DESCRIPTIVE AND INFERENTIAL STATISTICS SAT 12:00-

3:00PM

A. INTRODUCTION (KEY CONCEPTS)

1.0 WHAT IS STATISTICS?

Statistics is the discipline that concerns the collection, organization, analysis, interpretation and
presentation of data. In applying statistics to a scientific, industrial, or social problem, it is
conventional to begin with a statistical population or a statistical model to be studied.

1.1 DESCRIPTIVE STATISTICS VERSUS INFERENTIAL STATISTICS.

Descriptive statistic is a summary statistic that quantitatively describes or summarizes features

from a collection of information, while descriptive statistics is the process of using and analysing
those statistics.

Inferential Statistics is the process of using data analysis to deduce properties of an underlying
distribution of probability. Inferential statistical analysis infers properties of a population, for
example by testing hypotheses and deriving estimates

1.2 PARAMETRIC VERSUS NON-PARAMETRIC STATISTICS

Parametric statistics is a branch of statistics which assumes that sample data comes from a
population that can be adequately modeled by a probability distribution that has a fixed set of
parameters

Nonparametric statistics refers to a statistical method in which the data are not assumed to

come from prescribed models that are determined by a small number of parameters; examples of
such models include the normal distribution model and the linear regression model.

1.3 LEVELS OR SCALES OF MEASUREMENT (NOMINAL, ORDINAL, INTERVAL,

RATIO).

Nominal

Let’s start with the easiest one to understand.  Nominal scales are used for labeling variables,
without any quantitative value.  “Nominal” scales could simply be called “labels.”  Here are
some examples, below.  Notice that all of these scales are mutually exclusive (no overlap) and
none of them have any numerical significance.  A good way to remember all of this is that
“nominal” sounds a lot like “name” and nominal scales are kind of like “names” or labels.
Ordinal

With ordinal scales, the order of the values is what’s important and significant, but the
differences between each one is not really known.  Take a look at the example below.  In each
case, we know that a #4 is better than a #3 or #2, but we don’t know–and cannot quantify–
how much better it is.  For example, is the difference between “OK” and “Unhappy” the same as
the difference between “Very Happy” and “Happy?”  We can’t say.

Ordinal scales are typically measures of non-numeric concepts like satisfaction, happiness,
discomfort, etc.

“Ordinal” is easy to remember because is sounds like “order” and that’s the key to remember
with “ordinal scales”–it is the order that matters, but that’s all you really get from these.

Example of Ordinal Scales

Interval

Interval scales are numeric scales in which we know both the order and the exact differences
between the values.  The classic example of an interval scale is Celsius temperature because the
difference between each value is the same.  For example, the difference between 60 and 50
degrees is a measurable 10 degrees, as is the difference between 80 and 70 degrees.
Interval scales are nice because the realm of statistical analysis on these data sets opens up.  For
example, central tendency can be measured by mode, median, or mean; standard deviation can
also be calculated.

Like the others, you can remember the key points of an “interval scale” pretty easily. “Interval”
itself means “space in between,” which is the important thing to remember–interval scales not
only tell us about order, but also about the value between each item.

Example of Interval Scale

Ratio

Ratio scales are the ultimate nirvana when it comes to data measurement scales because they tell
us about the order, they tell us the exact value between units, AND they also have an absolute
zero–which allows for a wide range of both descriptive and inferential statistics to be applied.  At
the risk of repeating myself, everything above about interval data applies to ratio scales, plus
ratio scales have a clear definition of zero.  Good examples of ratio variables include height,
weight, and duration.
Summary

In summary, nominal variables are used to “name,” or label a series of values.  Ordinal scales

provide good information about the order of choices, such as in a customer satisfaction survey.
Interval scales give us the order of values + the ability to quantify the difference between each
one.  Finally, Ratio scales give us the ultimate–order, interval values, plus the ability to
calculate ratios since a “true zero” can be defined.

Summar
y of data types and scale measures

1.4 POPULATIONS (TARGET VERSUS STATISTICAL)

The  target population for a survey is the entire set of units for which the survey data are to be
used to make inferences. Thus, the target population defines those units for which the findings
of the survey are meant to generalize.

