Probability and Statistics

Lec 1,2
 Overview of Statistics

• Importance of Statistics: Why Does it Matter?

• Decision-making
• Research

1/23/2024 Dr. Um-e-Habiba 4

 Terminologies
1. Variables:
• A characteristic or attribute with varying values.
• Examples: Age, income, temperature
2. Random Variables (RV):
• Variables whose values are determined by chance.
• Examples: Coin toss results, dice rolls, accidents happening randomly.
3. Data:
• The values (measurements or observations) that the variables can
assume
• Examples: 25 years, $50, 30°C.
 Insurance Company Example
What the Insurance Company Does:
• The insurance company examines past accident records (data) to
identify patterns in accident rates (random variable) for different
factors such as car type or driving history (variables), enabling
them to adjust insurance rates accordingly.
• In simpler terms, the insurance company studies past accidents to
predict future ones, helping them set fair insurance rates.
Cont..
4. Data set and Datum:
• A collection of data values forms a data set. Each value in the data
set is called a data value or a datum.
• EXAMPLE: The ages of five individuals {25, 30, 22, 28, 35} form
a data set, with each individual age, like 25 or 30, referred to as a
data value or datum.
Cont..
5. Population and Sample
• Populations can be finite or
infinite.
• Examples:
• All students in a school,
• all cars produced by
company,
• all residents in a city.
• Samples are used when it is
impractical or impossible to
study the entire population.
• Examples:
• Randomly selecting 100
a students from a school for a
survey,
• testing a batch of 50 cars from
a production line.
Data can be used in different ways.
• The statistics is
sometimes divided into
two main areas,
depending on how data
are used.
• The two areas are
1. Descriptive Statistics
2. Inferential Statistics
 Descriptive Statistics
1.Descriptive statistics
consists of:
i. Data collection
ii. Organization
iii. Summarization, and
iv. Presentation in charts,
graphs, or tables.
 Inferential Statistics
• An inferential statistics is
about making sensible
predictions and decisions
for big groups based on
what we learn from
smaller ones.
• Example
• A sample is similar to a
small taste of a large
meal; by examining this
portion (a sample), we
draw conclusions about
the whole meal
(population) .
 Variables and Types of Data
Qualitative Variables
• Variables that can be placed into
distinct categories, according to
some characteristic or attribute.
• Example
• If subjects are classified according
to gender (male or female), then
the variable gender is qualitative.
• Religious preference
• Geographic locations.
Quantitative Variables
• Variables that are numerical
and can be ordered or ranked.
• Example:
• Age is numerical, and people can be
ranked according to value of their ages.
• Heights, weights, and body temperatures
• Quantitative variables
classified into two groups:
• Discrete and Continuous.
• Discrete variables, like the
number of children in a
family, take countable values
(e.g., 0, 1, 2),
• Continuous variables, such as
temperature, can assume an
infinite range of values within
any given interval.
 Random Vs Non-Random Sampling

Random sampling Non-random sampling

• Random sampling relies on • Non-random sampling involves
chance for participant selection. intentional selection methods.
• Selection is random • Selection is intentional.
• Example: • Example:
• Random sampling is akin to a • Choosing participants based on
lucky draw, where every convenience, such as surveying
participant has an equal chance of individuals in a nearby park.
being selected.
Sampling Methods in Research

1. Random Sampling 2. Stratified Sampling

• Random sampling relies on • Divides the population into
chance for participant selection. subgroups (strata) based on
certain characteristics.
• Example: • Random samples are then taken
• Random sampling is akin to a from each stratum.
lucky draw, where every
participant has an equal chance of • Example:
being selected. • In a school, stratified sampling
could involve selecting students
randomly from each grade level.
Cont..
3. Systematic Sampling
• Selects every k-th individual
from a list after randomly
choosing a starting point.
• Example:
• Choosing every 10th customer
from a list of online purchases.
4. Convenience Sampling
• Participants chosen based on
accessibility or availability.
• Example:
• Surveying individuals in a nearby
park for convenience.
5. Snowball Sampling 6. Cluster Sampling
• Involves selecting initial • Divides the population into clusters or
participants who then refer groups, often based on geographical
additional participants, creating a location.
chain or network. • Entire clusters are randomly selected,
• Example: and all members within those clusters
are included in the sample.
• Conducting a study on a rare medical
condition where initial participants • Example:
refer others who share similar • Surveying households in randomly
experiences, gradually expanding the selected neighborhoods (clusters) and
participant pool. including all residents within those
chosen clusters is an example of
cluster sampling.
• 7. Judgment Sampling
• The sample is selected based upon judgment.
• An extension of convenience sampling
• In judgmental sampling, the researcher must be confident that
the selected sample effectively represents the entire population.
• Example:
• In a marketing study, the researcher picks a few experts they think will
provide valuable insights into industry trends, showcasing judgment
sampling.
 Observational and Experimental Studies

Example:
• Studying the behavior of shoppers in a mall without influencing their actions.

Example:
• Testing the impact of a new teaching method by assigning one group of students to
receive the new method while keeping another group with the traditional approach.
1.Organizing Data: Frequency Distribution
1.To make meaningful conclusions, organizing the data into a
frequency distribution is a convenient method, helping to
understand patterns and frequencies.
2.Presenting Data: Statistical Charts and Graphs
1.After organizing data, effective communication is crucial.
Statistical charts and graphs serve to present the data in a visually
accessible manner.
Example
1.Data Collection: The researcher
gathers raw data on the ages of
the top 50 wealthiest individuals
from Forbes Magazine.
2.Raw Data Definition: In its
original form, this data is termed
as raw data, representing the
ages of the selected individuals.
1.Data Organization: To extract
meaningful insights, the
researcher constructs a frequency
distribution, categorizing raw
data into classes with
corresponding frequencies.
2.Frequency Distribution
Definition: It comprises classes
and their frequencies, revealing
the distribution of data values
within specific categories.
Presentation of data
• Methods and techniques used to communicate information
effectively, making it understandable and visually appealing.
• It involves transforming raw data into a format that is accessible,
informative, and conducive to analysis.
• Key Elements:
1.Clarity
2.Visualization
3.Structure
4.Relevance
5.Consistency
• Methods of Presentation:
1.Graphs and Charts:
2.Tables:
3.Infographics:
4.Narratives and Reports:
TABULATION
• Tabulation is a systematic arrangement of data in columns and rows,
typically in a table, to facilitate easy understanding, analysis, and
interpretation of information. It involves presenting data in a
structured format for better visualization and comparison.
Homework Questions
• List five reasons for organizing data into a frequency
distribution.