MBA 610 Statistics

1
MBA 610 Statistics

• Capitol College
• Summer 2007
• Lecture 1, 4-30-07

2
RESOURCES

• Syllabus on BlackBoard and on instructors home
  page http//faculty.capitol-college.edu/gdchin
• Refer to the homepage for any additional material.

3
Course Objective

• Acquire the statistical capability to
  effectively analyze and execute business models
  or decisions.

MBA 610 SUMMER 2007 SESSION 1
4
Ideal Objective

• You will also learn to recognize the application
  of statistics in your everyday life.
• In other words, aside from passing a requisite
  course for an MBA and becoming a better manager,
  you will benefit personally.

MBA 610 SUMMER 2007 SESSION 1
5
What is Statistics?

• The need for Statistics (Probability) evolved as
  an admission of our ignorance to analyze many
  business outcomes.
• Hence, over many centuries, many great minds
  developed an analytical method, Statistics, that
  generally yields superior results to guessing or
  using ones intuition.

MBA 610 SUMMER 2007 SESSION 1
6
Qualitative Versus Quantitative

• A qualitative description is non-numeric and
  describes general traits or characteristics.
• A quantitative description is numeric and
  consequently, can be expressed in mathematical
  terms (formulas, graphs, etc.).
• Mastering Statistics requires the balancing of
  qualitative and quantitative thinking.

MBA 610 SUMMER 2007 SESSION 1
7
Example

• Qualitative Toyota makes good cars.
• Quantitative Toyota is the 1 or largest sales
  automaker in the world.
• Statistically we can surmise that Toyota makes
  cars that are AT LEAST 51 better than anyone
  elses car, and since they sell more cars than
  anyone else, Toyota sells the most good cars in
  the world.

MBA 610 SUMMER 2007 SESSION 1
8
Key Statistical Concepts from Textbook

• Population Group of all items of statistical
  interest.
• Sample Set of data drawn from the population.
• Statistical Inference Process of making an
  estimate, prediction or decision about a
  population based on collected sample data.

MBA 610 SUMMER 2007 SESSION 1
9
Statistical Concepts Refined(Population)

• Population Exhaustive, in other words, a group
  of ALL items of interest.
• Sample Population a small group that is
  representative of the population.
• Parameter a descriptive measure of the
  population derived from the statistical analysis
  of the sample population. Examples Average or
  that like Pepsi, batting average, Dow-Jones
  Index, etc.

MBA 610 SUMMER 2007 SESSION 1
10
Statistical Concepts Refined(Sample)

• Sample Data or Data-point drawn, measured or
  collected from a member(s) of the population.
• Sample Set The complete set of data drawn from
  the sample population.
• Statistic a descriptive measure of the
  population derived from the statistical analysis
  of the sample set and sample population.
  Examples Average or that like Pepsi, batting
  average, Dow-Jones Index, etc.

MBA 610 SUMMER 2007 SESSION 1
11
Statistical Concepts Refined(Statistical
Inference)

• Statistical Inference Best predictor or
  estimator of the population based on sample
  population data (sample set).
• Sample Set The complete set of data drawn from
  the sample population.
• Confidence Level The percentage of the time that
  your statistical inference will likely be
  correct.
• Significance Level Percentage of time that your
  statistical inference will likely be incorrect.
• Note that Confidence Level Significance Level
  100

MBA 610 SUMMER 2007 SESSION 1
12
Assignments 4/30/07

• Read Chapters 1, 2 3 of the Keller Textbook
• Prepare your computer(s) for Excel
• Prepare Paper 1 How Understanding Statistics
  Can Aide My Academic and/or Professional Career.
• Extra Credit (25 points) pp. 8-9 of Keller,
  Problems 1.1 thru 1.8.

MBA 610 SUMMER 2007 SESSION 1