Chapter 1
Chapter 1
Looking Forward
▲
■ Recognize that data and statistics are pervasive and that statistics are used to describe typical
values and variability, and to make decisions that affect everyone.
■ Understand the relationships among a population, a sample, probability, and statistics.
■ Learn the basic steps in a statistical inference procedure.
CONTENTS
1.1 Statistics Today
1.2 Populations, Samples, Probability, and Statistics
1.3 Experiments and Random Samples
wanphen chawarung/Shutterstock
9
10 CHAP TE R 1 An Introduction to Statistics and Statistical Inference
4. Likelihood and inference: Recent research suggests that there is a link between the
incidence of lung cancer and cancer-causing chemical pollutants near large industrial
facilities, especially oil refineries.3 The incidence of lung cancer in oil refinery coun-
ties was higher than in non–oil refinery counties. The chance of this happening was so
small that the researchers concluded that oil refinery products significantly affect lung
carcinogenesis.
5. Relative frequency and probability: According to Oddee, some vending machines
mysteriously fall over and crush 13 people per year.4 If all 312 million Americans are
equally likely to be killed by a vending machine, then the probability that a randomly
selected individual will be crushed by a vending machine during a particular year is
0.00000004167 5 13/312,000,000. The relative frequency of occurrence is a good
estimate of probability and is often used to develop statistical models and make
predictions.
There has been an explosion of numerical information, in stories like those above, in
business, in consumer reports, and even in casual conversation. Interpretation of graphs
and evaluation of statistical arguments are no longer reserved for academics and research-
ers. It is essential for all of us to be able to understand arguments based on acquired data.
This numerical, or quantitative, literacy is a vital life-long tool.
No matter how you are employed or where you live, you will have to make decisions
based on available information or data. Here are some questions you may have to consider.
Stephen Finn/Shutterstock
1. Do you have enough information (data) to make a confident decision? How were the
data obtained? If more information is necessary, how will these data be gathered?
2. How are the data summarized? Are the graphical and/or numerical techniques appro-
priate? Does the summary represent the data accurately?
3. What is the appropriate statistical technique for analyzing the data? Are the conclu-
sions reasonable and reliable?
Definition
Descriptive statistics: Graphical and numerical methods used to describe, organize, and
summarize data.
Here’s a dictionary definition for Inferential statistics: Techniques and methods used to analyze a small, specific set of
inference: a deduction or logical data so as to draw a conclusion about a large, more general collection of data.
conclusion.
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Figure 1.1 Mishandled baggage reports. (Source: Office of Aviation
Enforcement and Proceedings, U.S. Department of Transportation.)
Whether we are summarizing data or making an inference, every statistics problem in-
volves a population and a sample. Consider the definitions on the page that follows.
1.2 Populations, Samples, Probability, and Statistics 13
Table 1.1 A portion of table summarizing health and safety characteristics in owner-occupied units (national)
Region
Definition
A population is the entire collection of individuals or objects to be considered or studied.
A sample is a subset of the entire population, a small selection of individuals or objects
taken from the entire collection.
A variable is a characteristic of an individual or object in a population of interest.
A CLOSER L OK
1. A population consists of all objects of a particular type. There are usually infinitely
many objects in a population, or at least so many that we cannot look at all of them.
14 CHA PT ER 1 An Introduction to Statistics and Statistical Inference
SOLUTION
STEP 1 The population consists of all adult drivers in the United States. This population is
not infinite, but it is so large that it would be impossible to contact every adult driver.
1.2 Populations, Samples, Probability, and Statistics 15
Solution Trail 1.6 STEP 2 The sample consists of the 10 adult drivers selected.
STEP 3 The variable in the problem is whether the driver has fallen asleep at the wheel,
K EY WO R D S a yes/no response.
■ Adult drivers
■ 10 adult drivers
TRY IT NOW GO TO EXERCISE 1.7
■ Fallen asleep while driving
Definition
To solve a probability problem, certain characteristics of a population are assumed to be
known. We then answer questions concerning a sample from that population.
