SAS #2 Introducing Statistics

STATISTICS – branch of science that deals with collecting, organizing, summarizing, analyzing and make an inference
and predictions about population based on data in sample.

o Population
o Sample

DATA TYPES AND LEVEL OF SCALE EXAMPLE

COLLECTION MEASUREMENT
1. Qualitative (or 1. Nominal genotype, blood type, zip code, gender, race, eye color,
Categorical Data) political party, nationality
2. Ordinal socio economic status, education level (“high
school”,”BS”,”MS”,”PhD”), income level , satisfaction
rating
2. Quantitative (or 3. Interval temperature (Fahrenheit), temperature (Celsius), pH,
Numerical Data) SAT score (200-800), credit score (300-850), year of birth
a. Discrete Variable 4. Ratio enzyme activity, dose amount, reaction rate, flow rate,
b. Continuous Variable concentration, pulse, weight, length, temperature in
Kelvin (0.0 Kelvin really does mean “no heat”), survival
time

SAS #3 Introducing Descriptive and Inferential Statistics

1. DESCRIPTIVE
 Methods in Descriptive Statistics
a. Tabular Method – consists of rows and columns (quali, quanti, temporal, spatial)
b. Graphical Method – dot plots, histograms, scatterplots, bar charts, pie charts
c. Visual Method – to communicate data or information clearly

SAS #4 Knowing Inferential Statistics

2. INFERENTIAL
 Sampling Methods
1. Non-probability Sampling
a. Convenience Sampling
b. Haphazard
c. Judgement (or Subjective)
d. Volunteer
2. Probability Sampling
a. Simple Random
b. Systematic
c. Stratified
d. Cluster

SAS #5 inferential Statistics: Point Estimation

PARTS OF INFERENTIAL STATISTICS

1. ESTIMATION

 Types of Estimation:

a. Point Estimation –
b. Interval Estimation – range of values

2. HYPOTHESIS TESTING
SAS #6 inferential Statistics: Interval Estimation

Interval Estimation

 Confidence Level – the reliability of an estimate

 Confidence Coefficient – the confidence level is expressed as a decimal value
 Confidence interval –

Level of confidence c Critical Value Zc

0.70 or 70 % 1.04
0.75 or 75 % 1.15
0.80 or 80 % 1,28
0.90 or 90 % 1.645
0.95 or 95 % 1.96
0.98 or 98 % 2.33
0.99 or 99 % 2.58
SAS #7 Inference in Research and Business

SAS #8 Elements of Probability Theory

SETS AND SET THEORY

 Representation of Sets

1. Statement Form
2. Roaster Form
3. Set Builder Form

 Types of Sets

1. Empty Set
2. Equal Set
3. Equivalent Sets
4. Finite and Infinite Sets
5. Singleton Set
6. Subsets and Super-sets

RELATIVE FREQUENCY

LAPLACE PROBABILITY

Example 1: In a bag we have 40 red balls, 25 green balls and 15 blue balls, all of the same size. If we extract a ball,
what is the probability that to get a blue ball?

Example 2: If we extract a card out of a pack of 40, what is the probability to obtain a king?

Example 3: If we roll two dice, what is the probability that the sum of the dice is 7?
E = {(1,1), (1,2), (1,3), ….(1,6), (2,1),…(2,6), (3,1),     ….(6,6)}

AXIOMATIC PROBABILITY – are sets down a set of axioms (rules) that apply to all of true of probability, including
frequents probability and classical probability.
SAS #9 Probability: Counting Techniques, Conditional Probability and Bayes Theorem

FUNDAMENTAL OF COUNTING PRINCIPLE

1. Factorials

2. Permutations (e.g. people, digits, numbers, alphabets, letters, and colors)

Formula;

where n is the number of things to choose from, and we choose r of them, no repetitions, order matters

3. Combinations (e.g. menu, food, clothes, subjects, the team, lottery, ball)

Formula:

n choose r, order doesn’t matter

CONDITIONAL PROBABILITY

Example 1: If we flip two coins, the events:

A = {H- 1st throw}   B = {T- 2nd throw} are independent because

Example 2: We extract two cards (without replacement) out of a Spanish pack of 40 cards. Let the events:

A = {gold- 1st extraction} 

B = {cup- 2nd extraction}

Are they independent?

   They are dependent events

Example 3 (PAEG- June 2014): In a city, 40% of the people usually watch TV, 10% usually read a book and 1% do both
things regularly.

a) If we choose a person randomly, what is the probability that he or she watches TV or reads a book regularly?
b) If we choose a person at random and he or she usually watches TV, what is the probability that he or she usually
reads a book?
 

 
BAYES THEOREM

Example 1: Three machines, M1, M2 y M3, produce 45%, 30% y 25%, respectively, of the total parts produced in a
factory. The percentages of defective production of these machines are 3%, 4% y 5%, respectively.

a) If we choose a part randomly, calculate the probability that it is defective.

b) Suppose now that we choose a part randomly and it is defective. Calculate the probability that it was produced by
M2.
 

Example 2 (PAEG- June 2014) In a company, there are three robots A, B and C which solder products. 15% of the
products are soldered by robot A, 20% by robot B and 65% by the C one. It is known that the probability of finding a
defective product soldered by robot A is 0.02, 0.03 if it is soldered by robot B and 0.01 if it is soldered by robot C .

a) If we choose a product randomly, find out the probability that it is defective.

b) If we choose a product randomly, find out the probability that, if it is defective, it has been made by robot A.