What is Statistics?

Why Study
Statistics?
Learning Objectives: When you have completed this chapter, you will be able
to:
1. Define Statistics. Know the differences between descriptive and inferential statistics.
2. Understand the differences between a sample and a population.
3. What a variable is. Classification of variables.
4. Recognize the levels of measurement in data.
The term statistics is derived from the  Italian word statista ("statesman" or "
politician"). The German Statistik, first introduced by Gottfried Achenwall (1749),
originally designated the analysis of data about the state, signifying the "science
of state" (then called political arithmetic in English). It acquired the meaning of
the collection and classification of data generally in the early 19th century. It was
introduced into English in 1791 by Sir John Sinclair when he published the first of
21 volumes titled Statistical Account of Scotland.[1]
The birth of statistics is often dated to 1662, when John Graunt,
along with William Petty, developed early human statistical and 
census methods that provided a framework for modern 
demography.
In 1791 Sir John Sinclair introduced the term 'statistics' into English
in his Statistical Accounts of Scotland.
In 1911 Karl Pearson founded the world's first university statistics
department at University College London.
Mathematical statistics was pioneered by Ronald Fisher who wrote
two textbooks, Statistical Methods for Research Workers, published
in 1925 and The Design of Experiments in 1935, that were to define
the academic discipline in universities around the world. He is
honored to be the founding father of modern day statistics.
 One of the tools used to make business decisions is statistics.
As a student of business or economics, you will need basic knowledge and
skills to organize, analyze, and transform data and to present the
information. In this text, we will show you basic statistical techniques and
methods that will develop your ability to make good personal and
business decisions.
 Why Study Statistics?
If you look through your university catalog, you will find that statistics is
required for many programs. Why is this so? Why is statistics required in so
many majors?
The first reason is that numerical information is everywhere. Look in the
newspapers (USA Today), news magazines (Time, Newsweek, U.S. News and
World Report), business magazines (BusinessWeek, Forbes), or general
interest magazines (People), women’s magazines(Ladies Home Journal), or
sports magazines (Sports Illustrated, ESPN The Magazine), and you will be
bombarded with numerical information.
Here are some examples:
• The median age of Bangladesh people is 29 years.
• The per capita income of Bangladesh is $2227.
• The expectation of life at birth in Bangladesh is 74 years. Etc., etc..
A second reason for taking a statistics course is that statistical
techniques are
used to make decisions that affect our daily lives. That is, they affect
our personal welfare. Here are a few examples:
• Insurance companies use statistical analysis to set rates for home,
automobile, life, and health insurance.
• The Environmental Protection Agency is interested in the water
quality of Lake Kaptai as well as other lakes. They periodically
take water samples to establish the level of contamination and
maintain the level of quality.
• Medical researchers study the cure rates for diseases using different drugs
and different forms of treatment. For example, what is the effect of treating a
certain type of knee injury surgically or with physical therapy? If you take an
aspirin each day, does that reduce your risk of a heart attack?
A third reason for taking a statistics course is that the knowledge of statistical
methods will help you understand how decisions are made and give you a
better understanding of how they affect you.
No matter what line of work you select, you will find yourself faced with
decisions where an understanding of data analysis is helpful.
The statistical methods will provide you with a framework for the decision-
making process.
A fourth reason for studying statistics is that “If you undertake any kind of
research you will have to use statistical methods.
In summary, there are at least-fourreasons for studying statistics: (1) data are
everywhere,
(2) statistical techniques are used to make many decisions that affect our lives,
and
(3) no matter what your career, you will make professional decisions that
involve data.
 What is meant by Statistics?
How do we define the word statistics? We encounter it frequently in
our everyday language. It really has two meanings.
In the more common usage, statistics refers to numerical
information.
Examples: 1) There are 35 students in class BUS511.3
2) There are 170 million people in Bangladesh.
3) Per capita of Bangladesh is $2227. etc., etc……
A collection of numerical information is called statistics (plural).