MATH 52540 STATISTICS

CHAPTER 1
INTRODUCTION TO STATISTICS
Data
It is a Collections of observations, such as measurements, genders, or survey
responses.
Statistics
Statistics is the science of data. It involves collecting, classifying, summarizing,
organizing, analyzing, and interpreting data and drawing conclusions based on
them. It is also a way to get information from data.
Types of Statistics
Descriptive statistics: utilizes numerical and graphical methods to look for patterns
in a data set, to summarize the information revealed in a data set, and to present the
information in a convenient form.
Chapter 2 introduces several graphical methods.
Chapter 4 introduces several numerical statistical measures that describe different
features of the data. (examples include mean, median, mode, range, standard
deviation, variance and coefficient of variation).
Inferential Statistics: utilizes sample data to make estimates, decisions,
predictions, or other generalizations about a larger set of data.
Fundamental elements of Statistics
Population: The complete collection of all measurements or data that are being
considered.
A sample: is a subset of the units of a population.
A variable is some characteristic of a population or sample. E.g. student grades.
The values of the variable are the range of possible values for a variable. E.g.
student marks ( 0..100).

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Types of Data
Parameter: a numerical measurement describing some characteristic of a
population. A descriptive measure of a population.
Statistics: a numerical measurement describing some characteristic of a sample.
A descriptive measure of a sample.
The confidence level is the proportion of times that an estimating procedure will be
correct.
When the purpose of the statistical inference is to draw a conclusion about a
population, the significance level measures how frequently the conclusion will be
wrong in the long run
Statistical applications in business can be seen in accounting, economics,
finance, human resources management, marketing, and operations management.

CHAPTER 2 (Graphical Descriptive techniques I)

Qualitative data (Categorical data): are measurements that cannot be measured
on a natural numerical scale; they can only be classified into one of a group of
categories. E.g Marital status of customers at Walmart.
Quantitative data (numerical): are measurements that are recorded on a naturally
occurring numerical scale. E.g. ages of students in a statistics class.
Discrete Data: result when the data values are quantitative and the number of
values is finite, or “countable.” E.g. Number of cars in the parking lot.
Continuous data: result from infinitely many possible quantitative values, where
the collection of values is not countable. E.g. weight of a baby.
Levels of Measurement
Nominal: characterized by data that consist of names, labels, or categories only,
and the data cannot be arranged in some order. E.g Gender.

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Ordinal: involves data that can be arranged in some order, but differences
(obtained by subtraction) between data values either cannot be determined or are
meaningless. e.g. Course grades A, B, C, D, or F
Interval: involves data that can be arranged in order, and the differences between
data values can be found and are meaningful. However, there is no natural zero
starting point at which none of the quantity is present. e.g. Year of birth.
Ratio: data can be arranged in order, differences can be found and are meaningful,
and there is a natural zero starting point (where zero indicates that none of the
quantity is present). Differences and ratios are both meaningful. e.g. Ages of
students in a statistics class.
Describing Qualitative Data
A class is one of the categories into which qualitative data can be classified.
The class frequency is the number of observations in the data set falling into a
particular class.
The class relative frequency is the class frequency divided by the total number of
observations in the data set.
Frequency Distribution table: Shows how data are partitioned among several
categories (or classes) by listing the categories along with the number (frequency)
of data values in each of them.
Frequency Distribution table:

Class (Survey responses) frequency Relative frequency

Awesome 102 0.51
Excellent 58 0.29
Good 30 0.15
Poor 10 0.05
Total 200 1
Graphical methods for Describing Qualitative Data
Bar Graphs
A graph of bars of equal width to show frequencies of categories of categorical (or
qualitative) data.

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 Survey Responses
102

58

30
10

Awesome Poor Good Excellent

Pareto Charts
A Pareto chart is a bar graph for categorical data, with the added stipulation that
the bars are arranged in descending order according to frequencies, so the bars
decrease in height from left to right.

Survey Responses
102

58

30
10

Awesome Excellent Good Poor

Pie chart
A very common graph that depicts categorical data as slices of a circle, in which
the size of each slice is proportional to the frequency count for the category.

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 Survey Responses

Awesome
29%
Poor
51%
Good
15%
5% Excellent

CHAPTER 3 (Graphical Descriptive techniques II)

Graphical Methods for Describing Quantitative Data
Dot plot: The horizontal axis is a scale for the quantitative variable, the numerical
value of each point in the data set is located on the horizontal scale by a dot. The
dots a stacked above one another if values repeat.

Stem and Leaf Plot.

Represents quantitative data by separating each value into two parts: the stem
(such as the leftmost digit) and the leaf (such as the rightmost digit).

DATASET1 Stem-and-Leaf Plot

Frequency Stem & Leaf

3.00 0 . 012
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 4.00 1 . 2248
7.00 2 . 1134599
5.00 3 . 00036
3.00 4 . 457
1.00 5 . 1

Stem width: 10
Each leaf: 1 case(s)

Histogram
A graph consisting of bars of equal width drawn adjacent to each other (unless
there are gaps in the data) The horizontal scale represents classes of quantitative
data values, and the vertical scale represents frequencies. The heights of the bars
correspond to frequency values.
Lower Class limits: The smallest numbers that can belong to each of the different
classes.
Upper class limits: The largest numbers that can belong to each of the different
classes.
Class boundaries: The numbers used to separate the classes, but without the gaps
created by class limits.
Class midpoints: The values in the middle of the classes Each class midpoint can
be found by adding the lower class limit to the upper class limit and dividing the
sum by 2.
Class width: The difference between two consecutive lower class limits in a
frequency distribution.
Cumulative Frequency: The frequency for each class is the sum of the frequencies
for that class and all previous classes.
Normal distribution: If the histogram is roughly bell-shaped, we say that the data
has a normal distribution.
Skewness: A distribution of data is skewed if it is not symmetric and extends more
to one side than to the other.
Data skewed to the right (positively skewed) have a longer right tail.
Data skewed to the left (negative skewed) have a longer left tail.

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Example 3.1

Histogram
50
Frequency

0
20 40 60 80 100
Age (Years)

Time Series Graph

A graph of time-series data, which are quantitative data that have been collected at
different points in time, such as monthly or yearly

Time series plot

80
78
76
74
72
70
68
0 5 10 15 20 25

Scatter Plot
A scatterplot (or scatter diagram) is a plot of paired (x, y) quantitative data with a
horizontal x-axis and a vertical y-axis.

80 y
78
76
74
72
70
68
0 5 10 15 20 25

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