INTRODUCTION TO STATISTICS
Plural Sense: Numerical data (sales figures, production numbers).
Singular Sense: Science of collecting, organising, presenting & interpreting numerical data.
FUNCTIONS OF STATISTICS
Presents facts in simple form (charts/graphs), Condenses mass data (1000 responses → 5 key findings), Facilitates comparison (this year vs last year), Finds relationships (ad spend vs sales), Helps in forecasting (predict next quarter), Formulates plans & policies (market research for new product), Derives valid inferences (Product A sells better in urban areas).
LIMITATIONS OF STATISTICS
Doesn't study individuals (only groups), Not for qualitative phenomena (can't measure love/beauty), Laws are not exact (probabilistic, not certain), True only on average (may not apply to every case), Can be misused/manipulated, Only one method – use with other research methods.
Mark Twain: "Lies, damned lies, and statistics."
METHODS OF COLLECTING DATA
Statistical Survey: Process of collecting data from Population (all items) or Sample (selected group).
Census Method: Data from EVERY individual – when population small, accuracy critical (50-employee survey).
Sample Method: Data from SELECTED sample – when population large, time/money limited (1000 out of 1M customers).
PRIMARY vs SECONDARY DATA
Primary Data: Original, collected first time (raw materials), more money/time, more accurate, needs trained persons. After use becomes secondary.
Secondary Data: Already collected by others (finished products), less time/money, may not be accurate, verify source reliability.
Simple: Primary = cooking fresh food; Secondary = eating at restaurant.
TECHNIQUES OF PRIMARY DATA COLLECTION
Personal Interviews: Investigator meets informants – personal contact, can expand answers, verify accuracy, but expensive, time-consuming, bias risk.
Structured Questionnaire: Fixed questions, predefined answers.
Unstructured Questions: Open-ended for detailed responses.
Participant Observation: Researcher becomes part of group.
Telephone Interviews: Questions over phone – cheap, quick, wide coverage, but not for lengthy conversations, excludes non-phone owners.
Mail Questionnaire: Sent by post – relatively cheap, good for distant respondents, thoughtful answers possible, but low response rate, misinterpretation risk.
SOURCES OF SECONDARY DATA
Published Sources: Government reports, Census data, Annual reports, Newspapers, Research journals.
Unpublished Sources: Company internal records, Theses/dissertations, Research papers, Private diaries/letters, Unpublished government data.
IMPORTANT EXAM QUESTIONS
1. Explain the functions of statistics in managerial decision making with examples (6-8 marks).
2. Discuss the limitations of statistics (6 marks).
3. Differentiate between Primary and Secondary data with examples (6 marks).
4. Explain different methods of collecting primary data. Which method would you recommend for a market research study and why? (8 marks).