2009 Spring TUNG, Yik-Man

1
ISOM111 Business Statistics
Tutorial Set 1


The scope of Statistics ()

Statistics (Wikipedia): A mathematical science pertaining to the collection, presentation,
analysis, interpretation and explanation of data.
Descriptive Statistics ( ): A branch of Statistics which study the
summarization and description for collections of data.
Inferential Statistics (): A branch of Statistics which study the randomness
or uncertainty of data and to draw inferences about populations based on characteristics
of samples.

Basic Set Theory ()

A Set () is a collection of objects. An object that belongs to a set is called an element (
) or individual () of that set. Venn diagram () is usually used to visualize a set.
If Ais a set and x is an individual of A, then we denote A x e .
Two sets Aand B are equal if every individual of Ais an individual of B and vice versa.
Ais a subset () of B if every individual of Ais also an individual of B and denoted
by B A _ .
Ais a proper subset of B if B A _ and B A = . It is denoted by B A c .
A universal set ()U is a set contains all individuals of interest in a context.
The null set () is a set has no individual. Note that A c , for any set A.
Basic Set Operation (). Let U B A c , ,
Complement ():
C
A or A or ' A and { } A x U x x A e e = & : .
Union (): { A x x B A e = : or } B x e .
Intersection (): { A x x B A e = : and } B x e .
The number of subset or combination of r individuals selected from a set of n distinct
individuals is ! )! ( ! r r n n C
n
r
= , where for any Natural Number k , 1 2 3 ) 1 ( ! = k k k .

Population and Sample ()

A population is a collection of all individuals or items under consideration in the context. If
the population size is countable, it is usually denoted by N .
A Sample is a part or subset of the population collected. The size is usually denoted byn .










Population:
2
,o
Sample:
2
, S X
Sample c Population is drawn, studied
and obtained sample statistics such as
2
, S X etc. to understand the Population
and estimate its parameters such
as
2
,o etc.
2009 Spring TUNG, Yik-Man
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Data description ()

By considering the frequency distribution of the data set.
Location measure.
Dispersion or Variability measure.
Shape measure.

Location measure of the sample data distribution are:
Sample Mean or Average (): n f X X
n
i
i i
=
=
1
(with Population version
replaced by N )
Sample Median ()
Sample Mode ()
Sample Maximum and Sample Minimum

Dispersion or variability measure of the sample data distribution are:
Sample Range
Sample Variance ( ): 1 ) (
1
2 2
=

=
n X X S
n
i
i X
(with population version
replaced by N )
Sample Standard Deviation ():
2
X X
S S = (with population version replaced
by N )

Shape measure or the measure of how symmetric the sample data distribution are:
Sample Skewness: Skewness = 0 Symmetric, > 0 Right skewed, < 0 Left skewed
Sample Kurtosis


Example

1. Let U B A c , , use Venn diagrams to illustrate the fact that:
(a) Ais a proper subset of B , i.e. B A c .
(b) Complement
C
A of AinU .
(c) Union of Aand B , i.e. B A .
(d) Intersection of Aand B , i.e. B A .
(e) If of Ahas 15 individuals, calculate the no. of all possible subset of Awhich contains 5
individuals.

Sol:








2009 Spring TUNG, Yik-Man
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2. Calculate the Mean, Median, Mode, Variance and Standard Derivation for the SAMPLE
data set { } 12 , 14 , 11 , 12 , 13 , 10 , 14 , 12 , 10 , 12 .

Sol: Mean 12
10
2 14 13 4 12 11 2 10
=
+ + + +
=
Median =
Mode =
Variance 2
9
2 ) 12 14 ( ) 12 13 ( 4 ) 12 12 ( ) 12 11 ( 2 ) 12 10 (
2 2 2 2 2
=
+ + + +
=
Standard Derivation =


3. Consider the following data.

14 21 23 21 16
19 22 25 16 16
24 24 25 19 16
19 18 19 21 12
16 17 18 23 25
20 23 16 20 19
24 26 15 22 24
20 22 24 22 20

Calculate the Descriptive Statistics and produce a histogram for this data using MS Excel.

Sol: