CST 322 DATA ANALYTICS

Module -1 (Mathematics for Data Analytics))

Ojus Thomas Lee

CE Kidangoor

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CO’s

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CO - Module Mapping

Mod 1 Mod 2 Mod 3 Mod 4 Mod 5

CO1 X
CO2 X
CO3 X
CO4 X
CO5 X
CO6 X

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PO’s

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CO-PO-Mapping

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Syllabus - Module – 1 (Mathematics for Data Analytics)

Descriptive statistics - Measures of central tendency and dispersion,

Association of two variables - Discrete variables, Ordinal and
Continuous variable, Probability calculus - probability distributions,
Inductive statistics - Point estimation, Interval estimation, Hypothesis
Testing - Basic definitions, t-test

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Introduction to Statistics

Statistics is a collection of methods which help us to describe,

summarize, interpret, and analyse data.
Drawing conclusions from data is vital in research, administration,
and business.

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Introduction to Statistics and Data Analysis
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Introduction to Statistics - Applications

a medical intervention helps in reducing the burden of a disease,

how personality relates to decision-making,
whether a new fertilizer increases the yield of crops,
how a political system affects trade policy,
who is going to vote for a political party in the next election,
life expectancy of a population,
the risk factors for infant mortality,
geographical differences in energy usage,
migration patterns, or reasons for unemployment.
identifying people who may be interested in a certain product,
optimizing prices, and evaluating the satisfaction of customers are
possible areas of interest.
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Introduction to Statistics and Data Analysis
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Introduction to Statistics - Applications

A Population is the entire group that you want to draw conclusions

about.
A Sample is the specific group that you will collect data from.
The size of the sample is always less than the total size of the
population.

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Introduction to Statistics

When you collect data from a population or a sample, there are

various measurements and numbers you can calculate from the data.
A Parameter is a measure that describes the whole population.
A Statistic is a measure that describes the sample.
A parameter is an unknown numerical summary of the population.
A statistic is a known numerical summary of the sample which can be
used to make inference about parameters.

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Introduction to Statistics and Data Analysis
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Population-Sample-Parameters

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Introduction to Statistics - Measures of center

A data set may contain many variables and observations.

We are not always interested in each of the measured values
But we look for a summary which interprets the data.
Statistical functions fulfil the purpose of summarizing the data in a
meaningful yet concise way.

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Christian Heumann, Michael Schomaker, Shalabh Introduction to Statistics and
Data Analysis - Chapter 3
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Measures of center

A natural human tendency is to make comparisons with the

“average”.
For example, a student scoring 40 % in an examination will be happy
with the result if the average score of the class is 25 %.
If the average class score is 90%, then the student may not feel happy
even if he got 70%.
We call statistical functions which describe the average or centre of
the data location parameters as measures of central tendency.

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Christian Heumann, Michael Schomaker, Shalabh Introduction to Statistics and
Data Analysis - Chapter 3
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Measures of center

Statistical functions which describe the average or centre of the data

location parameters as measures of central tendency.
Arithmetic Mean
Median
Quantiles
Mode
Geometric Mean
Harmonic Mean

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Christian Heumann, Michael Schomaker, Shalabh Introduction to Statistics and
Data Analysis - Chapter 3
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Measures of center

Statistical functions which describe the average or centre of the data

location parameters as measures of central tendency.
Arithmetic Mean
Suppose a variable of size n consists of the values x1 , x2 , ..., xn .
The arithmetic mean of this data is defined as
n
1X
x̄ = xi
n i=1

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Christian Heumann, Michael Schomaker, Shalabh Introduction to Statistics and
Data Analysis - Chapter 3
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Measures of center

Example the temperature in Bangkok during December. The

measurements were
22, 24, 21, 22, 25, 26, 25, 24, 23, 25, 25, 26, 27, 25, 26, 25, 26, 27,
27, 28, 29, 29, 29, 28, 30, 29, 30, 31, 30, 28, 29 .

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Christian Heumann, Michael Schomaker, Shalabh Introduction to Statistics and
Data Analysis - Chapter 3
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Measures of center

The arithmetic mean is therefore

22 + 24 + 21 + ... + 28 + 29
x̄ = = 26.48◦ C
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Christian Heumann, Michael Schomaker, Shalabh Introduction to Statistics and
Data Analysis - Chapter 3
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Ungrouped Data and Grouped Data

Data in its original form which the researcher first collects from
research is termed Ungrouped data.
For Example: Let us say there are 30 women in a colony, whose age
group are as follows:
5, 35, 29, 35, 24, 77, 65, 45, 26, 29, 35, 66, 57, 59, 33, 31, 64, 28, 63,
55, 25, 69, 46, 38, 48, 61, 37, 55, 24, 64

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Grouped Data

Grouped data refers to the data which is bundled together in

different classes or categories.

