Ahsan Stats
Ahsan Stats
Ahsan Stats
Reg: 20-NTU-TE-0043
Semester: Fifth
USES OF STATISTICS:
Statistics are used to conduct research, evaluate outcomes, develop critical
thinking, and make informed decisions. Statistics can be used to inquire almost
any field of study to investigate why things happen, when they occur, and
whether its reoccurrence is predictable.
USES OF STATICTICS IN OUR DAILY LIFE:
Individuals use statistics to make decisions in financial planning and budgeting,
while organizations are guided by statistics in financial policy decisions. Banks
use statistics to lower risk in lending operations, analyze activity in the financial
market, and predict the impact of economic crises.
TYPES OF STATISTICS:
Descriptive Statistics
In this type of statistics, the data is summarised through the given observations.
The summarisation is one from a sample of population using parameters such as
the mean or standard deviation.
Descriptive statistics is a way to organise, represent and describe a collection of
data using tables, graphs, and summary measures. For example, the collection
of people in a city using the internet or using Television.
Descriptive statistics are also categorised into four different categories:
Measure of frequency
Measure of dispersion
Measure of central tendency
Measure of position
The frequency measurement displays the number of times a particular data
occurs. Range, Variance, Standard Deviation are measures of dispersion. It
identifies the spread of data. Central tendencies are the mean, median and mode
of the data. And the measure of position describes the percentile and quartile
ranks.
Inferential Statistics
This type of statistics is used to interpret the meaning of Descriptive statistics.
That means once the data has been collected, analysed and summarised then we
use these stats to describe the meaning of the collected data. Or we can say, it is
used to draw conclusions from the data that depends on random variations such
as observational errors, sampling variation, etc.
Inferential Statistics is a method that allows us to use information collected
from a sample to make decisions, predictions or inferences from a population. It
grants us permission to give statements that goes beyond the available data or
information. For example, deriving estimates from hypothetical research .
DATA
Data is a set of information, we need individuals that gives us information.Data
are individual pieces of factual information recorded and used for the purpose of
analysis. It is the raw information from which statistics are created. Statistics are
the results of data analysis - its interpretation and presentation.
Qualitative Data
Qualitative data is used to represent some characteristics or attributes of the
data. The facts and figures depicted by the qualitative data cannot be computed.
These properties reflect observable attributes. These are non-numerical in
nature. The qualitative data characteristics are exploratory on a larger end than
being conclusive in nature. For instance, data on attributes such as honesty,
loyalty, wisdom, and creativity for a set of persons defined can be considered as
qualitative data.
Examples:
Attitudes of people to a political system.
Music and art
Intelligence
Beauty of a person
Nominal Data
Nominal data is a sub-category belonging to one of the types of qualitative
information. Also known as the nominal scale, it is used to label the variables
without providing the numerical value for them. Nominal data attributes can’t
either be ordered or measured. The nominal data can be both qualitative and
quantitative in nature. For instance, some of the nominal data attributes are
letters, symbols or gender, etc.
The examination of the nominal data is based on the usage of the grouping
method. This method is based on the principle of the grouping of data into
different categories. This is followed by the calculation of the frequency or the
percentage of the data. The visualization of this data is done using the pie
charts.
Examples:
Gender (Women, Men)
Eye color (Blue, Green, Brown)
Hair color (Blonde, Brown, Brunette, Red, etc.)
Marital status (Married, Single)
Religion (Muslim, Hindu, Christian)
Ordinal Data
Ordinal data/variable is the specific type of data that follows a natural order.
The difference between the data values is not determined in the case of nominal
data. For instance, ordinal data variable is mostly found in surveys, economics,
questionnaires, and finance operations.
The examination of the nominal data is based on the usage of visualization
tools. The visualization of this data is done using the bar chart. The ordinal data
can be expressed in the form of tables which have each row corresponding to
the distinct category.
Examples:
Feedback is recorded in the form of ratings from 1-10.
Education level: elementary school, high school, college.
Economic status: low, medium, and high.
Letter grades: A, B, C, and etc.
