Probability and Statistics Chapter 1: Introduction

CHAPTER ONE

1. INTRODUCTION
1.1. Definition of Terms

Data: are figures or facts from which conclusion can be made. Data are the numerical results
of any scientific measurement.
Variable is any characteristic of an object that can be represented as a number.
Population: It is the collection of all possible observations of a specified characteristic of
interest (possessing certain common property) and being under study. An example is all of
the students in WCU enrolled in this year.
Sample: is a portion or part of the population taken so that some generalization about the
population can be made. It is the subset of the population which is assumed to be the
representative of the population.
Sample: It is a subset of the population, selected using some sampling technique in such a way
that they represent the population.
Sampling: The process or method of sample selection from the population.
Sample size: The number of elements or observation to be included in the sample.
Census: Complete enumeration or observation of the elements of the population. Or it is the
collection of data from every element in a population.
Variable: It is an item of interest that can take on many different numerical values.

1.2. Definition of Statistics

It is the scientific study of numerical data based on variation in nature (Sokal and Rohlf). Also,
it is set of procedures and rules for reducing large masses of data into manageable proportions
allowing us to draw conclusions from those data (McCarthy). Statistics can be defined in two
senses: plural (as Statistical Data) and singular (as Statistical Methods).
Plural sense: Statistics are collection of facts (figures). This meaning of the word is widely used
when reference is made to facts and figures on sales, employment or unemployment, accident,
weather, death, education, etc. Eg: Sales Statistics, Labor Statistics, Employment Statistics, etc.
In this sense the word Statistics serves simply as data. But not all numerical data are statistics.

Singular sense: Statistics is the science that deals with the methods of data collection,
organization, presentation, analysis and interpretation of data. It refers the subject area that is
concerned with extracting relevant information from available data with the aim to make sound
decisions. According to this meaning, statistics is concerned with the development and
application of methods and techniques for collecting, organizing, presenting, analyzing and
interpreting statistical data.

1
Probability and Statistics Chapter 1: Introduction

1.3. Classification of Statistics

Based on the scope of the decision, statistics can be classified into two; Descriptive and
Inferential Statistics.

Descriptive Statistics refers to the procedures used to organize and summarize masses of data.
It is concerned with describing or summarizing the most important features of the data. It deals
only the characteristics of the collected data without going beyond it. That is, this part deals with
only describing the data collected without going any further: that is without attempting to
infer(conclude) anything that goes beyond the data themselves. The methodology of descriptive
statistics includes the methods of organizing (classification, tabulation, Frequency Distributions)
and presenting (Graphical and Diagrammatic Presentation) data and calculations of certain
indicators of data like Measures of Central Tendency and Measures of Dispersion (Variation)
which summarize some important features of the data.

Inferential (Inductive) Statistics includes the methods used to find out something about a
population, based on the sample. It is concerned with drawing statistically valid conclusions
about the characteristics of the population based on information obtained from sample. In this
form of statistical analysis, descriptive statistics is linked with probability theory in order to
generalize the results of the sample to the population. Performing hypothesis testing, determining
relationships between variables and making predictions are also inferential statistics.
1.4. Stages in Statistical Investigation
According to the singular sense definition of statistics, a statistical study (statistical
investigation) involves five stages: Collection of Data, Organization of Data, Presentation of
Data, Analysis of Data and Interpretation of Data.
1. Collection of Data: This is the first stage in any statistical investigation and involves the
process of obtaining (gathering) a set of related measurements or counts to meet
predetermined objectives. The data collected may be primary data (data collected directly by
the investigator) or it may be secondary data (data obtained from intermediate sources such
as newspaper s, journals, official records, etc).
2. Organization of Data: It is usually not possible to derive any conclusion about the main
features of the data from direct inspection of the observations. The second purpose of
statistics is describing the properties of the data in a summary form. This stage of statistical
investigation helps to have a clear understanding of the information gathered and includes
editing (correcting), classifying and tabulating the collected data in a systematic manner.
Thus the first step in the organization of data is editing. It means correcting (adjusting)
omissions, inconsistencies, irrelevant answers and wrong computations in the collected data.
The second step of the organization of data is classification that is arranging the collected
data according to some common characteristics. The last step of the organization of data is
presenting the classified data in tabular form, using rows and columns (tabulation).

