MODULE-2
INTRODUCTION TO
STATISTICS
Today we will...
Define the terms statistics and data.
Understand Types of Data
Compare and contrast qualitative data with quantitative data.
Population vs Sample
Types of Sampling
Statistics in Daily
Life
• Checked weather forecast before
going out
• Read movie ratings before
watching
• Seen a discount on something and
went ahead with purchasing.
• Checked Travel time estimates on
Google Maps
What is your
understanding of
the word
statistics?
STATISTICS..?
Derived from-
Latin Word STATUS - “State”
Italian Word STATISTA
German Word STATISTIK
Plural- Actual Numerical Facts
Singular- The Science/Art of dealing with
Data
MEANING OF STATISTICS
It is a branch of mathematics that deals
with collecting, analyzing, interpreting,
and presenting data.
Statistics helps in gathering
information, understanding patterns,
and making inferences about the world
around us.
WHY DOES IT MATTER?
• Decisions under
uncertainty
• Efficient use of resources
• Turning data into insight
• Communicating evidence
WHERE IS IT USED?
• Commerce & business: forecasting, analysis
• Government: census, policy evaluation
• Science & medicine: experiments, trials
• Sports: performance analytics
• Social media: engagement tracking
DATA
Refers to any facts or figures
that are collated with the
intention of being presented,
interpreted, and analyzed.
TYPES OF DATA
Qualitativ Quantitativ
edescribes
Data that e is
Data that
characteristics or quantified or
qualities. measured.
Usually deals Usually deals with
with language numbers.
Qualitative
Data
Answers Questions Like-
What Kind?
Which Category?
Examples: Gender, Blood Group, Payment Methods, Brand
Preference
Even if we code them with numbers, they do not have a
mathematical meaning
Quantitative Data
Answers Questions Like-
How Much?
How Many?
Examples: Salary, Height, Number of Transactions
We can meaningfully add, subtract, average and compare
the numbers
Quantitative Data can be Discrete or Continuous
Discrete vs Continuous
Discrete Continuous
• Countable numbers, usually • Measured values that can take
whole numbers. any value within a range.
• Example: number of bank • Example: height, weight,
branches in a city, number of income, time taken to finish a
children in a family. job.
QUIZ #1
Identify each of the following pieces of data
about the girl pictured to the right as either
qualitative or quantitative:
1. Red pants
2. Short hair
[Link] feet, four inches tall
[Link] years old
[Link] personality
LEVELS OF MEASUREMENT
NOMINAL ORDINAL I N T E R VA L R AT I O
• Categories, no order • Categories with order, • Numeric, equal • Numeric, equal
• Examples: Gender, unequal gaps intervals, no true zero intervals, true zero
bank name, product • Examples: Satisfaction • Examples: • Examples: Salary,
type levels, credit rating, Temperature (°C, °F), weight, height, age
• Count, mode, bar/pie education level IQ scores, years • Allowed: All math
charts • Ranking, median, • Allowed: Add, operations, ratios
• Arithmetic operations percentiles are allowed subtract, mean, SD meaningful
are not allowed • Not meaningful: • “Twice as much”
Ratios (“twice as makes sense here
much”)
Problem 1 — classification
Classify these variables:
Age
Gender
Monthly salary (₹)
marital status
Credit Rating
number of branches
weekday of transaction
customer satisfaction 1–5
Problem 1 — classification
Classify these variables:
Age- Ratio
Gender- Nominal
Monthly salary (₹) – Ratio Scale
marital status – Nominal
Credit Rating- Ordinal
number of branches – Ratio
weekday of transaction – Nominal
customer satisfaction 1–5 – Ordinal
Population vs
Sample
Population
Complete set of all individuals, items, or observations that share at
least one characteristic of interest.
• Can be large or small, finite or infinite.
• Can be people, objects, transactions, measurements — anything you’re
studying.
Sample
A sample refers to a portion of the population.
I t is u
repr sed to
P O P U L AT I O N SAMPLE esen
po pu t the
lation
a stu in
dy.
Quiz #3
If the school has 200 students, which of the statements can be true?
The population is 200
The sample can include 220
students from the school
Asking a sample will be faster Put a c
than asking the population h eck
( ) to
th e c o
rrect
ans w e
r.
ANSWER KEY
Quick Check
If the school has 200 students, which of the statements can be true?
The total number of students
The population is 200
is the population.
The sample can include 220 The sample size is always
students from the school smaller than the population.
Asking a sample will be faster Since the size is smaller, it
than asking the population saves time to ask just the
sample.
Why Not Study the
Whole Population?
• Cost: Too expensive to reach everyone.
• Time: May take too long to collect and process.
• Practicality: Some studies involve destructive testing
(you destroy the item while testing it).
• Dynamic nature: Populations change over time —
results might be outdated before the study ends.
Population vs
Sample
Measures
Population measure = Parameter (usually unknown, fixed
value).
Sample measure = Statistic (calculated from data, varies from
sample to sample).
Types of
Samplin
g
Method
Probabil
ity
Samplin
Every element has an equal, known,
g
non-zero chance of being selected.
Simple Random Sampling (SRS)
oEvery member has an equal chance of selection.
oExample: Using a random number generator to pick
100 invoices from a database.
oAdvantage: Easy to understand.
oLimitation: Requires complete population list.
Systematic Sampling
oSelect every k-th member from a list, after a random
start.
oExample: Every 10th customer entering a store.
oAdvantage: Simple to execute.
oLimitation: Can introduce bias if there’s a hidden
pattern.
Stratified Sampling
oDivide population into subgroups (strata) and take
random samples from each.
oExample: Divide students by year (1st, 2nd, 3rd, 4th
year) and sample from each group.
oAdvantage: Ensures representation from all groups.
oLimitation: Requires knowledge of strata.
Cluster Sampling
oDivide population into clusters (often by geography), then
randomly select entire clusters.
oExample: Randomly select 5 bank branches and survey all
customers in them.
oAdvantage: Cost-effective for large, spread-out populations.
oLimitation: Higher sampling error than stratified.
Non-
Probability
Sampling
Not every element has a known
chance of selection
Convenience Sampling
oSelect those easiest to reach.
oExample: Surveying friends or people at a nearby
café.
oAdvantage: Quick, cheap.
oLimitation: High risk of bias.
Judgment / Purposive Sampling
oResearcher selects members based on
expertise/judgment.
oExample: Interviewing “key informants” in an industry.
oAdvantage: Useful for specialized studies.
oLimitation: Strong bias risk.
Quota Sampling
oEnsure certain categories are filled (like stratified), but
selection within them is non-random.
oExample: Interviewing 50 men and 50 women, chosen
conveniently.
oAdvantage: Ensures some diversity.
oLimitation: Not truly random.
Snowball Sampling
oExisting participants refer new ones.
oExample: Researching a hidden population (drug
users).
oAdvantage: Access to hard-to-reach groups.
oLimitation: Not representative.