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Introduction To

Statistics
There are three kinds of lies: lies, damned
lies, and statistics. (B.Disraeli)

STATI
STIC
S

When you hear


the word
statistics,
what would
you probably
think of?

S
T
A
T
I
S
T
I
C
S

is the branch of
science and
mathematics that
deals with the
collection,
organization, or
presentation,
interpretation, and
analysis of data.

Statisti
cs
ollection

C
rganization
O
resentation
P
nalysis
A
nterpretation
I

of data

Why study statistics?


1. Data are everywhere
2. Statistical techniques are used to make

many decisions that affect our lives


3. No matter what your career, you will
make professional decisions that involve
data. An understanding of statistical
methods will help you make these
decisions effectively

Applications of statistical concepts


in the business world
Finance correlation and regression, index

numbers, time series analysis


Marketing hypothesis testing, chi-square
tests, nonparametric statistics
Personel hypothesis testing, chi-square
tests, nonparametric tests
Operating management hypothesis
testing, estimation, analysis of variance,
time series analysis

Applications of statistical concepts


in the medical field
Defining what is normal or healthy in a population
To find the limits of normality in variables such as

weight, pulse rate, etc., in a population


To find the difference between means and

proportions at two places or in different periods


To establish relationship between medical variables
To compare the efficacy of a particular drug,

operation or line of treatment

Applications of statistical concepts


in engineering
Choosing a building design given specific

parameters
Quality Control
Structural Analysis with given quantitative

data

Branches
of Statistics

Descriptive

Inferenti
al

Descriptive Statistics
It is a statistical procedure concerned

with describing characteristics and


properties of a group of persons,
places, or things.
It involves the collection,
presentation, characterization and
summarization of a set of data by
means of numerical descriptions and
graphical representations
It the summarizing value commonly
used are measures of central
tendency, position, variability,

Example:
The work of baseball statisticians
provides an excellent illustration of
descriptive statistics.

It is a statistical procedure that is


Inferential Statistics

used to draw inferences or


information about the properties
or characteristics by a large group
of people, places or things on the
basis of the information obtained
from a small portion of a large
group.
concerned with making decisions
about a large body of data in the
population of interest by using a
smaller portion or sample of that
population
the topics included are testing
hypothesis, z test, t- test, linear
correlation, analysis of variance,

Example: Political polling provides


an example of inferential statistics.

Population
The collection of all
individuals, items, or
data under
consideration in a
statistical study.

Sample
That part of the
population from
which information
is collected.

Population

LE
P
M
SA

DATA
are facts, or a set of

information or
observation under
study
are gathered by the
researcher from a
population or from a
sample

Variables
In mathematics, it is a symbol with no fixed

value.
In statistics, it is the characteristic, property

or attribute that makes members of a group


vary.
These set of values can be classified into as

qualitative (categorical) and quantitative


(numerical) variables.

Constants
In mathematics, it is a symbol with a fixed

value.
In statistics, it is the characteristic, property

or attribute that makes members of a group


uniform.

Categories of Variables
Variables

Qualitative

Dichotomic

Gender, marital
status

Quantitative

Polynomic

Discrete

Continuous

Brand of Pc,
hair color

Children in
family, Strokes
on a golf hole

Amount of
income tax
paid, weight of
a student

TWO CATEGORIES OF DATA


QUALITATIVE DATA
are categorical data
are data when the

information have been


sorted into categories
data which can assume
values that manifest the
concept of attributes

TWO CATEGORIES OF DATA


QUANTITATIVE DATA
are data which are

numerical in nature
Discrete quantitative data
data obtained from counting
Continuous quantitative
data data obtained from
measuring

Scales of Measurement
A type of variable classification

based on how the variables are


categorized, counted, or measured.

Scales of Measurement: Nominal


Applies to data that consist of names,

labels, or categories only and data


cannot be arranged in an ordering or
scheme (such as low to high)
Perceived by the senses
Ex.: Hues of Color

Scales of Measurement: Ordinal


ranking the data from smallest to

largest or different ranks of classes


but the differences between data
values either cannot be determined
or are meaningless
Ex.: Ranking in a contest

Scales of Measurement: Interval


Data can be ordered
Differences can be taken. At this level, it

makes sense to compare the differences


between data values.
Zero is a place holder or no true zero point
Ex.: Score in an exam

Scales of Measurement: Ratio


Data can be ordered
Differences can be taken
Ratio between data values can also be found. For

instance, it makes sense to say that one data


value is twice as large as the other.
Zero means nothingness or absence of either the

characteristic or the respondent


Ex.: Age, Height

More on Scales of Measurement


Level

Summary

Examples

Nominal

Categories only. Data


cannot be arranged in an
ordering scheme.

Ordinal

Categories are ordered,


but differences cannot be
determined or they are
meaningless

Interval

Differences between
values are meaningful,
but there is no natural
starting point. Ratio are
meaningless.

Ratio

Like interval level, but


there is an absolute zero
starting point

Student
Categories or
states:
5 Californians names only
20 Texans
40 New
Student
An order is
Yorkers
cars:
determined by
5 compact
compact,
20 mid-size
mid-size, and
40 full-size
full-size.
Campus
temperatures:
0OF doesnt mean
5OF
no heat.
20OF
40OF is not twice as
40OF
hot as 20OF
Student
commuting
500 meters is
distances:
twice as far as
50 meters
250 meters 250 meters.
500 meters

Copyright 2009 Pearson Education, Inc.

Tip on determining the level


of measurement:
To determine the level of
measurement of data, start
with the highest level that
can be justified for the entire
collection of data. If not
justified, move to the next
level till you reach nominal.

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