Business Maths Assignment

Submitted by: Muhammad Mudassir Khan

Roll No: 87

MMS Batch II

Q. How will you differentiate between descriptive and inferential

statistics? Describe different statistical methods used to summarize the
survey or research data.
Answer:
I. Descriptive statistics:
Descriptive statistics deals with collecting, summarizing and
simplifying data which is otherwise quite difficult to comprehend and to
deal with. It seeks to achieve this so that a meaningful conclusion can
be drawn from the data. Descriptive statistics may be seen as bringing
out latent characteristics present in a set of numerical data.
In descriptive statistics data is first collected then assembled,
organized in the form of appropriate tables to make them readable.
Representation includes diagrams, charts, graphs etc. These are
graphical methods. Data can also be summarized by numerical
methods like central tendency, dispersion, skewness and kurtosis.
II.
Inferential Statistics:
This method like descriptive statistics deals with collecting, simplifying,
summarizing and also derives inference. By making inferences it
makes broad generalization of the data. This method is also called as
inductive statistics. The total observations are called as population and
part of it, which is used to derive inference, is called sample. Inferential
statistics helps in evaluating risks involved in reaching inferences
about an unknown population based on the basis of sample
information.
To derive inference, sampling techniques, sampling distribution and
estimation and hypothesis testing are some of the tools used.
Summarising Data:
Once data is collected and organized it is then summarized to trends
and broad variations for inference. Some summarizing methods are as
follows

 Frequency Distribution:
Raw data which follows no order can be summarized by grouping them
into classes and putting number of observations in that particular class
interval.
Measures of central tendency:
In a set of data, observations are clustered around a central value.
Thus in central tendency we find such a central value. The idea behind
determining such a typical value is to use it as a representative of the
entire set of data. Measures of central tendency: mean, median, mode
etc.
Dispersion:
Dispersion refers to the variability among the individual observations
comprising the data. It requires a central point around which variability
or spread can be observed. Measures of dispersion: Range, quartile
deviation, variance, standard deviation etc.
Skewness and Kurtosis:
Frequency distributions sometimes lack symmetry, which can be
checked by skewness around a central value. Kurtosis refers to a
degree of peakness or flatness at the top of the distribution.
Q. Processing of data implies editing, coding, classification and tabulation.
Describe in brief these four operations pointing out the significance of each
in the context of research studies.
Answer:
Data required for the purpose of analysis and presentation of research
study is often consisting of errors which must be rectified before final
presentation is made.
This process involves editing, coding, classification and tabulation of
data.
1 Editing: This is concerned with removal of redundant data, filling of
missing data, and completeness of data. The data obtained from
various sources are not always complete; sometimes fields remain
blank due to human error. It also involves connecting the entries
present at wrong positions. Editing must be done just after the data
has been collected.

2 Coding: Coding is performed to assign a pre defined meaning to the

data captured. The records that satisfy a given constraint are often
marked with some alphabets or numbers, so that while sorting or
searching such records are taken out by a single command. This
concept is mutually exclusive.
3 Classification: This step of data sorting involves segregations of data in
to various classified forms. The step of classification makes data
analysis easy. Often a research conducted serves multiple purposes.
The various departments in an organisation are interested in different
aspects of the same data. Data classification helps in making
comparison and design strategies and policies for future actions.
4 Tabulation: Classified data is presented in the form of rows and
columns called tables. Such an approach is useful for sorting, indexing,
searching, aggregating and performing all sorts of operations leading
to the data bank. This is further used for performing what if analysis.
They present data clearly and to the point.

Q. What do you mean by Multi-variate analysis? Explain how it is different

from bi-variate analysis.
Answer:
Multi-variate Analysis is an extension to the concept of bi-variate analysis. So
we need to understand Bi-variate analysis first.
Bivariate analysis is one of the simplest forms of the quantitative (statistical)
analysis. It involves the analysis of two variables (often denoted as X, Y), for
the purpose of determining the empirical relationship between them. In order
to see if the variables are related to one another, it is common to measure
how those two variables simultaneously change together
Multivariate analysis (MVA) is based on the statistical principle of
multivariate statistics, which involves observation and analysis of more than
one statistical outcome variable at a time. For example, in tri-variate
analysis, three variables (X1, X2 X3) effect of X2 and X3 on X1 can be
determined. It allows separate as well as combined effects of independent
variables on dependant variable.
Difference between two analysis ways can be done listing out its various
purposes at different times. Following table gives short summary about it:
Type of analysis
Bivariate: for exposure
groups

Type of variable/test
used
Continuous: t-test between
groups
Categorical: Chi-square test

Bivariate for outcome

groups

Continuous: t-test
Categorical: Odds ratio

Multivariate: for
continuous variables

Linear regression analysis

Purpose
To assess differences between
groups prior to analysis
To look for possible
confounding relationships
To look for significant
differences in the outcome
variable by exposure
variables
Crude analysis
To examine the relationship
between all the exposure
variables and the outcome
variable controlling for all the
variables in the model
High r2 desired.

Multivariate for binary

(Yes/No) outcomes

Logistic regression analysis

To examine the relationship

between all the exposure
variables and the outcome
variable controlling for all the
variables in the model
Adjusted analysis