INTRODUCTION TO STATISTICS IN

RELATION TO M&E.

GRADIUS,GODFREY

Course Instructor
 Statistics
 Statistics – Statistics, like many words
have different meaning in different context.
Some people regard statistics as data, facts
or measurements while others believe it to
be the study of figures.
- There are other groups of people who
consider it as analysis of figures for
forecasting or drawing inferences.
 Statistics
 Besides this, the representation of facts in the
form of diagrams, a graph or maps is also
supposed to be statistics. Processing, analysis
and application of quantitative facts is
regarded as statistics.
 Statistics are numerical statements of facts in
any department of enquiry placed in relation
to each other.
 Statistics
 “Statistics refers to the body of technique or
methodology, which has been developed for
the collection, presentation and analysis of
quantitative data and for the use of such data
in decision making.” —Ncttor and Washerman
 Types of statistics
 Types of statistics: 

 Descriptive statistics- uses the data to provide

descriptions of the population, either through
numerical calculations or graphs or tables.

 Inferential statistics- makes inferences and

predictions about a population based on a sample
of data taken from the population in question.
 Types of Statistics
Statistics
The branch of mathematics that transforms data
into useful information for decision makers.

Descriptive Statistics Inferential Statistics

Collecting, summarizing, Drawing conclusions and/or

and describing sample making decisions
data concerning a population
based only on sample data
 Descriptive Statistics
 Collect data
 e.g., Survey, Questionnaire
 Present data
 e.g., Tables and graphs
 Characterize data
 e.g., Sample mean =
 X i
, standard deviation
n
 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 120
pounds
Drawing conclusions about a large group of individuals based on
a subset of the large group.
 Basic Terms…
POPULATION
A population consists of all the items or individuals about which you
want to draw a conclusion. Ex. All USC students
SAMPLE
A sample is the portion of a population selected for analysis.
Ex. 35 BSA students
PARAMETER
A parameter is a numerical measure that describes a characteristic
of a population. Ex. Average monthly income of Filipino Families
STATISTIC
A statistic is a numerical measure that describes a characteristic of
a sample. Ex. Average monthly income of 10 selected families
 Population vs. Sample
Population Sample

Measures used to describe the Measures computed from

population are called sample data are called
parameters statistics
 Examples
 Population: all members of a particular group
(e.g., freshmen students, males over the age of
21, schools in Cebu City).

 Sample: a subgroup of a population that is

usually assumed to be representative of the
population (e.g., 10 freshmen selected at
random, 25 males over the age of 21, 10
randomly selected schools in Cebu City).
 Quick Check
Identify the population and the sample. Determine
whether the numerical value is a parameter or
statistic.

1) A survey of 1353 Philippines’ households found

that 38% of the households own a
computer.
Population: Philippines’ households
Sample: 1353 Philippines’ households
Statistic: 38% - percentage of households with computer
 Quick Check
2) A recent survey of 2625 elementary school
children found that 28% of the children
could be classified obese.
Population: elementary school children
Sample: 2625 elementary school children
Statistic: 28% - percentage of obese
children
 Quick Check
3) The average weight of every sixth person
entering the mall within 3 hour period was 146
lb.
Population: people entering the mall within
the 3-hour period
Sample: every sixth person entering the
mall within 3-hour period
Statistic: 146 lbs – average weight
 Quick Check
4) The average cost for textbooks of USC
students this semester is P700.

Population: USC students

Parameter: P700 – average cost
 Quick Check
Determine whether the numerical value is a parameter
or a statistic (and explain):
1) A recent survey by the alumni of a major university
indicated that the average
salary of 10,000 of its 300,000 graduates was
125,000.
STASTISTIC
2) The average salary of all assembly-line employees
at a certain car manufacturer is
$33,000.
POPULATION
 Quick Check
Determine whether the numerical value is a
parameter or a statistic (and explain):
3) The average late fee for 360 credit card holders
was found to be $56.75. STASTISTIC

4) The average age of the students in a statistics

class is 17 years. STASTISTIC
5) The average monthly income of Filipino families
is P50,000.
POPULATION
 BASIC TERMS…

 An element or member of a sample or

population is a specific subject or object
 (e.g., a person, firm, item, state,

 or country) about which the information

 is collected.
 BASIC TERMS…
Variable - any characteristic that can vary
across individuals, groups, or objects.
Examples
 Weight

 Occupation

 Grade-point average

 Level of test anxiety

DATA - are the different values associated with

a variable. Ex. $10000, $5000 (Salary)
 BASIC TERMS…
 The value of a variable for an element is
called an observation or measurement.