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Measures of center - Grouped Data

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Measures of center - Grouped Data

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Measures of center - Grouped Data

We can find mean using

Pn
i=1 fi ∗ xi
x̄ = P n
i=1 fi

1779
x̄ = = 59.3
30

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Measures of center - Grouped Data

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Measures of center - Grouped Data

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Measures of center - Grouped Data

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Measures of center - Grouped Data

1860
x̄ = = 62
30

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Measures of center - Grouped Data

Consider the distribution of the daily wages of 50 employees of a

factory as given below. Determine the mean of the daily wages of the
workers of a factory using suitable method.

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Measures of center - Grouped Data

The given table shows the expenditure on the food of 25 households

in a locality. Find the mean of daily expenditure on food using a
suitable method.

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Measures of center - Median

The median is the value which divides the observations into two
equal parts such that at least 50 % of the values are greater than or
equal to the median and at least 50 % of the values are less than or
equal to the median.

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Measures of center - Median

Consider n observations x1 , x2 , ..., xn which can be ordered as

x(1) ≥ x(2) ≥ ... ≥ x(n) or reverse ( Arrange your observations in
ascending or descending order ) .
The calculation of the median x̄0.5 depends on whether the number of
observations n is odd or even.
When n is odd, then x̄0.5 is the middle ordered value.
When n is even, then x̄0.5 is the arithmetic mean of the two
middle ordered values.

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Measures of center - The Median -

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Measures of center - The Median -

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Measures of center - The Median -

Find the median of following set of data

1. 20, 25, 21, 24, 22, 32, 18

2. 13, 8, 19, 15, 13, 9, 8, 5

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Measures of center - The Median -

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Measures of center - Mode

The Mode x̄M of n observations x1 , x2 , ..., xn is the value which

occurs the most compared with all other values, i.e. the value which
has maximum absolute frequency.
A formal definition of the Mode is

x̄M = max{n1 , n2 , n3 , ...}

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Measures of center

For Example: Let us say there are 30 women in a colony, whose age
group are as follows:
5, 35, 29, 35, 24, 77, 65, 45, 26, 29, 35, 66, 57, 59, 33, 31, 64, 28, 63,
55, 25, 69, 46, 38, 48, 61, 37, 55, 24, 64

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Measures of center - Mode (Qualitative Variables)

To obtain the mode(s) of a variable, we first construct a frequency

distribution for the data using classes based on single value.
The mode(s) can then be determined easily from the frequency
distribution.
Example : Let the blood types of 40 persons are as follows:
O O A B A O A A A O B O B O O A O O A A A A AB A B A A O
O A O O A A A O A O O AB
Blood Group Frequency
O 16
A 18
B 4
AB 2

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Measures of center- Mode(Quantitative Variables)

Mode of blood types is A

Mode class is the class interval with highest frequency in case of
quantitative variables.

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Measures of center - Mode

Price Slab Frequency

0.045-0.065 5
0.065-0.085 15
0.085-0.105 10
0.105-0.125 9
0.125-0.145 4
0.145-0.165 2
0.165-0.185 3
0.185-0.205 3
0.205-0.225 1
0.225-0.245 1
0.245-0.265 1
price slab 0.065-0.085 is the Mode class

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Measures of center - Mode - Grouped Data

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Measures of center - Mode-Grouped Data

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Measures of center - Mode - Grouped Data

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Measures of center - Mode - UnGrouped Data

Find the mode of the following

1,2,3,1,2,8,9,0,4,8
The given data has 1,2 appearing twice.
So there are two modes for this data, which is 1 and 2.
SO this data is bimodal.
If number of modes are more than 2 it is called multimodal.

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Measures of Center A comparison -

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Measures of center - Which measure to choose?

The mode should be used when calculating measure of center for the
qualitative variable.
When the variable is quantitative with symmetric distribution, then
the mean is proper measure of center.
In a case of quantitative variable with skewed distribution, the
median is good choice for the measure of center.

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Measures of variation or dispersion

The scatter or spread of items of a distribution is known as dispersion

or variation.
In other words the degree to which numerical data tend to spread
about an average value is called dispersion or variation of the data.
Measures of dispersion are statistical measures which provide ways of
measuring the extent in which data are dispersed or spread out.

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Measures of variation

Measures of variation - Absolute measures

Range,
Interquartile range
Quartile deviation
Absolute Deviation,
Variance, and
Standard Deviation

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Measures of variation

Measures of variation - Relative measures

Relative range
Coefficient of quartile deviation
Coefficient of mean deviation
Coefficient of variation
Standard scores

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Measures of variation - Range

The sample range of the variable is the difference between its

maximum and minimum values in a data set
Range = Max - Min.
Example : 8 participants in bike race had the following finishing times
in minutes: 28, 22, 26, 29, 21, 23, 24, 50.
21, 22, 23, 24, 26, 28, 29, 50
Max = 50, Min = 21, Range = 50 − 21 = 29

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Measures of variation - Percentiles

Before studying interquartile range we learn percentiles and deciles

The percentiles of the variable divide observed values into
hundredths, or 100 equal parts.
The first percentile, P1 , is the number that divides the bottom 1% of
the observed values from the top 99%;
second percentile, P2 , is the number that divides the bottom 2% of
the observed values from the top 98%; and so forth.
The median is the 50th percentile.

