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Statistics for Managers Using Microsoft Excel ® 7e Copyright ©2014 Pearson Education !nc" Chap LGS-1

Statistics for Managers Using Microsoft Excel ®

7th Edition

Let’s Get Started

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Statistics for Managers Using Microsoft Excel ® 7e Copyright ©2014 Pearson Education !nc" Chap LGS-2

Learning Objectives

In this chapter you learn: 

 That the volue o! data that e"ists in the #orld a$es learning

about statistics criticall% iportant

 That statistics is a #a% o! thin$ing that can help %ou a$e

better decisions

 &hat business anal%tics is and ho# these techni'ues

represent an opportunit% !or %ou

 (o# the )CO*+ !rae#or$ !or appl%ing statistics can help %ou

solve business probles  (o# to a$e best use o! this boo$

 (o# to prepare !or using ,icroso!t E"cel® #ith this boo$

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n Toda%.s /usiness &orld 0ou

Cannot Escape ro )ata

 n toda%.s digital #orld ever increasing aounts

o! data are gathered stored reported on and

available !or !urther stud%3

 0ou hear the #ord data ever%#here3

 )ata are !acts about the #orld and are

constantl% reported as nubers b% an ever

increasing nuber o! sources3

Statistics for Managers Using Microsoft Excel ® 7e Copyright ©2014 Pearson Education !nc" Chap LGS-4

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Each /usiness 5erson aces + Choice O!

(o# To )eal &ith This E"plosion O! )ata

 The% can ignore it and hope !or the best3



The% can count on other people.s suaries o! data and hope the% are correct3

 The% can develop their o#n capabilit% and

insight into data b% learning about statistics and

its application to business3

Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc" Chap LGS-6

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Statistics s Evolving So /usinesses Can

se The *ast +ount O! )ata +vailable

The eerging !ield o! /usiness +nal%tics a$es

8e"tensive use o!9  )ata

 Statistical and 'uantitative anal%sis

 E"planator% : predictive odels

 act based anageent

to drive decisions and actions3;

Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc" Chap LGS-

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To 5roperl% +ppl% Statistics 0ou Should ollo# +

rae#or$ To ,inii=e 5ossible Errors

n this boo$ #e #ill use )CO*+

 Define the data %ou #ant to stud% in order to

solve a proble or eet an objective  Collect the data !ro appropriate sources

 Organize the data collected b% developing

tables  Visualize the data b% developing charts

 Analyze the data collected to reach

conclusions and present results

Chap LGS->Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc"

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sing The )CO*+ rae#or$

(elps 0ou To +ppl% Statistics To9

 Suari=e : visuali=e business data



?each conclusions !ro those data

 ,a$e reliable !orecasts about business

activities

 prove business processes

Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc" Chap LGS-7

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)eveloping Operational )e!initions s

Crucial To +void Con!usion @ Errors

  +n operational de!inition is a clear and precise

stateent that provides a coon understanding

o! eaning

 n the absence o! an operational de!inition

iscounications and errors are li$el% to occur3

  +rriving at operational de!initionAsB is a $e% part o!

the )e!ine step o! )CO*+

Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc" Chap LGS-

)CO*+

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Operational )e!initions O! Ters

VARIAL!

A characteristic of an item or individual.

DA"A

The set of individual values associated with a variable.

S"A"IS"ICS The methods that help transform data into useful information for decision makers.

Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc"

)CO*+

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&ithout Statistics 0ou Can.t

 )eterine i! the nubers in these studies are

use!ul in!oration

 *alidate clais o! causalit%

 See patterns that large aounts o! data

soeties reveal

Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc" Chap LGS-11

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T#o )i!!erent /ranches O!

Statistics +re sed n /usiness

Statistics The branch of mathematics that transforms data into useful information for decision makers.

Descripti#e Statistics

Collecting, summarizing,  presenting and analyzing data

Inferential Statistics

Using data collected from a small group to draw conclusions about a larger group

Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc"

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/usiness +nal%tics9 The

Changing ace O! Statistics

 se statistical ethods to anal%=e and e"plore

data to uncover un!oreseen relationships3



se anageent science ethods to develop odels that ipact an organi=ation.s strateg%

planning and operations3



se in!oration s%stes ethods to collect and process data sets o! all si=es including ver%

large data sets that #ould other#ise be hard to

e"aine e!!icientl%3

Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc" Chap LGS-14

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/usiness +nal%tics (as +lread% /een +pplied n

,an% /usiness )ecision-,a$ing Conte"ts

 (uan resource anagers A(?B understanding

relationships bet#een (? drivers $e% business

outcoes eplo%ee s$ills capabilities and otivation3



inancial anal%sts deterining #h% certain trends occur to predict !uture !inancial environents3

 ,ar$eters driving lo%alt% progras and custoer

ar$eting decisions to drive sales3

 Suppl% chain anagers planning and !orecasting based

on product distribution and optii=ing sales distribution

based on $e% inventor% easures3

Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc" Chap LGS-16

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The Gro#th O! 8/ig )ata; Spurs The se

O! /usiness +nal%tics

 8/ig )ata; is still a !u==% concept3



*er% large data sets are arising because o! the autoatic collection o! high volues o! data at

ver% !ast rates3

 Older statistical techni'ues are o!ten ties

ipractical #ith big data3

Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc" Chap LGS-1<

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(o# To se This /oo$

 The sing Statistics scenario at the beginning and

end o! each chapter provide   + real business situation that the chapter.s topics can help

address

 Conte"t #hich is an iportant part o! the learning process

 )o#nloadable e"aple E"cel® #or$sheets are

provided throughout each chapter   uerous case studies are provided so %ou can

  +ppl% #hat %ou have learned

 Enhance %our anal%tical : counication s$ills

Statistics for Managers Using Microsoft Excel# 7e Copyright ©2014 Pearson Education !nc" Chap LGS-1>

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,icroso!t E"cel s The 5riar% )ata

 +nal%sis +pplication n ,icroso!t O!!ice

 E"cel uses #or$sheets AspreadsheetsB to both store data

and present anal%sis results

  + #or$sheet has ro#s and coluns

 The intersection o! a speci!ic ro# and colun is called a cell and is #here data is stored

 Standard business practice is to store the data

associated #ith a variable in a colun

 E"cel saves !iles that it calls #or$boo$s   + #or$boo$ is a collection o! #or$sheets and chart

sheets

  +n e"cel !ile is t%picall% saved in an 3"ls" or 3"ls !orat

Statistics for Managers Using Microsoft Excel# 7e Co