INTRODUCTION TO STATISTICS

ENGR. ARVIN H. GARA,LPT

LEARNING OBJECTIVES:
At the end of this lesson, the students should be able to:

Define what is statistics

Differentiate a sample from population; Inferential from Descriptive statistics

Identify the scope and limitation of statistics

Identify the functions of statistics and state the uses of statistics

4 PICS ONE 1 WORD
Once you start the game, you will be shown a screen
with four photographs. These four photographs each
have something in common. Sometimes it will be
obvious, while other times, it can actually be fairly
hard to guess. This is especially true of later levels.

7 LETTERS

C O L L E C T
4 pics 1 word
Once you start the game, you will be shown a
screen with four photographs. These four
photographs each have something in common.
Sometimes it will be obvious, while other times, it
can actually be fairly hard to guess. This is
especially true of later levels.

4 LETTERS

D A T A
4 PICS 1 WORD
Once you start the game, you will be
shown a screen with four photographs.
These four photographs each have
something in common. Sometimes it will
be obvious, while other times, it can
actually be fairly hard to guess. This is
especially true of later levels.

ANALYZE
NATURE OF STATISTICS
STATISTICS
Statistics is a mathematical science that pertains to the collection,
presentation, analysis and interpretation of quantitative data and
such problems as experiments design and decision-making.

It helps in assisting a good decision making based on

data.
Statistics involves the following processes:
1. Collection of Data. and experiment method. This is the
process of gathering information through direct or interview,
indirect or questionnaire, observation, registration

2. Tabulation or Presentation of Data. This is a process of

organizing data into texts, tables, charts or graphs.
Statistics involves the following processes:
3. Analysis of data. This involves the process of extracting
relevant information from the organized collected data. Statistical
techniques are needed in this process.

4. Interpretation of data. This is the process of drawing

conclusions from the analysed data. It involves the formulation of
conclusion about a large group based on the gathered data from a
small group.
SCOPE
The scope of Statistics may be classified into following 3 parts
 The study of nature is to find out whether Statistics is
Science or Art
As a science- It studies the Statistical data
Nature As a Art- It makes use of data to solve
problems of real life.
The subject matter of statistics is divided into 2 parts-
1. Descriptive statistics- It describes the data and consists of
methods and techniques to explain characteristics of data. The
Subject methods can either be graphical or computational.
Matter 2. Inferential Statistics- It deals with methods which describe the
characteristics of population or making decisions concerning
population on the basis of sample results.
TWO DIVISION OF STATISTICS
1. DESCRIPTIVE STATISTICS
 It is concerned with summarizing and
describing important features of numerical
data without attempting to infer. This method
can either be graphical or computational.
Topics included in this study are measures of
central tendency, variability of scores,
skewness and kurtosis.
 TWO DIVISION OF
STATISTICS
2. INFERENTIAL STATISTICS
This demands a higher order of critical judgement
and mathematical methods. It aims to give
information about a large group of data without
dealing with each and every element of these
groups.
Testing hypothesis, using t-test, z-test, simple linear
correlation, analysis of variance, chi-square test,
regression analysis and time series analysis are
included in this study.
Limitations
1. Study of Numerical facts-Statistics can only study such facts which can be expressed in
numerical terms.
2. Study of Aggregates only- Statistics studies only the aggregates and not particular unit.
No conclusion is possible from single piece of data.
3. Not the only method- Statistics is not the only method to study and many a time does not
suggest the best solution of each problem.
4. Homogeneity of data- Quantitative data has to be consistent and homogeneous otherwise
it will not be possible to draw conclusions.
5. Results are true only on an average- Statistical results only express tendencies and are
true on an average and not absolutely.
6. Without reference results may prove wrong- Circumstances and conditions under which
conclusions are made have to be studied otherwise the results may give wrong impression.
7. Can be used by experts only- Only experts can make good use of statistics and
unqualified would find it difficult to apply it.
8. Misuse of Statistics is possible- The misuse of Statistics to seek particular results is a
possibility, more so when it is not easily understood.
Uses & Importance
1. Importance for administrators- Administrators use data for varied purposes and Statistics
provide useful tools for decision making support.
2. Importance for business, industry and agriculture- Estimating demand and supply,
studying seasonal changes, understanding trade cycles, consumer profiling, product life cycle
analysis are examples of some of the functions that Statistics can perform for business,
industry and agriculture.
3. Importance in Economics- Statistics is basis of Economics as it helps establishing the
assumptions. Almost all the economic aggregates are measured with the help of Statistics.
4. Importance for Politicians and in Social field- For formulating social, economic,
educational, industrial and other policies, politicians draw great support from Statistics
discipline.
Existing social problems can only be brought to fore front with the help of data analysis. The
effectiveness of existing policies for social change can be measured by statistical tools.
5. Importance for banking and insurance industry- Bankers use statistics for estimating credit
growth, risk analysis, portfolio management and insurers for establishing appropriate
premiums looking at life expectancies.