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Measures of variation - Percentiles

Procedure to calculate K th percentile

Step 1: Arrange all data values in the ascending order.
Step 2: Count the number of values in the data set where it
represented as ’n’.
K
Step 3: Find 100 , where k = any number between zero and one
hundred.
Step 4: Multiply ’k’ percent by ’n’.The resultant number is called as
index.
Step 5: If the resultant index is not a whole number then round to the
nearest whole number, then go to
If the index obtained is a whole number, then go to Step 7.
Step 7: Count the values in your data set from left to right until you
reach the number. The obtained value will be the kth percentile of
your data set.

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Measures of center - Percentiles

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Measures of center - Percentiles

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Measures of variation - Percentiles - Problem 1

In a college, a list of grades of 15 students has been declared.

Their grades are: 85, 34, 42, 51, 84, 86, 78, 85, 87, 69, 74, 65. Find
the 80th percentile?

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Measures of variation - Percentiles - Problem 2

There are 25 test scores such as: 72,54, 56, 61, 62, 66, 68, 43, 69,
69, 70, 71,77, 78, 79, 85, 87, 88, 89, 93, 95, 96, 98, 99, 99. Find the
60th percentile?

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Measures of variation - Percentiles

Procedure to calculate Percentile of a value

The percentile of x is the ratio of the number of values below x to the
total number of values multiplied by 100. i.e., the percentile formula is
Total Number of Values × 100
Percentile = Number of Values Below x

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Measures of center - Percentiles

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Measures of variation - Deciles

The deciles of the variable divide the observed values into tenths, or
10 equal parts.
The variable has nine deciles, denoted by D1 , D2 , ..., D9 .
The first decile D1 is 10th percentile, the second decile D2 is the 20th
percentile, and so forth.

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Measures of variation - Deciles
If you are given with the list 15, 22,24,27,32,36,40,41,50,70
To find the decile, first order the data from least to greatest.
Then, divide the data into 10. This indicates the number of observed
values within each decile.

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Measures of variation - Deciles

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Measures of variation - Quartile

The most commonly used percentiles are quartiles.

The quartiles of the variable divide the observed values into quarters,
or 4 equal parts.
The variable has three quartiles, denoted by Q1 , Q2 and Q3 .
the first quartile, Q1 , is the number that divides the bottom 25% of
the observed values from the top 75%;
second quartile, Q2 , is the median, which is the number that divides
the bottom 50% of the observed values from the top 50%; and
the third quartile, Q3 , is the number that divides the bottom 75% of
the observed values from the top 25%.

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Measures of variation - Quartiles
If you are given with the list 15, 22,24,27,32,36,40,41,50,90
To find the decile, first order the data from least to greatest.
Then, divide the data into 10. This indicates the number of observed
values within each decile.

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Measures of variation - Quartile

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Measures of variation - Quartile
Arrange the given data values in ascending order before estimating
the quartiles.

i.(n + 1) th
Qi = term for i = 1, 2, 3
4
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Measures of variation - Quartile- Problem 1

What are the quartiles for the following set of numbers?

8, 11, 20, 10, 2, 17, 15, 5, 16, 15, 25, 6

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Measures of variation - Quartile-Problem 2

What are the quartiles for the following set of numbers?

13, 18, 6, 20, 25, 11, 9, 18, 3, 30, 16, 9, 8, 23, 26, 17

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Measures of variation - Quartile

Finding quartile for grouped data

( N4 )−c
Q1=l1 + f (l2 − l1 )
( N2 )−c
Q2=l1 + f (l2 − l1 ) .
N
3( 4 )−c
Q3=l1 + f (l2 − l1 )

i.( N4 ) − c
Qi = l1 + (l2 − l1 )
f
.
Here n is for the particular quartile, N is the total frequency, f is the
frequency of the particular class, c is the cumulative frequency of the
preceding class, and l1 , l2 are the lower and upper boundaries of the
class interval.
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Methods of Calculating Quartile for Grouped Data

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Methods of Calculating Quartile for Grouped Data

N N 3N
find 4, 2, 4

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Methods of Calculating Quartile for Grouped Data

N 50
class Q1 is
= = 12.5
4 4
The cumulative frequency just greater than or equal to 12.5 is 22
Class Q1 is 2nd class, i.e 11 − 20

