Gama

1. What is meant by Statistics?

Statistics is the science of collecting, organizing, presenting, analyzing, and interpreting numerical data to assist in making more effective decisions.

Why Study Statistics?

1. Numerical information is everywhere

2. Statistical techniques are used to make decisions that affect our daily lives

3. The knowledge of statistical methods will help you understand how decisions are made and give you a better understanding of how they affect you.

No matter what line of work you select, you will find yourself faced with decisions where an understanding of data analysis is helpful.

2. What is meant by Statistics?

• In the more common usage, statistics refers to numerical information

Examples: the average starting salary of college graduates, the number of deaths due to alcoholism last year, the change in the Dow Jones Industrial Average from yesterday to today, and the number of home runs hit by the Chicago Cubs during the 2007 season.

• We often present statistical information in a graphical form for capturing reader attention and to portray a large amount of information.

3. Formal Definition of Statistics

STATISTICS The science of collecting, organizing, presenting, analyzing, and interpreting data to assist in making more effective decisions.

Some examples of the need for data collection.

1. Research analysts for Merrill Lynch evaluate many facets of a particular stock before making a “buy” or “sell” recommendation.

2. The marketing department at Colgate-Palmolive Co., a manufacturer of soap products, has the responsibility of making recommendations regarding the potential profitability of a newly developed group of face soaps having fruit smells.

3. The United States government is concerned with the present condition of our economy and with predicting future economic trends.

4. Managers must make decisions about the quality of their product or service.

4....