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What Is Statistics?

______________________________________________________________

OUTLINE

1 What is Statistics?

3 Type of Statistics

4 Types of Variables.

5 Levels of Measurements.

OBJECTIVES

This chapter introduces the concepts of measures of central tendency and dispersions.

At the end of this chapter, you will be able to :

of measurement.

1 What is Statistics?

It is the science of collecting, organizing, presenting, analyzing, and

interpreting numerical data to assist in making more effective decisions.

Statistical techniques are used extensively by marketing, accounting, quality

control, consumers, professional sports people, hospital administrators,

educators, politicians, physicians, etc...

3 Types of Statistics

• Descriptive Statistics

• Inferential Statistics

refers to the methods of organizing, summarizing, and presenting data in an

informative way.

EXAMPLE 1:

A Gallup poll found that 49% of the people in a survey knew the name of the

first book of the Bible. The statistic 49% describes the number out of every

100 persons who knew the answer.

EXAMPLE 2:

According to Consumer Reports, General Electric washing machine owners

reported 9 problems per 100 machines during 2001. The statistic 9 describes

the number of problems out of every 100 machines.

A decision, estimate, prediction, or generalization about a population, based

on a sample.

measurements of interest.

EXAMPLE 1:

TV networks constantly monitor the popularity of their programs by hiring

Nielsen and other organizations to sample the preferences of TV viewers.

EXAMPLE 2:

The accounting department of a large firm will select a sample of the invoices

to check for accuracy for all the invoices of the company.

EXAMPLE 3:

Wine tasters sip a few drops of wine to make a decision with respect to all the

wine waiting to be released for sale.

4 Types of Variables

the characteristic being studied is nonnumeric.

EXAMPLES:

Gender, religious affiliation, type of automobile owned, state of birth, eye

color etc.

Information is reported in numeric terms.

EXAMPLES

The balances in your checking account, minutes remain in a lesson, number

of children in a family.

can only assume certain values and there are usually “gaps” between values.

EXAMPLE:

the number of bedrooms in a house, or the number of hammers sold at

the local Home Depot (1,2,3,…,etc).

can assume any value within a specified range.

EXAMPLE:

The pressure in a tyre, the weight of a pork chop, or the height of a

student.

D A T A

Q u a lit a t iv e Qo r u a a t nt r t i ib t au t t i ev e o r n u m e r ic a l

( t y p e o f c a r o w n e d )

d is c r e t e c o n t in u o u s

( n u m b e r o f ( t c i mh i el d rt ae kn e) n f o r a n e x

5 Levels of Measurement

There are four levels of measurements:

5.1 Nominal Level

Data that is classified into categories and cannot be arranged in any particular

order.

Mutually Exclusive

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

Exhaustive

Each individual, object or measurement must appear in a category.

Involves data arranged in some order, but the difference between values

cannot be determined or are meaningless.

EXAMPLE

During a test of 4 soft drinks, Mellow Yellow was ranked number 1, Sprite

number 2, Seven-Up number 3 and Orange Crush number 4.

Here we can conclude that Mellow Yellow is preferred to Sprite, but we

cannot conclude how much better is Mellow Yellow over Sprite.

similar to ordinal level, with the additional property that meaningful amount of

differences between data values can be determined. There is no zero point,

that is, the value zero on the scale does not represent the absence of the

condition.

the interval level with an inherent zero starting point. Difference and ratios

are meaningful.

the zero point here means the absence of the property.

manufacturer’s representative per month.

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