1. Copyright ©2011 Pearson Education 1-1 1-1 1-1 Statistics for Managers using Microsoft Excel6th EditionGlobal Edition Chapter 1Introduction

2. 1-2 Copyright ©2011 Pearson Education Learning Objectives In this chapter you learn: How business uses statistics The basic vocabulary of statistics How to use Microsoft Excel with this book Copyright ©2011 Pearson Education 1-2 Copyright ©2011 Pearson Education 1-2

3. 1-3 Copyright ©2011 Pearson Education Why Learn Statistics Copyright ©2011 Pearson Education 1-3 Copyright ©2011 Pearson Education 1-3 Make better sense of the world Internet articles / reports Magazine articles Newspaper articles Television & radio reports Make better business decisions Business memos Business research Technical journals Technical reports

4. 1-4 Copyright ©2011 Pearson Education In Business, Statistics Has Many Important Uses Copyright ©2011 Pearson Education 1-4 Copyright ©2011 Pearson Education 1-4 To summarize business data To draw conclusions from business data To make reliable forecasts about business activities To improve business processes

5. 1-5 Copyright ©2011 Pearson Education Two Different Branches Of Statistics Are Used In Business Statistics The branch of mathematics that transforms data into useful information for decision makers. Descriptive Statistics Collecting, summarizing, presenting and analyzing data Inferential Statistics Using data collected from a small group to draw conclusions about a larger group Copyright ©2011 Pearson Education 1-5 Copyright ©2011 Pearson Education 1-5

6. 1-6 Copyright ©2011 Pearson Education These Two Branches Are Used In The Important Activities To summarize business data Descriptive methods used to create charts & tables To draw conclusions from business data Inferential methods used to reach conclusions about a large group based on data from a smaller group To make reliable forecasts about business activities Inferential methods used to develop, quantify, and improve the accuracy of predictive models To improve business processes Involves managerial approaches like Six Sigma Copyright ©2011 Pearson Education 1-6 Copyright ©2011 Pearson Education 1-6

7. 1-7 Copyright ©2011 Pearson Education Descriptive Statistics Collect data e.g., Survey Present data e.g., Tables and graphs Characterize data e.g., The sample mean Copyright ©2011 Pearson Education 1-7 Copyright ©2011 Pearson Education 1-7

8. 1-8 Copyright ©2011 Pearson Education Inferential Statistics Estimation e.g., Estimate the population mean weight using the sample mean weight Hypothesis testing e.g., Test the claim that the population mean weight is 120 pounds Drawing conclusions about a large group of individuals based on a smaller group. Copyright ©2011 Pearson Education 1-8 Copyright ©2011 Pearson Education 1-8

9. 1-9 Copyright ©2011 Pearson Education Copyright ©2011 Pearson Education 1-9 Copyright ©2011 Pearson Education 1-9 Basic Vocabulary of Statistics

10. 1-10 Copyright ©2011 Pearson Education Copyright ©2011 Pearson Education 1-10 Copyright ©2011 Pearson Education 1-10 Basic Vocabulary of Statistics

11. 1-11 Copyright ©2011 Pearson Education Copyright ©2011 Pearson Education 1-11 Copyright ©2011 Pearson Education 1-11 Population vs. Sample Population Sample Measures used to describe the population are called parameters Measures used to describe the sample are called statistics

12. 1-12 Copyright ©2011 Pearson Education This Book Is Organized To Show The Four Uses Of Statistics Copyright ©2011 Pearson Education 1-12 Copyright ©2011 Pearson Education 1-12 To summarize business data (Chapters 2 & 3) To draw conclusions from business data (Chapters 4 – 12) To make reliable forecasts about business activities (Chapters 13 – 16) To improve business processes (Chapter 18)

14. Examined the use of statistics to:

15. Summarize data

16. Draw conclusions from data

17. Make reliable forecasts

18. Improve business processes

19. Examined descriptive vs. inferential statisticsCopyright ©2011 Pearson Education 1-13 Copyright ©2011 Pearson Education 1-13 Chapter Summary

20. 1-14 Copyright ©2011 Pearson Education All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright ©2011 Pearson Education 1-14