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MT-330: Applied Probability and Statistics

Handout # 01

Statistics: The word statistics can be used as a plural sense and in a singular sense. In plural sense we use this word like statistics of prices, statistics of road accidents, statistics of educational institutions, etc. In all these examples the word statistics denotes a set of numerical data in the respective fields and most of the people usually use the word data instead of statistics. In singular sense the word statistics is defined as a discipline of science which deals with the collection, presentation, analysis and interpretation of numerical information. Definition: “It is the branch of science which deals with the collection, presentation, analysis and interpretation of numerical information”. Population: “Complete information of well defined group is called population” and the size of population is denoted by “N”. There are two types of population finite population and infinite population. A population containing a finite and countable number of individuals is called a finite population, e.g. All the students of school, heights of all students of a college, all the books in a library etc. A population containing an infinite number of elements is called an infinite population, e.g. all fish in a lake, all trees of a country, all points on a line etc. Sample: “A sample is a part or a subset of a population or a representative part of a population is called a sample”. The size of sample is denoted by “n” e.g. the selected statistics book from library, the small group of some selected students from a college, the selected group of a few patients from a hospital. Branch of statistics: Statistics as a subject can divide into two parts descriptive statistics and inferential statistics. Descriptive statistics: In descriptive statistics we simply collect, summarize, present, analyzed and interpret about data without make inferences about the population.

1 Syed Tauqeer Ahmed Hashmi

Dave. hair color (Black. Types of variables: Variables may be classified into quantitative and qualitative according to the form of the characteristic of interest. economics. Variables that are not qualitative are known as quantitative variables. where statistician tools are not applicable. Observation: In statistics. etc. and Yellow) is a qualitative variable. Qualitative variable: It is also known as categorical variable.g. statistical knowledge and communication skills to work on many challenging problems. Consciously or unconsciously statistics has entered in all branches of knowledge where a study of quantitative phenomenon is required. A variable is usually denoted by the capital letter X or Y. Brown. E. Variables: Any characteristic or quantity which varies individual to individual or object to object is called variables. There is hardly any field whether it be commerce. For instance. Gray. Statistics assists in summarizing the larger sets of data in a form that is easily understandable. industry. Christina. Red cars in a car park. medicine. as in male=1. 2 Syed Tauqeer Ahmed Hashmi . Becky. engineering. . basic sciences. statistician use quantitative abilities. favorite color. hobbies. Importance of Statistics: The world is becoming more and more quantitative many professions depend on numerical measurements to make decision in the face of uncertainty. a classification such as heads or tails or an answer to a question such as yes or no. . qualitative variables are variables with no natural sense of ordering.).MT-330: Applied Probability and Statistics Handout # 01 Inferential statistics: If the population is large or instead of population sample is given then we use inferential statistics to predict population information by the help of sample. Red. Qualitative variables can be coded to appear numeric but their numbers are meaningless. female=2. education. as is name (Adam. an observation often means any sort of numerically recording of information whether it is a physical measurement such as height or weight. biology. psychology. They are therefore measured on a nominal scale.

2} is still nominal. E. There are four common levels of measurement: Nominal Scale No ordering is implied. OR A quantitative variable is a variable that can be measured by a number. Good. Weight is a ratio scale.MT-330: Applied Probability and Statistics Handout # 01 Quantitative variable: Variables that have are measured on a numeric or quantitative scale. Interval Scales: Interval scales are numerical scales in which intervals have the same interpretation throughout. Christian. This is because each 10 degree interval has the same physical meaning (in terms of the kinetic energy. For instance. Ordinal. consider the Fahrenheit scale of temperature. {Female. for the scale: (Very Poor. Occasionally. The difference between 30 degrees and 40 degrees represents the same temperature difference as the difference between 80 degrees and 90 degrees. usually on a ratio scale. Muslim} have no natural ordering (except alphabetic). Average. Hindu. there is no set distance between scale values. Poor. Variables that are not quantitative are known as qualitative variables. A country’s population. Unlike ratio scales. You can assign numerical values to an ordinal scale: rating performance such as 1 for "Very Poor. interval and ratio scales are quantitative. or a car’s speeds are all quantitative variables. cars in a car park Levels of Measurement Measurement scales differ in their level of measurement. such that less and more can be measured and determined. Very Good) is an ordinal scale." etc. interval scales do not have a true zero point. the set {1. Male} and {Buddhist. if a variable was coded as Female=1. As an example. Male=2.g. 3 Syed Tauqeer Ahmed Hashmi . therefore it is meaningful to say that a 200 pound person weighs twice as much as a 100 pound person. numeric values are nominal: for instance. but at least on an interval or ordinal scale. Ratio Scale: A ratio scale is a numerical scale with a true zero point and in which a given size interval has the same interpretation for the entire scale. However. but there is no assurance that the difference between a score of 1 and 2 means the same thing as the difference between a score of and 3." 2 for "Poor. a person’s shoe size. Ordinal Scale: An ordinal scale is a set of ordered values. and addition/subtraction and multiplication/division would be inappropriate for a variable on a nominal scale.