 Example
If the variable is weight and Mortimer
weighs 147 lbs., then the value of the
variable for Mortimer is 147.
So 147 is an observation/measurement.
 BASIC TERMS cont.
 Definition
 A data set is a collection of observations or

values on one or more variables.

 Example:
 The math scores of 5 students: 12, 14, 16, 8,

20 is a data set.
 BASIC TERMS
Table 1. 2001 Sales of Seven U.S. Companies
2001 Sales Variable
Company (millions of dollars)
Wal-Mart Stores 217,799
IBM 85,866
An element or An observation
a member General Motors 177,260 or measurement
Dell Computer 31,168 (data value)
Procter & Gamble 39,262
JC Penney 32,004
Home Depot 53,553
Statistics and M&E
 Why do we use Statistics in M&E?
 When you can measure what you are
speaking about and express it in numbers,
you know something about it; but when you
cannot measure it, then you cannot express it
in numbers, your knowledge is of the meagre
and unsatisfactory kind.- ( Lord Kelvin, British
Physist)

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 Why Collect Data?
 A marketing research analyst needs to assess the
effectiveness of a new television advertisement.
 A pharmaceutical manufacturer needs to determine
whether a new drug is more effective than those
currently in use.
 An operations manager wants to monitor a
manufacturing process to find out whether the quality of
the product being manufactured is conforming to
company standards.
 An auditor wants to review the financial transactions of a
company in order to determine whether the company is
in compliance with generally accepted accounting
principles.
 Sources of Data
Primary Sources: The data collector is the one using the
data for analysis and/or is involved in the data collection
process
 Data from a political survey

 Data collected from an experiment

 Observed data

Secondary Sources: The person performing data analysis is

not the data collector
 Analyzing census data (from NSO)

 Examining data from print journals or data published on

the internet.
 Types of Variables
 Categorical (qualitative) variables have
values (data) that can only be placed into
categories, such as “yes” and “no.”
Ex. Course (area of specialization)
 Numerical (quantitative) variables have
values (data) that represent quantities.
Ex. no. of subjects enrolled
 Types of Data
Data

Categorical Numerical
Examples:
 Marital Status
 Political Party Discrete Continuous
 Eye Color
(Defined categories) Examples: Examples:
 Number of Children  Weight
 Defects per hour  Voltage
(Counted items) (Measured
- whole numbers only characteristics)
- can take decimal values
28
 Levels of Measurement
 A nominal scale classifies data into distinct categories
in which no ranking is implied.

Categorical Variables Categories

Personal Computer Yes / No

Ownership

Type of Stocks Growth, Value, Mutual,

Owned Balance, Equity. other

Internet Provider Globe/PLDT/

SUN/SMART/SKY CABLE
 Levels of Measurement
 An ordinal scale classifies data into distinct
categories in which ranking is implied

Categorical Variable Ordered Categories

Student class designation Freshman, Sophomore, Junior, Senior

Product satisfaction Satisfied, Neutral, Unsatisfied

Faculty rank Professor, Associate Professor, Assistant

Professor, Instructor
Standard & Poor’s bond ratings AAA, AA, A, BBB, BB, B, CCC, CC, C,
DDD, DD, D
Student Grades A, B, C, D, F
 Levels of Measurement
 An interval scale is an ordered scale in which
the difference between measurements is a
meaningful quantity but the measurements do not
have a true zero point.
 The data can have the values subtracted, but
multiplication/division is not meaningful.
Example
0°F does not represent the complete
absence of heat, 0°C means freezing point, 0 test
score does not mean absence of learning
Interval and Ratio Scales
 Levels of Measurement
 A ratio scale is an ordered scale in which the
difference between the measurements is a
meaningful quantity and the measurements
have a true zero point.
 The data can be both subtracted and
divided meaningfully.
 has all of the above characteristics (nominal,
ordinal), plus a true zero point
 Often very difficult to identify in practice if a
true zero point exists
 EXAMPLE
 Height
 Age
 Weight– 0lbs represents a true lack of weight
 Salaries - we can say that a salary is $150,000 is
$100,000 more than a salary of $50,000. It is
also 3 times as much.
 Speed
 Metric measures