( N4 ) − c
Q1 = l1 + (l2 − l1 )
f
l1 = 10.5, l2 = 20.5, c = 8, f = 14

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Methods of Calculating Quartile for Grouped Data

l1 = 10.5, l2 = 20.5, c = 8, f = 14
( 50
4 )−8
Q1 = 10.5 + (20.5 − 10.5) = 13.7143
14
( 50
4 )−8
Q1 = 10.5 + (20.5 − 10.5) = 13.7143
14

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Methods of Calculating Quartile for Grouped Data

N 50
class Q2 is
= = 22.5
2 2
The cumulative frequency just greater than or equal to 22.5 is 34
Class Q2 is 3nd class, i.e 21 − 30

( N2 ) − c
Q2 = l1 + (l2 − l1 )
f
l1 = 20.5, l2 = 30.5, c = 22, f = 12

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Methods of Calculating Quartile for Grouped Data

l1 = 20.5, l2 = 30.5, c = 22, f = 12

( 50
2 ) − 22
Q2 = 20.5 + (30.5 − 20.5) = 23
12

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Methods of Calculating Quartile for Grouped Data

3N 150
class Q3 is
= = 37.5
4 4
The cumulative frequency just greater than or equal to 37.5 is 43
Class Q3 is 4th class, i.e 31 − 40

( N2 ) − c
Q3 = l1 + (l2 − l1 )
f
l1 = 30.5, l2 = 40.5, c = 34, f = 9

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Methods of Calculating Quartile for Grouped Data

l1 = 30.5, l2 = 40.5, c = 34, f = 9

37.5 − 34
Q3 = 30.5 + (40.5 − 30.5) = 34.3889
9

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Methods of Calculating Quartile for Grouped Data

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Five-number summary

The five-number summary of the variable consists of minimum,

maximum, and quartiles written in increasing order:
Five number Summary = {Min, Q1 , Q2 , Q3 , Max}.

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Interquartile Range

The interquartile range is defined as the difference between the 75th

and 25th quartiles as
Q3 − Q1
34.3889 − 13.7143 = 20.6746

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 54
Mean Deviation(M.D)

The average deviation measures the scatter of the individual

observations around a central value usually the mean or the median of
a distribution.
The Mean Deviation is defined as the arithmetic mean of positive
deviations of each observation from either the mean or the median of
a distribution.
If the deviations are taken from the mean then it is called mean
deviation about the mean.
If the deviations are taken from the median we call it mean deviation
about the median.

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 55
Mean Deviation(M.D) - about mean

The mean Deviation (M.D) is the arithmetic mean of the absolute

deviations of the values from the mean.
It is the “average absolute deviation of the values from the mean”.
Pn
|xi −x̄|
Mean deviation = i=1
n
Mean Deviations for Grouped data (discrete or continuous)
Pn
i=1 fi |xi −x̄|
Mean deviation = n

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Mean Deviation(M.D) - about median

The mean Deviation (M.D) is the arithmetic mean of the absolute

deviations of the values from the mean.
It is the “average absolute deviation of the values from the mean”.
Pn
|xi −x̂|
Mean deviation = i=1
n
Mean Deviations for Grouped data (discrete or continuous)
Pn
i=1 fi |xi −x̂|
Mean deviation = n

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 57
Mean Deviation(M.D) - Problems

The weights of a sample of six students from a class (in kilograms) is

measured as: 53, 56, 57, 59, 63 and 66. Find the mean deviation
about the mean and the mean deviation from the median.

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Mean Deviation(M.D) - Problems

Pn
|xi −x̄|
mean deviation about the mean: i=1
n = 22
6 = 3.67
Pn
|x −x̂|
mean deviation about the median : i=1 i
n = 22
6 = 3.67

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 59
Mean Deviation(M.D) - Problems

Calculate the mean deviation from the mean and median for the
following data
Class Interval 1-5 6-10 11-15 16-20
Frequency 4 1 2 3

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Mean Deviation(M.D) - Problems

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Mean Deviation(M.D) - Problems

M D by median
CL xi fi fi |xi − x̂|
1-5 3 4 13.6
6-10 8 1 6.4
11-15 13 2 26.4
16-20 18 3 46.4
Total 10 102.8
Pn
i=1 fi |xi −x̂|
Mean deviation = n
102.8
Mean Deviation = 10 = 10.28

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Mean Deviation(M.D) - Problems

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Mean Deviation(M.D) - Problems

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Mean Deviation(M.D) - Problems

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Mean Deviation(M.D) - Problems

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 66
Variance and Standard deviation

Recall tht the range is the difference between the upper and lower
limits of the data.
It does not describe the variation among the variables.
For instance, both of these sets of data have the same range, yet their
values are definitely different.

90, 90, 90, 98, 90 Range = 8

1, 6, 8, 1, 9, 5 Range = 8

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Variance and Standard deviation

To better describe the variation, we will introduce two other measures

of variation— Variance and Standard deviation.
These measures tell us how much the actual values differ from the
mean.
The larger the standard deviation, the more spread out the values.
The smaller the standard deviation, the less spread out the values.