4 Syed Tauqeer Ahmed Hashmi .MT-330: Applied Probability and Statistics Handout # 01 Types of Quantitative variables: A quantitative variable may be classified as discrete or continuous. It is unpublished data. According to the sources. are known as secondary data. weight. the number of students in a class. temperature. Discrete variable: A discrete variable is one that can take only a discrete set of integer or whole numbers. etc. A continuous variable represents measurement data such as the age of a person. Collection of data: From a practical point of view the first step with which statistics deals is the collection of numerical data. These data are needed in different fields of human activity. They have been originally collected by someone else. the height. namely Primary data: Data which are collected for the first time for a specific purpose and are original in nature are known as primary data. etc. Collection of primary data: First we make Questionnaire then we use some of the following methods to collect primary data:    Personal Interview Telephonic survey Through Post Secondary data: It is published data which already collected before. statistical data may be classified into two types. Continuous variable: A variable is called a continuous variable if it can take on any value fraction or integral within a given interval. A discrete variable represents count data such as the number of persons in a family.

 Tabular Form (Frequency Distribution)  Graphical or Diagrammatic Presentation Frequency Distribution: A frequency distribution is a statistical table which shows the arrangement of data according to magnitude or size. There are two methods which may be used for the presentation of collected data. Semi Official E. Presentation of data: To put the collected data in such a way that one get more information in less time is known as presentation of data. Research Organization etc. Ministry of finance.S.MT-330: Applied Probability and Statistics Handout # 01 Collection of secondary data: The secondary data may be obtained from the following sources:   Official E. of students 5 20 15 21 10 22 5  6---10 10 11---15 15 16---20 10 21---25 5 5 Syed Tauqeer Ahmed Hashmi .B.g. Books. S. Types of frequency distribution: There are three types of frequency distribution  Categorical frequency distribution District South No. of students 5 10 Grouped Frequency distribution Marks 1---5 No.g. etc. of people (in lac) 15 Malir 35 West 20 East 25 Central 30  Simple (ungroup) frequency distribution Age 18 19 No. F.B. Newspaper. The publications of the statistical division. The data presented in this form are also called grouped data.S. Internet. either individually or in groups with their corresponding number of values side by side.

As a general rule the number of classes should be in between 4 and 15. value of the data.MT-330: Applied Probability and Statistics Handout # 01 Basic steps for constructing a grouped frequency distribution: The following are some basic rules that should be kept in mind when constructing a grouped frequency distribution.  Determining the remaining classes If starting point is 5 and h = 10 then the classes will be 5—14. The number of classes actually depends on the size of data. OR There are some rules to determine number of classes k = 1 + 3.  Determine the number of classes k number of classes There is no hard and fast rule for finding the exact number of classes. Therefore.  Deciding the nature of classes When we have integer or whole number type of data then the classes should be in integer but if the data is on one decimal in nature then classes should be in one decimal in nature & so on. lower limit of the first class) The starting point should be the min. we will select mostly the number of classes with our own judgment. 25—24 … 6 Syed Tauqeer Ahmed Hashmi .minimum  Determine the class width If ‘h’ is the width of class intervals then  Deciding the starting point (i. 15—24. Range = r = maximum .3 log10 (N) or k = √  Determine the range N total number of observations.e. value or less than the min.

5 14.6 14.6 14.4 13.8 14.8 14.7 13.4 14.8 13.8 14.6 12.1 14.3 14.5 14.4 14.3 13.3 13.2 14.4 14.4 14.5 14.0 14.6 13.7 14.0 14.8 13.5 14.4 14.7 13.8 14.9 14.3 14.3 14.3 14.2 14.9 2. The following data represent the viscosity (friction.6 14.0 13.3 14.1 14.0 14.MT-330: Applied Probability and Statistics Handout # 01 Graphical presentation: Following are the some graphical methods to represent data in a graphical form.3 14.9 14. as in automobile oil) taken from 60 manufacturing batches (ordered from lowest viscosity to highest viscosity). Construct a frequency distribution of 5 classes and a percentage distribution? 12.9 14.9 14.9 14.8 13.4 14.5 13.7 13.4 14.9 14.5 14.7 14.1 13.1 14. Collected data about the cost of a meal per person from a sample of 50 city restaurants and 50 suburban restaurants are as follows: City Cost Data 13 21 22 22 24 25 26 26 26 26 30 32 33 34 34 35 35 35 35 36 37 37 39 39 39 40 41 41 41 42 43 44 45 46 50 50 51 51 53 53 53 55 57 61 62 62 62 66 68 75 Suburban Cost Data 21 22 25 25 26 26 27 27 28 28 28 29 31 32 32 35 35 36 37 37 37 38 38 38 39 40 40 41 41 41 42 42 43 44 47 47 47 48 50 50 50 50 50 51 52 53 58 62 65 67 Construct a frequency distribution and a percentage distribution for both? 7 Syed Tauqeer Ahmed Hashmi .9 13.4 14.5 14.2 14.        Scatter Plot Simple bar diagram Multiple & component bar diagram Pie chart Histogram Frequency curve/ polygon Ogive (cumulative frequency curve) Exercise: 1.