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Extra resources for Business Statistics Demystified: A Self Teaching Guide
Ratio scale. When the values have a relation of order, the intervals between adjacent values are equal, and a value of zero is meaningful, the variable is said to be on a ratio scale. ) This is the last type of numerical data. Example: Money, with debt measured as negative numbers. HANDY HINTS Some textbooks deﬁne ordinal data as a form of categorical data and others as a form of numerical data. This is because ordinal data has characteristics of each and, depending on what we do with it, it may be treated as either.
This is one of the best types of sample to have, but, in practice, it is usually impossible to get. And, when we have it, it may be too costly to measure every individual in the sample. TIPS ON TERMS Population. All of the subjects of interest. The population can be a group of business transactions, companies, customers, anything we can measure and want to know about. The details of which subjects are and are not part of our population should be carefully speciﬁed. Sample. The subjects in the population we actually measure.
Throwing out a value leaves what is called missing data. Missing data can be a real problem in statistics, but missing data is better than wrong data. CRITICAL CAUTION Missing Data When there are multiple variables for each subject and one or more values for a subject are missing, various serious problems can occur with diﬀerent statistical measures and techniques. Most computer programs that do statistics will handle missing data automatically in the simplest way possible, which is usually good enough.