STATISTICS

What is
Statistics?

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 STATISTICS

The word statistics originated

from the Latin word “status”
meaning “state.”
For a long time, it was identified solely with the displays of data and charts pertaining to the economic, demographic, and
political situations prevailing in a country.
 STATISTICS IN OUR EVERYDAY LIFE

•Employment
•Cost of Living
•Gallup Poll
•Quality and Productivity Improvement
STATISTICS IN AID OF SCIENTIFIC INQUIRY

•Training Programs
•Monitoring Advertising Claims
•Plant Breeding
 WHY STUDY STATISTICS?

1. Numerical information is everywhere

2. Statistical techniques are used to make
decisions that affect our daily lives
3. 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.
 WHO USES STATISTICS?

Statistical techniques are used extensively

by marketing, accounting, quality control,
consumers, professional sports people,
hospital administrators, educators,
politicians, physicians, etc...
 FORMAL DEFINITION
STATISTICS The science of collecting, organizing,
presenting, analyzing, and interpreting data to
assist in making more effective decisions.

Statistics:
• Data – refers to numerical information
• Field of study – producing meaningful
inferences from data
 Example
1. Compubox statistics show that Pacquiao landed 190 of 493
power shots, compared to just 108 of 390 punches for
Bradley. Pacquiao landed a total of 253 of 751 punches,
while Bradley was 159-of-839.

2. The DOH's National Epidemiology Center said the total

figure represents a one-percent decline, or 456 fewer
cases, compared to the same period in 2012.
A breakdown of data showed that most of the dengue cases
from Jan. 1 to June 8 were recorded in:
- Central Visayas (6,023 cases, 51-percent increase)
- Calabarzon (4,742, 17-percent decrease)
- Davao Region (4,364, 30-percent increase)
- Western Visayas (4,444, 102-percent increase)
- SOCSARGEN (3,963, 126-percent increase)
Some examples of the need for data collection.
1. Research analysts for Merrill Lynch evaluate many facets of
a particular stock before making a “buy” or “sell”
recommendation.
2. The marketing department at Colgate-Palmolive Co., a
manufacturer of soap products, has the responsibility of
making recommendations regarding the potential
profitability of a newly developed group of face soaps
having fruit smells.
3. The United States government is concerned with the
present condition of our economy and with predicting
future economic trends.
4. Managers must make decisions about the quality of their
product or service.
The Statistical Process

Step 1: Identification of Sources

and data
Step 2: Collection
Step 3: Presentation
Step 4: Analysis/ Drawing
Conclusion
Course Organization Introduction

Visual
Description of
Descriptive Data
Statistics
Numerical
Description of Data

Sampling
Methods
Probability and
Estimation Probability Inferential
Distribution Statistics
Hypothesis
Testing and Inferential
Statistical Tests Tools

Correlation
 TYPES OF STATISTICS

Descriptive statistics is the term given to the analysis

of data that helps describe, show or summarize data
in a meaningful way such that, for example, patterns
might emerge from the data.

Inferential Statistics is the process of drawing

conclusions from data that are subject to random
variation, for example, observational errors or
sampling variation.
A decision, estimate, prediction, or generalization about a population,
based on a sample.
 Descriptive VS Inferential
Classify each of the following as descriptive statistics or inferential statistics

1. Ten percent of the boxes of cereal sampled

by a quality technician are found to be under
the labeled weight. Based on this finding, the
filling machine is adjusted to increase the
amount of fill.

INFERENTIAL STATISTICS
 Descriptive VS Inferential

2. The average points per game, percent of free

throws made, average number of rebounds
per game, and average number of fouls per
game as well as several other measures
for players in the NBA are computed.

DESCRIPTIVE STATISTICS
 Descriptive VS Inferential

3. Based on a study of 500 single parent

households by a social researcher, a magazine
reports that 25% of all single parent
households are headed by a high school
dropout.

INFERENTIAL STATISTICS
 Descriptive VS Inferential

4. USA Today gives several pages of numerical

quantities concerning stocks listed in AMEX,
NASDAQ, and NY SE as well as mutual funds
listed in MUTUALS.

DESCRIPTIVE STATISTICS
TERMS
A population is a collection of all possible individuals,
objects, or measurements of interest.

A sample is a portion, or part, of the population of

interest
 Why take a sample?

1. Prohibitive cost of census

2. Destruction of item being studied may be
required
3. Not possible to test or inspect all members
of a population being studied
Population VS Sample
1. CAFFEINE DECREASES CEREBRAL BLOOD FLOW
It describes a study which establishes a physiological side effect—a
substantial decrease in cerebral blood flow for persons drinking two to
three cups of coffee daily.
The cerebral blood flow was measured twice on each of 20 subjects. It was
measured once after taking an oral dose of caffeine equivalent to two to
three cups of coffee and then, on another day, after taking a look-alike dose
but without caffeine. The order of the two tests was random and subjects
were not told which dose they received. The measured decrease in cerebral
blood flow was significant.

Identify the population and sample.

Sample: 20 Subjects
Population: All persons drinking two to three cups of coffee daily
Population VS Sample

2. In order to study the response times for emergency

91 1 calls in Chicago, fifty “robbery in progress” calls
are selected randomly over a six-month period and
the response times are recorded.

Identify the population and sample.

