Introduction to statistics

By: Dr Hayat Khan

Introduction to statistics

1. What is 3. Main Branches of

2. Data
Statistics? statistics

Descriptive Inferential
Statistics statistics

population vs Statistic vs
sample parameter

2
 What is Statistics?

Business
Make decisions use of data.
The most popular sources of statistical data
• Primary: Published by collectors (e.g. ABS)
Published data • Secondary: Published by non-collectors (e.g. World Bank)

Observational data • Example:. Measuring yield of different types of rice without any control

Experimental data • Example: Measuring yield of different types of rice using a certain amount of fertilizer (control factor)

Surveys • Example: Student feedback on subject

Information Technology
Data Data Data Data Data Data Data Data Data Data Data

3
What is Statistics?
to make
get
Statistics information
from data informed
decisions

• Collecting data
The science of • Analyzing data
• Drawing conclusions from data

4
Two major branches of Statistics

Descriptive
Statistics Inferential Statistics
• Graphical
• Numerical

5
 Descriptive Statistics
Methods of organising, summarising, and presenting data

graphical techniques

• Examples
• Mean, median, mode
numerical measures • Range, variance, standard
deviation

6
 Inferential Statistics
• Weight of Tuna cans
ACCC Complaint less than advertised

Investigate
• You cannot go and weigh
Problem every single tuna can

•Select a random sample

Solution
All cans
•Calculate average weights
7
 Inferential statistic
Population
(ALL cans) Sample
(100 cans)
Subset

Parameter Statistic
Average weight of all cans Average weight of 100 cans
( A descriptive measure of the population) (A descriptive measure
of the sample)

Inferential A process which uses sample statistic to make

statistics: inference about population parameter.
8
Statistical Inference

We use sample statistics to make inferences about

population parameters.
Therefore, we can produce an estimate, prediction, or
decision about a population based on sample data.
Thus, we can apply what we know about a sample to
the larger population from which it was drawn!
Note. This part is not covered in the video but it is important to note:

Statistical inference

Rationale:
• Large populations make investigating each member
impractical and expensive.
• Easier and cheaper to take a sample and make
estimates about the population from the sample.
However:
• Such conclusions and estimates are not always going to
be correct.
• For this reason, we build into the statistical inference
‘measures of reliability’, namely confidence level and
significance level.
Confidence and Significance Levels
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.

For example, a 5% significance level means that, in the

long run, this type of conclusion will be wrong 5% of
the time.
Confidence and Significance Levels

The confidence level is the proportion of times that an

estimating procedure will be correct.

For example, a confidence level of 95% means that,

estimates based on this form of statistical inference will be
correct 95% of the time.