CHAPTER ONE

Introduction
In the Modern era, especially with information technology, much of the available
information is quantitative. Examples – stock market prices, bank deposits,
unemployment rates, population growth rate, GDP etc. Most of the numerical data
are given in raw form, virtually impossible to comprehend fully. The statistician’s
role involves the extraction and synthesis of important features of large body of
numerical information. One objective is to try to make sense of numerical data by
summarizing it in such a way that a readily understood picture emerges. The
second objective is to analyze the data so that better decisions can be taken in the
face of uncertainty
Definition of Statistics
Some of the definitions are the following
 Statistics is a science of data
 Statistics is a body of methods for making wise decision in the face of
uncertainty
 Statistical analysis involves, collecting information, evaluating it, drawing
conclusion and providing guidance in what information is reliable and which
prediction can be trusted
 The discipline (best describe as statistical methods) that is concerned with
the collection, compilation, presentation, analysis and interpretation of
numerical data. It is a method of drawing valid inference from numerical
data whose aim is to aid decision in the face of uncertainty.
Statistics is divided into two main categories- Descriptive statistics and
inferential statistics.
Descriptive statistics
The main function of descriptive statistics is to describe a set of data. It deals
with the collection, compilation and presentation of the data as actually recorded
not for further analysis, but simply to provide concise information on which
decision can be made.
Inferential statistics
This is a process of reaching generalization about the whole (called the
population) by examining a portion (called sample).

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Statistics: science or art
Science refers to a systematized body of knowledge. It studies cause and
effect relationship and attempt to make generalization in the form of scientific
principles or laws. It describes objectivity and avoids vague judgment as good or
bad. Art, on the other hand, refers to the skill of handling facts so as to achieve a
given objective. It is concerned with ways and means of presenting and handling
data, making inferences logically and drawing relevant conclusions.
Based on the definitions of science and an art given above statistics can be
considered as both a science and an art. It is a science because now almost all
sciences are statistical. What this suggests is that the design of scientific
experiments and the evaluation of their results make use of principles and practices
growing out of the science of statistics. Statistics can also be considered an art
because it uses statistics to solve the problem of real life.
But a noteworthy point is that statistics is not an exact science like physics,
chemistry, etc. it is because statistical phenomena are generally affected by
multiplicity of causes which cannot be measured accurately. It means statistics is a
science in limited sense.
The Rise of statistics
Historically, the ideas and methods of statistics developed gradually as society
became interested in collecting and using data for a in collecting for a variety of
applications. The earliest origins of statistics lie in the desire of rulers to count the
number of inhabitants in their domain for the purpose of taxation and military
formation. As the physical science developed in the seventeenth and eighteen
centuries, the importance of careful measurement of weights, distances, and other
physical quantities grew. Astronomers and surveyors striving for exactness had to
deal with variation in their measurement. Statistical methods were invented in
order to analyze scientific measurements
By nineteenth century, the agricultural, life and behavioral sciences also
began to rely on data to answer fundamental questions. How are heights of parents
and children related? Does a new variety of wheat produce higher yields than the
old, and under what conditions of rainfall and fertilizer? Can a person’s mental
ability and behavior be measured just as we measure height and weight? Effective
methods for dealing with such questions developed slowly and with much debate.
In the twentieth century, economics finance and analysis of business
decisions became heavily quantitative. To analyze and take decisions based on

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these quantitative information ideas and techniques were developed. These ideas
and techniques had to come together to form a unified “science of data” or what we
call today as “statistics”

