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Business Statistics
Statistics Terms for L.Van Jones' book,
31
Management
Undergraduate 2
01/12/2011

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Term
Bias
Definition
Tendency to favor the selection of certain sample elements or events over other sample elements or events
Term
Random Sample
Definition
Each and every element in the population must have an equal and independent chance of selection.
Term
Population
Definition
The entire collection of all observations of interest to the researcher
Term
Sample
Definition
Representative portion of the population selected for study
Term
Sampling Error
Definition
Difference between the sample mean and the population mean
Term
Parameter
Definition
Any descriptive measure of the entire population.
Term
Statistic
Definition
Any descriptive measure of the sample
Term
Central Tendency
Definition
The tendency of the distribution to fall close to a central point or middle point. Examples include arithmetic mean, median, and mode.
Term
Mean
Definition
Arithmetic Average
Term
Median
Definition
The value in the middle.
Term
Mode
Definition
The value that occurs most often
Term
Dispersion
Definition
Range, Average Deviation, Variance, Standard Deviation, Percentiles, Quartiles, Deciles,
Term
Range
Definition
Difference between high and low values
Term
Average Deviation
Definition
Difference between the mean and each of the individual values in the data set. Always zero. First step in determining the variance.
Term
Variance
Definition
The mean of the squared deviations around the mean. Only calculated so we can determine standard deviation.
Term
Standard Deviation
Definition
Square root of the variance. Most important.
Term
Percentiles
Definition
divides the data set into 100 equal pieces
Term
Quartiles
Definition
divides the data set into 4 equal pieces
Term
IQR
Definition
Inter-Quartile Range the middle fifty-percent of the data set. Difference between the 25th and 75th percentile value
Term
Deciles
Definition
Divides data set into 10 equal pieces.
Term
Variable
Definition
Characteristic of the population or sample that is being examined in the statistical study
Term
Quantitative Variable
Definition
Expressed Numerically - weights, heights, age, etc.
Term
Continuous Data Sets
Definition
Quantitative Variable where values can take on a range of values (usually not whole numbers)
Term
Discrete Data Sets
Definition
Quantitative Variable that is generally expressed in whole numbers.
Term
Qualitative Variable
Definition
Expressed Non-numerically like gender or religious preference.
Term
Raw Data Set
Definition
data set that is unorganized.
Term
Grouped (Frequency Distribution) Data Set
Definition
Data set that is sorted and grouped into classes
Term
Class
Definition
Section of a Grouped(Frequency Distribution) Data Set
Term
Determine Number of Classes
Definition
2^C >= N where C is number of classes and N is the number of population observations. 'N' would be 'n' in a sample data set
Term
Class Interval
Definition
CI = (Largest Value - Smallest Value)/Number of Classes. You have some leeway here
Term
Class Midpoint
Definition
Lowest Value of Class + Highest Value of Class divided by 2
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