Mba 1

Mathematical and Statistical Applications for
Business
MGT-509
M. Ahmad Naeem.
Department of
Management
Sciences
Statistic
The branch of mathematical science which
deals with collections, arrangement,
presentation & analysis of the data to make
influence under the face of uncertainty about
the phenomenon under the study.
Branches of Statistic
• Descriptive Statistics
• Inferential Statistics
Descriptive Statistics
O The branch of statistics which deals
with collection, arrangements &
presentation of the data.
Example:
No. of students.
No. of registered courses.
Average of people heights.
Inferential Statistics
O The branch of statistics which deals
with the sample of data to make
influence about the population under
the face of uncertainty.
Example:
Head or Tail
Model
Experiment Observation
Data
Process of
Decision Making
Information
Experiment
O An activity which generate same observation.
Types of Experiment
Deterministic:
An experiment with a certain
outcome.
Probabilistic:
An experiment with different
outcome from a possible domain.
Data
There are two types of data.
Qualitative:
The data which can be
described numerically.
Ex:
No. of student in MBA Class.
No. of chair in class.
Class duration.
Lahore temperature.
No. of trees in world
No. unhappy and happy people in world
Quantitative:
Quantitative data has two types.
Continuous Data:
A data which is based on number of possible
outcomes , equal to points on a line between A & B.
Discrete Data:
A data which is compromised of either finite
number of possible outcomes or count ably infinite
number of possible outcomes.
Example:
No. of population in world
No. of tables in office
Air Pressure
Qualitative Data
Types
Nominal:
A data level which is used to
describe an entity without a
comparison.
Ex:
Yasir
Babar
Tayyab
Ordinal:
A data which reflects the relative order.
Ex:
1) Yasir
2) Babar
3) Tayyab
Scale:
A data which reflects the both order &
magnitude.
Ex:
1) Yasir 93%
2) Babar 90%
3) Tayyab 83%
Likert Scale:
It is a rating scale. Often
found on survey forms, that
shows/measure how people feed about
something.
Sources of Data
Primary Source Secondary Source
Collecting the data by Collecting the data by

our self other self.
Expensive Easy to access
Time Taking Easy to access
Reliable Reliability is risky

Inferential Statistic
Population:
A set of all possible outcomes of things
having at least one common characteristic.
Sample:
A subset or a part of population.
• Random Sample
• Simple Random Sample
• Representative Sample
Random Sample:
A sample which is taken without a
systematic pattern/order.
Simple Random Sample:

Sampling in which each unit
population has an equal chance to be
selected in the sample.
Representative Sample:
A group which describe the
population effectively
Data Management
Raw Data:
Types
Which has not done through by statistical treatment.
Process Data:
A data which has been treated by applying at least one
of the statistical method
Array Data:
Arranging a raw data into an ascending & descending
order (numerically or alphabetically).
Classification:
The distribution of data into classes along with their
sequences
Classification of Data
Sr. # Nationalit No. of CGPA
y students
1 PAK 25 2.24
2 USA 20 2.65
3 IND 15 2.89
4 UK 30 3.2
5 AFG 10 3.6
So On to So On to So On to So on to
100 100 100 100
N=100
Heterogeneous & Homogenous
Data
O The data which is scatted is heterogeneous data.
For example, if everyone in your group varied
between 4’3″ and 7’6″ tall, they would be
heterogeneous for height. In real life,
heterogeneous populations are extremely
common. For example, patients are typically a
very heterogeneous population as they differ with
many factors including demographics, diagnostic
test results, and medical histories.
O The data which is not scatted is homogenous
data. For example a data set made up of 20-year-
old college students enrolled in Physics 101 is a
homogeneous sample.
Formula
O Relative Frequency
O Percentage frequency
% frequency = R.F * 100
O Graphical Representation
1. Pie Chart
For Pie Chart multiply R.F with 360°.
2. Bar Chart
• Simple
• Component
• Multiple
O Range
O No. of Classes
It can be calculated by using
Burges formula.
O Class height/interval
Example
O A cubical die is tossed 30 times and lands 5 times
on the number 6. What is the relative frequency of
observing the die land on the number 6?
Solution: Given, the number of times a die is tossed

