Probability and Statistics
Welcome!!
Introduction
Agenda
01 Descriptive and Inferential Statistics
02 Variables and Types of Data
03 Data Collection and Sampling Techniques
OBJECTIVES
After competing this chapter, you should be able to:
• Demonstrate knowledge of statistical terms.
• Differentiate between the two branches of statistics.
• Identify types of data.
• Identify the measurement level for each variable.
• Identify the four basic sampling techniques.
• Explain the difference between an observational and an experimental study.
• Explain how statistics can be used and misused.
• Explain the importance of computers and calculators in statistics.
STATISTICS
Statistics is the science of conducting studies to collect, organize, summarize, analyze,
and draw conclusions from data.
It is the purpose of this chapter to introduce the goals for studying statistics by answering questions such
as the following:
• What are the branches of statistics?
• What are data?
• How are samples selected?
STATISTICS
A variable is a characteristic or attribute that can assume different values.
Data are the values (measurements or observations) that the variables can assume.
Variables whose values are determined by chance are called random variables
A collection of data values forms a data set. Each value in the data set is called a data value or a datum.
A population consists of all subjects (human or otherwise) that are being studied.
• When data are collected from every subject in the population, it is called a census
• Most of the time, due to the expense, time, size of population, medical concerns, etc., it is not possible to use the entire
population for a statistical study; therefore, researchers use samples.
A sample is a group of subjects selected from a population.
• If the subjects of a sample are properly selected, most of the time they should possess the same or similar
characteristics as the subjects in the population.
STATISTICS
The body of knowledge called statistics is sometimes divided into two main areas, depending on how data are used. The
two areas are
1. Descriptive statistics
2. Inferential statistics
Descriptive statistics consists of the collection, organization, summarization, and In descriptive statistics the
statistician tries to describe a
presentation of data. situation. Consider the national
census conducted by the U.S.
government every 10 years.
Results of this census give you
Inferential statistics consists of generalizing from samples to populations, performing the average age, income, and
estimations and hypothesis tests, determining relationships among variables, and other characteristics of the U.S.
making predictions. population. To obtain this
information, the Census Bureau
must have some means to
collect relevant data. Once data
are collected, the bureau must
organize and summarize them.
Finally, the bureau needs a
means of presenting the data in
some meaningful form, such as
charts, graphs, or tables.
STATISTICS
EXAMPLE 1–1 Descriptive or Inferential Statistics
Determine whether descriptive or inferential statistics were used.
a. The average price of a 30-second ad for the Academy Awards show in a recent year was 1.90
million dollars.
b. The Department of Economic and Social Affairs predicts that the population of Mexico City, Mexico,
in 2030 will be 238,647,000 people.
c. A medical report stated that taking statins is proven to lower heart attacks, but some people are at a
slightly higher risk of developing diabetes when taking statins.
d. A survey of 2234 people conducted by the Harris Poll found that 55% of the respondents said that
excessive complaining by adults was the most annoying social media habit.
SOLUTION
a. A descriptive statistic (average) was used since this statement was based on data obtained in a recent
year.
b. Inferential statistics were used since this is a prediction for a future year.
c. Inferential statistics were used since this conclusion was drawn from data obtained from samples and used
to conclude that the results apply to a population.
d. Descriptive statistics were used since this is a result obtained from a sample of 2234 survey respondents
Variables and types of Data
Variables can be classified as qualitative and quantitative.
Qualitative variables are variables that have distinct categories according to some
characteristic or attribute.
For example, if subjects are classified according to gender (male or female), then the variable gender
is qualitative. Other examples of qualitative variables are religious preference and geographic
locations
Quantitative variables are variables that can be counted or measured.
For example, the variable age is numerical, and people can be ranked in order according to the value
of their ages. Other examples of quantitative variables are heights, weights, and body temperatures.
Variables and types of Data
Quantitative variables can be further classified into two groups: discrete and continuous.
Discrete variables assume values that can be counted.
Continuous variables can assume an infinite number of values between any two specific
values. They are obtained by measuring. They often include fractions and decimals
Variables and types of Data
EXAMPLE 1–2 Discrete or Continuous Data
Classify each variable as a discrete or continuous variable.
a. The number of hours during a week that children ages 12 to 15 reported that they watched television.
b. The number of touchdowns a quarterback scored each year in his college football career.
c. The amount of money a person earns per week working at a fast-food restaurant.
d. The weights of the football players on the teams that play in the NFL this year.
SOLUTION
a. Continuous, since the variable time is measured
b. Discrete, since the number of touchdowns is counted
c. Discrete, since the smallest value that money can assume is in cents
d. Continuous, since the variable weight is measured
Variables and types of Data
Boundary
Since continuous data must be measured, answers must be rounded because of the limits of the measuring device.
For Example: a recorded height of 73 inches could mean any measure from 72.5 inches up to but not including 73.5 inches.
Thus, the boundary of this measure is given as 72.5–73.5 inches
EXAMPLE 1–3 Class Boundaries
Find the boundaries for each measurement.
a. 17.6 inches
b. 23° Fahrenheit
c. 154.62 mg/dl
SOLUTION
a. 17.55–17.65 inches
b. 22.5–23.5° Fahrenheit
c. 154.615–154.625 mg/dl
Variables and types of Data
Measurement
There are four common types of scales Nominal, ordinal, interval and ratio
The nominal level of measurement classifies data into mutually exclusive (non overlapping) categories in which
no order or ranking can be imposed on the data.
The ordinal level of measurement classifies data into categories that can be ranked; however, precise differences
between the ranks do not exist.
The interval level of measurement ranks data, and precise differences between units of measure do exist;
however, there is no meaningful zero.
The ratio level of measurement possesses all the characteristics of interval measurement, and there exists a true
zero. In addition, true ratios exist when the same variable is measured on two different members of the population.
Data collection and sampling techniques
statisticians use four basic methods of sampling: random, systematic, stratified, and cluster sampling.
A random sample is a sample in which all members of the population have an equal chance of being selected.
A systematic sample is a sample obtained by selecting every kth member of the population where k is a counting
number.
A stratified sample is a sample obtained by dividing the population into subgroups or strata according to some
characteristic relevant to the study. (There can be several subgroups.) Then subjects are selected at random from
each
subgroup.
A cluster sample is obtained by dividing the population into sections or clusters and then selecting one or more clusters
at random and using all members in the cluster(s) as the members of the sample.
Data collection and sampling techniques
Sampling error non sampling error
Sampling error is the difference between the results obtained from a sample and the results obtained from the population
from which the sample was selected.
A non sampling error occurs when the data are obtained erroneously or the sample is biased, i.e., non representative.
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