BASIC CONCEPTS

Statistics deals with scientific methods of collecting, organizing, summarizing, presenting, and
analyzing data, as well as drawing valid conclusions and making reasonable decision on the basis of this
analysis.

https://www.youtube.com/watch?v=9pHh0iFi4hU&t=21s

The basic concern in the study of statistics is the presentation and interpretation of chance outcomes that
occur in a planned or scientific investigation.

In order for a statistician to gain information, he collects data for variables used to describe an event.
Data are the values that the variables can assume. Values whose values are determined by chance are
called random variables. These data can be used in different ways. There are two types of variables –
qualitative and quantitative. Qualitative variables are words or codes that represent a class or category.
On the other hand, quantitative variables are numbers that represent an amount or a count.

https://www.youtube.com/watch?v=dwFsRZv4oHA&t=14s

EXERCISES: Classify each variable as quantitative or qualitative.

1. the height of giraffe living in India

2. the religious affiliation of the people in the Philippines
3. favorite movie
4. the daily intake of proteins
5. the monthly phone bills

Quantitative variables can be further classified as discrete or continuous. Discrete variables can be
assigned values such as 0, 1, 2,3, … and are said to be countable. On the other hand, continuous
variables can assume all values between any two specific values like 0.5, 1.2, etc. For example, length
of a wire is a continuous variable, while the number of persons in a room is a discrete variable.

https://www.youtube.com/watch?v=_yAQb8gWBpU&t=1s

EXERCISES: Classify each variable as discrete or continuous.

1. The number of bread baked each day

2. The air temperature in a city yesterday
3. The income of single parents living in Quezon City
4. The weights of newborn infants
5. The capacity (in liters) of water in a swimming pool

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DESCRIPTIVE AND INFERENTIAL STATISTICS

Statistical Methods are those procedures used in the collection, presentation, analysis, and interpretation
of data. We shall categorize these methods as belonging to one of two major areas called descriptive
statistics and statistical inference.

Descriptive Statistics comprises those methods concerned with collecting and describing a set of data so
as to yield meaningful information.

Descriptive statistics provides information only about the collected data and in no way draws inferences
or conclusions concerning a larger set of data. The construction of tables, charts, graphs, and other
relevant computations in various newspapers and magazines usually fall under this method.

Statistical Inference comprises those methods concerned with the analysis of a subset of data leading to
predictions or inferences about the entire set of data.

Inferential statistics consists of methods that are used to infer characteristics of a population from
observations on sample or formulate general laws on the basis of repeated observations. Considered as
the central function of modern statistics, statistical inference is concerned with two types of problems:
estimation of population parameters and tests of hypotheses.

https://www.youtube.com/watch?v=rA0d_LwKMu0

EXERCISES:

Classify the following as belonging to the area of descriptive or inferential statistics:

1. As a result of recent cutbacks by the oil-producing nations, we can expect the price of gasoline to
double next year.
2. At least 5% of all fires reported last year in a certain city were deliberately set by arsonists.
3. Of all patients who have received this particular type of drug at a local clinic, 60% later
developed significant side effects.
4. Assuming that less than 20% of the Columbian coffee beans were destroyed this past winter, we
should expect an increase of no more than 30 cents for a kilogram of coffee by the end of the
year.
5. As a result of a recent poll, most Americans are in favor of building additional nuclear power
plants.

POPULATIONS AND SAMPLES

Populations consists of the totality of the observations with which we are concerned.

Sample is a subset of a population.

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EXERCISES: Indicate which of the following examples refer to population or sample.
1. a group of 25 students selected to test a new teaching technique
2. the total machines produced by a factory in one week
3. the yearly expenditures on food for 10 families
4. the ages of employees of all companies in Metro Manila
5. the number of subscribers of telephone companies

PARAMETER AND STATISTIC

Parameter – any numerical value describing a characteristics of a population.

Statistic – any numerical value describing a characteristic of a sample.

LEVEL OF MEASUREMENT

Aside from being classified as qualitative or quantitative, variables can also be classified according to
how they are categorized, counted, or measured.

1. Nominal level
This is characterized by data that consist names, labels, or categories only. The data cannot be
arranged in an ordering scheme. There is no criterion as to which values can be identified as greater than
or less than other values.

2. Ordinal level
This involves data that may be arranged in some order, but differences between data values
either cannot be determined or are meaningless.

