ASHRAF ACADEMY

Chapter # 1
Statistics
“The science of collection, representation, analysis and
interpretation of numerical data is called statistics.”
Meaning of statistics
The word statistics has three different meanings which are discussed below:
Singular Sense
In the singular sense, it refers to the science comprising methods which are
used in the collection, presentation, analysis and interpretation of numerical data.
These methods are used when we want to draw conclusions about a given
phenomenon from relevant data.
Plural Sense
The word statistics in plural sense are the numerical observations collected
for some definite purpose regarding some field of study. These observations may be
for the sample or the population. These observations are also called data. The
observations about the wages of workers are called the statistics of prices.
Statistics as Plural of Statistic
The word statistics are numerical quantities collected from sample
observations; a single quantity that has been so collected is called a statistic. The
word statistics is plural when used in this sense.
For example If we select at random ten students from a class of fifty students,
measure their heights and find the average height then this average is a statistic.
Population
“Population is used for all the individuals or objects on which we have
to make some study.”
For example
 We may be interested to know the quality of blubs produced in the
factory. The entire product of the factory in a certain period is called a
population.
 We may be interested in the level of education in primary schools. All
the children in the primary schools will make a population.
The population may contain living or non-living things. The entire lot of anything
under study is called population.
Type of population
Finite Population
“A population having elements which can be counted is called finite
population”
For Example
 Population of students in first year class at an institute.
 Population if inhabitants living in a block of a residential colony.
Infinite Population
“A population having elements which cannot be counted is called
infinite population.”
For example
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 Population of stars in the sky.
 Population of fishes in the sea
 Population of trees in a city
Sample
“Any part of the population is called a sample.”
For example
 Sample of master students from university.
 Sample of motorcars from total registered cars in the city.
The sample is generally drawn from a population to draw certain conclusions about
population parameters.
Parameter
“Numerical information collected from population is called parameter”
The parameters are usually unknown and are estimated through samples.
Population parameter is a fixed quantity and may be called a constant.
The symbol  (mue) is used for population mean and the symbol  2 (sigma
square) is used for population variance. The population parameters are generally
denoted by lower and upper case Greek letters like  ,  2 ,  ,  ,  etc.
Statistic
“Numerical information collected from samples is called statistic”
The statistic depends upon the sample. Different sample have different values
of the statistic it means statistic varies from sample to sample. The sample
statistics are used to draw conclusions about the population parameters.
The symbol X (X bar) is used for sample mean and the symbol S 2 is used for
sample variance. The sample statistics are generally denoted by lower and upper
case Roman letters like X , S 2 , r etc.
Variable
“A measurable quantity which can vary from one individual or object to
another is called a variable.”
For example
 A variable are heights and weights of individuals.
 Prices of goods.
 No. of children in a family etc.
A variable is usually denoted by last letters of alphabets e.g. X,Y or Z. A
variable is also sometimes called a variate.
Variable are usually two types
 Quantitative variable
 Qualitative Variable
Constant
“A quantity which can assume only one value is called constant.”
A constant is usually denoted by 1st letters of alphabets.
For example A constant are =3.14159, e=2.71828 etc.