2
Probability and Statistics Chapter 1: Introduction

3. Presenting of Data: The purpose of data presentation is to have an overview of what the data
actually looks like, and to facilitate statistical analysis. Data presentation can be done using
Graphs and Diagrams which have great memorizing effect and facilitates comparison.
4. Analysis of Data: The analysis of data is the extraction of summarized and comprehensive
numerical description in order to reach conclusions or provide answers to a problem. The
problem may require simple or sophisticated mathematical expressions.
5. Interpretation of Data: This is the last stage of statistical investigation. Interpretation
involves drawing conclusions from the data collected and analyzed in order to make decision.
1.5. Application, Uses and Limitations of Statistics
Applications of Statistics
In this modern time, statistical information plays a very important role in a wide range of fields.
Today, statistics is applied in almost all fields of human endeavor.
 In Scientific Research: Statistics is used as a tool in a scientific research. Statistical formulas
and concepts are applied on a data which are results of an experiment.
 In Quality Control: Statistical methods help to check whether a product satisfies a given
standard.
 For Decision Making: statistics helps to enhance the power of decision making in the face of
uncertainty by providing sufficient information.
 In Agriculture: Experiments are designed and analyzed using statistical procedures.
 In Public Health and Medicine: statistical methods are used for computation and
interpretation of birth and death rates.
 In Economics: for modeling functional relationships between or among variables
 In Education and Agricultural Extension: to study the effects of certain trainings.
 In Natural and Social Sciences, Business, Planning, Behavior Sciences, etc.
Uses of Statistics
 Condenses and summarizes masses of data and presents facts in numerical and definite form
 Facilitates comparison: statistical devises such as averages, percentages, ratios, etc. are used
for this purpose.
 Formulating and testing hypothesis: For instance, hypothesis like whether a new medicine is
effective in curing a disease, whether there is an association between variables can be tested
using statistical tools.
 Forecasting: Statistical methods help in studying past data and predicting future trends.
Limitations of Statistics
 It cannot deal with a single observation; rather it deals aggregate of facts.
 Statistical methods are not applicable to qualitative character i.e. it deals with quantitative
characteristics.

3
Probability and Statistics Chapter 1: Introduction

 Statistical results are true on average; i.e. for the majority of case. Laws of statistics are not
universally true like the laws of physics, chemistry and mathematics.
 Statistics are liable to be misused or misinterpreted. This may be due to incomplete
information, inadequate and faulty procedures during data collection and sample selection
and mainly due to ignorance (lack of knowledge).

1.6. Types of Variable

It is a characteristics or an attribute that can assume different values.
Eg: Height, Family size, Gender
Based on the values that variables assume, variables can be classified as
1. Qualitative variables: do not assume numeric values.
Eg: Gender
2. Quantitative variables: assume numeric values. These variables are numeric in nature.
Eg: Height, Family size
 Discrete variable: takes whole number values and consists of distinct recognizable
individual elements that can be counted. It is a variable that assumes a finite or countable
number of possible values. These values are obtained by counting (0, 1, 2. . .).
Eg: Family size, Number of children in a family, number of cars at the traffic light
 Continuous variable: takes any value including decimals. Such a variable can theoretically
assume an infinite number of possible values. These values are obtained by measuring.
Eg: Height, Weight, Time, and Temperature
Generally the values of a variable can be obtained either by counting for discrete variables, by
measuring for continuous variables or by making categories for qualitative variables.

Ex: Classify each of the following as Qualitative and Quantitative and if it is quantitative classify
as Discrete and Continuous.

a. Color of automobiles in a dealer’s show room.

b. Number of seats in a movie theater.
c. Classification of patients based on nursing care needed (complete, partial or seafarer)
d. Number of tomatoes on each plant on a field.
e. Weight of newly born babies.

1.7. Levels of Measurements

Proper knowledge about the nature and type of data to be dealt with is essential in order to
specify and apply the proper statistical method for their analysis and inferences. Measurement
scale refers to the property of value assigned to the data based on the properties of order, distance
and fixed zero.

4
Probability and Statistics Chapter 1: Introduction

In mathematical terms measurement is a functional mapping from the set of objects {Oi} to the
set of real numbers {M(Oi)}. The goal of measurement systems is to structure the rule for
assigning numbers to objects in such a way that the relationship between the objects is preserved
in the numbers assigned to the objects. The different kinds of relationships preserved are called
properties of the measurement system.
Scales of measurement
 Shows the information contained in the value of a variable.
 Shows also that what mathematical operations and what statistical analysis are permissible
to be done on the values of the variable.
Measurement is the assignment of numbers to objects or events in a systematic fashion. Four
levels of measurement scales are commonly distinguished: nominal, ordinal, interval, and
ratio and each possessed different properties of measurement systems.
 Nominal Scales of variables are those qualitative variables which show category of
individuals. They reflect classification in to categories (name of groups) where there is no
particular order or qualitative difference to the labels. Numbers may be assigned to the
variables simply for coding purposes. It is not possible to compare individual basing on the
numbers assigned to them. The only mathematical operation permissible on these variables is
counting.
These variables
 Have mutually exclusive (non-overlapping) and exhaustive categories.
 No ranking or order between (among) the values of the variable.
Eg: Gender, Religion, ID No, Ethnicity, Color
 Ordinal Scales of variables are also those qualitative variables whose values can be ordered
and ranked. Ranking and counting are the only mathematical operations to be done on the
values of the variables. But there is no precise difference between the values (categories) of
the variable.
Eg: Academic qualifications ([Link]., [Link]., Ph.D.), Grade Scores (A, B, C, D, F), Strength
(very weak, week, strong, very strong), Health status (very sick, sick, cured)
 Interval Scales of variables are those quantitative variables when the value of the variables is
zero it does not show absence of the characteristics i.e. there is no true zero. Zero indicates
low than empty. There is a precise difference between the units of measurement (levels)
Eg: temperature, 00c does not mean there is no temperature but to say it is too cold.
 Ratio Scales of variables are those quantitative variables when the values of the variables are
zero it shows absence of the characteristics. Zero indicates absence of the characteristics.
Eg: Height, Weight, Income, Amount of yield, Expenditure, Consumption.
All mathematical operations are allowed to be operated on the values of the variables.