ICTE 1043

Statistical Analysis with Software Application

Week 1
Learning Outcomes

At the end of the lesson, the students should be able to:

1. discuss the basic concepts of Statistics.

2. recognize and differentiate between key terms
 What is Statistics?

Statistics has become an integral part of everyday life.

Read any newspaper or watch television, use the
Internet, or other types of media, people will see
statistical information. With this information, we make
a decision about the correctness of a statement, claim,
or "fact". Statistical methods can help us make the
"best educated guess"
What is Statistics?

Why is it important to know Statistics?

 Applications of Statistics

In marketing research, In the social sciences, statistics are used in all

Business Natural, Social, and areas of human and social characteristics.
statistical tools are Economics, Physical Sciences
indispensable in studying Engineering, Marketing, Astronomy,
consumer behavior, effects Computer Science Chemistry, Physics In physical sciences, for example, the
of various promotional science of meteorology uses statistics in
strategies and so on. analyzing the data gathered by satellites in
Areas where predicting weather conditions.
STATISTICS
e.g. effectiveness of a Health & are used Environment
Medicine Agriculture, Ecology,
new drug is determined Genetics, Clinical Trials,
Forestry, Animal
by statistical Epidemiology,
Populations
experimentation and Pharmacology
In agriculture, experiments about crop
evaluation. yields, types of fertilizers and types of
Government soils under different types of
Census, Law,
National Defense environments are commonly designed
and analyzed through statistical
methods and concepts.
 Applications of Statistics
Financial analyst use a variety of statistical
Public accounting firms information to guide their investment
use statistical sampling recommendations. In case of stocks, analyst review
procedures when Accounting Finance financial data such as price/earnings ratios and
conducting audits for dividend yields.
their clients Economists frequently provide forecasts
about the future of the economy or some
Manufacturers purchase Business aspects of it. Ex: In forecasting inflation
and rates, economists use statistical
data and data statistical Economics
summaries on information such as Producer Price
Marketing Economics Index, unemployment rate, and
promotional activities
such as special pricing manufacturing capacity utilization.
and the use of in-store Today’s emphasis on quality makes quality
displays. Helpful in control an important application of statistics.
establishing marketing
Production
A variety of statistical quality control charts
strategies for the various used to monitor the output of a production
products. process.
Definition of Statistics

Statistical Data
Facts about, or summaries of data
(e.g. sales statistics, employment
statistics, etc.)

Statistical Method
Statistics is a science that deals with the method
of collection, organization, presentation,
analysis and interpretation of quantitative data.
Stages in Statistical Investigation

Collection of Organization Presentation Analysis of Interpretation

Data of Data of Data Data of Results
The process Arranging the Provides an Extraction of Attaching
of obtaining collected data overview of summarized meaning and
(gathering) a according to what the data and interpretation
set of related some common actually looks comprehensive to the
measurements characteristics like and to numerical numerical
or counts to facilitate description in results
meet statistical order to reach
predetermined analysis conclusion
objectives
 Classification of Statistics

Descriptive Statistics involves organizing, summarizing,

and displaying data.

Inferential Statistics uses sample data to draw conclusions about a

population.
Descriptive Statistics

Collect data
❑ e.g. Survey

Present data
❑ e.g. Tables and graphs

Summarize data
❑ e.g. Sample mean
Inferential Statistics

Estimation
❑ e.g. Estimate the population mean scores
using the sample mean scores

Hypothesis testing
❑ e.g. Test the claim that the population mean
score is 85.
Drawing conclusions and/or making decisions concerning a population based on
sample results.
 Important Terms

Population
The collection of all responses, measurements, or counts
that are of interest.

The population must be defined explicitly before the

study begins and the research hypothesis/questions
specify the population being studied

Defined by certain characteristics:

- Inclusion criteria
- Exclusion criteria
Important Terms

Sample
A portion or subset of the population.

Sampling Error
❑ reflects the fact that the result researchers get from the sample is not going to be
exactly equal to the result they would have got if the researchers have been able
to measure the entire population. And each possible sample could give a different
result.
Important Terms

Parameter
A number that describes a population characteristic.
Average gross income of all people
in the Philippines in 2023.

Statistic

A number that describes a sample characteristic.

2013 gross income of people in a sample of 3
regions.
 Examples of Descriptive Statistics
• The preparation and reporting of financial statements
• Current business performance: Descriptive analytics can track sales per
account representative, sales of each product line or the company’s
overall sales revenue for a period.

• Historical trends: Companies can analyze sales growth by calculating

quarterly revenue growth as a percentage and presenting the historical trend
in charts.
• Strengths and weaknesses: Companies can use descriptive analytics to
compare the performance of different business groups based on metrics such
as revenue per employee and expenses as a percentage of revenue.
 Examples of Inferential Statistics

• Analyzing that financial information to make decisions on the future is

inferential statistics.

• A company wants to determine whether a new cost-cutting measure

significantly reduces operational expenses compared to the previous method.

• Estimating the average return on investment (ROI) for a portfolio with a 95%
confidence interval.

• A business uses regression analysis to predict future sales based on

historical sales data and other variables like marketing spend, seasonality,
and economic indicators.
 Examples of Inferential Statistics

• An accounting firm may use a chi-square test to assess whether the

distribution of different expense categories (e.g., travel, supplies, payroll) has
changed significantly after implementing a new financial policy.

• Forecasting quarterly revenue based on past revenue data.