Introduction to Statistics

Definition of Statistics
 In its plural sense, statistics is a set of numerical data (e.g., vital statistics in a beauty contest, monthly sales of a
company, daily P-$ exchange rate).
 In its singular sense, Statistics is that branch of science which deals with the collection, organization, presentation,
analysis, and interpretation of data.

Types of Statistics
 Descriptive Statistics - methods concerned with the collection, description, and analysis of a set of data without
drawing conclusions or inferences about a larger set; the main concern is simply to describe the set of data such that
otherwise obscure information is brought out clearly conclusions apply only to the data on hand

 Inferential Statistics - methods concerned with making predictions or inferences about a larger set of data using only
the information gathered from a subset of this larger set; the main concern is not merely to describe but actually
predict and make inferences based on the information gathered; conclusions are applicable to a larger set of data
which the data on hand is only a subset

Descriptive Statistics vs. Inferential Statistics

Descriptive Inferential

 A bowler wants to find his bowling average for the  A bowler wants to estimate his chance of winning a
past 12 games. game based on his current season averages and the
averages of his opponents.
 A housewife wants to determine the average weekly  A housewife would like to predict based on last year’s
amount she spent on groceries in the past 3 grocery bills, the average weekly amount she will
months. spend on groceries for this year.
 A politician wants to know the exact number of  A politician would like to estimate, based on an opinion
votes he received in the last election. poll, his chance for winning in the upcoming election.

Exercises: Determine whether the following statements use the area of descriptive statistics or inferential statistics.
1. A manager would like to predict based on previous years’ sales, the sales performance of a company for the next five
years.
2. If the present trend continues, architects will construct more contemporary homes than colonials in the next five
years.
3. A teacher wishes to determine the percentage of students who passed the examination.
4. A basketball player wants to estimate his chance of winning the most valuable player (MVP) award based on his
current season average and the averages of the opponents.

Uses of Statistics
 In the biological and medical sciences, it can help researchers discover relationships worthy of further attention.

Example: A doctor can use Statistics to determine to what extent is an increase in blood pressure dependent upon age.

 In the social sciences, it can guide and help researchers support theories and models that cannot stand on rationale
alone.

Example: Empirical studies are using Statistics to obtain socio-economic profile of the middle class to form new socio-
political theories on classes as the existing theories apparently are no longer valid.

 In business, a company can use statistics to forecast sales, design products, and produce goods more efficiently.

Example: A pharmaceutical company can apply statistical procedures to find out if a new formula is indeed more
effective than the one being used. Results can help the company decide whether to market the new formula or not.

 In engineering, it can be used to test properties of various materials.

Example: A quality controller can use Statistics to estimate the average lifetime of the products produced by their
current equipment.

 In education, statistics can be used to assess students’ performance and correlate factors affecting teaching and
learning process to improve quality education.

Example: A teacher can correlate the factors affecting the academic performance of the students in Elementary Statistics
subject.

 In psychology, statistics is used to determine attitudinal patterns, the causes and effects of misbehavior.

 In research, statistics is used to validate or test a claim or inferences about a group of people, objects or series of
events.
Population and Sample
Definition.
A population is a collection of all the elements under consideration in a statistical study.

A sample is a part or subset of the population from which the information is collected.

Slovin’s Formula:

n=N/1+Ne2

Example: A manufacturer of kerosene heaters wants to determine if customers are satisfied with the performance of their
heaters. Toward this goal, 5,000 of his 200,000 customers are contacted and each is asked, “Are you satisfied with the
performance of the kerosene heater you purchased?” Identify the population and the sample for this situation.efinition.

A parameter is a numerical characteristic of the population.

A statistic is a numerical characteristic of the sample.

Example: In order to estimate the true proportion of students at a certain college who smoke cigarettes, the
administration polled a sample of 200 students and determined that the proportion of students from the sample who smoke
cigarettes is 0.12. Identify the parameter and the statistic.

Steps in a Statistical Inquiry

1. Define the problem.

2. Formulate the research design.
3. Collect the data.
4. Code and analyze the collected data.
5. Interpret the results.

Variables and Measurement

Definition. A variable is a characteristic or attribute of persons or objects which can assume different values or labels for
different persons or objects under consideration.