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 Fig 1.3 Types of Variables
Variable

Qualitative Quantitative

Discrete/
Categorical
Continuous

Nominal Ordinal Interval Ratio

Special case: ID numbers. SSS, house numbers, zip codes – quantitative (nominal)
 Quick Check…
Determine whether the data are qualitative or
quantitative:
a) the colors of automobiles on a used car lot
b) the numbers on the shirts of a girl’s soccer team
(used for identification)
c) the number of seats in a movie theater
d) a list of house numbers on your street
e) the ages of a sample of 350 employees of a large
hospital
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 Quick Check…
Identify the data set’s level of measurement
(nominal, ordinal, interval, ratio):
a) hair color of women on a high school tennis team
b) ID numbers
c) ages of students in a statistics class
d) temperatures of 22 selected refrigerators
e) number of milligrams of tar in 28 cigarettes
f) number of pages in your statistics book
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 Quick Check…
Identify the data set’s level of measurement
(nominal, ordinal, interval, ratio):
g) marital status of the faculty at the local community
college
h) list of 1247 social security numbers
i) the ratings of a movie ranging from “poor” to “good”
to “excellent”
j) the final grades (A+, A, A – , B+, B, B– , C) for students
in a chemistry class
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 Quick Check…
Identify the data set’s level of measurement
(nominal, ordinal, interval, ratio):
k) the annual salaries for all teachers in Cebu
l) list of zip codes in the Philippines
m) the nationalities listed in a recent survey
n) the amount of fat (in grams) in 44 cookies
o) top-selling vehicles (top 10 based on sales)

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 SUMMATION NOTATION
 Example 1-1
 Annual salaries (in thousands of dollars) of
four workers are 75, 42, 125, and 61. Find
a) ∑x
b) (∑x)²
c) ∑x²
 Solution 1-1
a) ∑x = x1 + x2 + x3 + x4
= 75 + 42 + 125 + 61
= 303
= 303,000
b) (∑x)² = (303,000)² = 91,809,000,000
c) ∑x² = (75)² + (42)² + (125)² + (61)²
= 5625 + 1764 + 15,625 + 3721
= 26,735,000,000
 Example 1-2
The following table lists four pairs of m and f values:
m 12 15 20 30

f 5 9 10 16

Compute the following:

a) Σm
b) Σf²
c) Σmf
d) Σm²f
 Solution 2-1
Table 1.4
m f f² mf m²f
12 x 12 x 5 = 720
12 5 5 x 5 = 25 12 x 5 = 60
15 x 15 x 9 =
15 9 9 x 9 = 81 15 x 9 = 135
2025
20 10 10 x 10 = 100 20 x 10 = 200
20 x 20 x 10 = 4000
30 16 16 x 16 = 256 30 x 16 = 480
30 x 30 x 16 = 14,400
∑m = 77 ∑f = 40 ∑f² = 462 ∑mf = 875 ∑m²f = 21,145
Ways of obtaining data
1. Sampling – We survey part of the
population.

2. Census – We survey the entire

population.
3. Observational study – We observe the
subjects but we do not attempt to
modify the subjects being studied.
(Immersion)

Example:
We observe how many drivers speed
on the campus.
4. Experiment – we apply some sort of
treatment and observe the effects.

Example:
We give 50 subjects a drug to reduce
blood pressure and observe whether
or not it works.
5. Simulation – used to gather data that are not
countable such as level of nitrogen content in the
air

Example:
An engineering teacher wants to determine
whether or not the recent haze from Malaysia is
hazardous