Chapter-1: Definition Statistics

Chapter-1
1. INTRODUCTION
Definition Statistics
Definition: Statistics is the sciences of conducting studies to collect, organize, present, analyze, interpret and draw
conclusions from the data. In general, statistics can be defined into two senses.
i. In singular sense: It is defined as the science that deals with the methods of collection, organization,
presentation, analyzation and interpretation of the results to make sound decision about population
parameter.
ii. In plural sense: It is defined as a set (aggregate) of numerical data or quantitative aspects of facts.
Classification of Statistics
 Statistics can be classified into two broad categories based on how data are used.
i. Descriptive Statistics: It is a part of statistics, which can be used to organize and summarize masses of
data.
The frequency distribution, measure of central tendencies such as mean and median, measure of non-
central location measure of variation such as range and standard deviation belong to this category of
statistics.
Example 1: Consider the national census conducted by the U.S. government every 10 years. Results of
this census give you the average age, income, and other characteristics of the U.S. population. To obtain
this information, the Census Bureau must have some means to collect relevant data. Once data are
collected, the bureau must organize and summarize them. Finally, the bureau needs a means of
presenting the data in some meaningful form, such as charts, graphs, or tables. The second area of
statistics is called inferential statistics
ii. Inferential Statistics: It is a major part of statistics, which consists of generalizing from samples to
populations, performing estimations and hypothesis tests, determining relationships among variables,
and making decisions, conclusions and forecasting about the population based on sample results.
Example 1: Drinking decaffeinated coffee can raise cholesterol levels by 7%.

Example 2: For example, a researcher may wish to know if a new drug will reduce the number of heart
attacks in men over 70 years of age. For this study, two groups of men over 70 would be selected. One
group would be given the drug, and the other would be given a placebo (a substance with no medical
benefits or harm). Later, the number of heart attacks occurring in each group of men would be counted, a
statistical test would be run, and a decision would be made about the effectiveness of the drug.
Stages in Statistical Investigation

According to the definition of statistics (in singular sense), there are 5 stages in statistical investigation.
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i. Collection of Data:
It is a process of obtaining data using data collection methods.
ii. Organization of Data: This includes
 Editing: measurement of how important it is
 Classification: consider similarity and differences
 Tabulation: organization of data in row and column form.
iii. Presentation of Data: It is a process of showing our data in understandable way.
Example: charts or diagrams, graphs and tables.
iv. Analysis of Data: It is a process of extracting a useful characteristics associated with data and
sophisticated mathematical model is used to determine the relationship between two variables.
v. Interpretation of Data (Inference): It is a process of making interpretations or conclusions from
sample data for the totality of the population.
 It needs professionals in statistics
 Parameters needs to be estimated and interpreted
 It needs analytical skill
Definition of Some Basic Terms

A variable: is a characteristic or attribute that can assume different values.
Data: Are any recordable interrelated observations.
Population: is the totality of all individuals of the phenomena under study.
Sample: It is a part of population selected in statistical manner to study the population.
Parameter: It is statistical value, which refers to the population characteristics.
Or it is a result obtained from the population.
Statistic: It is statistical value, which refers to the sample characteristics.
or it is a result obtained from the sample.
Census: It is a process of studying a population at large.
Example: A researcher wants to study the academic performance of fist year student in MTU. But
for several constraints, he or she cannot enumerate the whole students. So he or she took randomly
500 students and obtained the average GPA to be 2.58. Where:
a. Population: All MTU students

b. Sample 500 students
c. Statistic:GPA of 2.5
Uses of Statistics
a. It condenses and summarizes mass of data into a few presentable, understandable and precise
figures.
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b. It facilitates comparison of data.
c. It helps in predicting future trends.
d. It helps in formulating policies.
e. It represents the facts in the form of numerical data.
Applications of Statistics
 Statistics can be applied in almost all fields of study. Some of these are:
Limitations of Statistics
 It is not suited to the study of qualitative phenomena.

