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PRE CHAT FAQ : STATISTICS FOR MANAGEMENT : MBF103

Unit-1 : Introduction To Statistics

Q1.What is Statistics? What is the importance of statistics?

Answer: Statistics basically deals with gathering, organizing and analyzing data. Inorder to make decisions in almost every facet of human life we need some facts andfigures. These numerically expressed facts which can further be analyzed can roughlybe characterized as statistics. Statisticians defined it in different ways:

According to Horace Secrist, Statistics may be defined as the aggregate of factsaffected to a marked extent by multiplicity of causes, numerically expressed,enumerated or estimated according to a reasonable standard of accuracy, collected in asystematic manner, for a predetermined purpose and placed in relation to each other.This definition is both comprehensive and exhaustive.

According to Croxton and Cowden, Statistics is the science of collection, presentation,analysis and interpretation of numerical data from logical analysis

Statistical methods are applied to specific problems in various fields such as Biology,Medicine, Agriculture, Commerce, Business, Economics, Industry, Insurance, Sociologyand Psychology such as in the study of growth of plant, movement of fish population inthe ocean, migration patterns of birds etc.

Q2.What are the divisions of statistics?

Answer: Statistics can be divided in two sections: A. Descriptive statistics andB. Inferential statistics.

Descriptive statistics comprises ofa) Collecting data

b) Organizing datac) Summarizing datad) Presenting data

Inferential statistics comprises ofa) Making Inferenceb) Hypothesis Testingc) Determining relationshipd) Making Predictions

Q3. What are the components of statistics? Give brief description of each of thecomponents.

Answer: According to Croxton and Cowden there are four different components of

Statistics:a)Collection of Datab) Presentation of Datac) Analysis of Datad) Interpretation of Data

Collection of Data:Collection of data is a very crucial step of any statisticalsurvey. Careful planning is needed while collecting data. The different methods

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used for collecting data such as census method, sampling method and so on.The investigator has to take care while selecting appropriate collection methods.Presentation of Data: The collected data is usually presented for further analysisin two forms, tabular and diagrammatic or graphic form. The collected data iscondensed, summarised and visually represented in a tabular or graphical form.

Analysis of data: The data presented has to be carefully analysed to make any

inference from it. The inferences can be of various types, for example, asmeasures of central tendencies, dispersion, correlation, regression.Interpretation of Data: The final step is to draw conclusions from the analyseddata. Interpretation requires high degree of skill and experience. We can interpret

Q5. What are the characteristics of statistics?

Answer: The characteristics of statistics for which it can be used to analyse andinterpret data are as follows:

Statistics deals with aggregate of facts

Statistics gets affected to a huge extent by multiplicity of causes

Statistics are numerically expressed

Statistics are enumerated or estimated with required degree of accuracy:

Statistics are collected in a systematic manner

:Statistics are collected for a pre-determined purpose

Statistics are placed in relation to each other

Q6. What are the functions of statistics?

Answer:Statistics is used for different purposes:

a) It is used to simplify mass datab) it makes comparisons easier

c) it brings out trends and tendencies

d)it is used to bring the hidden relations between variables

e) decision making power becomes easier

Q7. In which of the following situations would you like to use statistics?a) buying a houseb) purchasing medicines prescribed by doctorc) checking nutritional status of children of a rural area

d) paying fees for your MBA degreee) getting into a course of study

Answer: Statistics are numerically expressible facts which can further be analyzed andinterpreted. Thus,

a) buying a house: Yes, we shall use statistics.b) purchasing medicines prescribed by doctor: No, we shall not use statistics.c) checking nutritional status of children of a rural area : Yes, we shall usestatisticsd) paying fees for your MBA degree: No, we shall not use statistics

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e) getting into a course of study : Yes, we shall use statistics.

Q8. What are the limitations of using statistics?

Answer: Despite all its characteristics and functions, Statistics also have certainlimitations.

Statistics does not deal with qualitative data

Statistics does not deal with individual fact

Statistical inferences (conclusions) are not exactStatistics can be misused and misinterpreted

Common men cannot handle Statistics properly

Q9. How statistical software can be used to make analysis of data easier?

Answer:When the collected data is small, the analysis and interpretation can be donewithout much difficulty. But when a huge amount of data is huge, the process of analysisand interpretation would be difficult. Therefore, there is a need for tools to do thecalculations in an easier way, such as the software namely Minitab, SPSS, Eviews.

UNIT2 : STATISTICAL SURVEY

Q1.What is statistical survey? What are the stages of conducting such a survey?

Answer: A Statistical survey is a scientific process of collection and analysis ofnumerical data. Statistical surveys are used to collect numerical information about unitsin a population. Surveys involve asking questions to individuals. Surveys of humanpopulations are common in government, health, social science and marketing sectors.

A Statistical Survey basically has two stages:

a) Planning and b) Execution of the survey.

Planning of a survey:The relevance and accuracy of data obtained in a survey dependsupon the care exercised in planning. A properly planned investigation can lead to bestresults with least cost and time.

Execution of Statistical survey:Control methods should be adopted at every stage ofcarrying out the investigation to check the accuracy, coverage, methods ofmeasurements, analysis and interpretation.

The collected data should be edited, classified, tabulated and presented in diagrams andgraphs. The data should be carefully and systematically analysed and interpreted.

Q2.What is the difference between population and sample? Is it always better toconduct a survey on the basis of samples as it is smaller in size?

