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Kenyatta University Business Statistics Notes & Exercises

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` Kenyatta University
Course : Degree in Business Administration/ Bachelor of Commerce
Unit Tittle : Business Statistics
Unit Code : BMS 200

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Business Statistics-Kenyatta University
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BUSINESS STATISTICS
Definition:
It is the science of collecting, organizing, presenting, analyzing and interpreting data to assist in
making more effective decisions.
Types of Statistics
(a) Descriptive statistics: it’s a tabular, graphical and numerical method for organizing and
summarizing information clearly and effectively relating to either a population or sample.
(b) Inferential statistics: are the methods of drawing and measuring the reliability of
conclusions about a statistical population based on information from a sample data set.
A population is a collection of all possible individuals, objects or measurements
of interest.
A sample part or sub set of the population of interest.
Variables:
A variable is a measurable characteristic that assumes different values among the subjects.
Types of variables
(a) Independent variables: It is a variable that a researcher manipulates in order to determine
its effect or influence on another variable. They predict the amount of variation that occurs
in other variables.
(b) Dependent variables: It is the variable that is measured, predicted or monitored and is
expected to be affected by manipulation of an independent variable. They attempt to indicate
the total influence arising from the effects of the independent variable. It varies as a function
of the independent variable e.g. influence of hours studied on performance in a statistical
test, influence of distance from the supply center on cost of building materials.
The above variables can either be qualitative or quantitative variables:-
i. Qualitative variables: Are variables that are non-numeric i.e. attributes e.g. Gender,
Religion, Color, State of birth etc.
ii. Quantitative variables: are numeric variables. They can either be discrete or
continuous.
Discrete variables: Are variables, which can only assume certain values
i.e. whole numbers. Are always counted.
Continuous variables: Are variables, which can assume any value within
a specific range. Are always measured e.g. height, temperature, weight,
radius etc.
Levels of measurement
There are four levels of measurement; nominal, ordinal, interval and ratio.
(a) Nominal level. The observations are classified under a common characteristic e.g. sex, race,
marital status, employment status, language, religion etc. helps in sampling.

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` Kenyatta University Course : Unit Tittle : Unit Code : Degree in Business Administration/ Bachelor of Commerce Business Statistics BMS 200 Business Statistics-Kenyatta University BUSINESS STATISTICS Definition: It is the science of collecting, organizing, presenting, analyzing and interpreting data to assist in making more effective decisions. Types of Statistics (a) Descriptive statistics: it’s a tabular, graphical and numerical method for organizing and summarizing information clearly and effectively relating to either a population or sample. (b) Inferential statistics: are the methods of drawing and measuring the reliability of conclusions about a statistical population based on information from a sample data set. ➢ A population is a collection of all possible individuals, objects or measurements of interest. ➢ A sample part or sub set of the population of interest. Variables: A variable is a measurable characteristic that assumes different values among the subjects. Types of variables (a) Independent variables: It is a variable that a researcher manipulates in order to determine its effect or influence on another variable. They predict the amount of variation that occurs in other variables. (b) Dependent variables: It is the variable that is measured, predicted or monitored and is expected to be affected by manipulation of an independent variable. They attempt to indicate the total influence arising from the effects of the independent variable. It vari ...
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