 What is Statistics?

Statistics refers to numerical numbers relating to any field of inquiry. For Example:

o Statistics of export, import and GDP.

o Statistics of prices, income and expenditure.

o Statistics of Births and deaths etc.

According to R.A. Fisher, known as the father of statistics, “Statistics has been defined as the
science and art of collection, organization, analysis and interpretation of numerical data.”

Statistical data is broadly divided into two parts:

I. Primary Data

II. Secondary Data

According to arrangement, data can be divided into 4 kinds:

i. Geographical Data: Arranged area wise; for example, country, state, division,
city, rural/urban etc.

ii. Chronological Data: Sequence of time; for example, yearly, monthly, quarterly,
weekly or daily data.

iii. Qualitative Data: According to quality or attributes or characteristics; for

example, hair color or skin color of different people.

iv. Quantitative Data: According to quantity; for example, age, weight etc.
 Frequency Distribution

Example:1

Ages of 30 people are given below:

20 22 35 42 48

53 49 65 39 48

67 18 16 23 37

35 49 63 65 55

45 58 57 69 25

29 58 65 37 42

Build a frequency distribution table and comment on that.

FORMULA OF INTERVAL:

Sample Frequency Distribution Table:

Age Classes Tally Number Cumulative Relative

Frequency(f) Frequency( Frequency (%)
)
Exclusive and Inclusive Method:

Exclusive Inclusive Exclusive from Inclusive

15-25 15-24 14.5-24.5
25-30 25-29 24.5-29.5
30-35 30-34 29.5-34.5
Example-2:

Ages of 40 people are given below:

40 41 30 8 26

23 26 8 39 18

35 42 27 28 25

38 32 40 43 45

45 45 39 48 9

24 29 40 35 25

40 43 32 27 26

37 28 41 44 40

1. Construct a frequency distribution table and hence comment.

2. Construct a frequency distribution table with classes 5-10, 10-15 and so on and hence
comment
 Graphical Representation of Data

 Why do we need graphs in statistics?

Example-1:

GDP earned from different sectors in 2005-2006 are given below:

Sectors Shares
(in billion taka)
Agriculture 785
Industry 1117
Services 2101
Total GDP 4003

1. Represent the data in Pie Chart and comment.

2. Represent the data in Bar Diagram and comment.

3. Represent the data in line diagram and comment.

Example-2:
GDP earned from export and import is given below:

Year Export Import

In billion dollar In billion dollar
2005 9.33 12.63
2006 11.67 15.7
2007 13.14 17.6
2008 13.97 20.17

Represent the data in a bar diagram and hence comment.

Example- 3:

The GDP earned in year 2005 and 2008 from three different sectors are given below:

Sectors Share in GDP-2005 Share in GDP-2008

In billion taka In billion taka
Agriculture 785 2994.9
Industry 1117 4484.5
Services 2101 8200.6

Represent the data in suitable pie diagrams and make comments.

Example-4:

Age NO. of Person

(f)
 10-15 12
15-20 17
20-25 22
25-30 11
30-35 9

1. Represent the given data with the help of histogram.

2. Represent the data with Frequency Polygon.

3. Represent the data with Cumulative Frequency Polygon/ Curve/ Ogive.

Exploratory Data Analysis- EDA

Stem and Leaf Plot

Example:

11 15 9 7 16 18 19 11 10 25 22 20

Distribute the data with the help of stem and leaf plot and hence comment.

Example:
 10.1 10.3 10.5 12.3 12.5 12.7 13.1 13.9

Use stem and leaf plot to distribute the data and hence comment.

Measures of Central Tendency/ Averages

 Why do we need to calculate the measure of central tendency?

 To get basic idea

 To make comparison

 Types of Averages:

o Arithmetic Mean

 Weighted arithmetic mean

o Median

o Mode

o Geometric Mean

o Harmonic Mean

o Quadratic Mean

Arithmetic Mean/ Mean/ AM

Formula for ungrouped data:

Example:
 Calculate the arithmetic mean or mean of the following data:

20 18 19 20 21 22

Formula for grouped data:

Example:

Calculate the arithmetic mean of the given data:

Age No. of Person

15-20 9
20-25 7
25-30 12
30-35 5
35-40 2

Median

Median means the middle value of a set of data, which divides the whole data into two equal parts.

Example:

Find out the median of the following data:

20 18 19 20 21 22 23
Median: grouped data:

Age(years) No. of Person

15-20 9
20-25 7
25-30 12
30-35 5
35-40 2

Find out the median age of the provided data

Formula of median for grouped data:

Here,

f = Frequency of median class

I = Interval

Mode

Mode is the value with the maximum frequency in a data set.

Example:

20 18 19 20 21 22 21

Mode: grouped data:

Marks No. of Students

0-5 3
5-10 5
10-15 20
15-20 7
20-25 3
What will be mode of marks of students?

Calculate the mode of the data presented below:

Age No. of Person

15-20 9
20-25 7
25-30 12
30-35 5
35-40 2

Formula of mode for grouped data:

f = Frequency of the modal class

 i = Interval

Limitations of AM, Median and Mode

Limitations of Mean:

Extreme value changes the result of mean. In that case, we have to use median
or mode.

Example:

20 18 19 20 21 22 21 65

Here 65 is the extreme value.

Limitations of Mode:

Without preceding or succeeding class of frequency, we cannot find out mode.

Limitation in grouped data:

In case of open ended class, the result of mean will not be accurate. In that case,
it is suitable to use median or mode.

