Business Statistics 

A collection of procedures and techniques that are used to convert data into meaningful information in a business environment 

Arthemetic Mean or Average 

The sum of all values divided by the number of values 

Statistical Inference Procedures

Procedures that allow a decision maker to reach a conclusion about a set of data based on a subset of that data 

Experiment 

A process that produces a single outcome whose result cannot be predicted with certainty 

Experimental Design

A plan for performing an experiment in which the variable of interest is defined. One or more factor is controlled so the effects can be clearly measured 

Closed-End Questions

Questions that require the respondant to select from a short list of defined choices 

Demographic Questions 

Questions relating to the respondents' characteristics, backgrounds, and attributes

Open-End Questions

Questions that allow respondents freedom to resond with statements of their own choosing 

Structured Interview 

Interviews in which the questions are scripted 

Unstructured Interview 

Interviews that begin with one or more broadly stated questions, with further questions being based on the responses

Bias

An effect which alters a statistical result by systematically distorting it

Internal Validity

A characteristic of an experiement in which data is collected in a way as to eliminate the effects of variables within the experimental environment 

External Validity

A characteristic of an experiment whose results can be generalized beyond the test environment so that the test can be replicated 

Statistical Sampling Techniques

Those sampling methods that use selection techniques based on chance selection 

Nonstatiscal Sampling 

Those methods of selecting samples using convience, judgement, or nonchance processes 

Convenience Sampling 

A sampling technique that selects the items from the population based on accessibility and ease of selection 

Simple Random Sampling 

A method of selecting items from a population such that every possible sample of a specified size has an equal chance of being selected 

Population 

The set of all objects or individuals of interest or the measurements obtained from all objects or individuals of interest 

Sample 

A subset of the population 

Census 

An enumeration of the entire set of measurements taken from the whole population 

Stratified Random Sampling 

A statistical sampling method in which the population is divided into subgroups called strata so that each population item belongs to only one stratum 

Systematic Random Sampling

A statistical sampling technique that involves selecting every kth in the population after a randomly selected starting pt between 1 and k 

Cluster Sampling 

A method by which the population is divided into groups, or clusters, that each intended to be mini populations 

Quantitative Data 

Measurements whose values are inherently numerical 

Time Series Data 

A set of consecutive data values observed at sucessive points in time 

Cross-Sectional Data

A set of data values observed at a fixed point in time 

Ordinal Data 

Rank data such as categories like how much money do you make 

Interval Data 

Such as temperature 

Ratio Data 

Data that possesses a true zero