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 68
Variance and Standard deviation

The variance and standard deviation are the most superior and
widely used measures of dispersion
Both measures the average dispersion of the observations around the
mean.
The variance is defined as the average of the squared deviation from
the mean.

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 69
Variance and Standard deviation

the variance is a measure of how far a set of data are dispersed out
from their mean or average value.
It is denoted as σ 2 for population or s 2 for sample.
The spread of statistical data is measured by the standard deviation
(σ) for population or s for sample.
Distribution measures the deviation of data from its mean or average
position.

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Variance and Standard Deviation

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Variance and Standard Deviation

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Variance and Standard Deviation

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Variance and Standard Deviation

Calculate the Standard Deviation and Variance for the following

population of scores: 8 5 3 7 5 6 4 7 2 6 5 3 6 4 5 7 8 6 5 6

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 74
Variance and Standard Deviation -Grouped Data

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Variance and Standard Deviation -Grouped Data

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Variance and Standard Deviation -Grouped Data

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Variance and Standard Deviation -Grouped Data

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Variance and Standard Deviation -Grouped Data

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 79
Measures of variation - Relative measures

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Measures of variation - Relative measures

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Measures of variation - Relative measures

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Measures of variation - Relative measures

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Measures of variation - Relative measures

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Measures of variation - Relative measures

The relative range:

l−s
RR = relative range = l+s

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Measures of variation - Relative measures

Coefficient of the Mean Deviation

A relative measure of dispersion based on the mean deviation is called
the coefficient of the mean deviation or the coefficient of dispersion.
It is defined as the ratio of the mean deviation of the average used in
the calculation of the mean deviation. Thus:
MeanDeviationfromMean
Coefficient of M.D (about mean) = Mean
MeanDeviationfromMedian
Coefficient of M.D (about median) = Median

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Measures of variation - Relative measures

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Measures of variation - Relative measures

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Measures of variation - Relative measures

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Measures of variation - Relative measures

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Measures of variation - Relative measures

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 91
Types of Variables

A variable is a characteristic that can be measured and that can

assume different valuees,like
Height, age, income, province or country of birth, grades obtained at
school and type of housing are all examples of variables.
Variables may be classified into two main categories:
Categorical or Qualitative and
Numeric or Quantitative

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Types of Variables

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Types of Variables

A categorical variable (also called qualitative variable) refers to a

characteristic that can’t be quantifiable.
Categorical variables can be either
Nominal
Ordinal

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Types of Variables

A nominal variable is one that describes a name, label or category

without natural order.
Sex and type of dwelling are examples of nominal variables.
Gender, ethnicity, eye colour, blood type
Brand of refrigerator or motor vehicle or television owned
Political candidate preference, shampoo preference, favourite meal

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Nominal Data example

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Types of Variables

An ordinal variable is a variable whose values are defined by an order

relation between the different categories.
Eg :
Top 5 Olympic medallists
Language ability (e.g., beginner, intermediate, fluent)
Likert-type questions (e.g., very dissatisfied to very satisfied)

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Ordinal Data example

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Types of Variables

A Numeric variable (also called quantitative variable) is a

quantifiable characteristic whose values are numbers (except numbers
which are codes standing up for categories).
Numeric variables may be either continuous or discrete.

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Types of Variables

A variable is said to be continuous if it can assume an infinite

number of real values within a given interval.
Eg : An example would be the height of students(176, 175.4, 171.5,
165,157.9 etc)
a discrete variable can assume only a finite number of real values
within a given interval.
Eg. Age of students (18, 20, 21,25 ,....)

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Types of Variables - Interval Data
95

Interval data is measured along a numerical scale that has equal

distances between adjacent values.
These distances are called “intervals.”
There is no true zero on an interval scale
Celsius and Fahrenheit are examples of interval scales.
Each point on these scales differs from neighboring points by intervals
of exactly one degree.
The difference between 20 and 21 degrees is identical to the
difference between 225 and 226 degrees.

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Types of Variables - Interval Data
96

Interval Data have arbitrary zero points – zero degrees isn’t the lowest
possible temperature.
Because there’s no true zero, you can’t multiply or divide scores on
interval scales.
30°C is not twice as hot as 15°C.
Similarly, -5°F is not half as cold as -10°F.

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Interval Data - Examples:
97

Celsius Temperature.
Fahrenheit Temperature.
IQ (intelligence scale).
SAT scores.
Time on a clock with hands.

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Types of Variables - Ratio Data
98

A Ratio scale is a quantitative scale where there is a true zero and

equal intervals between neighboring points.
Unlike on an interval scale, a zero on a ratio scale means there is a
total absence of the variable you are measuring.
Length, area, and population are examples of ratio scales.
the Kelvin temperature scale is a ratio scale.
In the Kelvin scale, nothing can be colder than 0K .
Therefore, temperature ratios in Kelvin are meaningful: 20K is twice
as hot as 10K .