APPLICATION OF STATISTICS
Statistics is applied to almost all fields of study. There is hardly any field of
study which Statistics Is not applied. It is applied in sociology, psychology,
physics, chemistry, business, economics, medicine, metrology etc.
Statistics and state
Statistics today are not exclusively a by-product of administrative activity-
the state collects statistics on several problems. These statistics help in framing
suitable policies. All ministries and departments of the government whether they
be finance, transport, defence, railways, food commerce, agriculture, industry, or
rural development depend heavily on factual data for their efficient functioning.
Statistics are so significant to the state that government in most countries is
the biggest collector and user of statistical data. Such data is of immense help to
many institutions and research scholars, who further process it and arrive at useful
conclusions which help in decision making.
Statistics and Business
Business activities can be broadly grouped under the following heading-
production, sale, purchase, finance, personnel, accounting, marketing and product
research and quality control. With the help of statistical methods in respect of each
of the above mentioned areas abundant qualitative information can be obtained
which can be of immense use in formulating suitable policies. The ability of the
manager to extract pertinent information from the data and use it in making
decision can have a significant effect on his or her own future as well as that of the
organization.
Statistics and economics
Statistic data and statistical methods are of immense help in the proper
understanding of the economic problems and in the formulation of economic
policies. In fact, these are the tools and appliances of an economist’s laboratory.
For example what to produce, how to produce, for whom to produce- these are the
questions that need a lot of statistical data in the absence of which it is not possible
to arrive at correct decision. Statistical methods help not only in formulating
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appropriate economic policies but also evaluating their effect. Specifically,
statistics helps
 To test the economic theories in the areas of consumption, production,
exchange, distribution, saving, investment, etc. empirically
 To understand and study economic problems such as problem of inflation,
unemployment, etc
 To measure national income and its components lke, per capita income,
saving, investment, expenditure, etc
In recent years, econometrics which comprises the application of statistical
method to the theoretical economic method is widely used in collecting and
analyzing the basic data of economic studies.
Statistics and physical sciences
The physical science, especially astronomy, geology and physics were
among the fields in which statistical method were first developed and applied. Still
these fields and other related fields like engineering make of use of statistics.
Statistics and natural sciences
Statistical techniques are extremely used in natural sciences like astronomy,
biology, medicine, zoology, botany e.tc. Example in judging the efficacy of a
particular drug for curing a certain disease, experiments have to be conducted and
the success as failure would depend upon the number of people who are cured after
using the drug.
Statistics and other uses
Statistics are useful to bankers, brokers, insurance companies, social
workers, labour unions and politicians. For example, the politicians are interested
in knowing their chances of winning an election. By sampling a few voters prior to
the election, the percentage of the votes the candidate will receive in the election
can be worked out.
Statistics and computers
The application of computer in statistics helps in the following ways
1. Computer allows for vast amount of tedious statistical calculations
performed quickly and cheaply.
2. The results of the statistical calculation can be kept for several days,
weeks, months and years without being lost
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 3. The statistical calculation can be repeated in number of times
4. Computer facilitate representing data in charts, diagrams e.g. pictogram,
pie chart, bar chart, histogram, frequency polygon etc.
5. Computer help in data analysis
There are so many computer software packages that are used in
statistics, among which are SPSS, Excel, E-views, STATA, etc.

Limitations of statistics
The following are limitations of statistics.
1. Statistical laws are not exact
Statistical laws are not exact as in the case of natural science. These laws are
true only on average. They hold well under certain condition. They cannot be
universally applied. So, statistics has less practical utility.
2. Statistics does not study individuals
Statistics deal with aggregate of facts, single or isolated figures are not
statistics, e.g the marks obtained by one student in a class or his height are not the
subject matter of the study of statistics but the average mark or the average height
has statistical relevance.
3. Statistics does not study qualitative phenomena: Statistics are numerical
statements of facts. Such characteristics like beauty, honesty, intelligence etc.
cannot be studied directly. However, it may be possible to analyse such problems
statistically by expressing them numerically. For example, we may study the
intelligence of boys on the basis the marks obtained by them in an examination
4. If sufficient care is not taken in collecting, analyzing and interpretation of
the data, statistical results might be misleading.
5. Only a person who has an expert knowledge of statistics can handle
statistical data efficiently.
STATISTICAL METHOD VERSUS EXPERIMENTAL METHOD
There are two methods employed for advancing knowledge, namely
experimental methods and statistical methods. Experimental methods are best
known scientific methods and have been historically most fruitful. Under this
method cause and effect relations are often established or investigated within a
controlled set-up in the laboratory. The experimental methods, however, can be

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adopted only in the physical and natural sciences like physics, chemistry,
astronomy, etc. where it is possible to isolate individual causes and specific effect
for closer observation and analysis. In most cases quantitative as well as qualitative
aspects of a physical phenomenon are also measurable.
In social sciences like Economics, political science, sociology etc. it is
difficult to apply experimental method in as much as the various forces affecting a
particular phenomenon cannot be studied in isolation nor are they measurable with
precision in all cases. In these fields we resort to statistical methods. In applying
statistical methods a problem is studies systematically as in the experimental
methods, but the system used is not the same. Here we allow all forces to operate
since they cannot be kept constant. We then record the variation in the forces and
try to determine the part played by each in influencing the result. Undoubtedly, this
method is ordinarily more difficult than experimental method and the results are
not as accurate but they are decidedly better than no results.
CHAPTER TWO
Data- This refers to available facts or evidence from which conclusion may be
drawn. Data may be numerical or may consist of words or may be a combination
of the two. It may be neither numbers nor words, but consists of pictures or
diagrams etc.
Types of Data
Data can be classified into primary and secondary data.
Primary Data: Refers to data that have not been published anywhere before. So
the data is collected and published initially by the researcher.
Secondary Data: Refers to data that have been published by another organization
or individual other than the researcher himself.
Data can also be classified into internal and external data.
Internal Data: These are data arising from a particular organization or institution
that is under study. Example, if we are studying a particular business firm, internal
data will probably be firm’s kept records of payroll, accounting records,
inventories, etc. These types of records are normally kept by the firm for it’s own
use.
External Data: These types of data, on the other hand, are those obtained from
sources outside the organization being studied. If we are studying a particular

