Stat 100: Descriptive and Inferential Statistics 1|Page

I. Intoduction
Meaning of Statistics

We have come into the age of computerization and are becoming rich in information at a
very fast rate. However, data gathered will not make sense unless we know how to use the
available information to make good decisions. This problem can be aided by Statistics because
Statistics is a science which deals on the collection of data, presentation of the collected data,
and interpretation of the results so as to yield meaningful information. Proper interpretation of
the results will help us make better decisions for the future.

We practice statistical thinking in our everyday lives. Like for example, a student budget
his or her allowance based from the knowledge he or she got on the past prices and to the project
he or she needs. Parents also do the same. Most of the young children nowadays can make
predictions of other people’s behavior based from what they experienced in the past. During
election period we try to predict the outcomes based from what we hear or observed around us.
We used to make decisions or predictions based from the previous observations. In the
professional world, statistics is widely used since decisions made are usually based from the data
in the past or from data collected through experiments and surveys.

Population and Sample

Before proceeding further, it is important to understand the basic concepts about the set
of observations to be gathered in a study. The totality of the observation of whicha study is
concerned about is called the population of the study. Population can refer to the subjects of the
study or the observations themselves. For example, if a study is conducted to determine the
MSU-Marawi student’s opinion on the possible tuition fee increase, and if there are 16,000
students, we say that we have a population with finite size of 16,000. If one is interested to find
out the choice among the senatorial candidates in a coming election, the population of the study
is the set of registered voters in that coming election. A study that takes data from the entire
population is called a census.

Taking the whole population into the study is costly, laborious, time-consuming and
sometimes impossible. Suppose your study deal with the opinion of the recipients of the 4P’s in
the different barangays of Marawi City whether the program greatly helps their livelihood or not.
Then this study is too costly if you make census since you will need to go to each recipient in
each barangay and ask about their opinion. It is also very laborious and will take you so long to
finish. Perhaps, it will also be impossible to get the opinion of all recipients because some of
them might be in other places for vacation when you conducted the study. Thus, there arises a
need to study only a part of the population which we call a sample. Ideally, the sample must be
taken in such a way that it represents the population very well.

It refers to the
totality of the
observations of
POPULATION
which the study
isconcerned. It refers to a
part or subset of
a population.

Importance of Statistics

Based from the definition of Statistics, we can derive some uses of statistics that we will
also encounter for in this course and they are as follows:
 Stat 100: Descriptive and Inferential Statistics 2|Page

(1) helps in proper and efficient planning of a statistical inquiry in any field of study. Like aiding in
the method of collecting data, deciding on the sample size and the process of selecting the
sample. It will also help you in deciding the appropriate data to be collected.
(2) aids in presenting complex data in a suitable tabular and graphical form for an easy and clear
comprehension of the data.
(3) provides us tools that can be used in understanding the nature and pattern of variability of a
phenomenon or a set of observation.
(4) can help us make reliable inferences about the population even when the data comes only from
sample.
(5) can help you understand and discover the relationships between variables
(6) helps you how to obtain reliable forecasts.
(7) it can aid in making decisions on how to improve processes.

Two Major Areas in Statistics

In order to gain information about seemingly haphazard events, statisticians collect data
for variables used to describe the event. Data are the values (measurements or observations) that
the variables can assume. Variables whose values are determined by chance are called random
variables.

For example, suppose that an insurance company studies its records (called data) about
the number of automobiles involved in car accident. On their records, theyobserved that on the
average, 3 out of every 100 automobiles were involved in an accident every year. Although there
is no way to predict the specific automobiles that will be involved in an accident (a random
occurrence), the company can adjust its rates accordingly since the company knows the general
pattern over the long run. That is, on the average, 3% of the insured automobiles will be involved
in an accident eachyear.

A collection of data values forms a data set. Each value in the data set is called a data value or
datum.

Data can be used in different ways. Depending on how they are used, the body of
knowledge on statistical methods is divided into two main areas or branches, namely Descriptive
Statistics and Inferential Statistics.

(1) Descriptive Statistics. It comprises of those statistical tools which deal on the presentation
of the observed data that can be done in various forms such as tables, graphs and diagrams or
describing the data through computation of measures that summarize the characteristics of the set
of data.

Example:
Consider the national census conducted by the National Statistics Office (NSO) every 10
years. Results of this census give the average age, income, and other characteristics of the
Philippine population. The NSO also presents the data in some meaningful form such as charts,
graphs, or tables.

(2) Inferential Statistics. It consists of those statistical tools concerned with generalizing
results from random samples to populations, and this usually involves testing hypothesis or
creating confidence intervals.

Example:
Suppose we want to know the percentage of illiterates in our country. We take a random
sample from the population and find the proportion of illiterates in the sample. With the aid of
other statistical measures and probability, we make some inferences or general statements about
the population proportion of illiterates.
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Exercises 1
In each statement that follows identify whether descriptive or inferential statistics is used.

1. The average price of a unit of Camella homes sold in Cagayan de Oro during the week of
April 22-28, 2012 was PhP 1,051, 053.

2. According to Provincial Statistics Office, 85% of the workers in their province get to work in
public utility vehicle.

3. The National Eye Institute has halted a clinical trial on a type of eye surgery, calling it
ineffective and possibly harmful to a person’s vision.

4. “Allergy therapy may make bees go away” (Prevention, April 1995).

5. Drinking decaffeinated coffee can raise cholesterol levels by 7%.

6. It is predicted that the average number of automobiles each household owns will increase next
year.

7. The average number of students in a class in Mindanao State University is 22.6.

8. Last year’s total attendance of Azkal’s football games was 50,000.

9. According to the Court of Justice of the Philippines, 14% of trial-ready civil actions and equity
cases during 1993 were decided in less than six months.