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Chapter 1
Introduction to
Statistics
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1.1 Definition of STATISTICS
Statistics as a subject (field of study): Statistics is
defined as the science of collecting, organizing, presenting,
analyzing and interpreting numerical data to make decision
on the bases of such analysis. (In singular sense)
Statistics as a numerical data: In this sense statistics is
defined as aggregates of numerically expressed facts
(figures) collected in a systematic manner for a
predetermined purpose (Plural sense).
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1.2 Classification of Statistics
Descriptive Statistics describes the nature or characteristics of
data without making decision or generalization.
It consists of collection, organization, summarization and analysis
of the data
Examples of Activities of Descriptive Statistics:
Recording a student’s grades throughout the semester and then
finding the average of these grades.
From sample we have 40% employee suggest positive attitude
toward the management of the organization.
Drawing graphs that show the difference in the scores of males
and females.
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Inferential Statistics:
Inferential statistics is an area of statistics which consists of
generalizing from samples to populations, performing estimations
and hypothesis tests, determining relationships among variables,
and making predictions etc. Inferential statistics utilizes sample
data to make decision for entire data set (Population).
Examples of Activities of Inferential Statistics:
There is a definitive relationship between smoking and lung
cancer".
As a result of recent reduction in oil production by oil producing
nations , we can expect the price of gasoline to double up in the
next year.
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1.3 Stages in Statistical Investigation
Stage 1: Formulating the problem:
Stage 2 :Data collection
Stage 3: Data Organization
Stage 4:Data presentation
Stage 5: Data analysis
Stage 6: Interpretation of the result.
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1.4 Definition of some basic terms
Population: A population is a totality of things,
objects, peoples, etc about which information is being
collected.
Parameter: - A parameter is a characteristic or
measure obtained by using all the data values from a
specific population.
Statistic: - It’s a measure used to describe the sample.
Sampling: - is the process of selecting a sample from
the population.
Sample: A sample is a subset or part of a population
selected to draw conclusions about the population.
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Sampling frame:-A list of people, items or units
from which the sample is taken.
Data:-Data as a collection of related facts and figures
from which conclusions may be drawn.
Variable: A certain characteristic which changes
from object to object and time to time.
Sample size: The number of elements or observation
to be included in the sample.
Census survey is studying the whole population
without considering samples
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1.5 Application of Statistics
It is applied in any field of study which seeks
quantitative evidence
For instance,
To compare breaking strength of two products
For quality control of products in a given production
process
To compare the improvement in yield due to
application of fertilizer, pesticide….
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1.6 Limitation of Statistics
Statistics laws are true on average. Statistics are
aggregates of facts, so a single observation is not a
statistic. Statistics deal with groups and aggregates
only.
Statistical methods are best applicable to quantitative
data.
Statistics cannot be applied to heterogeneous data.
If sufficient care is not exercised in collecting,
analysing and interpreting the data, statistical results
might be misleading.
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1.7 Types of variables
Quantitative variables: are quantifiable
Discrete: assumes countable/countably infinite values.
Example: Number of students in a class; number of cars
in a parking lot etc
Continuous: assumes values in intervals
Example: weight, height, length, temperature etc
Qualitative / Categorical variables: are non
quantifiable
Example: color, nationality, sex, …
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1.8 Scales of Measurement
• Nominal Scale – used for grouping or classification
Ex: Color, sex, religion,Eye color (brown, black, etc.),
Blood type(A, B, AB and O) and ZIP code
+, -, *, / are impossible
Comparison is impossible
• Ordinal Scale – used for grouping & ordering
Economic status (poor, medium, higher), military ranks…
Patients may be characterized as unimproved, improved & much
improved.
Letter grades (A, B, C, D, F).
Rating (Lickert*) scales: non-numeric concepts like- satisfaction,
happiness etc.
+, -, *, / are impossible
The magnitude b/n the values is not clearly known
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• Interval Scale
The interval scale is a quantitative measurement scale
where there is order, the difference between the two
variables is meaningful and equal, and the presence of
zero is arbitrary.
The magnitude b/n the values is clearly known
+ & - are possible but * & / are impossible
Example
Temperatures (0F, 0C)
IQ
SAT scores
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Ratio Scale
The ratio level of measurement possesses all the Characteristics
of interval measurement,
There exists a true zero.
Typical examples of ratio scales are measures of time or space.
Interval scales do not have the ratio property.
Has true zero point
+, -, *, / are possible
Examples: if one person can lift 200 pounds and another can lift
100 pounds, and then the ratio between them is 2 to 1.
Age, Height ,Length ,Number of students ,Response speed,
salary, weight, height,….