THE NATURE OF STATISTICS (Weiss, Chapter 1) 1.

1 Two kinds of statistics Statistics Body of principles and methods concerned with Two basic areas: 1. Descriptive Statistics Deals with methods of Ex. 2. Inferential Statistics Body of methods for drawing conclusions about a

Key Statistical Concepts - Population

- Parameter

- Sample

- Statistics

Example Population: Parameters: Sample: Statistic:

Classifying Statistical Studies Descriptive Describes & summarizes data. ( ). Ex. The voting results for A bank manager determines the

Inferential

Ex. A consumer group wants information about Biologist interested on body size of

1.3 Simple Random Sampling (SRS) Each item of a population is Two types: 1. SRS with replacement

2. SRS without replacement

Here: Assume SRS without replacement. How large should be a sample? Often surprisingly small. Pre-election polls: Population Sample Error
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1.4 Other Sampling Designs 1.5 Experimental Design Observational Studies characteristics and take measurements. Design Experiment then observe characteristics and take measurements.

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DESCRIPTIVE STATISTICS (Weiss, Chapters 2 & 3) 2.1 Variables and Data Variable A characteristic that Data Information obtained by Two types of data Quantitative Response Ex: Qualitative Response Ex:

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Quantitative Data Discrete Whose possible values form a finite (or countable infinite) set of numbers. Ex. Continuous Whose possible values form some interval of numbers. Ex. Important: The statistical technique employed depends on the type of data. Qualitative Quantitative -

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Summary: Variable

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2.2 Grouping Data The Bureau of Economic Analysis gathers information on the length of stay in Europe by US travelers. A sample of 36 US residents yield the following data: 41 5 3 21 3 1 16 31 32 44 13 11 6 20 2 1 15 14 21 27 48 56 10 12 1 17 8 5 18 64 21 10 12 12 3 10

Group data using classes of equal width starting with the class 0 - (12). 0 - (12): 0 inclusive up to 12 exclusive - up to and not including.

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Length of Stay 0 - (12) 36 - (48) 48 - (60) 60 - (72) Guidelines for grouping data:

Frequency

2 2 1

1. # classes small enough to provide & large enough to 2. Each observation must 3. Whenever feasible, all classes

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Frequency & Relative-Frequency Frequency The number of Relative Frequency expressed as a decimal. Hence Relative Frequency = where n: fi : Midpoint

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Length of Stay 0 12 24 36 48 60 - (12) - (24) - (36) - (48) - (60) - (72)

Freq. 15 13 3 2 2 1

Relat. Freq. 0.417 0.361 0.083 0.056 0.056 0.028

Midpoint

42 54 66

Single-Value Grouping Sometimes more appropriate to use classes that each represents a single possible value: - Discrete data with few observations, - Qualitative data.

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Example 2.8, pg 50 Students in an introductory stats class were asked for their political party affiliation: - Democratic (D) - Republican (R) - Other (O) Responses: D D D D O R O R O R O R O D D R D D D R R O R D R R O R R R R R O O R R D R D D

Party

Frequency

Relative Frequency

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2.3 Graphs and Charts Histograms Ex. US travelers in Europe Length of Stay 0 12 24 36 48 60 - (12) - (24) - (36) - (48) - (60) - (72) Freq. 15 13 3 2 2 1 Relat. Freq. 0.417 0.361 0.083 0.056 0.056 0.028

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1.

Frequency Histogram: Plot Classes Frequencies

2.

Relative-frequency Histogram: Plot Classes Relat. Freq. Note: Freq. and rel. freq. are both represented by height is the

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Frequency Histogram - Travel example

US travelers
16 14 12 10 8 6 4 2 0 15 13

Frequency

2 42

2 54

1 66

18

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Length of Stay (days)

Inspection of the histogram reveals the

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Relative-frequency Histogram - Travel ex.

US travelers
0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 0.417 0.361

Relative Frequency

0.083

0.056

0.056

0.028 66

18

30

42

54

Length of Stay (days)

Shape of both graphs are

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Cumulative Frequency Distributions Usually cumulate for Number of observations Ex. US travelers: < < 36 days 36 days < class end point

or relative cumulative frequency of < 36 days

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Ogive (pg 65) Plot relative cumulative frequencies against upper end points of classes. Ex. US travelers

Length of stay 0 -(12) 12-(24) 24-(36) 36-(48) 48-(60) 60-(72)

Class end point 0 12 24 36 48 60 72

Freq 0 15 13 3 2 2 1

Relat Cumul Freq

Cumul Freq 0.000 0.417 0.778 0.861 0.917 0.972 1.000

33 35 36

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OGIVE - US Travelers
1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 0 12 24 36 48 60 72 Length of Stay (days)

Uses of ogives What is the length of stay that 50% of US travelers fall above (below) of? (known as Median.) Read off the ogive: What is the minimum length of stay the top 10% of travelers stay in Europe? Approximately

Cum. Relat. Freq.

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Percentiles
100% P%

Pth percentile

The pth percentile is a number Ex. US travelers First quartile Median Third quartile 10th percentile . th percentile . th percentile . th percentile . 90th percentile .

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