Chapter 1

Review of Some Basic Concepts

 What is statistics?
In singular sense:
A branch of science that deals with the
development of methods for a more
effective way of

collecting,
organizing,
presenting, and
analyzing data.
What is statistics?

In Plural sense:
Statistics refers to the data collected or some
numerical quantities derived from a set of data.
1. Population 4. Statistic
2. Sample 5. Variable
3. Parameter
Population
A population (universe) is the collection of all
units from which data is to be collected.
Example:
All water samples that can be taken from Lake Lanao.
All items of a certain manufactured product .
All students enrolled in MSU – Marawi in one
academic year.
Sample
A sample is a portion of the
population selected for analysis
Parameter
A parameter is a summary measure
computed to describe a
characteristic of the population
Statistic
A statistic is a summary measure
computed to describe a
characteristic of the sample
Population and Sample

Sample
Population
Use statistics to
summarize features

Use parameters to
summarize features

Inference on the population from the sample

Major Areas

Descriptive statistics
Collecting and describing data
Inferential statistics
Drawing conclusions and/or making
decisions concerning a population based only
on sample data using measures of probability

Basic Business Statistics, 8e © 2002 Prentice-Hall, Inc.

Data and Variable
Data refers to a set of values
which are usually organized by
variable.
A variable is a characteristic or
properties that is measurable
from objects, persons or things.
Data and Variable
Types of Variables

Variable
 Types of Variable
Categorical
Example: eye color
 Types of Variable
Quantitative
Discrete: number of children in a family

http://www.abs.gov.au/websitedbs/d3310114.nsf/Home/Home?OpenDocument
 Types of Variable
Quantitative
Continuous: height of a person

http://www.abs.gov.au/websitedbs/d3310114.nsf/Home/Home?OpenDocu
Levels of Measurement

Ratio

Interval
Ordinal
Nominal
Nominal

Example
Info..
Lowest level of Gender
measurement 0 – female, 1 – male
categories Marital Status
No natural order
single, married, widowed, etc.
Race
Filipino, Korean, Chinese, etc.
Ordinal

Example

Info…
Ordered categories Likert scales
Unknown distance
1 – not painful
between rankings 2 – a little painful
3 – painful
4 – very painful
Size
Small, Medium, Large
Burn degree
Class ranking
Interval

Examples
Info… Ordered categories
Equal distance Temperature
between values in Fahrenheit or Celsius
No true zero point
IQ
Data on this scale can
be added or
subtracted.
Cannot multiply or divide
Ratio

Examples

Info… Highest level

Ordered Weight
Exact values Height
Equal intervals Blood pressure
Has true zero point
Data can be added,
subtracted,
multiplied, divided
Types of Measurement
 Yes.
RATI
Yes. Has O
true
zero?

Yes. No.
Equally INTERVA
spaced? L
No.
ORDINAL

Ordered
?
No.
NOMINAL