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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
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Business Management, 13e
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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Business Management, 13e
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Checkpoint ● Why should managers use data to aid them in
decision making?
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Business Management, 13e
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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 Management, 13e
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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
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Business Management, 13e
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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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Business Management, 13e
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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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Business Management, 13e
CHAPTER 14
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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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Business Management, 13e
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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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Business Management, 13e
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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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Business Management, 13e
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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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CHAPTER 14
Example of a Table
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CHAPTER 14
Example of a Chart
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Example of a Graph
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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