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Statistics - Basic Concepts

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Statistics - Basic Concepts

Uploaded by

Zahra Naheed
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Introduction To Statistics

Meaning of Statistics
Individual takes statistics simply “as a science of
collecting numbers”
Statistics is the science of collecting, analysing,
presenting, and interpreting data, as well as of
making decisions based on such analyses.
 Statistical analysis – used to manipulate summarize,
and investigate data, so that useful decision-making
information results.
Application of Statistics
Statistics covers almost every sphere of human life.
Some examples of different fields in which statistics is
applied.
1. State Management
Statistics are so important for the government of country
that it is a biggest collector and user of statistical data.
2. Pure Sciences
Statistics has its importance in pure sciences like Physics,
Chemistry, Biology etc. The analysis of experimental
results and the test of their significance can be made by
statistical method.
3. Mathematical Science
Statistics is mathematical in nature. The techniques of pure
mathematics are used in statistics like differentiation,
integration, algebra, trigonometry etc. In this way some way
some basic statistical methods are used in mathematics.
4. Psychology, Education and Sociology
Statistics play an important role in the social science field.
5. Business
Statistics has proved its important role in the field of
business. For decision making it provides the quantitative
bases in all aspects of business operation.
6. Banks & Insurance Companies
Banks and insurance companies use statistics for number of
purposes.
7. Economics
Statistics proved its immense use in
economic and economic planning.
The economic laws are used and
studied with the help of statistics
techniques.
8.Research
Statistics is the backbone of research
work.
Types of statistics
Descriptive statistics – Methods of
organizing, summarizing, and presenting
data in an informative way

Descriptive Statistics consists of


methods for organizing, displaying, and
describing data by using tables, graphs,
and summary measures.
Case Study 1-1 How Much Did Companies Spend
on Ads in 2011?

Prem Mann, Introductory Statistics, 8/E


Copyright © 2013 John Wiley & Sons. All rights reserved.
Case Study 1-2 How Women Rate Their Lives

Prem Mann, Introductory Statistics, 8/E


Copyright © 2013 John Wiley & Sons. All rights reserved.
Inferential statistics – The methods
used to determine something about a
population on the basis of a sample

Inferential Statistics consists of


methods that use sample results to
help make decisions or predictions
about a population.
Inferential Statistics

Estimation
e.g., Estimate the population
mean weight using the
sample mean weight
Hypothesis testing
e.g., Test the claim that the
population mean weight is 70
kg
Inference is the process of drawing conclusions or
making decisions about a population based on
sample results
Population Versus Sample
Definition
A population consists of all elements – individuals, items, or objects – whose
characteristics are being studied. The population that is being studied is also called the
target population.
Sample:
A portion of the population selected for study is referred to as a sample.
Census:
A survey that includes every member of the population is called a census. The technique
of collecting information from a portion of the population is called a sample survey.
Basic Terms
Definition
An element or member of a sample or
population is a specific subject or object (for
example, a person, firm, item, state, or country)
about which the information is collected.
A variable is a characteristic under study that
assumes different values for different elements.
In contrast to a variable, the value of a
constant is fixed.
The value of a variable for an
element is called an observation
or measurement.
A data set is a collection of
observations on one or more
variables.
Statistical data
 The collection of data that are relevant to the problem being
studied is commonly the most difficult, expensive, and time-
consuming part of the entire research project.
 Statistical data are usually obtained by counting or measuring
items.
 Primary data are collected specifically for the analysis desired
 Collection of primary data
i. Direct personal observations
ii. Collection through Questionnaires
iii. Survey
 Secondary data have already been compiled and are available for
statistical analysis
 Sources of Secondary data
i. Published Sources------- Books, Journals, Newspapers etc.
ii. Unpublished Source
Types of variable
Quantitative Variables
Discrete Variables
Continuous Variables