Quantitative variable
“A variable is called a quantitative variable when a characteristic can be
expressed numerically.”
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OR
“A quantitative variable is one which is capable of assuming numerical value.”
For example
Height of plants, weight of grains or number of the student in the class
Quantitative variable are usually two types
 Discrete variable
 Continuous variable
Qualitative Variable or Categorical variable
“A variable is called a qualitative variable when a characteristic cannot be
expressed numerically.”
OR
“A qualitative variable is one which is not capable of assuming numerical
value.”
A qualitative variable is also called attributes. An observation is made when
an individual is allocated to one of several mutually exclusive categories.
Observations falling in each class can only be counted.
For example
Gender (either male or female), Colour (blue, green, red etc)
Discrete variable
A variable which can assume only a specific value in a given range or
interval (there is a gap between the values) its values jumps from one to
another is called discrete variable. Discrete variable is numeric data that have
a finite number of possible values.
The number of children in a family can be 0, 1, 2, 3… There is jump from 2
to3 because we can think of any number between 2 and 3.but this variable cannot
take any value between 2 and 3. Thus that variable is called discrete variable.
For example
 No of heads when a coin is tossed eight times (range from 0 to 8)
 No of roads accidents on the GT road during the year.
 No of houses in a street
 No of students in the class
Note
 Discrete variable usually takes on values which are integers or whole numbers.
 Discrete variable is generated by counting or numeration. It may also be called
count variable.
Continuous variable
A variable which can assume any possible value in a given range or
interval (there is no any gap between the values) its value does not jumps from
one to another is called continuous variable. Continuous variable have infinite
possibilities.
Suppose the minimum temperature of a city in summer is 35  C and
maximum temperature of the season is 45  C .The temperature can take any value
between 35  C and 45  C . It may be 35, 35.01, 35.02, 35.10… 45  C . The observed
values of temperature on different days may be 35, 41, 42, etc. but as far as

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possibility is concerned, and the variable can take any possible value in the given
range.
For example
 Height of students  Speed of a car
 Time  Temperature
Note
A continuous variable is generated by measurements. It may also called a measure
variable.
Branches of Statistics
The science of statistics can be divided into following branches.
 Descriptive statistics
 Inferential statistics
Descriptive statistics
Descriptive or deductive statistics deals with the collection of data. Its
presentation in various forms, such as tables, graph and diagrams and finding
averages and other measure which would describe the data.
Inferential statistics
Inferential or inductive statistics deals with procedures of drawing inferences
(conclusion) about the population on the basis of the information obtained from the
sample. Suppose we want to have an idea about the percentage of smokers in our
country we take a sample from the population and proportion of smoker in the
sample is calculated. This sample proportion with the help of probability enables us
to make some inference about the population proportion.
Data
The numerical facts and figures about a specific task and problem are called
data.
For example
Data on marks of students in statistics of 2nd year class.
It has two major classifications, namely Primary data and Secondary data.
Primary data
The data are called primary if it is collected originally by some individual or
agency and are original in character. The data is called primary if no statistical
treatment is applied on the data.
For example
If it is desired to conduct an inquiry to estimate the average income of the
workers in certain industry and if the relevant data is collected by the investigator
or his representative from the workers themselves such data would be called as
primary data.
Secondary data
The data are called secondary when the primary data have been treated by
some statistical tool. If the primary data have been treated statistically it is no more
primary. It becomes secondary data.

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For example If it is desired to conduct an inquiry to estimate the average income of
the workers in certain industry and if the relevant data is not collected from the
workers and we get it from the record of the trade union or from some other source
such data would be called as secondary data.
Statistical data
A sequence of observations, made on a set of objects included in the sample,
drawn from population of interest, is called a statistical data. These observations
may be obtained either by counting or by measurement.
Quantitative data
Data related to quantitative variable is called quantitative data.
Or
A sequence of observations regarding a quantitative variable, made on a set of
objects included in the sample from population is known as quantitative data.
For example
 Wheat production from different areas.
 The height of students.
Qualitative data
Data related to qualitative variable is called qualitative data.
Or
A sequence of observations regarding a qualitative variable, made on a set of
objects included in the sample from population is known as qualitative data.
For example
 The marital status such as single, married, widow, divorced.
 Gender of persons such as male, female.
 The stature (size) such as tall, medium and short.
Discrete data
Data related to discrete variable is called discrete data.
Or
A sequence of observations regarding a discrete variable, made on a set of objects
included in the sample drawn from population is known as discrete data. Discrete
data are numeric data that have a finite number of possible values.
For example
 No. of person living in different houses.
 No. of goals by a football team in different matches.
Continuous data
Data related to continuous variable is called continuous data.
Or
A sequence of observations regarding a continuous variable, made on a set of
objects included in the sample drawn from population is known as continuous
data. Continuous data have infinite possibilities.
Limitations of Statistics
The important limitations of statistics are:
1. Statistical methods are best applicable on quantitative data.