3. Interval level
This is the same as the ordinal level, with an additional property that we can determine
meaningful amounts of differences between the data. Data at this level may lack an inherent zero
starting point.

4. Ratio level
This is an interval level modified to include the inherent zero starting point. The difference and
ratios of data are meaningful. This is also the highest level of measurement.

https://www.youtube.com/watch?v=hZxnzfnt5v8&t=4s

EXERCISES: Classify each as nominal, ordinal, interval, or ratio-level data

1. social security number
2. the total annual incomes for a sample of families
3. the ages of students enrolled in a cooking class
4. the rankings of tennis players
5. the salaries of fastfood chain attendants

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 6. The scores of Tom and Jerry in a Sample of Ten Basketball Games.

CLASSIFICATION OF STATISTICAL TECHNIQUES

A statistical technique may be classified as univariate, bivariate or multivariate depending on the

number of variables involved in the analysis. The technique is univariate if it applies to as single
variable, bivariate if it applies to two and multivariate when more than two variables are involved.

The technique is inferential when it involves estimation of population parameters and tests
hypothesis.

SAMPLING PROCEDURES

Samples can be broken down into two basic types: nonprobability and probability. In the
nonprobability type , there is no way of estimating the probability that each individual or element will be
included in the sample. In probability sampling, in the most frequently encountered situations, each
individual has an equal chance of becoming a part of the sample.

Nonprobability Sampling

The students in a class may constitute the entire sample because they happen to be in a class
whose instructor is interested in doing some research. Such samples are called accidental or incidental
samples. Another type of nonprobability sampling is quota sampling. In this type of sampling, the
proportions of the various subgroups in the population are determined and the sample is drawn (usually
not at random) to have the same percentages in it. The third type is purposive sampling. For example,
the cities in the Philippines that have voted for the winners in a series of past presidential elections could
be identified. We could study this cities, and from the voter’s preferences in them make a prediction on
the outcome of a national election.

The major advantage in the use of the samples like these is that they are convenient and economical.

Probability Sampling

The basic type is simple random sampling. In a simple random sample, each individual in the population
has an equal chance of being drawn into the sample. This could be done by drawing lots or by the use of
random numbers. When sampling procedures are not carried out like this, the result is said to be biased.

Systematic sampling selects every kth element in the population for the sample, with the starting point to
be determined at random from the first k elements. Systematic samples are very easy to obtain and are
often used as if they were random samples. In fact, some systematic samples can lead to precise
inferences concerning population parameters simply because the sample values spread evenly over the
entire population. However, the real danger exists if one happens to choose a sampling interval that
corresponds to a hidden periodicity.

Cluster sampling selects a sample containing either all, or a random selection, of the elements from
clusters that have themselves been selected randomly from the population. It has the advantage of being

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more cost efficient when the population is widely scattered. When the clusters are geographic areas,
such as regions of a state, or subdivisions of a large city, the sampling procedure is called area sampling.

Stratified random sampling selects simple random samples from mutually exclusive subpopulations, or
strata, of the population. Here, the population is divided into strata such that the data of interest are fairly
homogenous within a given stratum. Stratification of a population results in strata of various sizes.
Consideration must therefore be given to the size of the random samples selected from these strata. This
could be done using proportional allocation which chooses sample sizes proportional to the size of the
different strata.

https://www.youtube.com/watch?v=pTuj57uXWlk

EXERCISES: Classify each sample as random, stratified, systematic, or cluster.

1. Every 12th customer entering a shopping mall is asked to select his or her favorite store.
2. In a university, all teachers from three buildings are interviewed to determine whether they
believe the students have higher grades now than in previous years.
3. Supervisors are selected using random numbers in order to determine annual salaries.
4. A teacher writes the name of each student in a card, shuffles the cards, and then draws five names.
5. A head nurse selects 10 patients from each floor of a hospital.

Sample Sizes for Proportional Allocation. If we divide a population of size N into k strata of sizes
N1 , N 2 , , N k , and select samples of size n1 , n2 , , nk respectively, from the k strata, the allocation is
proportional if

ni 
N1  n , for i  1, 2, 3, , k
N
where n is the total of the stratified random sample.
THE VARIABLE

A variable is a characteristic or entity that can assume different values. The variation in values for a
given characteristic is the primary concern of statistical description. The total set of values for a
particular characteristic is known as the distribution of the variable. A variable that can theoretically
assume any value between two given value is continuous, otherwise it is discrete.