What is Statistics
Chapter 1
McGraw-Hill/Irwin ©The McGraw-Hill Companies, Inc. 2008
GOALS
Understand why we study statistics.
Explain what is meant by descriptive
statistics and inferential statistics.
Distinguish between a qualitative variable
and a quantitative variable.
Describe how a discrete variable is different
from a continuous variable.
Distinguish among the nominal, ordinal,
interval, and ratio levels of measurement.
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What is Meant by Statistics?
Statistics is the science of
collecting, organizing, presenting,
analyzing, and interpreting
numerical data to assist in making
more effective decisions.
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Who Uses Statistics?
Statistical techniques are used
extensively by marketing,
accounting, quality control,
consumers, professional sports
people, hospital administrators,
educators, politicians, physicians,
etc...
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Variables
A variable is a characteristic or condition that
can change or take on different values.
Most research begins with a general
question about the relationship between two
variables for a specific group of individuals.
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Population
The entire group of individuals is called the
population.
For example, a researcher may be interested
in the relation between class size (variable 1)
and academic performance (variable 2) for
the population of third-grade children.
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Sample
Usually populations are so large that a
researcher cannot examine the entire group.
Therefore, a sample is selected to represent
the population in a research study. The goal
is to use the results obtained from the
sample to help answer questions about the
population.
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Types of Variables
Variables can be classified as discrete or
continuous.
Discrete variables (such as class size)
consist of indivisible categories, and
continuous variables (such as time or
weight) are infinitely divisible into whatever
units a researcher may choose. For
example, time can be measured to the
nearest minute, second, half-second, etc.
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Real Limits
To define the units for a continuous variable,
a researcher must use real limits which are
boundaries located exactly half-way between
adjacent categories.
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Measuring Variables
To establish relationships between variables,
researchers must observe the variables and
record their observations. This requires that the
variables be measured.
The process of measuring a variable requires a
set of categories called a scale of
measurement and a process that classifies
each individual into one category.
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4 Types of Measurement Scales
1. A nominal scale is an unordered set of
categories identified only by name.
Nominal measurements only permit you to
determine whether two individuals are the
same or different.
2. An ordinal scale is an ordered set of
categories. Ordinal measurements tell you
the direction of difference between two
individuals.
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4 Types of Measurement Scales
3. An interval scale is an ordered series of equal-
sized categories. Interval measurements
identify the direction and magnitude of a
difference. The zero point is located arbitrarily
on an interval scale.
4. A ratio scale is an interval scale where a value
of zero indicates none of the variable. Ratio
measurements identify the direction and
magnitude of differences and allow ratio
comparisons of measurements.
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Types of Statistics – Descriptive
Statistics
Descriptive Statistics - methods of organizing,
summarizing, and presenting data in an
informative way.
EXAMPLE 1: A Gallup poll found that 49% of the people in a survey knew the name of
the first book of the Bible. The statistic 49 describes the number out of every 100
persons who knew the answer.
EXAMPLE 2: According to Consumer Reports, General Electric washing machine
owners reported 9 problems per 100 machines during 2001. The statistic 9
describes the number of problems out of every 100 machines.
Inferential Statistics: A decision, estimate,
prediction, or generalization about a
population, based on a sample.
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Population versus Sample
A population is a collection of all possible individuals, objects, or
measurements of interest.
A sample is a portion, or part, of the population of interest
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Types of Variables
A. Qualitative or Attribute variable - the
characteristic being studied is nonnumeric.
EXAMPLES: Gender, religious affiliation, type of automobile
owned, state of birth, eye color are examples.
B. Quantitative variable - information is reported
numerically.
EXAMPLES: balance in your checking account, minutes
remaining in class, or number of children in a family.
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Quantitative Variables - Classifications
Quantitative variables can be classified as either discrete
or continuous.
A. Discrete variables: can only assume certain values
and there are usually “gaps” between values.
EXAMPLE: the number of bedrooms in a house, or the number of hammers sold at the local
Home Depot (1,2,3,…,etc).
B. Continuous variable can assume any value within a
specified range.
EXAMPLE: The pressure in a tire, the weight of a pork chop, or the height of students in a
class.
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Summary of Types of Variables
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Four Levels of Measurement
Nominal level - data that is Interval level - similar to the ordinal
classified into categories and level, with the additional
cannot be arranged in any property that meaningful
particular order. amounts of differences between
EXAMPLES: eye color, gender, data values can be determined.
religious affiliation. There is no natural zero point.
EXAMPLE: Temperature on the
Fahrenheit scale.
Ordinal level – involves data
arranged in some order, but the Ratio level - the interval level with
differences between data an inherent zero starting point.
values cannot be determined or Differences and ratios are
are meaningless. meaningful for this level of
EXAMPLE: During a taste test of measurement.
4 soft drinks, Mellow Yellow EXAMPLES: Monthly income
was ranked number 1, Sprite of surgeons, or distance
number 2, Seven-up number traveled by manufacturer’s
3, and Orange Crush number
4. representatives per month.
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Summary of the Characteristics for
Levels of Measurement
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End of Chapter 1
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