Chapter 1

Introduction to Statistics
What is Statistics ?
 What is Statistics ?
Statistics is defined as the science of
collecting, organizing,
presenting, analyzing and interpreting
numerical data
for the purpose of assisting in making a
more effective decision.
Data Statistical Information
Tools
Key statistical
concepts
Basic concepts of statistics

1-Population
 Basic concepts of statistics
Population :
• The term population has many non-statistical
meaning.

in biology the term denotes a group of individuals

of the same species that live in the same geographic
area and can interbreed

In social since, it means all the people living in a

country, region or community
In statistics, the term population has a
different and very specific meaning
related to the fundamental task of
the analysis of measurement data.
In statistics, the term population has a
different and very specific meaning related
to the fundamental task of the analysis
of measurement data.

All people who went

shopping at the local malls
this week end
 In statistics, the term population has a
different and very specific meaning related to
the fundamental task of the analysis of
measurement data.

In statistics

A population consists of
all of the member of group which you
want to draw a conclusion.
2- Parameter
 Basic concepts of statistics:
2-Parameter

A parameter is a numerical measure

that describe a characteristic of
population
 Basic concepts of statistics
2-Parameter

A parameter is a numerical measure

that describe a characteristic of
population

The average amount spent by ALL PEOPLE

who went shopping at the local
malls this weekend
Basic concepts of statistics

3-sample
 Basic concepts of statistics
3-sample

A sample is the portion of the

population selected for analysis

30 people who went shopping at the

local malls this weekend
Basic concepts of statistics

4-Statestic
Basic concepts of statistics
4-Statestic
Statestic is a numerical measure that
describe a characteristic of sample

The average amount spent by the

30 shoppers
 Basic concepts of statistics
5-Inferancial Statistics

Tools that are used to infer the results

based on a sample to a population
 Example 1.1

An election is to be held soon to determine who

will be the mayor of London city. Based on the
results of a pollster’s survey of 400 eligible
voters, a newspaper has reported the proportion
of eligible voters who favour Ms. Winn, one of
the candidates. Identify the population and its
parameter, the sample and its statistic, and the
inference of interest in the situation described.
 Solution

The population is the collection of all

residents of the city who are eligible to vote
in the election.
 Solution

• The population is the collection of all

residents of the city who are eligible to
vote in the election.

The population parameter is the

proportion of all eligible voters
who favour Ms. Winn.
 Solution
• The population is the collection of all residents
of the city who are eligible to vote in the
election.
• The population parameter is the proportion of
all eligible voters who favor Ms. Winn.

The sample is the 400 eligible

voters surveyed by the pollster
constitute, and
•
 Solution
• The population is the collection of all
residents of the city who are eligible to vote
in the election.
• The population parameter is the proportion
of all eligible voters who favor Ms. Winn.
• The sample is the 400 eligible voters
surveyed by the pollster constitute, and

 the sample statistic is the

proportion of these 400 eligible
voters who favour Ms. Winn.
• .
 Solution
• The population is the collection of all residents
of the city who are eligible to vote in the
election.
• The population parameter is the proportion of
all eligible voters who favor Ms. Winn.
• The sample is the 400 eligible voters surveyed
by the pollster constitute, and
• the sample statistic is the proportion of these
400 eligible voters who favor Ms. Winn.

The inference is the estimate

(reported by the newspaper) of the
proportion of all eligible voters who
favour Ms. Winn.
 Example 1.2
According to the financial time newspaper (15-10-1987),
the average size of an UK household had fallen
from 3.14 persons in 1970 to 2.66 persons in 1987.

a) The 1987 figure of 2.66 is claimed to be the value

of a population parameter. What are the population
and the parameter?

b) What procedure must be taken to be 100% certain

that the value of the population parameter is
exactly 2.66?

c) What procedure was likely used to arrive at the

1987 figure of 2.66? Use the terms sample, sample
statistic, and inference in your answer.
SOLUTION
 Definition: Variable
A variable is a characteristic of a
population or sample.

Example:
Share price, firm profitability, industry
 Definition: Data

Data are the observed

values of a variable
 Share price profitability industry
companyA 100.56 177m banks

companyB 543.09 327m insurance

companyC 25.23 200m service

 Type of Data

(1) Quantitative data

= interval data=numerical data

numbers representing counts or

measurements
values are real numbers


• (2) Qualitative data
= categorical data
• can be separated into different
categories that are distinguished by
some nonnumeric characteristics
graduates

type of company
 Type of investors
Ordinal data
Values must represent the ranked order
of the data

Calculatino based on an ordering process

are valid

Data treated as nominal but not as

interval
 Type of Data

Discrete
data result when the number of possible
values is either a finite number or a
‘countable’ number of possible values
0, 1, 2, 3, . . .
Continuous
(numerical) data result from infinitely
many possible values that correspond to some
continuous scale that covers a range of values
without gaps, interruptions, or jumps
 Discrete
The number of eggs that hens lay; for
example, 3 eggs a day.

Continuous
The amounts of milk that cows produce;
for example, 2.343115 gallons a day.