LEVEL possesses both the properties of the nominal and ordinal levels.
The distances between any two numbers on the scale are known and it does not have
a stable standing point (or an absolute zero).
Ex: temperature

RATIO LEVEL possesses all the properties of nominal, ordinal and interval levels. In
addition, it has an absolute zero point and data can be classified and placed in a
proper order to compare their magnitudes. Zero stands for of something or absence
absolutely nothing.
Ex: grades, income, tuition fee

SAMPLING TECHNIQUES
SAMPLING TECHNIQUES are used to economize (on the part of the researcher) the
following:
 Time
 Effort
 Money

Sampling techniques are classified into

PROBABILITY SAMPLING - It is a an equal chance of being chosen as the
method of selecting a sample (n) from a sample.
universe (N) such that each member of
NON-PROBABILTY SAMPLING - It is a
the population has an equal chance of
method wherein the manner of
being included in the sample and all
selecting a sample (n) from a universe
possible combinations of size (n) have
(N) depends on some inclusion rule as
specified by the researcher.

PROBABILITY SAMPLING TECHNIQUES

SIMPLE RANDOM SAMPLING (SRS) or Lottery Sampling - it is done by simply
assigning number to each member of the population in a piece of paper, placing them
in a container and drawing the desired number of samples from it. (This applies to a
not-so-large population when listing is still possible.)
SYSTEMATIC SAMPLING - This method
still uses the concept of random sampling
and involves the selection of the nth
element of a series representing the
population.
Ex: N = 100, n = 25
N/n = 100/25
=4
This means every 4th element in a series should be taken as a sample.
STRATIFIED SAMPLING - This is a random
sampling technique in which the population is
divided into non-overlapping subpopulations
called strata.

CLUSTER OR AREA SAMPLING - This is a

random sampling technique in which the
population is divided into non-overlapping
clusters or are:
 barangays in a municipality
 municipalities in a province

MULTI-STAGE SAMPLING - A technique that considers different stages or phases in

sampling.
Ex: Region – 1st level
Province – 2nd
Level: City – 3rd
Level: Brgy. – 4th

NON-PROBABILITY SAMPLING TECHNIQUES

PURPOSIVE SAMPLING - It is based on. The final choice of the actual person
on a criteria or qualifications given by is left to his preference.
the researcher. Those who will satisfy
CONVENIENCE SAMPLING - It uses
the criteria are included.
some instruments or equipment that
QUOTA SAMPLING - It is quick and provide convenience like the telephone
cheap since the interviewer is given a or hand set to pick his samples units.
definite instruction and quota about the That means, people with no telephones
section of the population he is to work cannot be given a chance at all.

DETERMINING SAMPLE (?)

 How many samples do we need to use sufficiently in our study?
 Is this number enough for the study?
 Will it give a valid result for the study?

THE SLOVIN'S FORMULA

This equation is commonly used by statisticians to determine
the samples when the population is equal or more than 500.
where N = total population
n = the desired number of e = sampling error
samples
e = 0.05, 0.02 or 0.01 (arbitrary)
Case 1: A study is to be conducted in a big School Division of 25,000 students.
Determine the appropriate sample using a 5% sampling error.
Solution:
n = [N/1 + e2N]
= {25,000/[1 + (0.05)(.05)(25,000)]}
= 393.7 or
≈ 394 students
PROPORTIONAL ALLOCATION (formula for stratified samples)
where n = the total size of the stratified random sample
N = total population
N1 = number of the 1st stratum
elements
N2 = number of the 2nd stratum
elements
N3 = number of the 3rd stratum elements
Example:

DATA COLLECTION
The choice of the appropriate methods to be used in gathering of data depends
mainly on some factors. These include:
 the nature of the problem
 the population under investigation
 the time
 the material factors
DATA COLLECTION METHODS
DIRECT OR INTERVIEW METHOD - it is one of the most effective methods of
collecting original data. a competent interviewer is necessary to obtain accurate
responses.

INDIRECT OR QUESTIONNAIRE METHOD - It is one of the easiest methods of data

gathering. It takes time to prepare because questionnaires need to be attractive. The
content of a typical questionnaire, directions included, must be precise, clear and self-
explanatory.

REGISTRATION METHOD - it is method where a respondent provides information in

compliance with the laws, decrees, rules, policies, or standard practices.
Examples:
 Marriage registration
 birth certificates
 vehicle registrations
 firearms licenses
OTHER METHODS
OBSERVATION - It is PHONE INTERVIEW - it gather data if the
utilized to gather data is employed if the investigator wants to
regarding attitudes, questions to be asked control the factors
behavior, values, and are brief and few. affecting the variable
cultural patterns of the being studied.
EXPERIMENTS - it is
samples under
applied to collect or
investigation

PRESENTATION AND DESCRIPTION OF

DATA
Data needs to be organized to show important properties that may help in the
analysis and interpretation.

3 ways in presenting data

TEXTUAL PRESENTATION - In this form, the presentation is in narrative or
paragraph mode. The data are within the text of the paragraph. In most cases, it
cannot not get the immediate interest of the reader but it can present a more
comprehensive picture of the data because of its written explanation.
Illustrative example:
The data shows the grades of a student in the First Quarter. As indicated,
he got an excellent grade in Values Education (96). On the other hand, he
achieved the same level of performance in both Filipino and English (90). As
shown also, he gained fair performance in Science and Social Studies where he
 got 89 and 86, respectively. With a grade of 80, it only suggests that he finds
Math a difficult subject. tabular presentation

GRAPHICAL
PRESENTATION - In this
form, the numerical data in a
frequency distribution can be
made more interesting and
easier to understand when
presented in pictures or
geometrical representations.

TABULAR
PRESENTATION - In this
form, the presentation
makes use of rows and
columns like a frequency
table or distribution. The
data are presented in a
systematic and orderly
manner which catches
one’s attention and may
facilitate the comprehension and analysis of the data presented.