Download Introduction to Business Statistics Sixth Edition by Ronald M Weiers PDF

By Ronald M Weiers

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Today Today, statistics and its applications are an integral part of our lives. In such diverse settings as politics, medicine, education, business, and the legal arena, human activities are both measured and guided by statistics. Our behavior in the marketplace generates sales statistics that, in turn, help companies make decisions on products to be retained, dropped, or modified. Likewise, auto insurance firms collect data on age, vehicle type, and accidents, and these statistics guide the companies toward charging extremely high premiums for teenagers who own or drive high-powered cars like the Chevrolet Corvette.

As such, they will not be arranged or organized in any meaningful manner. When the data are quantitative, two of the ways we can address this problem are the frequency distribution and the histogram. The frequency distribution is a table that divides the data values into classes and shows the number of observed values that fall into each class. By converting data to a frequency distribution, we gain a perspective that helps us see the forest instead of the individual trees. A more visual representation, the histogram describes a frequency distribution by using a series of adjacent rectangles, each of which has a length that is proportional to the frequency of the observations within the range of values it represents.

13 In its computer records, the company might use “1” to identify residential customers, “2” for commercial customers, “3” for industrial customers, and “4” for government customers. Aside from identification, these numbers have no arithmetic meaning. The Ordinal Scale In the ordinal scale, numbers represent “greater than” or “less than” measurements, such as preferences or rankings. 2 13Source: Nominal Each number represents a category Ordinal Greater than and less than relationships Interval and Ratio and Units of measurement Entergy Corporation, 2005 Annual Report.

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