DISC: 203 – PROBABILITY &

STATISTICS
Introduction

Lecturer: Muhammad Asim

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WHAT IS STATISTICS?

Statistics is the art and science of learning

from data.

It involves collecting, classifying,

summarizing, organizing, analyzing, and
interpreting numerical and categorical
information.

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 TWO BROAD AREAS

Descriptive statistics
 The collection and presentation (through graphical and numerical
methods) of data
 Tries to look for patterns in data, summarize information

Inferential statistics
 Utilizes sample data to make estimates, decisions, predictions, or other
generalizations about a larger population

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SAMPLE VS. POPULATION

Population Sample
CONCEPTS AND DEFINITIONS
 Population:
 The set of all units of interest (finite or infinite). e.g. all students at
LUMS
 Variable:
 A property or attribute of each unit, e.g. age, height
 Sample:
 A subset of the population actually observed. e.g. students in DISC
203.
 Parameter:
 A parameter is a specific characteristic of the population.
 Statistic:
 A statistic is a specific characteristic of the sample.
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CONCEPTS AND DEFINITIONS
 Statistical inference:
- An estimate or prediction or some other
generalization about a population based on information
contained in a sample
 Measure of reliability:

- A statement (usually quantifiable) about the degree

of uncertainty associated with statistical inference

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 TYPES OF DATA
 Quantitative data result in numerical responses
 Examples:
 Number of courses taken at LUMS
 Weight of a person
 Temperature of the room
 Mileage per gallon of a car
 Inflation rate in a country
 Score on DISC 203 final exam
 Salary
 Hours spent studying each day

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TYPES OF DATA
 Qualitative data : Measurements classified into groups/
categories
 Examples:
 Sex: male, female
 Eye color: brown, blue, green, hazel
 Defective status: Defective, Non-defective
 Restaurant Rating: *, **, ***, ****, *****
 Course Rating: Excellent, Good, Average, Below Average,
Poor
 Seniority at LUMS: Freshman, Sophomore, Junior, Senior
 Valence of online reviews: positive, negative, neutral
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COLLECTING DATA
 Published Source
Many government and financial statistics are collected and
archived in publications or online.
 State
Bank of Pakistan, Federal Bureau of Statistics, World
Development Indicators 
 Designed Experiments
Researcher imposes a treatment on individuals, then observes
responses.
 Testing banner ads
 Survey
Researcher selects sample of individuals and records their
responses to questions. 11
 Survey of customer perceptions, Gallup polls
COLLECTING DATA

 Regardless of the type of study, we must ensure

that we have a representative sample, one that has
similar characteristics to the population of interest.

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COLLECTING DATA

 Selection bias: occurs when a specific subset of

the population is unlikely to be selected for the
sample.
 Nonresponse bias: occurs when respondents and
non-respondents differ greatly on an issue.
 Measurement error: refers to inaccuracies in the
values of the data collected

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REFERENCE

 Chapter 1 of the text book

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