Business Statistics: Key Concepts, Data Types, and Analytics Techniques

CH 1

Statistics

A science dealing with the collection, analysis, interpretation, and presentation of numerical data.

Population

A collection of all persons, objects, or items under study.

Census

Gathering data from the whole population.

Sample

Gathering data on a subset of the population that should be representative of the whole population.

Descriptive Statistics

Uses data gathered on a group to describe or reach conclusions about that same group, producing graphical or numerical summaries of data.

Inferential Statistics

Gathers data from a sample and uses the statistics generated to reach conclusions about the population from which the sample was taken.

Parameter

Descriptive measure of the population, usually represented by Greek letters.

Statistic

Descriptive measure of a sample, usually represented by Roman letters.

Population Mean (µ)

Parameter, Denotes the average of the population.

Population Variance (σ²)

Parameter, Denotes the variance of the population.

Population Standard Deviation (σ)

Parameter, Denotes the standard deviation of the population.

Sample Mean (x̄)

Statistic, Denotes the average of the sample.

Sample Variance (s²)

Statistic, Denotes the variance of the sample.

Sample Standard Deviation (s)

Statistic, Denotes the standard deviation of the sample.

Big Data

A term used to describe large and complex data sets that traditional data processing software cannot deal with.

Business Analytics

The practice of iterative, methodical exploration of an organization's data with an emphasis on statistical analysis.

Data Mining

The process of discovering patterns and knowledge from large amounts of data.

Data Visualization

The graphical representation of information and data.

Nominal Data

Data that can only be used to classify or categorize

Ordinal Data

Data that can be categorized and ranked

Interval Data

Data that can be categorized, ranked, and has meaningful intervals between values, but no true zero.

Ratio Data

Data that can be categorized, ranked, has meaningful intervals, and has a true zero point.

Variable

A characteristic of any entity being studied that is capable of taking on different values.

Measurement

The standard process used to assign numbers to particular attributes of a variable.

Parametric Statistics

Require interval or ratio data.

Nonparametric Statistics

Can be used with any data, but nominal and ordinal data require nonparametric methods.

Variety in Big Data

Different forms based on sources of data.

Velocity in Big Data

The speed with which the data are available and can be processed.

Veracity in Big Data

Data quality, correctness, and accuracy.

Volume in Big Data

Ever-increasing size of data and databases.

Descriptive Analytics

takes traditional data and describes what has or is happening in a business

Reporting Analytics

Another term for descriptive analytics

Predictive Analytics

finds relationships in the data that are not readily apparent with descriptive analytics

Prescriptive Analytics

examines current trends and likely forecasts to make better decisions

Data

Recorded Measurements