OVERVIEW OF STATISTICS summarization, and presentation

of data.
• POPULATION - is the set of all
objects we wish to study. ❖ INFERENTIAL STATISTICS -
EXAMPLE: consist of methods that permit one
to reach conclusions and make
All divorced women, or all Methodists. estimates about populations
The key word is all. based upon information from a
sample.

• SAMPLE - part of the population EXAMPLE:

we study to learn about the Descriptive statistical methods have
population. their beginning in the inventories kept by
early civilizations, such as the
EXAMPLE:
Babylonians, Egyptians, and the
In a certain study, 900 men were selected Chinese. For example, the Old
from Nsawam. It was found that 25 are Testament of the Bible refers to the
smokers. numbering or counting of the people of
Israel and to the casting of lots for
(a) What is the population in this
selection by chance, and the Romans
study?
kept careful counts of people,
✓ The population is men from possessions, and wealth in the territories
Nsawam. they conquered.
(b) What is the sample size?
✓ The sample size is 900. • CENSUS
- If every member of a
• STATISTICS - a field of study population is evaluated.
concerned with the collection, - an enumeration or evaluation
organization, and analysis of data, of every member of a
and the drawing of inferences population
about a population.
• PARAMETER
- any summary value of all the
TWO MAIN BRANCHES OF
individual measurements
STATISTCS - any measurement that
❖ DESCRIPTIVE STATISTICS - describes an entire population.
consists of methods dealing with - Parameters are denoted by
the collection, tabulation, Greek letters.
 • STATISTIC - is any measurement difference within the realm of
computed from a sample of the chance?
individual observations made. ❖ Forecasting: To manage this
• SAMPLING ERROR - vast inventory, it needs a weekly
discrepancy between a sample order forecasting system that can
statistic and the corresponding respond to developing patterns in
population parameter consumer demand

WHY STUDY STATISTICS? TYPES OF DATA

❖ Communication: The language ❖ QUALITATIVE DATA - Consists
of statistics is widely used in of attributes, labels, or
science, education, health care, nonnumerical entries.
engineering, and even the ❖ QUANTITATIVE DATA - Consists
humanities. of numerical measurements or
❖ Computer Skills: Specialists, counts.
with advanced training, designing
the databases and decision
support systems. TYPES OF VARIABLES
❖ Information Management:
Statistics can help you handle
either too little or too much
information.
❖ Technical Literacy: Many of the
best career opportunities are in
growth industries propelled by
advanced technology.
❖ Career Advancement:
Whenever there are customers to
whom services are delivered, LEVELS OF MEASUREMENT - The
statistical literacy can enhance level of measurement determines which
your career mobility. statistical calculations are meaningful.
❖ Quality improvement: large LOWEST TO HIGHEST:
manufacturing firms have formal
systems for continuous quality 1. Nominal
improvement. 2. Ordinal
❖ Medicine: Is the new drug better 3. Interval
4. Ratio
than the placebo, or is the
 ❖ NOMINAL EXAMPLE:
- Data at the nominal level of
✓ Temperatures
measurement are qualitative only.
✓ Years on a timeline
- Calculated using names, labels,
✓ Atlanta Braves World Series
or qualities. No mathematical
victories
computations can be made at
this level.

EXAMPLE:
✓ Colors in the US flag
✓ Names of students in your class
✓ Textbooks you are using this
semester.
❖ RATIO
- Data at the ratio level of
measurement are similar to the
interval level, but a zero entry is
meaningful.
- A ratio of two data values can be
formed so one data value can be
expressed as a ratio.

❖ ORDINAL
- Data at the ordinal level of EXAMPLE:
measurement are qualitative or
✓ Ages
quantitative.
✓ Grade point averages
- Arranged in order, but differences
✓ Weights
between data entries are not
meaningful.

VARIABLES
EXAMPLE:
✓ Class standings: freshman,
sophomore, junior, senior
✓ Numbers on the back of each
player’s shirt
✓ Top 50 songs played on the radio.

❖ INTERVAL
- Data at the interval level of
measurement are quantitative.
- A zero entry simply represents a
position on a scale; the entry is not
an inherent zero.
EXAMPLE:
a) gender of babies born in a hospital
> [Qualitative, Nominal]
b) marital status > [Qualitative,
Nominal]
 c) temperature measured on the 4. FEASABILITY - In some research
Kelvin scale > [Quantitative, situations, the population of
Interval] interest is not available for study.
d) nationality > [Qualitative, 5. SCOPE OF INFORMATION - In
Nominal] a sample survey, there are
e) masses of babies in kg > greater varieties of information
[Quantitative, Ratio] that can be considered which
f) temperature in °C > may be impracticable in a
[Quantitative, Interval] complete census due to
g) prices of items in a shop > constraints such as limited
[Quantitative, Ratio] number of trained personnel and
h) position in an exam > equipment.
[Quantitative, Ordinal]
i) the rank of an academic staff in a
university > [Qualitative, Ordinal]
2 CATEGORIES OF SAMPLE
DESIGNS
METHODS OF DATA COLLECTION ❖ PROBABILITY SAMPLING
- major principle of these designs is
A sample is selected, evaluated, and
to avoid bias in the selection
studied in an effort to gain information
procedure and to achieve the
about the larger population from which
maximum precision for a given
the sample was drawn.
outlay of resources.