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Ratio Data - Examples:
99

Age.
Weight.
Height.
Sales Figures.
Ruler measurements.
Income earned in a week.
Years of education.
Number of children.

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Types of Variables- Comparison

Eg :

100

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Types of Variables- Comparison
Eg :

101
101
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 102
Types of Variables- Comparison
Eg :

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What Is Probability?

Probability denotes the possibility of something happening.

It is a mathematical concept that predicts how likely events are to
occur.
The probability values are expressed between 0 and 1.
The definition of probability is the degree to which something is likely
to occur.

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Random Variable

A variable whose value depends upon a chance experiment is called a

random variable.
For example, in an experiment of tossing a coin twice, the sample
space is {HH, HT , TH, TT }.
Random variable , X , represents the number of tails when a coin is
tossed twice, takes the values 0, 1 and 2 .

103

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Random Variable

104

A variable which takes countable number of distinct values is called

Discrete
Discrete Variables can meaningfully have only specific values:
For instance, a random variable representing the number of
automobiles sold at a particular dealership on one day would be discrete
Number of coin flips: 4. (It can’t meaningfully be 4.3)
Number of books published: 2. (It can’t meaningfully be 2.1)
Distance walked, rounded to the nearest kilometer: 3 (We rounded it,
so it can’t be 3.2)

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Random Variable

105

A variable which having the values between the range/interval and

take infinite number of possible ways is called Continuous random
variable .
Continuous Variables can meaningfully have an infinite number of
possible values, limited only by your resolution and the range on
which they’re defined:
A average height of 100 peoples, measurement of rainfall

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Probability Distribution
106

The probability distribution for a random variable describes how the

probabilities are distributed over the values of the random variable.

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Probability Distribution
107

For a discrete random variable, x, the probability distribution is

defined by a probability mass function(pmf), denoted by PX (xk ).
This function provides the probability for each value of the
random variable
For the probability function for a discrete random variable, two
conditions must be satisfied:
PX (xk ) must be nonnegative for each value of the random variable, and
The sum of the probabilities for each value of the random variable
must equal one.

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Probability Distribution
108

Eg :

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Probability Distribution
109

Eg :

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Probability Distribution
110

Eg :

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Probability Distribution
111

Eg :

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Probability Distribution
112

For a Continous random variable, x, the probability distribution is

defined by a probability density function fX (x).
The probability density function (PDF) gives the density of the
probability distribution over a range of values for a continuous
random variable.
The concept of probability density is used for continuous random
variables because in such cases, the probability of any specific value is
infinitesimally small.
This is because the number of possible values that a continuous
random variable can take is infinite, making it impossible to assign a
non-zero probability to any individual value.

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Probability Distribution
113

For the probability function for a Continous random variable, two

conditions must be satisfied:
fX (x) must be nonnegative for each value of the random variable, and
the integral over all values of the random variable must equal one.

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Probability Distribution
114

Eg :

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Probability Distribution
116

Eg : If random variable is said to have Uniform(a,b) distribution.

Eg :

115
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Probability Distribution
118

Eg :

117
117
[Link] 1 1 [Link]
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Probability Distribution
120

The cumulative distribution function (CDF) of a random variable is

another method to describe the distribution of random variables.
The advantage of the CDF is that it can be defined for any kind of
random variable (discrete, continuous, and mixed).

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Probability Distribution
121

Let X be a random variable with cdf F(x). Then

 
P a < X ≤ b = F (b) − F (a).

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Probability Distribution
122

122
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Discreate Probability Distributions - Special Probability
Distribution
123

There are some specific distributions that are used over and over in
practice,
These distributions model a lot of real life phenomenon, these special
distributions are used frequently in different applications.
Bernoulli Distribution
Geometric Distribution
Binomial Distribution
Poisson Distribution

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Probability Distribution - Bernoulli Distribution
124

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Probability Distribution - Bernoulli Distribution
125

You take a pass-fail exam. You either pass (resulting in X=1) or fail
(resulting in X=0).
You toss a coin. The outcome is either heads or tails.
A child is born. The gender is either male or female.

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Probability Distribution - Geometric Distribution
126

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Probability Distribution - Geometric Distribution
127

The random experiment behind the geometric distribution is as

follows.
Suppose that I have a coin with P(H) = p.
I toss the coin until I observe the first heads.
We define X as the total number of coin tosses in this experiment.
Experiment repeats independent Bernoulli trials until observing the
first success.

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Probability Distribution - Binomial Distribution
128

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Probability Distribution - Binomial Distribution
129

The random experiment behind the binomial distribution is as follows.

Suppose that I have a coin with P(H) = p.
I toss the coin n times and define X to be the total number of heads
that I observe.

