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BBA182 Applied Statistics Week 1 (1) Dr Susanne Hansen Saral Email: susanne.saral@okan.edu.tr

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Practical information My office: A 202 IYBF-building Office hours: Tuesdays: 11:00 – 12:00 and 17:00 – 17:30 Thursdays: 11:00 – 12:00 and 17:00 – 17:30 Email: susanne.saral@okan.edu.tr

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C Course syllabus Basic course in statistical thinking and analysis. The primary goals are to help you: Develop ability of statistical thinking and decision-making utilizing statistical tools in a context of business and management. Acquire techniques to apply the proper current statistical tools to a broad range of business problems. Topics covered include descriptive statistics and presentations, basic probability, various probability distributions, confidence intervals and hypothesis testing Prerequisites: High school algebra

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Class attendance policy Students are expected to attend all scheduled classes as well as to bring all related course material in class (e.g. textbook, class notes, distribution tables, scientific calculator, etc.). Students are liable to take the exams and participate in academic work (Khan Academy, Quiz and assigned homework) required for achieving the course. Students who do not attend a minimum 70% of the classes (20 classes) will be considered as absent for the related course and therefore will get a VF

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Tardiness Policy Students are permitted to arrive to the class in the first 15 minutes after the scheduled start of the course. Students who arrive after 15 minutes of the scheduled start of the class will be considered absent. Students who show up in the class after the break are considered absent.

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How I calculate your semester grade

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Calculation of class attendance

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Course textbook Sharpe: Business Statistics, 3/e, Global Edition, Pearson Newbold, Carlson, Thorne, Statistics for Business and Economics”, 8th edition. (2012)

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Homework on Khan Academy Every week I will assign new homework on I give you a deadline and you will need to have mastered the homework in a weeks time.

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Create your account in Khan Academy Go to create an account with your email address or your Facebook account (if you have one). Add me (Susanne Hansen Saral) as a coach: Follow the instructions from the hand-out

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PIAZZA.COM Piazza.com – class platform for: Posting class lectures, course syllabus, class announcement

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Send me an email to the following address: susanne.saral@okan.edu.tr

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What is statistics? What is the average age of the students in this class-room?

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What is statistics? Every statistical problem starts with a question! What was the overall customer satisfaction of Hilton Hotels in Turkey in 2015? How many pairs of jeans will GAP sell in the month of November 2016 in Europe? How did you choose OKAN University for your studies? How many loafs of bread on average does a bakery store sell per day?

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What is statistics? Every statistical problem starts with a question! Why would companies or individuals want to know the answers to these questions?

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What is statistics? To make good business decisions to help improve company revenues

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What is statistics? How in Statistics do we go about answering such questions? What was the overall customer satisfaction of Hilton Hotels in Turkey in 2015? How many pairs of jeans will GAP sell in the month of November 2016 in Europe? How did you choose OKAN University for your studies?

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What is statistics? We need to collect information from the source we are interested in to be able to answer such questions

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What is statistics? Statistics concern populations In the former examples the populations are : All customers of Hilton hotels in Turkey in 2015 All pairs of jeans to be sold by GAP in Europe in November 2016 All students at OKAN University

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Statistical key definitions POPULATION A population is the collection of all items of interest under investigation. N represents the population size Populations are usually very large, therefore it is impossible to investigate entire populations. It would be too Time consuming Costly

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Examples of Populations Incomes of all families in Izmir All children in all elementary schools of a city All animals in a farm Human population on earth Total products produced in one day in a factory

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Statistical key definitions SAMPLE A sample is an observed subset of the population n represents the sample size

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Population vs. Sample

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Examples of Samples A Sample is a subset of the population A few parts, of all parts produced selected, for testing defects 10 children from all elementary schools in a given city The annual income of 33 families out of all families in Izmir The grade point average of selected students from OKAN University 3 animals out of a total of 25 animals

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Statistical key definitions PARAMETER VS. STATISTICS A parameter is a specific characteristic of a population (mean, median, range, etc.) Example: The mean (average) age of all students at OKAN A statistic is a specific characteristic of a sample (sample mean, sample median, sample range, etc.) Example: The mean (average) age of a sample of 500 students at OKAN

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Why is it necessary to collect samples? Populations are indefinite and their parameters are rarely known. The only way we can find the estimated value of a population parameter is by collecting a sample from the population of interest.

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Why is it necessary to collect samples? Populations are usually infinite. Therefore impossible to investigate the entire population Less time consuming to investigate a subset (sample) of the population than investigating the entire population. Timely delivery of the results. Less costly to administer, because workload is reduced It is possible to obtain statistical valid and reliable results based on samples.

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Randomness (Turkish: Rasgelelik) Our final objective in statistics is to make valid and reliable statements about the population in general based on sample data. (inferential statistics) Therefore we need a sample that represents the entire population One important principle that we must follow in the sample selection process is randomness.

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Main sampling techniques Simple random sampling Systematic sampling Both techniques respect randomness and therefore provide reliable and valid data for statistical analysis

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Random Sampling Simple random sampling is a procedure in which: Each member/item in the population is chosen strictly by chance Each member/item in the population has an equal chance to be chosen Each member/item has to be independent from each other Every possible sample of n objects is equally likely to be chosen The resulting sample is called a random sample.

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Sampling error In statistics we make decision about a population based on sample data, because the population parameter is unknown. Ex. Elections Statisticians know that the sample statistic is rarely identical to the population parameter, but the two values are close. The difference between the sample statistic and the population parameter is called sampling error.

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Non-sampling error Non-sampling errors: Are errors not connected to the sampling procedure Population is not properly represented in the sample (Reader’s Digest, 1936) Survey subject may give incorrect or dishonest answer (because they did not understand the question or did not want to report the truth) Survey subject fail to answer certain question in a survey (non response bias) Subjects volonter to participate in a survey. Biased responses

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Inferential statistics Drawing conclusion about a population based a sample information.

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Inferential statistics To draw conclusions about the population based on a sample we need to collect data.

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What is data? Data = information Data can be numbers: Size of a hotel bill, number of hotel guests, number of nights stayed in a Hilton hotel, size of a swimming-pool, etc. Data can be categories: Gender, Nationalities, marital status, tourist attractions, codes, university major, etc.

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Data and context Data are useless without a context. When we deal with data we need to be able to answer at least the two following first questions in order to make sense of the data: 1) Who? 2) What? 2) When? 3) Where? 4) How?

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Data and context Data values are useless without their context Consider the following: Amazon.com may collect the following data: What information can we get out of this?

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Data and context We need to put the data into context in order to get information out of it

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What is statistics? It is a basic study of transforming data into information : how to collect it how to organize it how to summarize it, and finally to analyze and interpret it

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Where does data come from? Market research Survey (online questionnaires, paper questionnaires, etc.) Interviews Research experiments (medicine, psychology, economics) Databases of companies, banks, insurance companies Other sources

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Homework Send me an email: susanne.saral@okan.edu.tr TODAY Create your Khan Academy account following the instruction of the hand-out Go through the course syllabus Watch the following YouTube video link: Introduction to Statistics