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Chapter 1

# Chapter 1

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02/29/2012

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G O A L S
When you have completedthis chapter,you will beable to:
1Organize data into a fre-quency distribution.2Portray a frequency distribu-tion in a histogram,frequencypolygon,and cumulative fre-quency polygon.3Present data using suchgraphical techniques as linecharts,bar charts,and piecharts.
FPO
1

G O A L S
When you have completedthis chapter you will beable to:
1Understand why we studystatistics.2Explain what is meant by
descriptive statistics
and
inferential statistics.
3Distinguish between a
qualitative variable
and a
quantitative variable.
4Describe how a
discrete variable
is different from a
continuous variable.
5Distinguish among the
nominal, ordinal, interval,
and
ratio
levels of measurement.
What Is Statistics?
A poll solicits a large number of college undergraduates forinformation on the following variables:the name of their cell phoneprovider,the number of minutes used last month,and their satisfactionwith the service.What is the data scale for each of these threevariables? (See Exercise 10,Goal 5)

2
Chapter 1
Introduction
Why Study Statistics?
If you look through your university catalog, you will find that statistics is requiredfor many college programs. Why is this so? What are the differences in the sta-tistics courses taught in the Engineering College, the Psychology or SociologyDepartments in the Liberal Arts College, and the College of Business? The biggestdifference is the examples used. The course content is basically the same. In theCollege of Business we are interested in such things as profits, hours worked, andwages. Psychologists are interested in test scores, and engineers are interestedin how many units are manufactured on a particular machine. However, all threeare interested in what is a typical value and how much variation there is in thedata. There may also be a difference in the level of mathematics required. An engi-neering statistics course usually requires calculus. Statistics courses in collegesof business and education usually teach the course at a more applied level. You

What Is Statistics?
3
should be able to handle the mathematics in this text if you have completed highschool algebra.So why is statistics required in so many majors? The first reason is that numer-ical information is everywhere. Look in the newspapers
(USA Today),
news maga-zines
(Time, Newsweek, U.S. News and World Report),
(Busi- nessWeek, Forbes),
or general interest magazines
(People),
women’s magazines
or
Elle),
or sports magazines
(Sports Illustrated, ESPN TheMagazine),
and you will be bombarded with numerical information.Here are some examples:In 2006 the typical household income in the United States was \$48,201. Forhouseholds in the Northeast the typical income was \$52,057, \$47,836 in the Mid-west, \$43,884 in the South, and \$52,249 in the West. You can check the latestinformation by going tohttp://www.census.gov/prod/2007pubs/p60-233.pdf.In 2006 Boeing, Inc., an aircraft manufacturer, built 1,057 aircraft and in 2007they built 1,423. The table below summarizes the information by year and air-craft type.
Examples of why westudy statistics
More studentstake collegecoursesonline
20029.7%19.8%11.7%13.5%18.2%2003200420052006
USA TODAY Snapshot
Enrollment in onlinecollege courses keepsclimbing. Amongthe reasons:convenience forstudents with jobsand families tosupport.05/02/2008-Updated 12:40 AMET
By David Stuckey and Keith Carter, USA TodaySource: National Association for College Admission Counselling
Sales of Boeing AircraftAircraftYear737747767777787Total
20067387210771601,057200785025361433691,423
You can view the sales for the most recent periods by going to the Boeingwebsiteatwww.boeing.comand searching for “Orders and Deliveries.”
USA Today
(www.usatoday.com ) prints “Snapshots” that are the result of sur-veys conducted by various research organizations, foundations, and the federalgovernment. The following chart summarizes the increase in college coursestaken online. A second reason for taking a statistics course is that statistical techniques areused to make decisions that affect our daily lives. That is, they affect our personalwelfare. Here are a few examples:Insurance companies use statistical analysis to set rates for home, automobile,life, and health insurance. Tables are available showing estimates that a 20-year-old female has 60.25 years of life remaining, an 87-year-old woman 4.56 yearsremaining, and a 50-year-old man 27.85 years remaining. Life insurance premi-ums are established based on these estimates of life expectancy. These tables