STATISTICS FOR MANAGERS
Using Microsoft Excel
A Comprehensive Course eBook
123 University
Department of Business Administration
Variable Mean Std Dev Median Skewness
Sales (USD) 84,200 12,450 82,900 0.34
Units Sold 1,240 310 1,195 0.18
Cost Ratio 0.62 0.08 0.61 0.05
Profit Margin 0.38 0.06 0.39 -0.12
Academic Year
,TABLE OF CONTENTS
Chapter 1 Introduction to Statistics for Managers 4
Chapter 2 Data Collection and Sampling Methods 6
Chapter 3 Descriptive Statistics and Data Summarisation 9
Chapter 4 Probability Concepts and Distributions 13
Chapter 5 Sampling Distributions and the Central Limit Theorem 17
Chapter 6 Hypothesis Testing 20
Chapter 7 Regression Analysis 24
Chapter 8 Statistical Quality Control 28
Chapter 9 Using Microsoft Excel for Statistical Analysis 30
, STATISTICS FOR MANAGERS USING MICROSOFT EXCEL 123 University
CHAPTER 1 Foundations
Introduction to Statistics for Managers
What Is Statistics?
Statistics is the science of collecting, organising, summarising, analysing, and interpreting data in order to
make informed decisions. For managers, statistics is not merely a mathematical exercise; it is a critical
thinking framework that transforms raw numbers into actionable business intelligence. Whether you are
evaluating a marketing campaign, forecasting quarterly revenue, assessing product quality, or determining
whether a new training programme has improved employee performance, statistical reasoning lies at the
heart of every rigorous business analysis.
Statistics is broadly divided into two major branches:
Branch Definition Manager's Application
Descriptive Statistics Summarises and describes the main Summarising monthly sales figures in a
features of a dataset. dashboard.
Inferential Statistics Uses sample data to draw conclusions about Estimating nationwide customer satisfaction
a larger population. from a survey of 500 clients.
Table 1.1 – The two branches of statistics and their managerial applications.
Why Managers Need Statistics
Organisations generate data continuously: sales transactions, website clicks, customer complaints, inventory
counts, employee surveys, and financial returns. Without a structured method for making sense of this data,
managers are forced to rely on intuition alone. Statistical skills allow managers to:
• Quantify uncertainty and risk before making investment decisions.
• Validate whether an observed change in performance is real or merely due to random variation.
• Segment customers, products, or markets using objective criteria.
• Forecast future demand, costs, or revenues with measurable confidence.
• Communicate findings clearly to stakeholders using charts, tables, and concise summaries.
Key Statistical Terminology
Term Definition
Population The entire group about which information is desired.
Page 3 | 123 University | Statistics for Managers
Using Microsoft Excel
A Comprehensive Course eBook
123 University
Department of Business Administration
Variable Mean Std Dev Median Skewness
Sales (USD) 84,200 12,450 82,900 0.34
Units Sold 1,240 310 1,195 0.18
Cost Ratio 0.62 0.08 0.61 0.05
Profit Margin 0.38 0.06 0.39 -0.12
Academic Year
,TABLE OF CONTENTS
Chapter 1 Introduction to Statistics for Managers 4
Chapter 2 Data Collection and Sampling Methods 6
Chapter 3 Descriptive Statistics and Data Summarisation 9
Chapter 4 Probability Concepts and Distributions 13
Chapter 5 Sampling Distributions and the Central Limit Theorem 17
Chapter 6 Hypothesis Testing 20
Chapter 7 Regression Analysis 24
Chapter 8 Statistical Quality Control 28
Chapter 9 Using Microsoft Excel for Statistical Analysis 30
, STATISTICS FOR MANAGERS USING MICROSOFT EXCEL 123 University
CHAPTER 1 Foundations
Introduction to Statistics for Managers
What Is Statistics?
Statistics is the science of collecting, organising, summarising, analysing, and interpreting data in order to
make informed decisions. For managers, statistics is not merely a mathematical exercise; it is a critical
thinking framework that transforms raw numbers into actionable business intelligence. Whether you are
evaluating a marketing campaign, forecasting quarterly revenue, assessing product quality, or determining
whether a new training programme has improved employee performance, statistical reasoning lies at the
heart of every rigorous business analysis.
Statistics is broadly divided into two major branches:
Branch Definition Manager's Application
Descriptive Statistics Summarises and describes the main Summarising monthly sales figures in a
features of a dataset. dashboard.
Inferential Statistics Uses sample data to draw conclusions about Estimating nationwide customer satisfaction
a larger population. from a survey of 500 clients.
Table 1.1 – The two branches of statistics and their managerial applications.
Why Managers Need Statistics
Organisations generate data continuously: sales transactions, website clicks, customer complaints, inventory
counts, employee surveys, and financial returns. Without a structured method for making sense of this data,
managers are forced to rely on intuition alone. Statistical skills allow managers to:
• Quantify uncertainty and risk before making investment decisions.
• Validate whether an observed change in performance is real or merely due to random variation.
• Segment customers, products, or markets using objective criteria.
• Forecast future demand, costs, or revenues with measurable confidence.
• Communicate findings clearly to stakeholders using charts, tables, and concise summaries.
Key Statistical Terminology
Term Definition
Population The entire group about which information is desired.
Page 3 | 123 University | Statistics for Managers