Qualitative or Categorical Variables


Quantitative Variables
Definition
A variable that can be measured numerically is
called a quantitative variable. The data collected on
a quantitative variable are called quantitative data.
Quantitative Variables: Discrete
Definition
A variable whose values are countable is called a
discrete variable. In other words, a discrete variable
can assume only certain values with no intermediate
values.
Quantitative Variables: Continuous
Definition
A variable that can assume any numerical value over a
certain interval or intervals is called a continuous
variable.
Qualitative or Categorical Variables
Definition
A variable that cannot assume a numerical value but
can be classified into two or more nonnumeric
categories is called a qualitative or categorical
variable. The data collected on such a variable are
called qualitative data.
Qualitative data
Qualitative data are generally described by words or
letters. They are not as widely used as quantitative data
because many numerical techniques do not apply to the
qualitative data. For example, it does not make sense to
find an average hair color or blood type.
Qualitative data can be separated into two subgroups:
 dichotomic (if it takes the form of a word with two options
(gender - male or female)
 polynomic (if it takes the form of a word with more than
two options (education - primary school, secondary school
and university).
Types of variables
Variables

Qualitative Quantitative

Dichotomic Polynomic Discrete Continuous

Children in family, Amount of income


Gender, marital Brand of Pc, hair
Strokes on a golf tax paid, weight of a
status color
hole student
Measurement of Scales
Nominal Scale
Ordinal Scale
Interval Scale
Ratio Scale
Frequency Distribution
The arrangements of data according to the values of a
variable is called a ‘Distribution’, while the number
of occurrences is called ‘frequency’
Regular Frequency Distribution
Grouped Frequency Distribution
Regular Frequency Distribution
When a frequency distribution table lists all of the
individual categories (X values).
Grouped Frequency Distribution
Sometimes, however, a set of scores covers a wide
range of values. In these situations, a list of all the X
values would be quite long - too long to be a “simple”
presentation of the data.
To remedy this situation, a grouped frequency
distribution table is used.
Ingredients of a Frequency Distribution
i. Tally marks ii. Range
iii. Class Interval iv. Class Limits
v. Class boundary vi. Class Marks (Mid Point)
i. Tally marks: Data may entered in form of vertical dashed line in various
classes.
ii. Range: The difference between the smallest and largest number is called
Range. R= Xm – X0
iii. Class Interval : Find the appropriate number of class
c = √n
Find the width of class or class size or class interval
h = Range/No. of classes (R/c)
iv. Class Limit: The smallest and largest value that can fall in a given class.
v. Class boundary: Take the difference between upper class limit of first
class and the lower class limit of second class then divided the answer by 2.
C.B = (L.C.L of 2nd class - U.C.L of 1st class)/2
 Now add the answer to upper class limit and subtract it from
lower class limit, that will give us class boundary.
 v. Class Mark (Mid Point): The mid point between the upper
and lower class boundaries.
Mid point = L.C.L + U.C.L/2
 Cumulative Frequency Distribution
A frequency distribution obtained by adding the frequencies for
each class to frequency to proceeding class and is denoted by
C.F or F.
 Relative Cumulative Frequency (R.C.F)
RCF = Cumulative Frequency of a class x 100
Total Frequency (∑f)
Example: The following scores represent the final examination
grade for an elementary Statistics course. Set up a frequency
distribution.

23 60 79 32 57 74 52 70 82 36
80 77 81 95 41 65 92 85 55 76
52 10 64 75 78 25 80 98 81 67
41 71 83 54 64 72 88 62 74 43
60 78 89 76 84 48 84 90 15 79
34 67 14 82 69 74 63 80 85 61
Graphical Representation
A visual representation of statistical data in form of
points, lines, areas, geometrical forms and symbols is
called Graphical Representation. A large number of
diagrams, pictures and graphs are used to represent the
statistical data.
1. Diagrams
2. Graphs
1. Diagrams:
Diagrammatic representation is best suited for data
splitting into different categories.
Bar Chart
a. Simple Bar Chart
b. Multiple Bar Chart
c. Component Bar Chart
Pie Diagram
2. Graphs
Graphs are used to represent a statistical series spread
over a period of time or frequency distribution.
Histogram
 Frequency Polygon
 Cumulative frequency polygon or Ogive
 Frequency Curve
Question??????

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