Answer:In a Statistical survey, the objects on which the characteristics are measuredare called units or individuals. The totality of all units or individuals in a survey is calledpopulation or universe. The data which describes the characteristics of a population isknown as parameter. On the other hand, A sample is a part or subset of the population.By studying the sample, you can predict the characteristics of the entire population from

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where the sample is taken. The data that describes the characteristics of a sample isknown as statistic.If a survey is conducted on the basis of the entire population then it is known as

population survey and if it is conducted only with the sample then it is known as sample

survey. But only because of the smaller size of the samples it is not justified to conduct

a sample survey, sometimes surveys demand the entire population to consider rather

than considering only a part of it.

Q3.What is finite and infinite population? Classify the following as finite or infinite

population:

i. production of a factory in a dayii. number of pages in a bookiii. the set of rational numbersiv. number of points in a planev. number of rice grains present in a godown

Answer: If the number of objects in a population is finite then it is called finitepopulation otherwise it is known as infinite population.i. production of a factory in a dayFinite Populationii. number of pages in a bookFinite Populationiii. the set of rational numbersInfinite populationiv. number of points in a planeInfinite populationv. number of rice grains present in a godownInfinite population

Q 4. What is the difference between variable and attribute?

Answer: A characteristic which is numerically measurable is called Quantitative data,

which expresses a certain quantity, amount or range. Usually,The quantitative

characteristic that varies from unit to unit is called a variable.For example, the height of aperson in metres.

A characteristic which is not numerically measurable is called a qualitative characteristic.The qualitative characteristic that varies from unit to unit is called an attribute. Forexample, eye color of a person.

Q 5. What is/are the difference/s between discrete and continuous variable?

Answer:A variable that assumes only some specified values in a given range is knownas discrete variable. A variable that assumes all the values in the range is known ascontinuous variable. For example, the number of children per family is an example ofdiscrete variables. The height and weight of a person is an example of continuous

variables.

Q.6.Primary data are always better to have accuracy in a statistical inference- isit always holds true?Answer:Data collected for the first time keeping in view the objective of the survey isknown as primary data. They are likely to be more reliable. However, cost of collection ofsuch data is much higher. Primary data is collected by the census method. In other

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words, information with respect to each and every individual of the population isobserved.Information, on the other hand can be obtained from some data, which has beencollected used by some other agency or person in a separate investigation, or survey, isknown as a secondary data. They are available in published or unpublished form.

Although the level of accuracy in case of primary data is more but secondary data canalso be accurate if proper care is taken while collecting them.

Q7. What are the benefits the investigator could get while taking data throughdirect personal interview?

Answer:Direct personal interview is one of the methods adopted to collect primary data.

In the direct personal observation method, the investigator collects data by having direct

contact with units of investigation.The benefits that the investigator could get from the

data obtained by adopting this method are as follows:

He gets the original data which is more accurate and reliableSatisfactory information can be extracted by the investigator through indirectquestionsData is homogeneous and comparable.

Additional information can be gathered.

Misinterpretation of questions can be avoided.

Q 8.What are the merits and demerits of indirect oral interview?

Answer: The merits andMerits and demerits of indirect oral interview

Merits Demerits

1. Economical in terms of time, cost andman power

1. The degree ofaccuracy of informationis less.

2. Confidential information can becollected,

3. Information is likely to be unbiased andreliable

Q 9. What are the other methods of collecting primary data? Give briefdescription of each of them.

Answer:The other methods of collecting primary data are:

Information through agencies

Information through mailed questionnaires

Information through schedule filled by investigators

Q10. How one can make a questionnaire successful ?

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Answer: Success of questionnaire method of collection of data depends mainly onproper drafting of the questionnaire. One has to keep the following points in mind whilepreparing a questionnaire:

The respondent should not take much time in completing the questionnaire. It

should be small and not lengthy.The questions asked should be well structured and unambiguous.

The questions asked should be in proper logical sequence.

Questions should be unbiased. The questions in the questionnaire should not

disturb the privacy of the respondents.

The task of completion of questionnaire should not have much writing work.

Necessary instructions and glossary should be given in covering letter.

Questions involving technological jargons and mathematical calculations should

be avoided.

The completed questionnaire should be kept confidential and used only for the

purpose of the survey as mentioned in the investigation.There should not be any scope for misinterpretation in the questions.

Q11. What are the types of close ended questions?

Answer:There are various types of closed ended questions.

Yes/no questionshere the respondents answer with yes or no.

Multiple choices here the respondents have several options from which tochoose.

Scaled questionshere the responses are graded on a continuum (For example,rating the appearance of a product on a scale from 1 to 10, with 10 implying the

most preferred appearance and 1 implying the least preferred

appearance).Scaled questions are mostly questions related to attitudes.

Q13. Why do we need to do pilot survey prior to the original survey?

Answer: Pilot survey is a small trial survey undertaken before the main survey. It gives ameasure of efficiency of the questionnaire. It reduces the inconveniences and loss ofinformation. It helps in introducing necessary changes.

Q14. Why scrutiny and editing of data is required before using the data forsurvey?

Answer: The data collected through various sources will be much disorganised andneeds to be condensed and analysed for further studies. There is a possibility of missingthe valuable data after condensation. Hence, proper editing process of any collecteddatais required.

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Before using the collected data, it should be checked for its completeness, accuracy andreliability. By complete, we mean that all the required information should be available.Editing the data is a time consuming process and also an important task.