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2. Statistical cannot be applied to heterogeneous data.
3. It sufficient care is not exercised in collecting, analyzing and interpretation
the data, statistical results might be misleading.
4. Only a person who has an expert knowledge of statistics can handle statistical data
efficiently.
5. Some errors are possible in statistical decisions. Particularly the inferential
statistics involves certain errors. We do not know whether an error has been
committed or not.
Functions or Uses of Statistics
1) Statistics helps in providing a better understanding and exact description of a
phenomenon of nature.
2) Statistical helps in proper and efficient planning of a statistical inquiry in any field of
study.
3) Statistical helps in collecting an appropriate quantitative data.
4) Statistics helps in presenting complex data in a suitable tabular,
diagrammatic and graphic form for an easy and clear comprehension of data.
5) Statistics helps in understanding the nature and pattern of variability of a
phenomenon through quantitative observations.
6) Statistics helps in drawing valid inference, along with a measure of their
reliability about the population parameters from the sample data.
Characteristics of Statistics
Some of its important characteristics are given below:
 Statistics are aggregates of facts.
 Statistics are numerically expressed.
 Statistics are affected to a marked extent by multiplicity of causes.
 Statistics are enumerated or estimated according to a reasonable standard of
accuracy.
 Statistics are collected for a predetermine purpose.
 Statistics are collected in a systemic manner.
 Statistics must be comparable to each other.
Methods of Collecting Primary Data
Primary data are collected by the following methods:
 Personal Investigation: The researcher conducts the survey him/herself and
collects data from it. The data collected in this way is usually accurate and
reliable. This method of collecting data is only applicable in case of small
research projects.
 Through Investigation: Trained investigators are employed to collect the data.
These investigators contact the individuals and fill in questionnaire after asking
the required information. Most of the organizing implied this method.
 Collection through Questionnaire: The researchers get the data from local
representation or agents that are based upon their own experience. This method
is quick but gives only rough estimate.
 Through Telephone: The researchers get information through telephone this
method is quick and give accurate information.
 Through Internet
 Through local sources

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Methods of Collecting Secondary Data
The secondary data are collected by the following sources:
 Government organizations e.g. The publications of the Statistical Division,
Ministry of Finance, the Federal Bureaus of Statistics, Ministries of Food,
Agriculture, Industry, Labor etc…
 Semi- Government organizations: e.g. State Bank, Railway Board, Central
Cotton Committee, Boards of Economic Enquiry etc…
 Publication of Trade Associations, Chambers of Commerce etc…
 Technical and Trade Journals and Newspapers.
 Teaching and Research Organizations such as Universities and other
institutions.
 Internet
Difference between Primary and Secondary Data:
The difference between primary and secondary data is only a change of hand. The
primary data are the first hand data information which is directly collected form one
source. They are most original data in character and have not undergone any sort of
statistical treatment while the secondary data are obtained from some other sources or
agencies. They are not pure in character and have undergone some treatment at least once.
For Example: Suppose we interested to find the average age of MS students. We collect the
age’s data by two methods; either by directly collecting from each student himself
personally or getting their ages from the university record. The data collected by the
direct personal investigation is called primary data and the data obtained from the
university record is called secondary data.
Editing of Data
After collecting the data either from primary or secondary source, the
next step is its editing. Editing means the examination of collected data to discover
any error and mistake before presenting it. It has to be decided before hand what
degree of accuracy is wanted and what extent of errors can be tolerated in the
inquiry. The editing of secondary data is simpler than that of primary data.
Observation
Observation mean any sort of numerical recording information, whether it is
physical measurement such as height or weight, a classification such as head or
tails, or an answer to the question such as yes or no.

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