Customer level of satisfaction: very satisfied, satisfied, neutral, dissatisfied,
very dissatisfied.
Quantitative Data
Quantitative data can be measured and is not just observable. The measurement
of data is numerically recorded and represented. Calculations and interpretations
can then be performed on the obtained results. Numerical data is indicated by
quantitative data. For instance, data can be recorded about how many users
found a product satisfactory in terms of the collected rating, and therefore, an
overall product review can be generated.
Examples:
Daily temperature
Price
Weights
Income
Discrete Data
Discrete data refers to the data values which can only attain certain specific
values. Discrete data can’t attain a range of values. Discrete data can be
represented using bar charts. For instance, ratings of a product made by the
users can only be in discrete numbers.
Examples:
The number of students in a class,
The number of chips in a bag,
The number of stars in the sky
Continuous Data
Continuous Data can contain values between a certain range that is within the
highest and lowest values. The corresponding difference between the highest
and lowest value of these intervals can be termed as the range of data.
Continuous data can be tabulated in what is called a frequency distribution. The
frequency distribution table can be computed for the range type of data. It can
also be depicted using histograms. For example, the heights of the students in
the class can be largely varying in nature, therefore, they can be divided into
ranges to summarise the data.
Examples:
Height and weight of a student,
Daily temperature recordings of a place
Wind speed measurement
Variables:
A variable is any characteristics, number, or quantity that can be measured or
counted. A variable may also be called a data item. Age, sex, business income
and expenses, country of birth, capital expenditure, class grades, eye colour and
vehicle type are examples of variables.
Types of variables
Quantitative:
A quantitative variable is a variable that reflects a notion of magnitude, that is,
if the values it can take are numbers. A quantitative variable represents thus a
measure and is numerical.
Quantitative variables are divided into two types: discrete and continuous. The
difference is explained in the following two sections.
Discrete:
Quantitative discrete variables are variables for which the values it can take
are countable and have a finite number of possibilities. The values are often (but
not always) integers. Here are some examples of discrete variables:
Even if it would take a long time to count the citizens of a large country, it is
still technically doable. Moreover, for all examples, the number of possibilities
is finite. Whatever the number of children in a family, it will never be 3.58 or
7.912 so the number of possibilities is a finite number and thus countable.
Continuous:
On the other hand, quantitative continuous variables are variables for which
the values are not countable and have an infinite number of possibilities. For
example:
Age
Weight
Height
Qualitative:
In opposition to quantitative variables, qualitative variables (also referred as
categorical variables or factors in R) are variables that are not numerical and
which values fits into categories.
Nominal:
A qualitative nominal variable is a qualitative variable where no ordering is
possible or implied in the levels.
For example, the variable gender is nominal because there is no order in the
levels (no matter how many levels you consider for the gender—only two with
female/male, or more than two with female/male/ungendered/others, levels
are unordered). Eye color is another example of a nominal variable because
there is no order among blue, brown or green eyes.
two levels (e.g., do you smoke? Yes/No, or are you pregnant? Yes/No),
or
a large number of levels (what is your college major? Each major is a
level in that case).
Ordinal:
On the other hand, a qualitative ordinal variable is a qualitative variable with
an order implied in the levels. For instance, if the severity of road accidents
has been measured on a scale such as light, moderate and fatal accidents, this
variable is a qualitative ordinal variable because there is a clear order in the
levels.
Another good example is health, which can take values such as poor,
reasonable, good, or excellent. Again, there is a clear order in these levels so
health is in this case a qualitative ordinal variable.
Sample:
A sample is the specific group that you will collect data from. The size of the
sample is always less than the total size of the population.
Parameter
The information collected after the study of total population is called true value
and this true value is called parameter.
It’s remain constant and is denoted by Greek letters.
Statistic
Statistic value is a value which is collected after the study of sample.
It is denoted by English alphabets and it’s value vary from sample to sample
Parameter vs Statistic
A parameter is a number describing a whole population (e.g., population mean),
while a statistic is a number describing a sample (e.g., sample mean).