Descriptive Statistics

Chapter 2
What is Statistics

By: Dr. Abdul Sattar Al-Azzawi

Chapter2 : Learning Objectives

LO1-1 Explain why knowledge of statistics is important.

LO1-2 Define statistics and provide an example of how statistics is applied.
LO1-3 Differentiate between descriptive and inferential statistics.
LO1-4 Classify variables as qualitative or quantitative, and discrete or continuous.
LO1-6 List the values associated with the practice of statistics.
Chapter2 : What is Statistics?

As a decision maker, you will need to acquire and analyze data to support your decisions.

The purpose of this subject is to develop your knowledge of basic statistical techniques and
methods and how to apply them to develop the business and personal intelligence that will help
you make decisions.

Statistics is the science of collecting,

organizing, presenting, analyzing, and
interpreting numerical data to assist in
making more effective decisions.
Chapter2 : What is Statistics?

We often present statistical information in a graphical form.

A graph is often useful for capturing reader attention and to describe a large amount of information.

Examples:

- The average starting salary of college graduates.

- The number of deaths due to road accidents last year.
- The inflation rate for 2019 was 0.7%. By applying statistics we
could compare this year’s inflation rate to past observations of inflation.

Is it higher, lower, or about the same?

Is there a trend of increasing or decreasing inflation?

In these examples statistics are a value or a percentage..

Chapter2 : Types of Statistics

In this section we will look at some of the ways to describedata.

Describe & Organize Generalize findings from

Descriptive Inferential samples to populations
Statistics Statistics
Simplify & Summarize ) ‫(استداللي‬ Hypothesis testing
) ‫(وصفي‬
Data Presentation
Assess relationships among
variables

Example: The average person spent around BD 30
on Valentine’s Day gifts in 2020. This is an increase
of BD 5 from 2019. As in previous years, men spent
twice the amount women spent in this occasion.
The average man spent BD 50 while women spent
only BD 20.
Example: In 2019, a sample of 50 Bahraini
households with TVs were selected. 10.5% of the
sample watched BTV during weekends. Those
ratings are used to make decisions about
advertising rates.
Chapter2 : Example 1

Movinto advertising firm asked a sample of 100 consumers in Bahrain to try a new developed
coffee by Dose Café. Of the 100 samples consumers, 30 responded that they would buy it if it
is sampled in the Café.
▪ What could Movinto report back to Dose Café regarding acceptance of the new coffee
flavor in the population?
▪ Is this an example of a description statistics or inferential statistics? Explain.

Answer:
▪ On the basis of the sample of 100 consumers, we estimate that, if the new flavor is
provided as a sample, 30% of all consumers will purchase the new coffee flavor:
(30/100)*100=30%.
▪ It is Inferential Statistics, because a sample was used to draw a conclusion about how all
consumers in the population would react if the new coffee flavor was sampled.
Chapter2 : Population versus Sample

POPULATION The entire set of individuals or objects SAMPLE A portion or part

of interest or the measurements obtained from all of the population of
individuals or objects of interest. interest.
Chapter2 : Types of Variables

QUALITATIVE VARIABLE An object or individual is observed and recorded as a non-numeric

characteristic or attribute.

Examples: gender, state of birth, eye color

QUANTITATIVE VARIABLE A variable that is reported numerically.

Examples: balance in your checking account, the life of a car battery, the number of people employed
by a company
Chapter2 : Types of Variables

• Quantitative variables can be discrete or continuous

DISCRETE VARIABLES are typically the result of counting and values have “gaps” between the values

CONTINUOUS VARIABLES are usually the result of measuring something and can assume any value
within a specific range
Chapter2 : Types of Variables
Chapter2 : Basic Business Analytics

• Business Analytics is used to process and analyze

data and information to support a story or
narrative of a company.
• Using computer software to summarize, organize,
analyze, and present the findings of statistical
analysis is essential.
Chapter2 : Ethics and Statistics

• Practice statistics with integrity and honesty

when collecting, organizing, summarizing,
analyzing, and interpreting numerical
information.

• Maintain an independent and principled point of

view when analyzing and reporting findings and
results.

• Question reports that are based on data that:

• does not fairly represent the population
• does not include all relevant statistics
• introduces bias in an attempt to mislead or
misrepresent
Questions ?

End of Chapter 2