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business firm then the data may be drawn from local government, state or federal
government records, trade publication, CBN year books, etc.
Having made this distinction, it is however necessary to emphasize at this
juncture that statistical studies normally rely on a combination of these two
sources; because the two types of data are not substitutes but are complementary to
one another.
Raw Data: Raw data are data as collected from the source without any refinement.
Refinement of data consists of sorting, tallying, editing and summarizing.
Methods of collecting primary data
Observation: An observation is the process of watching or supervising an
experiment, an exercise, an event, an activity or an occasion and taking notes or
records of some sort. Observation is about the only way through which some types
of data may be generated. The observation may be personal i.e. the researcher
observes the actions personally and makes records immediately. Where
observation is personal, it could be participatory or non-participatory. In
participatory observation the observer takes part in the action while in non-
participatory, he just stands and watches and takes notes. It could also be through
third party who is specifically assigned to the duty of collecting data.
Questionnaire: A questionnaire is collection, an array or a set of question which
are embodied normally in one document of which there are many copies, intended
to be answered by several persons in order to provide information for a specific
purpose, e.g answer the research questions or the test of relevant hypothesis.
Interview: Interview is the act of asking a person or group of persons questions to
which they provide answers “There and then”. There and then may not necessarily
be as prompt as this may suggests, as sometimes an interview may allow time for
reflection, but then the response is expected without undue dely.
Types of Interview: Direct and indirect interviews: In direct interviews the
interviewer(s) being the person(s) interested in the information sought, interview(s)
the interviewee(s) life i.e face to face. In an indirect interview a third party
interviews another person or other persons (interviewee(s)) i.e the interviewer is
not the person who is interested in the information but rather he is assigned to find
the information for someone else.
Sources of secondary data:
Secondary data can be published or unpublished

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Published sources: These are data obtained from one or more of the following
sources
i. Scholarly journal articles
ii. Academic books
iii. Manographs
iv. The internet
v. Conference proceedings
vi. Publications of Governmental and corporate bodies
etc.
Unpublished Sources:- These are data obtained from unpublished sources like
i. Research projects
ii. Essays
iii. Dissertation and thesis
iv. Records maintained by various government and private offices that have
not been published e.tc.
Variable: A variable is anything (quality or attribute) that can take more than one
value. Sometime, it is referred to as a variate e.g age, weight, height etc. Variable
can be discrete or continuous.
A discrete variable: Takes only integer numbers as its value e.g number of
students in a class, sex, etc. Number of students in a class can take values (0, 1,
2…100) but it cannot take 2.5, 7.8.
A continous variable: Takes any kind of real number and it is measured, not
counted e.g. height, age, weight, temperature, test scores the age of an individual
can be 25.5 years.
A variable can be described as being either qualitative (e.g hair color) or
quantitative e.g age.
A variable can also be classified as dependent or independent
Dependent variable:- A variable whose values are influenced by the values of
another variable so that a change in the latter will cause a change in the former. e.g.
Y = 3x + 2, Y is dependent variable as the value of x will cause a change in the
value of Y, that is changes in Y depend on changes in X.

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Independent variable: The variable which exacts influence on another and whose
value is independent of any other variable is the dependent variables. The values of
the independent variables explain the values of the dependent variables e.g Y= 2x
+ 3, Y is the dependent variable and X is the independent variable.
Population: In every day usage the term population is used to refer to all the
inhabitants of a geographical area e.g the population of Nigeria.
In statistics the term is used in a specialized sense to refer to a collection of
all the elements (actual or hypothetical) about which conclusion is being drawn.
Some time it is referred to as universe. A population can be finite or infinite.
A population is defined as finite if it consists of fixed number of items, i.e if
its element can be counted e.g the population of secondary school leavers in Kano
state, number of banks in Abuja.
Where there is no limit to the number of elements in a population, we say
that the population is infinite. An infinite population usually arises when we are
dealing with quantities such as temperature, weight etc.
Sample: This is a part of the population observed for the purpose of making
scientific statement about the population. A sample can be random or purposive.
Observation:- This is a value for a member of a population for example, the
following are ages of six level II students in BUK 22, 26, 25, 23, 21, 22. Each of
these values is an observation.
Parameter:- This is the characteristic of a population that helps to summarise
information about the population with regard to the variable under study e.g mean,
the range etc. parameters are usually denoted by Greek letters or upper case letters
of the English alphabet.
Statistic: This is a descriptive measure of a sample i.e it is a sample summary
measure. A statistic is usually denoted by lower case letter.