Introduction to Business Statistics

This set of vocabulary flashcards covers the fundamental concepts of business statistics, including data classification, measurement scales, data collection methods, and various data presentation techniques as discussed in the lecture notes.

Statistics

A branch of mathematics that involves the collection, organization, presentation, analysis, and interpretation of data to support informed decision-making.

Descriptive Statistics

The branch of statistics that deals with summarizing and describing the main characteristics of a data set using tables, charts, graphs, and numerical measures.

Inferential Statistics

A branch of statistics that deals with making conclusions about a population using a sample of data, involving estimation and hypothesis testing.

Population (Universe)

The entire group of individuals or items of interest in a study about which conclusions are made.

Sample

A subset or portion of the population selected for study, used to represent the population because studying the whole is often impractical.

Parameter

A numerical value that describes a characteristic of a population, such as the population mean or variance.

Statistic

A numerical value calculated from sample data used to describe a characteristic of the sample and estimate a population parameter.

Survey

The collection of data from a selected sample of a population, which is faster and more cost-effective than a census.

Census

The collection of data from every member of the population to provide complete information.

Variable

A measurable quantity or characteristic of a population or sample that varies over time or space.

Data

Raw facts or observed values of a variable.

Datum

The singular form of data; for example, the mark of one student.

Quantitative Variables (Numerical Variables)

Variables that can be counted or measured and are expressed in numbers.

Qualitative Variables (Categorical Variables)

Variables that cannot be measured numerically but can be classified into categories based on attributes.

Discrete Variable

A quantitative variable that can only take specific, countable, and distinct values, typically whole numbers.

Continuous Variable

A quantitative variable that can take any value within a given range, including fractions or decimals.

Nominal Variable

A qualitative variable with categories that have no natural order or ranking, such as hair color or gender.

Ordinal Variable

A qualitative variable with categories that have a natural and meaningful order, such as education level or class position.

Cross-sectional Data

Data collected or observed at a single fixed point in time.

Time series Data

Data collected over different time periods, such as annual business data for the last 10 years.

Panel Data

Data observed over time from the same units of observation.

Primary Data

Data gathered for the first time directly from the field by the researcher for a specific purpose.

Secondary Data

Information already collected by other individuals or organizations for a different purpose that can be used for research or analysis.

Nominal Scale

A level of measurement that classifies data into categories using names or labels with no meaningful order.

Ordinal Scale

A level of measurement used for variables with categories that can be meaningfully ordered or ranked.

Interval Scale

A quantitative scale where values are ordered with equal intervals between them, but there is no true zero point.

Ratio Scale

A quantitative scale with ordered values, equal intervals, and a true absolute zero, meaning complete absence of the variable.

Geographical Classification

The organization of data based on location, such as regions, districts, or countries.

Chronological Classification

The arrangement of data according to time, such as daily, weekly, or yearly.

Statistical Unit

The basic element from which data is collected in a study, such as a person, household, or company.

Questionnaire

A data collection method that uses a list of written questions to gather information from respondents.

Direct Interview

A technique in which a researcher obtains information through direct verbal communication by asking questions to a respondent.

Observation

A collection method that involves systematically watching, listening to, and recording events as they occur.

Focus Group Discussions

A method of collecting information by bringing together a small group of experts to discuss specific topics and opinions.

Experimentation

A data collection method involving changing one factor and observing the results.

Textual Presentation

A method where data is presented using words, statements, sentences, or paragraphs.

Diagrammatic Presentation

A method of presenting data using diagrams like pie charts, pictograms, and bar charts for easy comparison.

Graphical Presentation

The display of data using graphs such as ogives, histograms, or scatter plots to show patterns and trends.

Tabular Presentation

The arrangement of data in rows and columns, such as frequency tables, for clear reading and analysis.

Pie Diagram

A circular graph used to show how a total quantity is divided into different components based on proportions.

Pictogram

A diagram that presents data using pictures, icons, or symbols where each symbol represents a specific number of units.

Bar Diagram

A chart using rectangular bars of equal width where the height represents the value or frequency of the data.

Frequency Distribution

A list of values and their corresponding frequencies, either ungrouped or grouped into classes.

Inclusive Frequency Distribution

A grouped frequency distribution in which both the lower and upper limits of each class interval are included in that class.

Exclusive Frequency Distribution

A grouped frequency distribution in which the lower limit is included but the upper limit is excluded from the class interval.

Class Width Formula

$$\text{Class width} = \frac{\text{Range}}{\text{Number of classes}}$$

Class Mark ($X$)

The midpoint of a class interval calculated as $\frac{\text{LCL} + \text{UCL}}{2}$.

Relative Frequency Distribution

A table showing the proportion or percentage of observations in each class, calculated as $\frac{\text{Class Frequency}}{\text{Total Frequency}}$.

Cumulative Frequency Distribution

A distribution showing the total number of observations that fall either below (less-than) or above (more-than) a certain value.

Frequency Polygon

A line graph where frequencies are plotted against class midpoints and the points are joined by straight lines.

Histogram

A two-dimensional frequency distribution graph of continuous data consisting of adjacent rectangles where height represents frequency.

Ogive

A cumulative frequency curve drawn by plotting cumulative frequencies against class boundaries.