Example:

Age No. of Person

15-20 9
20-25 7
 25-30 12
30-35 5
35-40 2
More than 40 3

Weighted Arithmetic Mean

This is one kind of arithmetic mean.

Example:

Subject Credit Grades

English 2 B(3)
Mathematics 3 A(4)
Statistics 3 A-(3.7)
Physics 3 B+(3.3)

Formula for Weighted Mean:

Quadratic Mean

Formula of Quadratic Mean:

 Geometric Mean

Example-1:

Year GDP growth rate(%)

2001 5.2
2002 5.7
2003 6.2
2004 6.5
2005 6.0

Formula:

Example-2:

Weight f
30-35 5
35-40 9
40-45 3
45-50 2

Formula:
 Harmonic Mean

Example:

Year Export
2005 8
2006 7
2007 6
2008 -3

Formula:

Example-2:

Total distance 120 km.

1st 10 km by 20 km/h

2nd 20km by 30 km/h

3rd 50 km by 40 km/h

4th 10 km by 30 km/h

Last 30 km by 50 km/h

Find out the harmonic mean of the speed.

Example-3:

Weight f
30-35 5
35-40 9
40-45 3
45-50 2

Find the Harmonic Mean.

Formula:
 Measures of Dispersion/ Variation

Example 1: scores of two player are giveb below:

Player A 100 0 0 50 0 0 30
Player B 30 50 20 30 40 0 10
Compare the performance of two players

 Why do we need to calculate the measure of dispersion?

o Data analysis

o For getting the most consistency

o Can calculate the differences amongst the data

There are four methods of central dispersion calculation. They are:

 Range

 Mean Deviation

 Standard Deviation

 Quartile Deviation

Range
Formula of range:

Range = Maximum value – Minimum value

Mean Deviation

Example:

Find out the Mean Deviation of the following ages and comment:

19 20 18 22 21 20

Formula:

Example for grouped data:

Age No. of Persons

20-25 5
25-30 7
30-35 6
35-40 3
40-45 2

Calculate the mean deviation of the presented data and comment.

Formula of mean deviation for grouped data:

 Standard Deviation

Formula of Standard Deviation is,

, where, s2 means variance which is also

shown as σ2.

Variance:

Formula:

Example:

Find out the standard deviation/variance of the following ages and comment:

19 20 18 22 21 20

Formula:
Example:

Age No. of Persons

20-25 5
25-30 7
30-35 6
35-40 3
40-45 2
Find out the standard deviation/ variance of the data and hence comment.

Quartile Deviation

Example:

Find out the quartile deviation of the data: 11, 13, 10, 12, 9, 14, 12, 15, 8, 16, and 7

Formula:

Co-efficient of variance

Formula for C.V.:

 Skewness

Pierson’s coefficient of skewness:

Bowley’s coefficient of skewness:

Example:

Weight No. of person

30-40 5
40-50 10
50-60 15
60-70 7
70-80 3

Calculate the skewness of the data and hence comment.

 Correlation Analysis

 Why do we need correlation analysis:

o To prove the relationship between two variables mathematically.

Karl Pierson’s correlation coefficient:

Three questions are needed to be answered:

 Whether there is a correlation;

 How are the variables related/ in which direction/ positive and negative/ same or
opposite;

 Degree/ strength of the relationship.

Example:

Find/ determine/ examine the relationship between price and demand and comment:

Price Demand
Tk Kg
20 4
19 4
18 5
16 6
14 6
12 8
10 9
10 9
9 10
 8 10
Also determine the relationship using a suitable diagram.

Regression Analysis

Regression Equation:

, where y depends on x.

= rate of change of y

= value of y, when x is zero or absent.

Example:

Find the dependency of demand on price be least square method and comment on the result.

Or,

Fit/ find/ calculate the regression equation of price and demand by OLS method.

Price Demand
Tk Kg
20 4
19 4
18 5
16 6
14 6
12 8
10 9
10 9
9 10
8 10

Example-2:

Calculate the regression equation of Income and expenditure by OLS method. Also comment on
the relationship.

Income Expenditure
5 4
10 8
15 12
 20 18
30 20
50 45
Probability

Probability means chance or possibility.

Necessary terms:

 Experiments:

 An act that can be repeated.

 Outcome:

 Result of an experiment

 Random Experiment:

 Outcomes are not unique.

 Events:

 Specified outcomes.

 Mutually Exclusive Outcomes:

 Uncommon- where events will not occur together.

 Sample Space:

 A set of all outcomes

For example, for a coin, the sample space is, S = {H,T}

Calculation methods for probability:

1. Classical Approach

2. Relative Frequency

3. Subjective Approach
Example-1:

If we throw two die together, what is the probability that,

i. The first dice shows 6?

ii. First dice is greater than second dice?

iii. Second dice is an odd number?

iv. Sum of two die is 10?

v. Sum of two die is greater than 10?

vi. Sum of two die is greater than 12?

vii. First dice shows 5 and second dice shows 6?

Formula of additive law:

 If A and B are two events, then the probability of occurrence of either A or B is,

 If A and B are mutually exclusive then,

 Two events are independent if,

Example-2:

If two coins are thrown together, what is the probability that,

i. The first dice shows 1 or second dice shows 2?

ii. Second dice shows 6 or first dice shows 5?

iii. First dice shows 2 and second dice shows 5 and also show whether they are
dependent or not?
Example-3:

Grade Rural Urban

A 20 250
B 280 800
One student is selected from this. What is the probability that,

i. The student is from rural?

ii. The student got grade A?

iii. The student is from rural or got A?

iv. The student is from urban or got B?

v. The student is from rural and got A and also show the dependency?

vi. The student got A or B?