Methods of Statistics

GROUP 5
Objective:
Students will understand the fundamental methods used in
statistics
What is Statistics?
Statistics is a branch of mathematics that involves the collection,
analysis, interpretation, presentation, and organization of data.
It provides a framework for making inferences and drawing
conclusions about a population based on a sample from that
population
Importance of Statistics
in Various Fields
Scientific Research
Helps researchers design experiments, collect data, and
draw meaningful conclusions.
Statistical methods validate or reject hypotheses,
ensuring the reliability of research findings
Economics
Guides economic policies and decisions through the
analysis of economic data.
Measures and interprets economic indicators like inflation
rates and unemployment
Medicine and Healthcare
Facilitates clinical trials and medical research by
analyzing patient data.
Aids in understanding health trends, disease patterns,
and treatment outcome
Business and Finance
Assists in market research, pricing strategies, and risk
assessment.
Analyzes financial data to make informed business
decisions and predictions.
Education
Evaluate the effectiveness of educational programs
through the analysis of student performance data.

Informs educational policies and resource allocation

Environmental Science
Monitors environmental changes through
statistical analysis of climate data.
Helps in assessing the impact of human activities
on ecosystems
Social Science
Guides sociological and psychological research
by analyzing social data.
Informs public policy decisions related to
social issues
Quality Control and Manufacturing
Ensures product quality by using statistical
methods for quality control.

Identifies and rectifies defects in

manufacturing processes.
Government and Public Policy
Supports evidence-based decision-making in
policymaking.

Assists in analyzing census data, crime rates,

and demographic information
Sports and Entertainment interesting facts!

Utilized in analyzing player performance, team

strategies, and fan engagement.

Helps in making data-driven decisions in sports

management and entertainment industry
In essence, statistics serves as a powerful tool
across diverse fields, providing a systematic
and objective approach to understanding and
interpreting data for informed decision-making
Real-Life Applications of
Statistics
Medical Research and Healthcare
Statistics is used to analyze patient data, assess
the effectiveness of treatments, and identify
health trends. It aids in clinical trials,
epidemiological studies, and public health
research
Financial Analysis
In the business and finance sectors, statistics
helps analyze market trends, assess risk, and
make investment decisions. It is crucial for
portfolio management and risk mitigation
strategies
Quality Control in Manufacturing

Industries use statistical methods to monitor

and control the quality of products. It helps
identify defects, improve production processes,
and ensure consistent product quality.
Education Assessment
Educational researchers use statistics to
evaluate the effectiveness of teaching methods,
assess student performance, and inform
educational policies. Standardized testing relies
heavily on statistical analysis
Opinion Polls and Survey
Statistics plays a pivotal role in conducting
polls and surveys to gauge public opinion.
Political polls, market research surveys, and
social trend studies are common applications
Environmental Monitoring
Environmental scientists use statistics to
analyze climate data, assess pollution levels,
and monitor changes in ecosystems. It helps in
understanding the impact of human activities
on the environmen
Sports Analytics
Statistics is widely used in sports for
performance analysis, player evaluation, and
strategic decision-making. It helps teams
optimize their strategies and make datadriven
decisions
Criminal Justice and Criminology
Statistical methods are applied to analyze crime
rates, understand patterns, and predict
criminal behavior. It aids in resource allocation,
policy development, and law enforcement
strategies
Social Sciences
Statistics is used to analyze patient data, assess
the effectiveness of treatments, and identify
health trends. It aids in clinical trials,
epidemiological studies, and public health
research
Artificial Intelligence and Machine Learning
In emerging technologies, statistics
underpins machine learning algorithms. It is
used for data preprocessing, model training,
and evaluating the performance of AI
systems
These real-life applications highlight the
pervasive role of statistics in diverse fields,
enabling data-driven decision-making and
enhancing our understanding of complex
phenomena.
What is Descriptive Statistics
Descriptive Statistics is a branch of statistics that
involves the collection, presentation, and interpretation
of data to describe and summarize its main features. The
primary goal of descriptive statistics is to provide a
concise and meaningful summary of the main
characteristics of a dataset, simplifying complex
information to make it more understandable.
The following are the key components
of descriptive statistics:
1.) Measures of Central Tendency
Mean (Average)