In a statistics problem, we assume very little about a population. We use the information
about a sample to answer questions concerning the population.
Probability
Population Sample
Statistics
Figure 1.2 Relationships among probability,
statistics, population, and sample.
In Figure 1.2, it may seem like we can start our study anywhere in this circular dia-
gram. However, we need to understand probability before we can learn statistics. A solid
background in probability is necessary before we can actually do statistical inference.
16 CHA PT ER 1 An Introduction to Statistics and Statistical Inference
to conclude that an owl can turn its neck more than 300
120 degrees from the forward position.
250
c. A Navy research facility runs several tests to check the
structural integrity of a new submarine. A laboratory 200
Bankruptcies
report states the vessel can withstand pressure at depths
of at most 800 ft. 150
d. A safety inspector in Atlanta selects a sample of
100
apartment buildings and checks the fire ladders on each.
The proportion of broken ladders in the sample is used to 50
estimate the proportion of broken fire ladders in the
entire city. 0
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State budget is spent on health care, pensions, and
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education. The pie chart in Figure 1.3 shows the
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percentage of the budget spent on each item for Fiscal Industry
Year 2013.8
Figure 1.4 Total bankruptcies in Quebec.
controversial issue. Before he votes, he would like to know 1.13 Psychology and Human Behavior During each
what his constituents think about the proposed bill. An aide for summer, many families spend part of their vacation time at a
the senator selects 500 people from Florida and asks them beach along the East or West Coast. Due to the popularity of
whether they believe the bill should become law. Describe the movies like Jaws, and recent shark attacks on surfers, swim-
population and the sample in this problem. mers, snorkelers, and spearfishermen, Americans have become
increasingly concerned about water activities. Research
1.11 Economics and Finance In 2012, Hurricane Sandy suggests that 46% of all shark attacks are on divers.10 One
caused over 2 million households to lose power and damaged thousand records of shark attacks are selected, and each is
over 70,000 homes and businesses. Every family filed some categorized by victim group.
sort of insurance claim for damage to their home and/or car. a. What is the population of interest?
An insurance company serving the area is interested in the b. What is the sample?
typical amount of a claim as a result of this storm. Seventy- c. Describe the variable of interest.
five affected families are selected and their total claims are
recorded. Describe the population and the sample in this 1.14 Manufacturing and Product Development Spray-on
problem. tans, or fake tans, contain several chemicals that have been
linked to allergies, diabetes, and obesity.11 Twenty fake tan
1.12 Probability or Statistics In each of the following products are selected and the amount of dihydroxyacetone (the
problems, identify the population and the sample, and active ingredient) in each is measured. Describe the population,
determine whether the question involves probability or the sample, and variable in this problem.
statistics.
a. Seventy-five percent of all people who buy a dining room 1.15 Medicine and Clinical Studies There is some
table purchase matching chairs. Five people who evidence to suggest people with chronic hepatitis C have a
purchased a dining room table within the last month are liver enzyme level that fluctuates between normal and
selected at random. What is the probability that all five abnormal.12 Fifty patients diagnosed with hepatitis C are
purchased matching chairs? selected and their liver enzyme levels are recorded each day
b. Twenty-five people entering a rest area and food court on for one month. Describe the population, sample, and variable
Highway 59 near Houston are selected at random. Of in this problem.
these 25 people, 20 purchased food from at least one of 1.16 Manufacturing and Product Development Paper
the eateries. Estimate the true proportion of people towel manufacturers constantly advertise their products’
stopping at this rest area who purchase food. strength, amount of stretch, and softness. A consumer group
c. Historical records indicate 1 out of every 500 people is interested in testing the absorption of Bounty paper
using a particularly steep water slide suffer some kind of towels. Thirty-five rolls are selected, and the amount of
injury. Fifty people using the slide are selected at random. absorption for a single paper towel from each roll is
How many do you expect to be injured? recorded.
d. A building inspector in Henderson, Nevada, is checking a. What is the population of interest?
public buildings with doors that open automatically. One b. What is the sample?