 It’s results are true on the average. (It does not show the exact fact) like law
of physics.
 It deals with a set (aggregate) of individuals not a single individual.
 It can be easily misused.
 Statistical interpretations require a high degree of skill and understanding of
the subject.
Types of Variables and Level of Measurements

Types of variables: There are two types of variables.
i. Qualitative (Categorical) Variables: are variables that can be placed into distinct
category according to some characteristics. They are not numeric. They cannot be
counted or measured. Example: Gender, Religion, Color, Political affiliation,
Geographical region, Residence, Blood type, Departments and etc
ii. Quantitative Variables: are variables which are numerical in nature and can be
measured and counted.
 Example: height, weight, no of students, GPA, volume, area, etc.
Quantitative variables can also divide into discrete and continuous variables.
a) Discrete variables: are variables whose values are determined by counting.
Example:
 No of students in the class.
 Number of children in house holds
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 Number of cattle in herd
 Integer numbers
 No of students in the class.
b) Continuous Variables: are variables whose values are determined by measuring rather
than counting.
Example:
 Height of a person
 Volume of water
 Area of lands in hectare
 length of snake in meter
Exercise: Which variables are discrete or continuous?

a. The no of correct answers on true false test.
b. The duration of effectiveness of a pain medication.
c. The weight of Sunday newspapers.
Measurement Scales (Levels)

 There are 4 types of measurement scales. These are:
i. Nominal Scale
ii. Interval Scale
iii. Ordinal Scale
iv. Ratio Scale
i. Nominal Scale: When the possible categories of a variable have no a natural order then
the measurement is called nominal scale and we cannot apply any mathematical
operations and inequalities.
Example:
 Blood type (A, B, AB, and O)

 Sex of individual (F, M)
 Academic position (BSc, MSc, PhD, Professor)
 Economic status (poor Medium, Rich)
 Rate of grade (F, D, C, B, A)
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ii. Ordinal Scale: When the possible categories of a variable have a natural order then the
measurement is called ordinal scale. We can apply any mathematical inequalities but we
cannot apply any mathematical operations.
Example:
 Academic position (BSc, MSc, PhD, Professor)
 Economic status (poor Medium, Rich)
 Rate of grade (F, D, C, B, A)
iii. Interval Scale: It is a scale with arbitrary zero point and zero does not show a total absence of the
quantity being measured. We can apply any mathematical inequalities, addition and subtraction;
however, we cannot form multiplication and division.
Example: The temperature of a certain area may be 00𝐶 . But this does not mean
that there is no heat at all. It simply indicates that it is too cool. The temperature
of a certain areas may be 630𝐹 , 680𝐹 , 1100𝐹 , 1260𝐹 & 1310𝐹 .
𝑤𝑒 𝑐𝑎𝑛 𝑠𝑎𝑦 𝑡ℎ𝑎𝑡 680𝐹 > 630𝐹 => 680𝐹 𝑖𝑠 𝑤𝑎𝑟𝑚𝑒𝑟 𝑡ℎ𝑎𝑛 630𝐹 .
→ 680𝐹 − 630𝐹 = 1310𝐹 − 1260𝐹 =>

𝑠𝑖𝑛𝑐𝑒 𝑒𝑞𝑢𝑎𝑙 𝑡𝑒𝑚𝑝𝑟𝑎𝑡𝑢𝑟𝑒 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒𝑠 𝑎𝑟𝑒 𝑒𝑞𝑢𝑎𝑙. But we cannot say that 1260𝐹 is twice as hot as
126
630𝐹 . 𝐸𝑣𝑒𝑛𝑡ℎ𝑜𝑔ℎ = 2.
63
 To show this changes the scale to degree Celsius.

5 5
1260𝐹 => 9
( 1260𝐹 − 32) = 52.20𝐶 and also 630𝐹 => 9
( 630𝐹 − 32) = 17.20𝐶
=> 52.20𝐶 𝑖𝑠 𝑚𝑜𝑟𝑒 𝑡ℎ𝑎𝑛 3 𝑡𝑖𝑚𝑒𝑠 17.20𝐶
iv. Ratio Scale: It is a scale with true zero point and zero shows a total absence of the
quantity being measured. We can apply any mathematical operation and inequalities.
Example: weight 𝑥 = 40𝑘𝑔, 𝑦 = 80𝑘𝑔. => 𝑦 𝑖𝑠 𝑡𝑤𝑖𝑐𝑒 ℎ𝑒𝑎𝑣𝑦 𝑎𝑠 𝑥.

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Chapter-1

Example 1: Drinking decaffeinated coffee can raise cholesterol levels by 7%.

Stages in Statistical Investigation

Example: charts or diagrams, graphs and tables.

Definition of Some Basic Terms

a. Population: All MTU students

 It is not suited to the study of qualitative phenomena.

Types of Variables and Level of Measurements

Exercise: Which variables are discrete or continuous?

Measurement Scales (Levels)

 Blood type (A, B, AB, and O)

→ 680𝐹 − 630𝐹 = 1310𝐹 − 1260𝐹 =>

 To show this changes the scale to degree Celsius.

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