The sum of all values divided by the number of

observations. It provides a representative value around
which data points cluster. It is Sensitive to extreme
values, making it influenced by outliers
Example:
Let's say we have a group of five friends, and we want to find out the average (mean) age.
Here are their ages:

● Retsel: 20 years old

● Bobares: 24 years old
● April 3: 22 years old
● Jhared 4: 21 years old
● Erin 5: 23 years old
To find the mean average, you add up all the ages and then divide by the number of friends.
20 + 24 + 22 + 21 + 23 = 110
110 / 5 = 22

So, the mean average age of the group of friends is 22 years old.
Median

The middle value in a dataset when arranged in

ascending or descending order. it is less sensitive to
extreme values, making it a sturdy measure of central
tendency. For an odd-sized dataset, it's the middle
value; for an even-sized dataset, it's the average of the
two middle values
Example:
You and your friends are a group of 7 people, and their ages are
as follows: 22, 25, 27, 29, 30, 32, 35. To find the median age, you
would first arrange the ages in ascending order: 22, 25, 27, 29, 30,
32, 35. Since the number of people in the group is odd, the median
age is the middle age, which is 29. So, the median age of your
group is 29 years old.
Mode

The most frequently occurring value in a data. it

Describes the most common value in a distribution.
Some datasets may have more than one mode.
Example:
we have a group of students and we want to find the mode of
their test scores. The test scores are as follows: 85, 92, 78, 85, 90,
78, 85, 88. The mode is the value that appears most frequently in
a set of numbers. In this case, the number 85 appears three
times, which is more than any other number. Therefore, the mode
of the test scores is 85.
2.) Measures of Dispersion
Range

The difference between the maximum and minimum

values in a dataset. It provides a simple indication of
the spread of values. It is Sensitive to outliers and may
not capture the distribution's full complexity.
Example:
STEM 201 has a mean score of 75 out of 100, with individual scores ranging from 60
to 90. STEM 203 also has a mean score of 75 out of 100, but the individual scores
range from 50 to 100.
In this scenario, both classes have the same mean score, indicating similar average
performance. However, the measures of dispersion differ between the two classes.
STEM 201 has a narrower range of scores (60 to 90), indicating that the students'
performances are more closely grouped around the mean. On the other hand, STEM
203 has a wider range of scores (50 to 100), suggesting more variability in the
students' performances.
If we calculate the variance for each class, we would likely find that STEM 203 has
a higher variance compared to STEM 201, reflecting the greater spread of scores in
STEM 203.
Variance

The average of the squared differences between each

data point and the mean. Quantifies the dispersion of
data points from the mean. to get the varince you must
get the Sum of (each data point - mean)^2 divided by
the number of observations.
Example:

The average of these three returns is 5%.

The differences between each return and the average are 5%, 15%, and −20% for
each consecutive year.

Squaring these deviations yields 0.25%, 2.25%, and 4.00%, respectively.

If we add these squared deviations, we get a total of 6.5%.

Therefore, our variance is 6.5%

Standard Deviation

This is the square root of the variance. It Offers a

standardized measure of the spread of values and
Provides a more interpretable unit of measure
compared to the squared units of variance.
Example:
Let's say we have a dataset of exam scores: 75, 80, 85, 90, and 95.

Find the mean (average) of the data.

Subtract the mean from each data point, square the result, and then find the mean of those squared differences.

Take the square root of the result from step 2.

Mean: (75 + 80 + 85 + 90 + 95) / 5 = 425 / 5 = 85

Squared differences: (75 - 85)^2 = 100 (80 - 85)^2 = 25 (85 - 85)^2 = 0 (90 - 85)^2 = 25 (95 - 85)^2 = 100

Mean of squared differences: (100 + 25 + 0 + 25 + 100) / 5 = 250 / 5 = 50

Standard deviation: √50 ≈ 7.07

So, the standard deviation of the exam scores is approximately 7.07.

Understanding these measures helps statisticians
and researchers gain insights into the central
tendencies and distribution of data, facilitating
clearer interpretations and comparisons across
different datasets. Choosing the appropriate measure
depends on the characteristics and goals of
the analysis.
THANK YOU!!