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Probability Distribution - Poisson Distribution
130

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Probability Distribution - Poisson Distribution
131

It is usually used in scenarios where we are counting the occurrences

of certain events in an interval of time or space.
A call center receives an average of 180 calls per hour, 24 hours a day.
The calls are independent; receiving one does not change the
probability of when the next one will arrive.
The number of calls received during any minute has a Poisson
probability distribution:

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Probability Distribution - Uniform Distribution
132

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Probability Distribution - Normal Distribution
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Probability Distribution - Normal Distribution
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Probability Distribution - Normal Distribution
135

Many things closely follow a Normal Distribution:

heights of people
size of things produced by machines
errors in measurements
blood pressure
marks on a test

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Probability Distribution - Exponential Distribution
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Probability Distribution - Exponential Distribution
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Descriptive Statistics
138

Descriptive statistics summarize a sample’s characteristics.

The process involves taking a potentially large number of data points
in the sample and reducing them to a few meaningful summary graphs
and values.
This procedure allows us to obtain more information and visualize the
data than simply passing row after row of raw numbers
Tools for Descriptive Statistis
Measures of Center (Mean, Median etc)
Measures of Dispersion ( Variance, Standard Deviation, etc)

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Descriptive Statistics
139

Suppose we want to describe the test scores in a specific class of 30

students.
We record all test scores, calculate summary statistics, and produce
graphs.
This information gives us a pretty good picture of this specific class.
There is no uncertainty around these statistics because we collected
the scores of everyone in the class.
We cannot take these results and extrapolate them to a larger
population of students.

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Descriptive Statistics
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Inferential statistics
141

Inferential statistics use your sample to make reasonable guesses

about the larger population.
We cannot choose a suitable group.
Instead, random sampling allows us to be confident that the sample
represents the population.
Random sampling produces statistics, such as the mean, that do not
tend to be too high or too low.
Using a random sample, we can generalize from the sample to the
broader population.

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Inferential Statistics
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Inferential Statistics
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What is an Estimation?
144

Estimation is a process in which we obtain the values of unknown

population parameters with the help of sample data.
The estimator is a method, formula, or function that specifically tells
how to compute an estimate.
In other words, to estimate the value of the population parameter,
you can use information from the sample in the form of an estimator.

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What is an Estimation?
145

There are two types of estimation namely,

1 Point estimation
2 Interval estimation

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What is an Estimation?
146

Point estimation
When a single value is used as an estimate, the estimate is called a
point estimate of the population parameter.
In other words, an estimate of a population parameter given by a single
number is called as point estimation.

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What is an Estimation? - Point Estimate
147

For example
55 is the mean mark obtained by a sample of 5 students randomly
drawn from a class of 100 students is considered to be the mean marks
of the entire class. This single value 55 is a point estimate.
50 kg is the average weight of a sample of 10 students randomly drawn
from a class of 100 students is considered to be the average weight of
the entire class. This single value 50 is a point estimate.
The basic drawback of point estimate is that no information is
available regarding the reliability.
Or the probability that a single sample statistic is equal to the
population parameter is very less.

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What is an Estimation? - Interval Estimate
148

Interval estimate/Confidence interval is a range of values

constructed from sample data so that the population parameter is
likely to occur within the range at a specified probability.
The specified probability is the level of confidence.
OR
A confidence interval is a range of values that probably contain the
population mean.
Confidence level is a percentage of certainty that in any given
sample, that confidence interval will contain the population mean.

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Confidence Interval - Interval Estimate
149

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What is an Estimation? - Interval Estimate
150

If 50 persons are selected at random from that colony and the annual
average income is found to be Rs. 84240
then the statement that the average annual income of the persons in
the colony is between Rs. 80000 and Rs. 90000 definitely more likely
to be correct than the statement that the annual average income is
Rs. 84240.

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What is an Estimation? - Interval Estimate
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What is an Estimation? - Interval Estimate
152

The mean life of the tyres manufactured by a company follows normal

distribution with standard deviation 3200 kms. A sample of 250 tyres
is taken and it is found that the average life of the tyres is 50000 kms
with a standard deviation of 3500 kms. Establish the 99% confidence
interval within which the mean life of tyres of the company is
expected to lie.

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What is an Estimation? - Interval Estimate
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What is an Estimation? - Interval Estimate
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What is an Estimation? - Interval Estimate
155

The mean life of 100 electric blubs produced by a company is 2550

hours with a standard deviation 54 hours. Find 95% confidence limits
for population mean life of electric blubs produced by the company

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What is an Estimation? - Interval Estimate
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What is an Estimation? - Interval Estimate - with out std
157

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What is an Estimation? - Interval Estimate
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What is an Estimation? - Interval Estimate
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What is an Estimation? - Interval Estimate
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What is an Estimation? - Interval Estimate
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What is an Estimation? - Interval Estimate
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Hypothesis testing
163

Descriptive statistics is the branch of statistics aiming at describing

and summarizing a set of data in the best possible manner
Reducing it down to a few meaningful key measures and
visualizations—with as little loss of information as possible.