In statistics, a population is a set of similar items or events which is of interest for some question
or experiment. A statistical population can be a group of existing objects or a hypothetical and
potentially infinite group of objects conceived as a generalization from experience.

1.5 SAMPLES (RANDOM SAMPLE),PARAMETER AND STATISTIC.

In statistics, a simple random sample is a subset of individuals chosen from a larger set. Each
individual is chosen randomly and entirely by chance, such that each individual has the same
probability
Parameters are numbers that summarize data for an entire population. Statistics are numbers that
summarize data from a sample, i.e. some subset of the entire population.

B. INTRODUCTION TO SAMPLING

1.0 Census versus Sample Survey (Reasons for sampling).

 A census is a survey conducted on the full set of observation objects belonging to a given

population or universe. Context: A census is the complete enumeration of a population or groups
at a point in time with respect to well defined characteristics: for example, population,
production, traffic on particular roads.

In a sample survey, only part of the total population is approached for information on the topic
under study. These data are then 'expanded' or 'weighted' to make inferences about the whole
population. We define the sample as the set of observations taken from the population for the
purpose of obtaining information about the population.

Advantages of Sample Surveys compared with Censuses: 

 Reduces cost - both in monetary terms and staffing requirements.
 Reduces time needed to collect and process the data and produce results as it requires a
smaller scale of operation.
 (Because of the above reasons) enables more detailed questions to be asked.
 Enables characteristics to be tested which could not otherwise be assessed. An example is
life span of light bulbs, strength of spring, etc. To test all light bulbs of a particular brand is
not possible as the test needs to destroy the product so only a sample of bulbs can be tested.
 Importantly, surveys lead to less respondent burden, as fewer people are needed to
provide the required data.
 Results can be made available quickly

1.1 ERRORS IN SURVEY DATA.

In survey sampling, total survey error includes all forms of survey error including sampling
variability, interviewer effects, frame errors, response bias, and non-response bias. 

2. METHODS OF SAMPLING (BASIC)

2.1 NON-PROBABILITY SAMPLING

Non-probability sampling is the use of a subset of the population to represent the whole
population or to inform about processes that are meaningful beyond the particular cases,
individuals or sites studied.
Convenience sampling is a non-probability sampling technique where samples are selected
from the population only because they are conveniently available to the researcher.

Judgment sample, or Expert sample, is a type of random sample that is selected based on the
opinion of an expert. Results obtained from a judgment sample are subject to some degree of
bias, due to the frame and population not being identical

A  purposive sample, also referred to as a judgmental or expert sample, is a type of

nonprobability sample. The main objective of a purposive sample is to produce a sample that
can be logically assumed to be representative of the population.

Quota sampling is a method for selecting survey participants that is a non-probabilistic version
of stratified sampling.

2.2 PROBABILITY OR RANDOM SAMPLING

Probability sampling is defined as a sampling technique in which the researcher chooses samples
from a larger population using a method based on the theory of probability. For a participant to
be considered as a probability sample, he/she must be selected using a random selection.

(Simple Random Sampling)

A simple random sample is a subset of a statistical population in which each member of the
subset has an equal probability of being chosen. A simple random sample is meant to be an
unbiased representation of a group.

(Systematic Random sampling)

Systematic sampling is a type of probability sampling method in which sample members from a

larger population are selected according to a random starting point but with a fixed, periodic
interval. This interval, called the sampling interval, is calculated by dividing the population size
by the desired sample size.

(Stratified Random Sampling)

Stratified sampling is a method of sampling from a population which can be partitioned into
subpopulations. In statistical surveys, when subpopulations within an overall population vary, it
could be advantageous to sample each subpopulation independently.

(Multi-stage)

Multistage sampling is the taking of samples in stages using smaller and smaller sampling units
at each stage. Multistage sampling can be a complex form of cluster sampling because it is a type
of sampling which involves dividing the population into groups.
(Cluster Random sampling)

Cluster sampling is a sampling plan used when mutually homogeneous yet internally
heterogeneous groupings are evident in a statistical population. It is often used in marketing
research. In this sampling plan, the total population is divided into these groups and a simple
random sample of the groups is selected.