Business Statistics – Reviewer (Terms & Definitions)

A compilation of key terminology and definitions related to business statistics, crucial for understanding concepts in the field.

Statistics

A science which deals with the collection, organization, presentation, analysis and interpretation of numerical or quantitative data. Can you be used for prediction and verification.

Descriptive Statistics

Refers to methods of collecting, classifying, graphing, and averaging data to describe the properties of that data.

Inferential Statistics

Concerned with drawing conclusions or generalizations from organized data, often requiring critical judgment and advanced mathematical models.

Data

Facts, observations, and information that come from investigations.

Measurement Data (Quantitative Data)

Results from using instruments to measure something, such as test scores or weight.

Categorical Data (Qualitative Data)

Data grouped according to common properties, recording the number of members in each group. (males/female, vehicle type).

Variable

Property of an object or event that can take on different values. (e.g., college major": mathematics, computer science, English)

Discrete Variable

A variable with a limited number of values, such as gender or college classes.

Continuous Variable

A variable that can take on many different values, theoretically any value between the lowest and highest points.

Independent Variable

A variable manipulated or measured by the researcher, serving as the cause in a cause-and-effect relationship.

Dependent Variable

A variable that is observed and measured in response to the independent variable.

Quantitative Variable

A variable based on quantitative data.

Qualitative Variable

A variable based on categorical data.

Universe (Population)

The set of all individuals or entities under consideration in a study.

Sample

A small portion or part of the population, representing a subgroup.

Parameter

A numeric characteristic of a population.

Statistic

A numerical characteristic of a sample.

Measurement

The process of determining the value or label of a variable for a particular experimental unit.

Experimental Unit

The individual or object on which a variable is measured.

Nominal Level of Measurement

Data collected as labels, names, or categories without any ordering. Example: Sex (male/female).

Ordinal Level of Measurement

Data collected with labels that have implied ordering but unquantifiable differences. Example: Rank of university faculty.

Interval Level of Measurement

Data collected that can be ordered with meaningful differences but has an arbitrary zero point. Example: Academic performance scale.

Ratio Level of Measurement

Data that has all properties of interval scale and can be multiplied or divided with a true zero point. Example: Height, weight.