BASIC CONCEPTS IN

STATISTICS
 STATISTICS
• Statistics is a mathematical process of collecting, organizing,
presenting, analyzing and interpreting large data.

• Uses:
- provides information
- provides comparison
- helps recognize relationships
- estimates unknown quantities
- predicts future outcomes
 SOME APPLICATIONS OF STATISTICS
• Education – evaluate students’
performance
• Psychology – interpret results of
personality tests
• Sports – summary of events in a
game
• Health Sciences – evaluation of
medical practices and
effectiveness of drugs
• Business
Accounting – audit (sampling)
Finance – analysis (data gathering)
Marketing – compilation (data
history)
Production – quality control (testing)
Economics – forecasting (data
indicators)
 branches of statistics

DESCRIPTIVE INFERENTIAL
• describe the • compare groups
properties & • test hypothesis
characteristics of a
group of persons • draw conclusion
places or things • make predictions or
• summarize or present inferences about the
facts of the data we population based on
already have sample results
 DATA AND VARIABLE
Data are facts and figures collected, analyzed and summarized for
presentation and interpretation
Data Set are all data collected in a particular study
Elements are entities on which data are collected
Variable characteristic of interest for the elements
Observation is set of measurements obtained for a particular element
 Example: Table 1 - S&P Companies
Variables

Business
Ticker Share
Company Exchange Week EPS
Symbol Price
Rank
Hasbro N HAS 373 21 0.96

eBay NQ EBAY 19 43 0.57

Elements IBM N IBM 216 93 4.94

Bristol N BMY 346 26 1.21

Myers
Squibb
 OTHER KINDS OF DATA
Cross Sectional Data – are data collected at the same (or approximately)
point in time.
• Help analysts/researchers to see and understand how things work.
Time Series Data – are data collected over several time periods.
• Help analysts understand what happened in the past, identify trends and project
future levels.
Primary Data – data collected by the investigator conducting the
research. Original information for field research.
Secondary Data – data collected by another person or different source
for re-use in the purpose of research.
 Qualitative/ Quantitative/
Categorical Numerical
Non-numerical attributes Numerical attributes
• Gender, religion

Discrete Continuous
Countable or finite Measurable,
• number of siblings infinite
• age, weight
 SCALES OF MEASUREMENT
Nominal scale classifies data into various
distinct categories in which NO
ranking/order is implied.
Ex: Course section, religion

Ordinal scale classifies data into distinct

categories in which ranking is implied.
Ex: College levels, satisfaction ratings

Qualitative variable are measured on a nominal scale or an ordinal scale

 SCALES OF MEASUREMENT
Interval scale is an ordered scale in which the difference
between measurements is a meaningful quantity, but
does not have true zero.
Ex: Temperature in Fahrenheit and Celsius

Ratio scale is like interval scale with true zero.

Ex: Speed or acceleration of vehicle

Quantitative variable are measured on a ratio scale or an interval scale

 POPULATION & SAMPLE

• Population is all members of a • Sample is a small portion or

collection we are interested in. part of a population.

• Census is a survey conducted • Sample Survey is a survey

on the entire population to conducted to collect data
collect data from the sample.

• Parameter is a numerical value • Statistic is a numerical value

which describes a population. which describes a sample.
 SAMPLING
• Sampling is the process of selecting units (e.g. persons, organizations,
items) from a population of interest.

• Probability Sampling. A process of selecting a sample in such a way

that all individual in the defined population have an equal and
independent chance of being selected through randomization.

• Non-Probability Sampling. The samples or subjects that are needed

are merely taken or selected for the purpose of the study.
 PROBABILITY SAMPLING
• Simple Random Sampling – basic method of sampling from a
population randomly
• Systematic Random Sampling – method in which we randomly select
every kth element of ordered population.
• Stratified Sampling – method in which the population is first divided
into strata and a simple random sample is then taken from each
stratum.
• Cluster Sampling – method in which the population is first divided
into clusters and then a simple random sample of the clusters is
taken.
 NON-PROBABILITY SAMPLING
• Convenience Sampling (Accidental) – members are chosen based on
relative ease of access. Like friends, classmates, family, etc.

• Judgmental Sampling – the researcher choose the sample appropriate

for study.

• Snowball Sampling – first respondent refers a friend then refers

another and so on.
END OF LECTURE