Introduction

Management quantitative techniques involve statistics, which is the science of data. It involves collecting, classifying, summarizing, organising, analysing and interpreting numerical information. Statistical applications in business can be divided into two broad areas:

• descriptive statistics
  
• inferential statistics

Descriptive statistics utilizes numerical and graphic methods to look for patterns in a data set, to summarise the information revealed in a data set, and to present the information in a convenient form.

Inferential statistics utilizes sample data to make estimates, decisions, predictions, or other generalization about a larger set of data.

We will encounter the terms population and sample on almost every page of this module. Consequently, understanding the meaning of each of these two terms and the difference between the two is crucial.

A population consists of all elements – individuals, items, or objects – whose characteristics are being studied. The population that is being studied is also called the target population.

A sample is a portion of the population selected for study. A sample that represents the characteristics of the population as closely as possible is called a representative sample.