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Hypothesis testing
164

Inferential statistics, is the branch of statistics that uses a random

sample of data taken from a population to make inferences
Information from the sample is used to make generalizations about
the parameter of interest in the population.

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Hypothesis testing
165

One of the most important tools used in the domain of inferential

statistics is hypothesis test
Hypothesis tests use a subset of observations, referred as a sample,
to draw conclusions about a population.
The overall objective of a hypothesis test is to draw conclusions in
order to confirm or refute a belief about a population, based on a
smaller group of observations.

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Hypothesis testing
166

When conducting scientific research, typically there is some known

information, perhaps from some past work or from a long accepted
idea.
We want to test whether this claim is believable.
This is the basic idea behind a hypothesis test:

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Hypothesis testing
167

For example, past research tells us that the average life span for a
hummingbird is about four years.
You have been studying the hummingbirds in the southeastern United
States and find a sample mean lifespan of 4.8 years.

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Hypothesis testing
168

Hypothesis testing is a procedure, based on sample evidence and

probability, used to test claims regarding a characteristic of a
population.
A hypothesis is a claim or statement about a characteristic of a
population of interest to us.
A hypothesis test is a way for us to use our sample statistics to test a
specific claim.

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Components of a Formal Hypothesis Test
169

The null hypothesis

The alternative hypothesis
The test statistic
The p-value
The critical value
The level of significance
The conclusion

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Hypothesis testing- The null and alternative hypotheses
170

The null hypothesis is a statement about the value of a population

parameter, such as the population mean (µ) or the population
proportion (p).
It contains the condition of equality and is denoted as H0 (H-naught).
H0 : µ = 157 or H0 : p = 0.37

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Hypothesis testing- The null and alternative hypotheses
171

The alternative hypothesis is the claim to be tested, the opposite of

the null hypothesis. It contains the value of the parameter that we
consider plausible and is denoted as H1.
H1 : µ < 157 or H1 : p 6= 0.37

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Test statistic
172

The test statistic is a value computed from the sample data that is
used in making a decision about the rejection of the null hypothesis.
The test statistic converts the sample mean (x) or sample proportion
(p) to a Z- or t-score under the assumption that the null hypothesis is
true.
It is used to decide whether the difference between the sample
statistic and the hypothesized claim is significant.

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Critical value
173

The critical value is the value that defines the rejection zone (the test
statistic values that would lead to rejection of the null hypothesis).
It is defined by the level of significance.

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The level of significance (α)
174

The level of significance () is the probability that the test statistic will
fall into the critical region when the null hypothesis is true.
This level is set by the researcher.

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The Conclusion
175

The conclusion is the final decision of the hypothesis test.

The conclusion can be:
1 Reject the null hypothesis (H0). This means that you have enough
statistical evidence to support the alternative claim (H1).
2 Fail to reject the null hypothesis (H0). This means that you do NOT
have enough evidence to support the alternative claim (H1).

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Correlation
176

Correlation describes the relationship between variables.

It can be described as either strong or weak, and as either positive or
negative.

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Positive Correlation
177

There is a positive linear correlation when the variable on the x-axis

increases as the variable on the y-axis increases.

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Negative Correlation
178

There is a negative linear correlation when one variable increases as

the other variable decreases.

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NonLinear Correlation
179

There is a non-linear correlation when there is a relationship between

variables but the relationship is not linear (straight).

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No Correlation
180

There is no correlation when there is no pattern that can be detected

between the variables.

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Pearson Correlation Coefficient
181

The linear correlation coefficient defines the degree of relation

between two variables and is denoted by “r”.
It is also called a cross-correlation coefficient, as it predicts the
relation between two quantities.

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Pearson Correlation Coefficient
182

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Pearson Correlation Coefficient
183

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Pearson Correlation Coefficient
184

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Pearson Correlation Coefficient
185

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Pearson Correlation Coefficient
186

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Pearson Correlation Coefficient
187

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Contingency Tables for Discrete Data
188

An airline conducts a customer satisfaction survey. The survey

includes questions about travel class and satisfaction levels with
respect to different categories such as seat comfort, in-flight service,
meals, safety, and other indicators. Consider the information on X ,
denoting the travel class (Economy = “E”, Business = “B”, First =
“F”), and “Y”, denoting the overall satisfaction with the flight on a
scale from 1 to 4 as 1 (poor), 2 (fair), 3 (good), and 4 (very good).
A possible response from 12 customers may look as follows:

188
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Contingency Tables for Discrete Data
189

189
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Analysis
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Contingency Tables for Discrete Data
190

190
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Analysis
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