= 30
Number of successful trials of getting the number 6 =
5
By the formula, we know,
Relative frequency = Number of positive trials / Total
number of trials
f = 5/ 30 = 1/6 (or) 16.66%
Example 2: Anna has a packet containing 20 candies. Her
favorites are the yellow ones and the red ones. The table
below shows the
frequency of each different candy selected as she picked all
20
sweets one by one and finished them all.
A) Find relative frequency of the picked candy being one of
her favorites?
B) Find relative frequency of the brown candy
Solution: Relative frequency = number of times an event

has occurred / number of trials
A) Relative frequency of the picked candy to be one of her
favorites:
(Frequency of yellow + Frequency of red candy)/ 20 = 12/ 20
= 60%
B) Relative frequency of the brown candy
Frequency of brown candy/ 20 = 5 / 20 = 25%
O Example 3: A coin is flipped 100 times, and
the coin lands on heads 48 times. What is
the relative frequency of the coin landing on
tails?
Solution: Relative frequency = number of

times an event has occurred / number of trials
The event in consideration is the coin landing
on tails = 100 - 48 = 52 times
Relative frequency of the coin landing on tails
= 52/100 = 0.52 = 52%
Answer: Relative frequency of the coin
landing on tails is 52%.
Tally Method
O Classify the following data by using
tally method.
17 numbers of people having PAK
nationality.
7 numbers of people having USA
nationality.
12 numbers of people having UK
nationality.
5 numbers of people having India
nationality.
9 numbers of people having AFG
nationality.
Grouped Frequency
O Classify the following data by using
Tally method and make a table which
represent the boundaries & grouped
frequency of the class as well.
Data:
2,4,6,5,3,2,1,4,2,5,6,8,2,9,10,15,12,8,
7,8
Outlier/ Non-
homogeneity
O An observation which does not seem as a
part of the data.
Causes of Non-homogeneityX1 X2 X3
5 5 5
O Outliers 6
7
O Cluster
6 5 20
O Trends 21
25
7 6 60
87
80
5 25 33
34
38
Measure of Central
Tendency
O A measure which tends to identify the central behavior of
data by a single value. Stats can be represent only in two
ways:
1) Average (Central Tendency)

• Arithmetic Mean
• Median
• Mode
2) Dispersion
• Standard Deviation/Variance
• Range
• Quantiles
Arithmetic Mean
O Let X1,X2,X3……Xn be the number of
observation in a homogeneous data, than
Arithmetic mean for homogenous data is,
For Raw data
For grouped data
Where X is the number of observation f is the

frequency of the data.
Median
O Let X1,X2,X3……Xn be the number of
observation in a homogeneous data.
Than,
Median= = For odd Observation.
Median= = For even Observation.
= ℓ+ - c) For grouped data.
ℓ= lower class boundary of median class.
h= Interval of class.
f= Single frequency of median class.
C= Cumulative frequency of class proceedings
to median class.
Mode
O For raw data, the most frequent
observation/value in the data is called mode.
O For grouped data, let X1,X2,X3……Xn be the
number of observation in a homogeneous data.
Than,
ℓ= lower class boundary of median class.

= frequency of class.
f1= Frequency of class preceding to mode class
f2= Frequency of class following to mode class
h= Interval of the class
Dispersion
O It is used to estimate the variation within the data.
Standard Deviation
• For Population
x
Or
x [ }]
• For Sample
s2 x̄)^2
Or
s2
Example
O No. of Observation over the last six
months in a factory
Xi= 2,4,6,7,8,20
O No. of Observation over the last six
months in a factory
Xi= 5,9.12,14,50
Find the Median of both Questions

Example
Class Limit Frequency
10-19 20
20-29 25
30-39 32
40-49 40
50-59 23
Above is the data which were extracted from the

factory whose workers are working with different
frequencies, find the Arithmetic Mean, Median and
Mode

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Mathematical and Statistical Applications for

Collecting the data by Collecting the data by

Expensive Easy to access

Time Taking Easy to access

Reliable Reliability is risky

Simple Random Sample:

% frequency = R.F * 100

For Pie Chart multiply R.F with 360°.

Solution: Given, the number of times a die is tossed

Solution: Relative frequency = number of times an event

Solution: Relative frequency = number of

1) Average (Central Tendency)

For Raw data

For grouped data

Where X is the number of observation f is the

ℓ= lower class boundary of median class.

Find the Median of both Questions

Above is the data which were extracted from the

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