INTRODUCTION TO STATISTICS FOR BUSINESS I

Purpose

 Statistics aids in the solution of problems by gathering, analyzing, and interpreting data or numerical information.  As you will see in later lectures, data are the essential ingredients upon which statistical decisions are made.  Data are the raw material that forms the basis for business and managerial decisions.

 As an academic discipline, statistics is a field of study and not merely the data used an in input in the decision-making process.  Numerical information, such as the prices of industrial equipment, employee wages, number of retail outlets in a city, or the assessed valuation of property in a country, may be correctly referred to as statistics.  However, this course focuses on statistics as a field of study.

 In this course, we study methods and theory.

 Methods are techniques that assist the firm in deciding whether to stop the process or leave it alone.  Theory is the basis for these methods.  Theory guarantees that the methods are logically correct.

 The theory and methods of statistics provides the logical foundation for solving decision problems.  The methods of statistics are the rules and formulas of those methods necessary for critical thinking.

 You will periodically have assignments on the computer to ease the burden of computation decision making.  The computer techniques will be part of your educational process in statistics.  Finally, you will clearly understand the role of statisticians in business decision making.  You will also note how important this role is in the reshaping of American business.

Textbook:

STATISTICS FOR BUSINESS AND ECONOMICS, by Anderson, Sweeney and Williams,
8th, edition.

STUDENT VERSION OF MINITAB,  West Publishing Co.

TOPICAL OUTLINE

1. Review of College Level Mathematics Required for study of Statistics.

 Understand the role of Calculus both Differential and Interval in understanding the
 Business and Economic environment in which we live.

2. Review of College Level Computer Skills Required for Study of Statistics.

 Example:  Minitab on the PC, Use of Data Series, Windows Dialog Boxes;

3. Introduction:  Chapters I and II.

 Decision Making and the Role of Statistics in the Development of Methods for
 Reducing Uncertainty in Decision Making; Frequency Distributions; Histograms
 by Minitab; Exploratory Data Analysis.

4. Summary and Descriptions of Data; Chapter III.

 Summary Measures; Parameters and Statistics; Measures of Central Tendency; Measures
of Variation; Measures of Skewness; Using Statistical Software; Deming’s Methods and
the Use of Histograms; What is the appropriate Parameter for the purpose of decision  making

5. Probability; Chapter 4.

 Experiments, Sample Spaces and Events; Probability Measure; Addition Rule;
 Multiplication Rule; Bayes’ Theorem.

6. Probability Distributions and Expected Values; Chapter 5.

 Introduction to Random Variables.  The probability Distribution for a Random Variable;
 An Application to Management.  Expected Value of RV; Role of Expected Values in   Decision-Making.

7. Discrete Probability Distributions; Chapter 6.

Bernoulli Trials; Binomial Distributions; Tables for the Binomial Distribution; Use of  Statistical software to generate Binomial Tables; The Poisson as the method for finding  the probability of an event for unit of time or space; Poisson Tables; Generating the
 Poisson by Statistical Software.

8. Continuous Random Variables and Their Probability Distributions; Chapter 6.

 Probability Density Function of a Continuous Random Variable; Normal Distribution;
 The Standard Normal Curve as a Density Function; Calculating Normal Probabilities;
 Using the Table of Standard Normal Probabilities; the Normal as an Approximate to the
 Binomial; Generating Normal Probabilities by Statistical Software.

9. Sample Design and Sampling Distributions; Chapter 7.

 What is a sample?  Scientific sampling and judgment samples; Public Opinion Polls as a
 sample; Types of probability Samples; Case Studies of Sampling such as the Current
 Population Survey; what is a Table of Random Numbers; generating random numbers
 By Statistical Software; Case Study - Sample Command; Concept of the Sampling
 Distribution; of Mean - of the Proportion; Case Studies such as Magazine Readership;  accounts receivable, and gambling.

10. Estimation; Chapter 8.

 Point Estimation; Criteria of good estimator; Point estimates of ? ; Confidence
 Interval for the population; the t distribution; Confidence Interval for the population
 proportion.  Use of Statistical software to produce confidence intervals.

 There will be 3 examinations during Fall Session 2000 semester.  Computer problems will
be handed in  on the day assigned.  It is also advisable that each student has a good and usable calculator.  Students may use textbooks on the examination.

Those students who have their own computer should download Minitab software for use in this and other classes.  Additional instruction about this program will be given.  My web site given below will have additional instruction.

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