CHAPTER 1: WHAT IS STATISTICS?

“Statistical thinking will one day be as necessary for efficient citizenship as the ability to read and write”
(H. G. Wells)

One figure is called statistics (singular)

A collection of figures or facts is referred to as statistics (plural)

Statistics. The science of collecting, organizing, presenting, analyzing, and interpreting a numerical data
for the purpose of assisting in making a more effective decision.

TYPES OF STATISTICS

Descriptive Statistics. The procedures used to organize and summarize masses of numerical data.

“Organizing, presenting, and analyzing”

Inferential Statistics/Statistical Inference/Inductive Statistics. The methods used to find out something
about a population, based on a sample.

“Finding out something from a population based on a sample taken from that population”

Population. A collection of all possible individuals, objects, or measurements of interest.

Sample. A portion, or part, of the population of interest.

Reasons for Sampling. Ex: A sample of registered voters is necessary because of the prohibitive cost of
contacting millions of voters before an election.

TYPES OF VARIABLES

Two basic types of data: (1) those obtained from a qualitative population

(2) Those obtained from a quantitative population

Qualitative Variables/Attribute Variables.

When characteristics or variable being studied
is nonnumeric. (Qualitative data are often
Data summarized in charts and bar graphs)

Quantitative Variables. When the variable

studied can be reported numerically.
Qualitative Quantitative Discrete Variables can assume only certain
or Attribute or Numerical values, and there are usually “gaps” between
the values. Typically, discrete variables result
from counting.

Discrete Continuous Continuous Variable can assume any value

within a specific range. Typically, continuous
variables result from measuring something.
LEVELS OF MEASUREMENT

Nominal Level

 This level is considered the most “primitive”, the “lowest”, or the most limited type of
measurement.
 Data that can only be classified into categories
 There are no measurements and no scales involved. Instead, there are just counts.
 There is no particular order for the groupings
 Categories are considered to be mutually exclusive

Mutually Exclusive. An individual, object, or measurement is included in only one category.

Exhaustive. Each individual, object, or measurement must appear in one category.

Ordinal Level

 One category is higher than the next one

 Categories are mutually exclusive and exhaustive

Interval Level

 It includes all the characteristics of the ordinal scale, but in addition, the distance between
values is a constant size.
 Mutually exclusive and exhaustive properties

Ratio Level

 Highest level of measurement

 Has all the characteristics of interval level
 Mutually exclusive

Difference between interval and ratio level:

(1) Ratio-level data has a meaningful zero point

(2) The ratio between two numbers is meaningful
CHAPTER OUTLINE

DEFINITION OF STATISTICS

Statistics may be thought of as a collection of numerical data.

As used in a broader sense, statistics refers to the statistical tools used to collect, present, analyze, and
interpret data for the purpose of making more effective decisions.

SUBDIVISIONS OF STATISTICS

Descriptive Statistics deals with presenting data in a graph or a frequency distribution and with applying
various averages and measures of dispersion.

Inferential statistics deals with taking a sample from a population and making estimates about a
characteristics of that population based on the sample results.

TYPES OF VARIABLES

Qualitative variables presumes that the variable is nonnumeric, such as make of motorcycle (Harley-
Davidson, Yamaha)

Quantitative variables deals with variables that can be measured, such as weight (110 pounds, 304
pounds) or annual sales ($10.1 million, $7.6 million)

LEVELS OF MEASUREMENT

Nominal level of measurement refers to data that can only be counted and out into categories. There is
no particular order to the categories.

Ordinal level of measurement presumes that one category is higher than another. Freshman,
sophomore, junior, and senior illustrates this kind of ranking

Interval level of measurement includes the ranking characteristics of the ordinal measurement and
specifies that the distance between numbers is the same.

Ratio level of measurement has all the characteristics of the interval level of measurement. In addition,
the zero point is meaningful, and the ratio between two numbers is meaningful.