DCQ10011-DATA ANALYSIS

CHAPTER 1
INTRODUCTION TO STATISTICS

1.1 WHAT IS STATISTICS?

- Everyday, thousands of data are generated. There are data on productivity, economic growth,
exchange rate, interest rates, company profits, imports and exports.
- The data are collect, summarize, analize and transform into useful information so that they can
use them to compare with the current performance, and to guide and plan for the future needs
of the organization.

STATISTICS

Collecting

Organizing

Interpreting

Analyzing

Presenting

- Statistics is concerned with scientific procedures and methods for collecting, organizing,
summarizing and analysis data, as well as obtaining useful information, drawing valid conclusions
and making effective decisions based on the analysis.
- Statistics techniques can be divided into two categories: descriptive statistics and inferential
(or inductive) statistics.
i. Descriptive statistics involves data that are compiled, organized, summarized and
presented in suitable visual forms which are easy to understand and suitable for use.
ii. Inferential statistics, we make generalizations about a population by analyzing
samples.

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 DCQ10011-DATA ANALYSIS

- The basics steps in statistics problem-solving are listed below:

i. Indentifying the problem for opportunity
ii. Gathering available facts
iii. Gathering new data
iv. Classifying and organizing data
v. Data presentation
vi. Making a decision

1.2 STATITICAL TERMS

- Population is a set of objects that possesses a specific characteristic.
- Sample is a subset of population. A research to a sample to find out the characteristic of
the sample and of the whole population.
- Random Sample is every number of the population must have an equal chance to be
selected, without any biased and will become the representative of the population.
- Parameter is a characteristic of population. A summary measure for the entire population
is called a parameter.
- Statistics is a characteristic of a sample. A summary measure such as mean, median,
mode computed from sample data is called a statistics.
- A study that measure a variable for every unit in the population is called a census of
population.
- Census is the process of collecting information about every member of population.
- A pilot study is a study done before the actual fieldwork is carried out.

1.3 TYPES OF VARIABLE

- A Variable measures the characteristics of the population that the researcher wants to
study. For example, variable of the monthly income of respondents, respondent’s age,
gender, level of education, number of children and types of house owned by respondents.
- Variables can be classified into qualitative (categorical) or quantitative (numerical).
i. Qualitative variables take on values that are names or labels. The color of a ball (e.g.,
red, green, blue) or the breed of a dog (e.g., collie, shepherd, terrier) would be
examples of qualitative or categorical variables.

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 DCQ10011-DATA ANALYSIS

ii. Quantitative variables are numerical. They represent a measurable quantity. For
example, when we speak of the population of a city, we are talking about the number
of people in the city - a measurable attribute of the city. Therefore, population would
be a quantitative variable.

VARIABLE
The characteristics of the population of interest
Example: Monthly income, respondents age, gender, level of education,
type of house owned etc.

Quantitative or Numerical Qualitative or Attributive

 Measured in numerical scale  Measured with non-numerical scale
 Yield numerical response  Yields categories response
Example: How tall are you? Example: Are you a Malaysian?
The answer is numerical The answer is only Yes or No

Discrete Continuous
 Numerical response which arises from a  Numerical response which arises from a
counting process measuring process
Example: How many children do you Example : How tall are you?
have? What is your weight?

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