Definition. Measurement is the process of determining the value or label of a particular variable for a particular
experimental unit.

Definition. An experimental unit is the individual or object on which a variable is measured.

Types of Variables
1. Dependent –
2. Independent

Classification of Variables

1. Discrete vs Continuous

 Discrete variable – refers to variables that can be obtained through counting or enumerating.

Examples: number of students, number of books, and number of patients

 Continuous variable - a variable which can assume infinitely many values corresponding to a line interval

Examples: height, weight and temperature

2. Qualitative vs Quantitative

 Qualitative variable - a variable that yields categorical responses

Examples: religious affiliation, occupation, marital status

 Quantitative variable - a variable that takes on numerical values representing an amount or quantity

Examples: weight, height, and number of cars

Levels of Measurement

1. Nominal Level (or Classificatory Scale)

The nominal level is the weakest level of measurement where numbers or symbols are used simply for categorizing
subjects into different groups.
Examples:
Sex M-Male F-Female
Marital status 1-Single 2-Married 3-Widowed 4-Separated
2. Ordinal Level (or Ranking Scale)
The ordinal level of measurement contains the properties of the nominal level, and in addition, the numbers assigned
to categories of any variable may be ranked or ordered in some low-to-high-manner.
Examples:
Teaching ratings
1-poor 2- fair 3-good 4-excellent
Year level
1-1st yr 2 – 2nd yr
3 – 3rd yr 4 – 4th yr
3. Interval Level
The interval level is that which has the properties of the nominal and ordinal levels, and in addition, the distances
between any two numbers on the scale are of known sizes. An interval scale must have a common and constant unit
of measurement. Furthermore, the unit of measurement is arbitrary and there is no “true zero” point.
Examples:
Intellectual Quotient (IQ), Temperature (in Celsius)
4. Ratio Level
The ratio level of measurement contains all the properties of the interval level, and in addition, it has a “true zero”
point.
Examples:
Age (in years)
Number of correct answers in an exam
Classification of Data
1. Primary vs. Secondary
 Primary source - data measured by the researcher/agency that published it
 Secondary source - any republication of data by another agency
Example: The publications of the National Statistics Office are primary sources and all subsequent publications of
other agencies are secondary sources.
2. External vs. Internal
 Internal data - information that relates to the operations and functions of the organization collecting the data
 External data - information that relates to some activity outside the organization collecting the data
Example: The sales data of SM is internal data for SM but external data for any other organization such as
Robinson’s.

SAMPLING TECHNIQUES
Defn: Sampling – the process of selecting the subjects of the population to be included in the sample
Types of Sampling:
A. Probability sampling § each element of the population is given a chance of being included in the sample §
minimizes, if not eliminates, selection bias
1. Simple Random
• Each element of the population is given an equal chance of being included in the sample
• Foundation of all probability sampling procedures
• When to use: – The population is homogeneous
– A sampling frame is available
2. Systematic Random
• Selecting every kth element of the population
• When to use: – When the population is homogenous and there is no suspicion of a trend
or pattern in the frame or geographical layout
– A sampling frame is available
3. Stratified Random
• selecting random samples from mutually exclusive subpopulations, or strata, of the population.
• When to use: – When the population is heterogeneous but can
be subdivided into homogeneous subgroups or strata
– A sampling frame is available for each stratum
4.Cluster Random
• Selecting clusters of elements rather than individual elements
• When to use: – when "natural" groupings are evident in a
statistical population
– a sampling frame is not available
5. Multi-stage random sampling • Repeated cluster sampling

B. Non-probability sampling
§ not all elements of the population are given a chance of being included in the sample § prone to selection bias
1. Convenience / Voluntary /Haphazard/Accidental
• Sample elements are selected because they are available
2. Judgmental/Purposive
• The researcher selects the sample based on his judgment as to
who best fit the established criteria
3. Quota
• Selecting sample elements nonrandomly according to some
fixed quota
4. Snowball
• Especially useful when you are trying to reach populations that
are inaccessible or hard to find