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Basics of Statistics - 2

The document discusses different types of variables and scales. It defines quantitative variables, which can be discrete or continuous, and qualitative variables. Discrete variables result from counting, while continuous variables like length or weight can be measured arbitrarily accurately. Qualitative variables are classified on different scales, like nominal and ordinal scales. Quantitative variables provide numerical measurements, while qualitative variables provide non-numerical categories.

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19 views

Basics of Statistics - 2

The document discusses different types of variables and scales. It defines quantitative variables, which can be discrete or continuous, and qualitative variables. Discrete variables result from counting, while continuous variables like length or weight can be measured arbitrarily accurately. Qualitative variables are classified on different scales, like nominal and ordinal scales. Quantitative variables provide numerical measurements, while qualitative variables provide non-numerical categories.

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different populations, following examples demonstrates possible discrepancies


on populations.

Example 1.2 (Finite population). In many cases the population under con-
sideration is one which could be physically listed. For example:
–The students of the University of Tampere,
–The books in a library.

Example 1.3 (Hypothetical population). Also in many cases the population


is much more abstract and may arise from the phenomenon under consid-
eration. Consider e.g. a factory producing light bulbs. If the factory keeps
using the same equipment, raw materials and methods of production also in
future then the bulbs that will be produced in factory constitute a hypothet-
ical population. That is, sample of light bulbs taken from current production
line can be used to make inference about qualities of light bulbs produced in
future.

1.3 Descriptive and Inferential Statistics

There are two major types of statistics. The branch of statistics devoted
to the summarization and description of data is called descriptive statistics
and the branch of statistics concerned with using sample data to make an
inference about a population of data is called inferential statistics.

Definition 1.6 (Descriptive Statistics). Descriptive statistics consist of meth-


ods for organizing and summarizing information (Weiss, 1999)

Definition 1.7 (Inferential Statistics). Inferential statistics consist of meth-


ods for drawing and measuring the reliability of conclusions about population
based on information obtained from a sample of the population. (Weiss, 1999)

Descriptive statistics includes the construction of graphs, charts, and tables,


and the calculation of various descriptive measures such as averages, measures
of variation, and percentiles. In fact, the most part of this course deals with
descriptive statistics.

Inferential statistics includes methods like point estimation, interval estima-


tion and hypothesis testing which are all based on probability theory.
6

Example 1.4 (Descriptive and Inferential Statistics). Consider event of toss-


ing dice. The dice is rolled 100 times and the results are forming the sample
data. Descriptive statistics is used to grouping the sample data to the fol-
lowing table

Outcome of the roll Frequencies in the sample data


1 10
2 20
3 18
4 16
5 11
6 25

Inferential statistics can now be used to verify whether the dice is a fair or
not.

Descriptive and inferential statistics are interrelated. It is almost always nec-


essary to use methods of descriptive statistics to organize and summarize the
information obtained from a sample before methods of inferential statistics
can be used to make more thorough analysis of the subject under investi-
gation. Furthermore, the preliminary descriptive analysis of a sample often
reveals features that lead to the choice of the appropriate inferential method
to be later used.

Sometimes it is possible to collect the data from the whole population. In


that case it is possible to perform a descriptive study on the population as
well as usually on the sample. Only when an inference is made about the
population based on information obtained from the sample does the study
become inferential.

1.4 Parameters and Statistics

Usually the features of the population under investigation can be summarized


by numerical parameters. Hence the research problem usually becomes as on
investigation of the values of parameters. These population parameters are
unknown and sample statistics are used to make inference about them. That
is, a statistic describes a characteristic of the sample which can then be used
to make inference about unknown parameters.
7

Definition 1.8 (Parameters and Statistics). A parameter is an unknown


numerical summary of the population. A statistic is a known numerical sum-
mary of the sample which can be used to make inference about parameters.
(Agresti & Finlay, 1997)

So the inference about some specific unknown parameter is based on a statis-


tic. We use known sample statistics in making inferences about unknown
population parameters. The primary focus of most research studies is the pa-
rameters of the population, not statistics calculated for the particular sample
selected. The sample and statistics describing it are important only insofar
as they provide information about the unknown parameters.

Example 1.5 (Parameters and Statistics). Consider the research problem of


finding out what percentage of 18-30 year-olds are going to movies at least
once a month.

• Parameter: The proportion p of 18-30 year-olds going to movies at least


once a month.

• Statistic: The proportion p̂ of 18-30 year-olds going to movies at least


once a month calculated from the sample of 18-30 year-olds.

1.5 Statistical data analysis

The goal of statistics is to gain understanding from data. Any data analysis
should contain following steps:
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Begin

Formulate the research problem

Define population and sample

Collect the data

Do descriptive data analysis

Use appropriate statistical methods to solve the research problem

Report the results

End

To conclude this section, we can note that the major objective of statistics
is to make inferences about population from an analysis of information con-
tained in sample data. This includes assessments of the extent of uncertainty
involved in these inferences.
9

2 Variables and organization of the data


[Weiss (1999), Anderson & Sclove (1974) and Freund (2001)]

2.1 Variables

A characteristic that varies from one person or thing to another is called a


variable, i.e, a variable is any characteristic that varies from one individual
member of the population to another. Examples of variables for humans are
height, weight, number of siblings, sex, marital status, and eye color. The
first three of these variables yield numerical information (yield numerical
measurements) and are examples of quantitative (or numerical) vari-
ables, last three yield non-numerical information (yield non-numerical mea-
surements) and are examples of qualitative (or categorical) variables.

Quantitative variables can be classified as either discrete or continuous.

Discrete variables. Some variables, such as the numbers of children in fam-


ily, the numbers of car accident on the certain road on different days, or
the numbers of students taking basics of statistics course are the results of
counting and thus these are discrete variables. Typically, a discrete variable
is a variable whose possible values are some or all of the ordinary counting
numbers like 0, 1, 2, 3, . . . . As a definition, we can say that a variable is dis-
crete if it has only a countable number of distinct possible values. That is,
a variable is is discrete if it can assume only a finite numbers of values or as
many values as there are integers.

Continuous variables. Quantities such as length, weight, or temperature can


in principle be measured arbitrarily accurately. There is no indivible unit.
Weight may be measured to the nearest gram, but it could be measured more
accurately, say to the tenth of a gram. Such a variable, called continuous, is
intrinsically different from a discrete variable.

2.1.1 Scales

Scales for Qualitative Variables. Besides being classified as either qualitative


or quantitative, variables can be described according to the scale on which
they are defined. The scale of the variable gives certain structure to the
variable and also defines the meaning of the variable.

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