hundred doors are randomly selected. Careful inspection c. Describe the variable of interest.
reveals that 12 doors are broken. Use this information to
estimate the percentage of automatic doors in Henderson
that are broken. Extended Applications
e. One thousand people entering Los Angeles International
1.17 Manufacturing and Product Development While
Airport (LAX) are selected at random. Each person is
much of the cheddar cheese consumed around the world is
asked to complete a short survey regarding travel. The
processed, some is still produced in the traditional manner:
survey results show 637 carry a frequent-flier card. Is
made in small batches, wrapped in cloth to breathe, and allowed
there evidence to suggest the true proportion of travelers
to age. Most traditional cheddar is aged one to two years; like
entering LAX who carry frequent flier cards is greater
fine wines, older cheddars assume their own character and
than 0.60?
flavor. Suppose 75% of all cheddars are aged less than two
f. The Risdall Advertising Agency reports 65% of all
years, and a sample of 20 cheddar cheeses from around the
women have purchased perfume within the last three
world is obtained.
months. Thirty-four women are selected at random. Is it
a. Describe the population and the sample in this problem.
likely more than 20 of these women purchased perfume
b. Write a probability question and a statistics question
within the last three months?
involving this population and sample.
g. Representatives from the Occupational Safety and Health
Administration inspected several for-profit and Medicare 1.18 Marketing and Consumer Behavior Magazines,
nursing homes for any violations. The resulting data will newspapers, and books have become more readily available
be used to determine whether there is any evidence to in digital format. In addition, the quality of readers, for
suggest the quality of treatment is different in the two example, the Kindle, Nook, and iPad, has increased. A recent
types of nursing homes. study suggests that 21% of adults read an ebook within the
1.3 Experiments and Random Samples 19
past year.13 Suppose a sample of 500 adults in the United making certain investments overseas. A recent study suggests
States is obtained. that 4% of large companies have plans to relocate jobs back to
a. Describe the population and the sample in this problem. the United States.14 Seventy-five large companies are selected,
b. Write a probability question and a statistics question and each is surveyed to determine if it plans to move jobs back
involving this population and sample. to the United States.
a. What is the population of interest?
1.19 Business and Management One of the main reasons b. What is the sample?
that U.S. companies shift jobs overseas is labor costs. Although c. Describe the variable of interest.
the compensation gap between the United States and China has d. Write a probability question and a statistics question
decreased recently, the tax code still rewards companies for involving this population and sample.
Definition
In an observational study, we observe the response for a specific variable for each indi-
vidual or object.
In an experimental study, we investigate the effects of certain conditions on individuals
or objects in the sample.
Definition
A (simple) random sample (SRS) of size n is a sample selected in such a way that every
possible sample of size n has the same chance of being selected.
20 CH APT ER 1 An Introduction to Statistics and Statistical Inference
A CLOSER L OK
How can we be absolutely certain 1. In practice, a random sample may be very difficult to achieve. Statisticians employ
every possible sample of size n is various techniques, including random number tables and random number generators,
equally likely? to select a random sample.
2. If a sample is not random, then it is biased. There are many different kinds of bias and
factors that contribute to a biased sample.
3. Nonresponse bias is very common when data are collected using surveys. The
majority of people who receive a survey in the mail simply discard it. The original
collection of people receiving the survey may be random, but the final sample of
completed surveys is not. Because the sample is biased, it is impossible to draw a
valid conclusion.
4. Self-selection bias occurs when the individuals (or objects) choose to be included in
the sample, as opposed to being selected. For example, a television news program may
ask viewers to respond to a yes/no question by dialing one of two phone numbers to
cast their vote. Viewers choose to participate, and usually those with strong opinions
(either way) vote. There are many more who did not have the opportunity to respond—
every single sample is not equally likely. Certainly this sample is biased, and hence no
valid conclusion is possible.
5. If the population is infinite, then the number of simple random samples is also infinite.
For finite populations, the formula for the number of possible random samples is pre-
sented in Chapter 7.
