BURMET 2

STATISTICAL ANALYSIS
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 Meaning of Statistics

plural sense a set of numerical information

singular sense branch of science which
deals with the

* collection
* presentation
* analysis
* interpretation
of a set of numerical data
Why learn about Statistics
Florence Nightingale on Statistics
 “...the most important science in the whole world:
for upon it depends the practical application of
every other science and of every art: the one
science essential to all political and social
administration, all education, all organization
based on experience, for it only gives results of
our experience.”
 “To understand God's thoughts, we must study
statistics, for these are the measures of His
purpose.”
REASONS WHY WE STUDY STAT

– We are all exposed to it: manufacturers’ claims for

products, the results and political polls, and the
findings of social research.
 - It is essential in your career.
Branches of Statistics:
 Descriptive Statistics
– is concerned with numerical and graphical techniques for
describing one or more characteristics of a group and for
comparing characteristics between groups.

 Inferential Statistics
– is concerned with the acquisition of data, with sampling, and
with making inferences about the population based on the
data. Its objective is to make an inference about a
population based on the information contained in a sample.
Characteristics Common to
Inferential Statistics Problems
 Random Observations
 sampling
 numerical data
 common inferential objective
DEFINITION OF TERMS
 Population or Universe
– is the set representing all measurements of interest to the
researcher.
 Sample
– is a subset of measurements selected from the population of
interest.
 Statistic
– is a numerical descriptive measure computed from the
sample.

 Parameter
– is a numerical descriptive measure computed from the
population.
 Diagram showing the Interplay of Population
and Sample with Parameter and Statistic

Population Sample

Sampleto
Use statistics
summarize features

Use parameters to
summarize features

Inference on the population from the sample

Statistical Research and Training Center
 Statistical Analysis Plays an Important
Role in Understanding the World

Use DATA to: The world The world

 Describe before after analysis
analysis
 Explain
 Predict
 Make Decisions
Interpretation &
Data
collection Discussion of Results

Data organization &

preliminary analysis using
statistical tools
Statistical Research and Training Center
 Example of Parameter

Suppose our population consists of one

department in a government agency
consisting of 25 employees. There are 10
employees who have investment in stock
market. Thus, 40% of the employees in
the department are investing in stock
market
The parameter of interest is 40%.
 Example of Statistic

Suppose we take a sample of 10 employees

from this department. Among the 10
employees in the sample, 3 have existing
loans in local banks . Thus, 30% of the
employees have loans in local banks .

The statistic of interest is 30%.

CONSTANTS AND VARIABLES

 Constant
• When observations on the same phenomenon
do not change in successive trials.
 Variable
• When observations on the same phenomenon
can vary from trial to trial.
Example of contant

• Suppose the underlying population in

a certain business research study is
composed of housewives, and that
each of them has three children.
• The charateristics: Gender and number of
children are Constants.
Example of Variable

• Consider the population of ADZU students

this SY 2011-2012.

• The characteristics: Gender, Course taken,

Blood Type, Blood Pressure, Attitude are
variables
QUANTITATIVE & QUALITATIVE
VARIABLES

 Quantitative Variable
• observations vary in magnitude from trial to
trial.
 Qualitative variable
• is a variable whose observations vary in kind
but not in degree.
Examples of Qualitative
Variables

• Gender, Geographical Location, Religion,

Brand of Cellular Phone Preference of ADZU
Student enrolled this School Year 2012-2013.
 Examples of Quantitative
Variables

• Attitude, Height, Allowance of ADZU Student

enrolled this School Year 2012-2013.
QUANTITATIVE VARIABLE
 Discrete Variable
• When observations on a quantitative variable
can assume only a countable number of
values.
 Continuous variable
• When observations on a quantitative variable
can assume only of a countless number of
values in a line interval.
Examples of Discrete Variable

• Number of students enrolled in a

class.
• Number of automobiles sold in 1
year.
• Number of units produced by the
manufacturing company.
Examples of Cotinuous Variable
• Height
• Weight
• Amount of raw materials (in kilos)
required to produce a certain
product.
 Independent and Dependent
Variables
 Independent variable
• An independent variable is an input to a process or
analysis that influences the dependent variable.

 A dependent variable
• The dependent variable -- also called the response
variable -- is the output of a process or statistical
analysis. Its name comes from the fact that it depends
on or responds to other variables. Typically, the
dependent variable is the result you want to achieve.
Example of Independent and
dependent Variables
 Dependent Variable
• In marketing, the results desired are tied to sales revenue. Sales
as a dependent variable can be looked at in many ways, such as
sales of a specific doll, sales of a category like toy cars, overall
sales at a particular store, or even sales for the entire company.
 Independent Variable
• While there can only be one dependent variable in a study, there
may be multiple independent variables. When the dependent
variable is sales revenue, the elements of the marketing mix --
product, price, promotion and place -- will definitely influence the
dependent variable and can therefore be identified as
independent variables.
 CLASSES OF VARIABLES/SCALE OF MEASUREMENT

• Nominal Variable
is a property of the members of a
group defined by an operation which
permits the making of statements only of
equality or difference.
Cont.
• Ordinal Variable
is a property defined by an operation which permits
the rank ordering of the members of a group; that is,
not only are statements of equality and difference
possible, but also statements of the kind greater than
or less than.

Interval Variable
is a property defined by a n operation which
permits the making of statements of equality of
intervals. It does not have a “true” zero point
Cont.

• Ratio Variable
is a property defined by an operation which
permits the making of statements of equality of
ratios in addition to all kinds of statements
discussed above. It has a true zero point.
Exercises: Indicate the Scale/Class of
measurement.

1. Amount of expenditure of employees (actual amount in

pesos)
2. Membership in an organization for students (member or
non-member)
3. Number of years studying (in actual number of years)
4. Satisfaction with the implementation of government
program (Very satisfied, satisfied, dissatisfied, very dissatisfied)
5. Awareness on business climate in the city (aware, not
aware)
6. Number of establishments selling the same product
(exact count)
Cont.
7. Proportion of businessmen who benefit from the tax
adjustment program of the city government.
8. Addresses of investors who are based abroad
9. Causes of student’s absences (monetary, illness, no
interest, others)
10. Sources of income (income from employment, relatives,
informal sources, others)
11. Actual amount of loan granted by a bank.
12. Temperature in a warehouse( in Kelvin)
13. Stock Holder’s attitude towards the
business strategy adopted by the
company.
14. level of anxiety of employees [1-not
anxious, 2-anxious, 3-more anxious, 4-very
much anxious]
15.Brand of product preferred by the
costumer.