module 1
TRANSCRIPT
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 & Definition
Statistics 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
Business1. 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
8. Insurance
9. Astronomy
10. Physical Sciences
11. Social Sciences
12. Biology & Medical Sciences
13. Psychology & Education
14. 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 data
1. Primary Data
2. Secondary Data
Irrespective of the above the data can be classified as:
1. Qualitative Data
2. Quantitative Data
1. Measurements or scores
2. Frequencies
05 MBA 13 Ms. PRATHIMA BHAT K.
Formulation of a
Grouped FD
1. Deciding the appropriate number of Class Grouping
n=1 + 3.322 log10 N
2. Choosing a suitable size or width of a Class Interval
Width = Highest Value – Lowest Value
Number of Class Groupings
3. Establishing the boundaries of each Class Interval
4. Classifying the data into appropriate classes
5. 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 _________________
Stub HeadingCaptions Captions
Total Captions Captions Captions Captions
Stub Entries
Total
Main Body
Footnote:
Source:
05 MBA 13 Ms. PRATHIMA BHAT K.
Differences:
1. Need of Graph papers
2. Approximate Information
3. Represent geographical data
4. 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.
2. Two Dimensional
1. Rectangles
2. Squares
3. Circles
4. Angular or Pie Diagrams
Types of Diagrams
(Contd…)
05 MBA 13 Ms. PRATHIMA BHAT K.
3. Three Dimensional
1. Cubes
4. 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