6. A simple random sample is vital for sound statistical practice. Before doing any analy-
sis, you should always ask how the data were obtained. If there is any evidence of a
pattern in selection, if the observations are associated or linked in some way, or if there
is some connection among the observations, then the sample is not random. There is
simply no way to transform bad data into good statistics.
in order to investigate and isolate specific effects. The following example is of an exper-
imental study.
We will use this four-step process to check a claim in many different contexts.
The method for determining likelihood is the key to this valuable tool for logical
reasoning.
1.22 True/False The number of simple random samples is 1.28 Demographics and Population Statistics State Farm
always infinite. Insurance Company would like to estimate the proportion of
volunteer firefighters across the country who are full-time
1.23 True/False A simple random sample is representative teachers. The 25 largest volunteer fire companies in the United
of the entire population of interest. States are identified. Each is contacted and asked to complete a
short survey regarding the number of volunteers and the
1.24 Fill in the Blank
occupation of each volunteer.
a. If a sample is not random, then it is .
a. Is this an observational or an experimental study?
b. It is very common to experience when
b. Describe the sample in this problem.
data is collected using surveys.
c. Is this a random sample? Justify your answer.
c. occurs when individuals ask to be
included in an survey. 1.29 Manufacturing and Product Development The
Visniak Bottling Plant in Cheektowaga, New York, has been
1.25 Statistical Inference Name the four parts of every
accused of systematically underfilling 12-oz bottles of soda. An
statistical inference problem.
inspection team enters the plant one afternoon and selects
1.26 Liar, Liar Suppose an experimental outcome is very bottled soda ready for shipment from various locations within
rare. What two things could have happened? the plant. The contents of each selected bottle are carefully
measured.
a. Describe the population and the sample in this problem.
Applications b. Is this a random sample? Justify your answer.
1.27 Fuel Consumption and Cars The administration at 1.30 Biology and Environment Science Oregon Scientific
the University of Nebraska in Lincoln is interested in student has come under suspicion of purposely shipping defective
reaction to a planned parking garage on campus. A dormitory wireless weather stations. The Attorney General’s office in
near the proposed site is selected and several Student Senate Delaware would like to estimate the proportion of defective
members volunteer to solicit responses. One Thursday products being shipped by this company. Describe a method
1.3 Experiments and Random Samples 23
for obtaining a simple random sample of shipped wireless 1.37 Fuel Consumption and Cars Electric and plug-in
weather stations. electric cars are designed to save gasoline and help the
environment. In addition, there are certain tax credits for these
1.31 Fuel Consumption and Cars The Massachusetts State
types of hybrid automobiles.15 Although there are certainly
Police union is interested in the number of miles driven by each
benefits to owning a hybrid car, many people complain about
officer during an 8-hour shift. Twelve officers are selected from
the slow acceleration, repair expense, and overall comfort.
the 11:00 P.M. to 7:00 A.M. shift, and the number of miles
Thirty-five passengers are randomly selected. Each is blind-
traveled by each officer is recorded.
folded and taken for a ride in a traditional combustion-engine
a. Is this an observational or an experimental study?
automobile and in a comparably sized hybrid car (over the same
b. Describe the population and the sample in this problem.
route). The passenger is then asked to select the car with the
c. Is this a random sample? Justify your answer.
most comfortable ride.
1.32 Manufacturing and Product Development Gillette a. Is this an observational or an experimental study?
claims a new disposable razor provides a closer shave than any b. What is the variable of interest?
other brand currently on the market. One hundred men who are c. Describe possible sources of bias in these results.
observed buying a disposable razor are selected and asked to
participate in a shaving study. 1.38 Manufacturing and Product Development The
a. Describe the population and the sample in this problem. ceramic tile used to construct the floors in a mall must be
b. Is this a random sample? Justify your answer. sturdy, easy to clean, and long-lasting. Before installing a
specific tile, a construction firm orders a box of 25 tiles and
1.33 Manufacturing and Product Development Midwest uses a standard strength test on each. The results are used to
Pet Supplies claims its K9 Chain Link Dog Kennel can be set determine whether the tiles will be used throughout the
up in less than 30 minutes. An investigative reporter would like new mall.
to check this claim. Describe a method for obtaining a simple a. Describe the population and the sample in this
random sample of customers who set up this kennel. problem.