o Randomization - means
ADVANTAGES OF SAMPLING
that the selection is not
1. COST - Samples can be studied at consciously influenced by
much lower cost. The smaller human choice.
number of units or individuals
involved in a sample requires less
MAIN TYPES OF PROBABILITY
time and money to evaluate.
2. TIME - Samples can be
SAMPLING
evaluated more quickly than a 1. simple random sampling
population. 2. systematic sampling
3. ACCURACY - Any time data are 3. stratified sampling
collected, there is a chance for 4. cluster sampling
errors to occur. The larger the 5. multi-stage sampling
data set, the more opportunity
there is for errors to occur.
 ❖ SIMPLE RANDOM SAMPLING
- is a method of sampling for which
every possible sample has
equal chance of selection.
- Subjects of a population to be
sampled could be families,
schools, cities, hospitals, records
of reported crimes.
o Sample Size - Let n
denote the number of
subjects in the sample.
o Random Sample – a
simple random sample
EXAMPLE:
The lottery system
The lottery system consists of writing the
name of each item in the sample frame
on a slip of paper or a card and then
drawing them from a container one after
the other. To ensure a bias free selection,
shuffle the cards or the slips of paper
before each draw.
TABLES OF RANDOM NUMBERS
Has the property that, no matter how we
select our digits (up, down, diagonally,
etc.) each digit, 0 through 9, is equally
likely to be selected.
• RANDOM NUMBERS
- numbers that are computer
generated according to a
scheme whereby each digit is
equally likely to be any of the
integers 0, 1, 2, …, 9.
- does not depend on the
other digits generated.
❖ SYSTEMATIC RANDOM
SAMPLE
o Systematic Sampling -
choosing every kth item
from the list, starting from
a randomly chosen entry
among the first k items on
the list.
o k - the skip number
Fig. 1.2 shows how to sample every fourth
item, starting from item 2, resulting in a
sample of size n = 20 items from a list of N =
78 items.
❖ STRATIFIED RANDOM
SAMPLE
- useful in social science
research for studies comparing
groups.
- divides the population into
subgroups called Strata, and
then selects a simple random
sample from each stratum.
EXAMPLE:
Suppose we want to estimate smallpox
vaccination rate among
employees in a university, and we know
that our target population (those
individuals we are trying to study) is 55%
male and 45% female. Suppose our
budget only allows a sample of size 200.
To ensure the correct gender balance, we
could sample 110 males and 90 females.
❖ CLUSTER RANDOM
SAMPLING
- essentially strata consisting of
geographical regions.
- We divide a region (say a city) into
sub-regions (say, blocks, sub-
divisions, or schools).
❖ MULTI-STAGE SAMPLING
- starts by dividing the country
into a number of regions.
- some of these are selected at
random and subdivided again,
e.g., into parliamentary wards and
a further random selection made.
- The process can be repeated
until individual households or
companies or units of interest
are identified.
EXAMPLE:
The Family Expenditure Survey makes
use of multi-stage sampling. The Survey
uses the Small Users File of Postcode
Address File, and the primary sampling
unit is postal sectors. The benefit of this
approach is that the resulting samples
are concentrated in relatively few
geographical areas, which reduces the
cost of data collection.
SAMPLING DESIGN
• NON – PROBABILITY
SAMPLING
- select samples with features
not embodying randomness.
- The selection of the elements in
the sample lies solely on personal
judgement.
MAIN METHODS OF NON-
PROBABILITY SAMPLING
1. Convenience
2. Judgmental
3. Quota Sampling
 ❖ CONVINIENCE SAMPLE
- The sole virtue of convenience
sampling is that it is quick.
- one that happens to come your
way.
EXAMPLE:
An accounting professor who wants to
know how many MBA students would
take a summer elective in international
accounting can just survey the class she
is currently teaching. The students polled
may not be representative of all MBA
students, but an answer (although
imperfect) will be available immediately.
❖ JUDGMENT SAMPLE
- is a non-probability sampling
method that relies on the
expertise of the sampler to
choose items that are
representative of the
population.
- The sample obtained by this
method is based on personal
judgment and some pre-
knowledge of the population.
EXAMPLE:
To estimate the corporate spending on
research and development (R&D) in the
medical equipment industry, we might
ask an industry expert to select several
“typical” firms.
❖ QUOTA SAMPLING
- a special kind of judgment
sampling, in which the
interviewer chooses a certain
number of people in each
category (e.g., men/women).
- involves first classification of
the population into non-
overlapping sub populations,
called strata.
- obtained by selecting the
individual elements from each
stratum based on a specified
quota.
- the selection of the sample is
made by the interviewer, who has
been given quotas to fill from
specified sub-groups of the
population.
EXAMPLE:
An interviewer may be told to sample 50
females between the ages of 45 and 60.