Sample: 50 selected calls

Population: All calls for the 6 moth period
Population VS Sample

3. A newspaper headline reads:

U.S. TEENS TRUST, FEAR THEIR PEERS

and the article explains that a telephone poll was
conducted of 1055 persons 13 to 17 years old.

Identify the population and sample.

Sample: 1055 persons

Population: All US Teens age 13 to 17 years old
Population VS Sample

4. In order to study a new medical charting system at

Saint Anthony’s Hospital, a representative group of
nurses is asked to use the charting system. Recording
times and error rates are recorded for the group.

Identify the population and sample.

Sample: Nurses representatives

Population: All Nurses using the new medical charting system
Population VS Sample

5. Fifteen hundred individuals who listen to talk radio

programs of various types are selected
and information concerning their education level,
income level, and so forth is recorded.

Identify the population and sample.

Sample: 1500 selected individuals

Population: All listeners of the radio programs
TERMS
Variable - an attribute of a subject that is
measurable or observable often represented
by a letter. (x , y , z)
Observation – value of a variable for one
particular element from the sample or
population
Data set – consists of the observations of a
variable for the elements of a sample
Variable, Observation and Data Set

1. Six hundred registered voters are

polled and each one is asked if they
approve or disapprove of the president’s
economic policies.

Data Set: consists of 600 observations

Observation: approve or disapprove for each voters
Variable: registered voter’s opinion on president’s economic policies
x = whose value can be 1, 0 (1= approve : 0 = disapprove)
Variable, Observation and Data Set

2. A survey of 2500 households headed by a single

parent is conducted and one characteristic of
interest is the yearly household income. The data set
consists of the 2500 yearly household incomes for
the individuals in the survey.

Data Set: 2500 yearly household incomes for individuals in the survey
Observation: the individuals yearly income
Variable: yearly household income
y = both. the smallest and largest yearly income of an individual
 VARIABLE
Observable attribute of an
object (Nonnumerical Value)
ventilation – poor, fair, VG Measurable attribute of an object
equipment – complete, too (Numerical Value)
VARIABLE
many, insufficient Age, Height, Pulse rate, etc
Sanitation – poor, excellent

QUALITATIVE QUANTITATIVE

DISCRETE CONTINUOUS

Quantitative variable whose Can assume any numerical value

values are countable (Integers) over an interval or over several
intervals. (Real Numbers)
QUALITATIVE/ QUANTITATIVE

(a) The color of automobiles involved in several

severe accidents (Qualitative)
(b) The length of time required for rats to move
through a maze (Quantitative – Continuous)
(c) The classification of police administrations as city,
county, or state (Qualitative)
(d) The rating given to a pizza in a taste test as poor,
good, or excellent (Qualitative)
(e) The number of times subjects in a sociological
research study have been married
(Quantitative – Discrete)
TERMS
Scales of measurement – determines the level
of algebraic complexity used to measure a
variable

• Nominal
• Ordinal
• Interval
• Ratio
SCALES OF MEASUREMENT
Nominal Scale - applies to data that are used
for category identification (labels or names w/o order)

Qualitative variable Possible nominal level data values

Blood type A, B, AB, 0
City of residence Bacoor, Imus, Cavite, etc
Type of crime Misdemeanor, felony
Color of road signs Red, white, blue, brown, green
Religion Christian, Moslem, other
Marital Status Single, Married, Divorced…
SCALES OF MEASUREMENT

Ordinal scale - applies to data that can be arranged in

some order, but differences between data values either
cannot be determined or are meaningless

Qualitative variable Possible ordinal level data values

Automobile size description Subcompact, compact, intermediate, full-size
Product rating Poor, good, excellent
Socioeconomic class Lower, middle, upper
Pain level None, low, moderate, severe
Baseball team classification Class A, class AA, class AAA , major league
SCALES OF MEASUREMENT

Interval scale - applies to data that can be arranged in

some order and for which differences in data values are
meaningful (Integers)

IQ scores represent interval level data. Joe’s IQ score equals

100 and John’s IQ score equals 150. John has a higher IQ than
Joe; that is, IQ scores can be arranged in order. John’s IQ score
is 50 points higher than Joe’s IQ score; that is, differences can
be calculated and interpreted. However, we cannot conclude
that John is 1.5 times (150/100 = 1.5) more intelligent than
Joe. An IQ score of zero does not indicate a complete lack of
intelligence.
SCALES OF MEASUREMENT

Ratio scale - applies to data that can be ranked and for

which all arithmetic operations including division can
be performed. Ratio level data has an absolute zero and
a value of zero indicates a complete absence of the
characteristic of interest. (results from counting or measuring)
The number of 911 emergency calls in a sample of 50 such calls
selected from a 24-hour period involving a domestic disturbance
is ratio scale data. The number found on May 1 equals 5 and the
number found on June 1 equals 10. Since 10/5 = 2, we say that
twice as many were found on June 1 than were found on May 1.
For a 24-hour period in which no domestic disturbance calls
were found, there is a complete absence of such calls. Notice
that a ratio is interpretable and an absolute zero exists.
NOMINAL, ORDINAL, INTERVAL, RATIO

Indicate the scale of measurement for each of

the following variables:
• Racial origin
• Monthly phone bills
• Fahrenheit and centigrade temperature scales
• Military ranks
• Time
• Ranking of a personality trait
• Clinical diagnoses
• Calendar numbering of the years
N, R, I, O, I, O, N, I