1.34 Sports and Leisure A National Football League coach b. Is this a random sample? If so, justify your answer.
is permitted to initiate two challenges to referee calls per game If not, describe a technique for obtaining a random
(outside of the final 2 minutes in each half). If both challenges sample.
are successful, then the coach is given a third. During a
1.39 Manufacturing and Product Development Many
challenge, the referee reviews the play in question on a replay
comforters contain both white feathers and down in order to
monitor on the field, and the call is either confirmed or the
provide a warm, soft cover. A bed-and-bath company would
challenge is upheld. The NFL reports the time required to
like to expand its line of products and sell comforters for
resolve a coach’s challenge is less than 5 minutes. A sports
queen- and king-size beds. Before manufacturing begins, a
statistician would like to check this claim. Describe a method
random sample of comforters is obtained from other companies
for obtaining a simple random sample of challenges during
and the proportions of white feathers, down, and other compo-
NFL games.
nents are measured and recorded. These data will be used to
1.35 Travel and Transportation The Department of determine the exact mixture of feathers and down for the new
Public Works in Bismarck, North Dakota, would like to line of comforters.
estimate the number of potholes per mile (after a long, snowy a. Is this an observational or an experimental study?
winter). Each selected mile-long stretch will be thoroughly b. What are the variables of interest?
examined for potholes, and the number in each section will be c. Describe a method for obtaining a random sample of
recorded. comforters from current manufacturers.
a. Describe a method for obtaining a simple random sample
of mile-long road segments. 1.40 Marketing and Consumer Behavior Disney World
b. Is this an observational or experimental study? is going to initiate the use of wireless tracking wristbands
for visitors to the Orlando, Florida, theme park.16 The new
1.36 Biology and Environmental Science The Faber Floral MagicBand has several functions: it serves as a hotel room
Company in Kankakee, Illinois, claims to have developed a key and park entry pass, and is linked to customer credit
special spray for roses that causes the blossom to last longer card information. Visitors wearing these wristbands will
than an untreated flower. Fifty long-stemmed roses are obtained have immediate access to certain rides. Suppose a random
and randomly assigned to one of two groups: treated versus sample of Disney World visitors wearing wristbands is
untreated. The treated roses are sprayed, and the lifetime of obtained and the wait time for Big Thunder Mountain is
each blossom is carefully recorded. recorded for each.
a. Is this an observational or an experimental study? a. Is this an observational or an experimental study?
b. What is the variable of interest? b. What are the variables of interest?
c. Describe a technique to randomly assign each rose to a c. Describe a method for obtaining a random sample of
group. visitors wearing wristbands.
24 CHAP TE R 1 An Introduction to Statistics and Statistical Inference
CHAPTER 1 SUMMARY
Concept Page Notation / Formula / Description
Descriptive statistics 11 Graphical and numerical methods used to describe, organize, and summarize
data.
Inferential statistics 11 Techniques and methods used to draw a conclusion or make an inference.
Population 13 The entire collection of individuals or objects to be considered or studied.
Sample 13 A subset of the entire population.
Variable 13 A characteristic of an individual or object in a population of interest.
Probability problem 15 Certain properties of a population are assumed known. Questions involve a
sample taken from this population.
Statistics problem 15 Information about a sample is used to answer questions concerning a population.
Observational study 19 We observe the response for a specific variable for each individual or object in
the sample.
Experimental study 19 We investigate the effects of certain conditions on individuals or objects in the
sample.
Simple random sample of size n 19 A sample selected in such a way that every possible sample of size n has the
same chance of being selected.
Statistical inference procedure 21 Four-step process: Claim, Experiment, Likelihood, and Conclusion.
CHAPTER 1 EXERCISES