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Basic Statistics (TIL.

004), Fall 2001


Seppo Pynn
onen
University of Vaasa, Department of
Mathematics and Statistics

Home page:
http://www.uwasa./sjp/Teaching/Bs/Lectures/BasicStatistics.html

Lecture

c Seppo Pynn
handouts.
onen. 2001{2002

Contents
1 Introduction
2 Descriptive statistics
2.1 Displaying data
2.2 Measures of location
2.3 Measures of variability
2.4 Measures of dependency
3 Probability
4 Random variables
5 Normal distribution
6 Introduction to Statistical inference
6.1 Sample and sampling distribution
6.2 Estimation
6.3 Hypothesis testing
7 Basics of correlation and regression analysis

1. Introduction
One way to characterize statistics is that:
Statistics is science for developing methods
to derive eectively information from numerical data. In short Statistics is a science of
information.
Statistical analysis usually involves an attempt
to generalize from the data (make inference
on the basis of the data).
Data can be numerical or qualitative. It can
be in the form of time series or cross sectional.
Time series consist of a sequence of observations collected from the same object (rm,
human being, country, etc.) at adjacent time
points.
Cross sectional data consist of data collected
from several object at certain time point.
3

Example. Daily returns for the period July


1, 1987 to September 7, 2001 of the general index HEX of Helsinki Stock Exchange
(HSE) is an example of time series. The last
prices of the series for August 1, 2001 to
September 7, 2001 look as follows
Hex Closing Index and index returns [Aug 1, 2001-- Sepember 7, 2001]
Date
1-Aug-01
2-Aug-01
3-Aug-01
6-Aug-01
7-Aug-01
8-Aug-01
9-Aug-01
10-Aug-01
13-Aug-01
14-Aug-01
15-Aug-01
16-Aug-01
17-Aug-01
20-Aug-01
22-Aug-01
23-Aug-01
24-Aug-01
27-Aug-01
28-Aug-01
29-Aug-01
30-Aug-01
31-Aug-01
3-Sep-01
4-Sep-01
5-Sep-01
6-Sep-01
7-Sep-01

Close
7904.9
8004.2
7948.5
7892.9
7829.9
7553.4
7224.2
7146.4
7219.7
7246.9
7065.4
6925.0
6616.0
6618.8
6753.4
6743.3
6886.7
6779.2
6675.2
6489.8
6127.8
6261.7
6268.6
6342.1
5964.9
5755.6
5727.1

Return
-1.0689
1.2479
-0.6979
-0.7017
-0.8018
-3.5949
-4.4556
-1.0838
1.0203
0.3771
-2.5371
-2.0077
-4.5646
0.0432
2.0127
-0.1498
2.1048
-1.5731
-1.5461
-2.8175
-5.7396
2.1613
0.1113
1.1647
-6.1308
-3.5729
-0.4957

Full data series can be found here.

Example. Daily price changes on September


7, 2001 from the shares quoted on HSE main
list is an example of cross sectional data.
Start of the list looks as follows
Helsinki Stock Exchange September 7, 2001 (Prices are in Euros)
Share
Bid
Ask Close Change(%) Volume (EUR)
Alandsbanken A
16
16.45
16.4
0.00
0
landsbanken B
15.92
16
16
0.00
0
CapMan Oyj B
1.85
1.9
1.9
-0.52
13,480.00
Conventum Oyj
1.51
1.72
1.5
0.00
0
Mandatum Pankki B
10.33
0
10.33
0.00
5,268.30
Nordea AB FDR
6.28
6.31
6.28
-2.64 2,673,184.47
OKO A
12.55
12.65
12.55
-1.88
126,008.80
Sampo A
9.2
9.29
9.2
-2.65 19,203,226.87
Sampo A/B-opt 98
11.9
12.94
12
-4.00
2,712.50
Pohjola A
19.1
20
19.5
-4.88
20,377.50
Pohjola B
19.5
20
20
-4.72 1,561,127.71
Citycon Oyj
0.94
0.96
0.94
-1.05
19,050.00

The full list can be found here.