Module 4

Mathematics as a Tool

At the end of the fourth module, you must have:

1. applied a variety of statistical tools to process and manage numerical data;
2. utilized the methods of linear regression and correlations to predict the value of a variable
given certain conditions; and
3. advocated the use of statistical data in making important decisions.
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Lesson 4.1 Descriptive Statistics

Definition of Statistics
 In its plural sense, statistics is a set of numerical data.
 In its singular sense, Statistics is the science of collecting, analyzing, presenting, and
interpreting data, as well as of making decisions based on such analyses.

Types of Statistics
Descriptive Statistics consists of methods for organizing, displaying, and describing data by
using tables, graphs, and summary measures.

Case Study 1-1: How Women Rate Their Lives Case Study 1-2: How Much Did Companies
Spend on Ads in 2011?

Inferential Statistics consists of methods that use sample results to help make decisions or
predictions about a population.

Population versus Sample

A population consists of all elements – individuals, items, or objects – whose characteristics are
being studied. The population that is being studied is also called the target population.

A portion of the population selected for study is referred to as a sample.

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 Figure 1.1 Population and Sample

A survey that includes every member of the population is called a census. The technique
of collecting information from a portion of the population is called a sample survey.
A sample that represents the characteristics of the population as closely as possible is
called a representative sample.

Basic Terms
 An element or member of a sample or population is a specific subject or object (for example,
a person, firm, item, state, or country) about which the information is collected.
 A variable is a characteristic under study that assumes different values for different
elements. In contrast to a variable, the value of a constant is fixed.
 The value of a variable for an element is called an observation or measurement.
 A data set is a collection of observations on one or more variables.
 A parameter refers to any numerical value describing a characteristic of a population and is
usually represented by Greek letters such as µ and σ.
 The term statistic is used to refer to any numerical value describing a characteristic of a
sample. It is usually represented by lower case letters of the English alphabet, such as x and s.

Table 1.1 Total Revenues for 2010 of Six Companies

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Types of Variables

 Quantitative Variables
 Discrete Variables
 Continuous Variables

 Qualitative or Categorical Variables

A variable that can be measured numerically is called a quantitative variable. The data
collected on a quantitative variable are called quantitative data.

A variable whose values are countable is called a discrete variable. In other words, a discrete
variable can assume only certain values with no intermediate values.

A variable that can assume any numerical value over a certain interval or intervals is called a
continuous variable.

Figure 1.2 Types of Variables

Levels of Measurement

1. Nominal Level (Classificatory Scale)

 The nominal level is the weakest level of measurement where numbers or
symbols are used simply for categorizing subjects into different groups.
 Classifies data into various distinct categories in which no ranking is implied on
the categories.
Example:

Sex (male, female), Marital Status (single, married, widowed), Type of stocks owned (growth,
value, other)

2. Ordinal Level (Ranking Scale)

 The ordinal level of measurement contains the properties of the nominal level,
and in addition, the numbers assigned to categories of any variable may be
ranked or ordered in some low-to-high manner.
Example:

Product Satisfaction (very unsatisfied, fairly unsatisfied, neutral, very satisfied), Student
Classification (freshmen, sophomore, junior, senior)

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3. Interval Level
 The interval level has the properties of the nominal and ordinal levels, and in
addition, the distances between any two numbers on the scale are known sizes.
An interval scale must have a common and constant unit of measurement.
Furthermore, the unit of measurement is arbitrary and there is no “true zero”
point.
Example:

IQ, temperature (in Celsius), Standardized Exam Score (NCAE)

4. Ratio Level
 The ratio level of measurement contains all the properties of the interval level, in
addition, it has a “true zero” point.
Example:

Weight (in kilograms), number of correct answers in an exam, salary

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 Republic of the Philippines
SOUTHERN LEYTE STATE UNIVERSITY – TOMAS OPPUS
San Isidro, Tomas Oppus, Southern Leyte

ACTIVITY IN DESCRIPTIVE STATISTICS

Name: ___________________________________________________ Date: _______________________
Course & Section: _________________________ Score: _________________
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General Instructions:
a. Write all your answers in a clean sheet of bond paper.
b. Show all your solution and box your final answer.
c. Take a picture of your answer and send it through messenger.
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A. DIRECTIONS: Classify the following as Qualitative or Quantitative. If a variable is

quantitative, further classify it as Discrete or Continuous.

1. gender
2. general point average
3. occupation
4. unemployment rate
5. Number of hours children watch television
6. Number of bicycles sold in 1 year by a large sporting goods store
7. Classification of children in a day-care center (infant, toddler, preschool)
8. The number of defective computers produced by a manufacturer.
9. The time needed to finish the test.
10. The number of dropout in a school district for a period of 10 years.

B. DIRECTIONS: Classify each as Nominal-Level, Ordinal-Level, Interval-Level, or Ratio-Level of

measurement.

1. Ratings of excellent, above average, average, below average, or poor for painting
exhibits.
2. Temperatures (in degrees Celsius) of a sample of restless demonstrators who are
against the government.
3. Colors of a sample of Binitin Shirts.
4. Cars described as compact, intermediate, or full-sized.
5. Ages of students in a classroom.

C. DIRECTIONS: Give 5 examples of Descriptive Statistics and 5 examples of Inferential

Statistics.

Example:
 The average Amazon.com rating of the book The Complete Idiot’s Guide
to Statistics by 26 reviewers is 4.6 on a scale of 1 to 5. (Descriptive
Statistics)

 A study has concluded that the average credit card debt of college
graduates has increased from the year 20019 to 2020. (Inferential
Statistics)

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