©2013 cengage learning. all rights reserved. business management, 13e data analysis and decision...

©2013 Cengage Learning. All Rights Reserved.

Business Management, 13e

Data Analysis and Decision Making14.1 Mathematics and Management14.2 Basic Math and Measurement Systems14.3 Understanding and Using Basic Statistics14.4 Using Data in Decision Making

CHAPTER

14



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14.1 Mathematics and Management

GOALS● Describe ways that mathematics is used by

managers to improve decision making.● Identify several common and specialized

mathematical applications used by business managers.



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Mathematics Skills for Managers

● Math for decision making● Data-based decisions – use information facts, and

measures, usually in numerical form, as the primary basis for choosing among alternatives

● Inductive and deductive reasoning ● Statistics

● Communicating findings● Raw data ● Processed data (Information)



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Checkpoint ● Why should managers use data to aid them in

decision making?



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Checkpoint ● Why should managers use data to aid them in

decision making?● Managers gather and analyze information to keep

decisions objective and as free from bias as possible.



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Business Applications of Mathematics

● Developing Math Skills● Electronic database programs and spreadsheets

have become the primary tools for analyzing data ● Math Applications in Business

● Accounting and Finance● Production and Operations● Marketing● Human Resources




Common Business Activities that Require Math Skills

ACTIVITY DESCRIPTION

Calculate Determine the quantity or value of something

Compare Determine how two or more values vary from each other

Plan Use data to set numerical goals or standards

Analyze Review data to identify relationships, patterns, and explanations

Project Use past and current information to estimate future performance



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Checkpoint ● What are five common activities managers

complete that require mathematics skills?



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Checkpoint ● What are five common activities managers

complete that require mathematics skills?● Calculate● Compare ● Plan ● Analyze ● Project



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14.2 Basic Math and Measurement Systems

GOALS● Demonstrate understanding of basic

mathematical operations.● Recognize common units of U.S. and metric

measurement.



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Basic Mathematic Operations

● Adding and subtracting● Multiplying and dividing● Fractions, ratios, decimals, and percentages



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Checkpoint ● What are the equations for addition,

subtraction, multiplication, and division?



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Checkpoint ● What are the equations for addition,

subtraction, multiplication, and division?● Addend + Addend = Sum ● Minuend – Subtrahend = Difference ● Multiplicand x Multiplier = Product ● Dividend / Divisor = Quotiuent



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Measurement Systems in Business

● Traditional U.S. measures● Different from most other countries● Developed from the traditional English system

● Metric measures● Based on the decimal system, meaning that all

measures are in common units of ten



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Checkpoint ● What is the preferred system of weights and

measures for United States trade and commerce?



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Checkpoint ● What is the preferred system of weights and

measures for United States trade and commerce?● The metric system



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14.3 Understanding and Using Basic Statistics

GOALS● Explain why statistics is important to managers

and identify two types of statistics.● Recognize important types of statistical

information.



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Understanding Numerical Information

● The importance of statistics● Managers frequently use statistics to help them

understand, interpret, communicate, and apply numerical information.

● By using statistics, managers can make decisions more quickly, with greater confidence, and with a higher probability that the best choice has been made.



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Statistics Terms and Concepts

● Descriptive statistics● Provide managerial summaries of data to help

managers understand the current situation● Inferential statistics

● Use the analysis of information to help managers make predictions about similar circumstances or about the future.



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Checkpoint ● How are descriptive statistics different from

inferential statistics?



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Checkpoint ● How are descriptive statistics different from

inferential statistics?● Descriptive help explain the current situation ● Inferential help make predictions for similar

circumstances



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Common Descriptive Statistics

● Range● Frequency distribution● Central tendency

● Mean● Median● Mode



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Common Inferential Statistics

● Population● All people or objects

● Sample● Probability● Correlation

● A connection or relationship between two things being studied



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Checkpoint ● Explain the relationship between a sample and

a population?



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Checkpoint ● Explain the relationship between a sample and

a population?● A sample is a smaller but representative part of

the larger population being studied.



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14.4 Using Data in Decision Making

GOALS● Describe how to identify and communicate

the results of data analysis.● Discuss how data should be used in effective

decision making.



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Communicating Results of Data Analysis

● Completing data analysis● Focus on the problem or question ● Recognize the purpose of data analysis ● Summarize the information accurately● Look for changes, differences, and unexpected results ● Search for patterns or relationships

● Summarizing results● Written summaries● Tables, charts, and graphs



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Checkpoint ● What should tables, charts, graphs be used

when analyzing and communicating information?



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Checkpoint ● What should tables, charts, graphs be used

when analyzing and communicating information?● Many people can more easily study and

understand information when it is summarized and presented visually.



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Making Data-Based Decisions

● Reading and interpreting information1. Read the title carefully 2. Determine what is represented in the data set 3. Review the row and column headings of a table

● Answering questions and solving problems● Data

● Representative● Significant



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Checkpoint ● What are the two important characteristics of

data?



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Checkpoint ● What are the two important characteristics of

data?● Representative – consistent with other similar

data that could be collected ● Significant – meaningful and not happen due to

chance

©2013 cengage learning. all rights reserved. business management, 13e data analysis and decision...

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