Introduction to Statistics

Historical Notes
The

earliest statistical recordings include:

Ancient

Babylonians recorded their crop yields on clay tablets.

Ancient

Egyptian pharaohs recorded their wealth on stone

walls.

History of Statistics

1663 Scholars pinpoint the origin of statistics with the publication of Natural
and Political Observations upon the Bills of Mortality by John Graunt.

17th century Its mathematical foundation were laid with the development of
probability theory by Blaise Pascal and Pierre de Fermat.

18th century the term STATISTICS designated the systematic collection of

demographic and economic data by state.

19 century the meaning of STATISTICS broadened, including the

discipline concerning with the collection, summary and analysis of data.

Today Statistics is widely employed in government, business, natural and

social sciences.

th

Natures of Statistics

The origin of modern statistics can be traced to two areas of interest,

which on the surface, have very little in common:
Government
and

(political science)

games of chance.

Definition of Statistics

Statistics is used in everyday life, which people do not realize.

The science of classification and manipulation of data in order to draw

inferences.

Statistics is derived from the Latin word "status" meaning state.

Two

basic meanings of the word Statistics:

1. It refers to actual numbers derived from the data.

2. It refers as method of analysis.

Definition of Statistics

Statistics is a collection of quantitative data, such as statistics of

crimes, statistics of enrolment, statistics of unemployment. Statistics
is also the study of how to collect, organize, analyze, and interpret
numerical information from data.

Importance of Statistics

In Business help businessmen to plan and forecast productions

according to their customers. With statistics, the quality of products
can be checked efficiently.

In Economics use of statistical methods to determine the

relationship between supply and demand, imports and exports,
inflation rate and the per capital income.

In Banking banks uses statistical approaches based on probability

to estimate the number of depositors and their claims for a certain
day.

Importance of Statistics

In Engineering The engineer samples a product quality

characteristics along with various controlled process variable to assist
in locating important variable related to product quality.

In Manufacturing Newly manufactures fuses are sampled before

shipping to decide whether to ship or hold individual lots.

In Medicine The research physician experiments to determine the

effect of various drugs and controlled environmental conditions on
human in order to infer the appropriate method of treatment of a
particular disease.

Two Kinds of Statistics

Descriptive Statistics Deals with the methods of organizing,

summarizing and presenting a mass of data so as to yield meaningful
information.

Inferential Statistics Deals with making generalizations about a

body of data where only part of it is examined. This comprises those
methods concerned with the analysis of a subset of data leading to
predictions or inferences about the entire set of data.

Examples of Descriptive and

Inferential Statistics

A bowler wants to and his bowling average for the past 12 games.

A manager would like to predict based on previous years sales, the

sales performance of a company for the next five years.

A politician would like to estimate, based on an opinion poll, his chance

for winning in the upcoming senatorial election.

A teacher wishes to determine the percentage of students who passed

the examination.

A basketball player wants to estimate his chance of winning the most

valuable player award based on his current season averages and the
averages of his opponents.

Definition of Some Basic Statistical

Terms

Population It is the set of all individuals or entities under

consideration or study. It may be a finite or infinite collection of
objects, events, or individuals, with specified class or characteristics
under consideration.

Individuals people or objects included in the study.

Definition of Some Basic Statistical

Terms

Variable characteristic of interest measurable on each and every

individual in the universe denoted by any capital letter in the English
alphabet

Types of Variable:

Qualitative variable consists of categories or attributes which have

non-numerical characteristics.

Quantitative variable consists of numbers representing counts or

measurements

Definition of Some Basic Statistical

Terms
Classification of Quantitative Variable:

Discrete quantitative variable results from either a finite number

of possible values or a countable number of possible values

Continuous quantitative variable results from infinitely many

possible values that can be associated with points on a continuous
scale

Identify each statement as having

discrete or continuous data.

Among 500,000 microcomputer chips made by Motorola, 2 are found to be defective.

Yesterdays records for Motorolas marketing department show that 25 employees

were absent.

Radar on EDSA indicated that the driver was going 150 kph when ticketed for
speeding.

The amount of time that a taxi driver spends yielding to individual pedestrians
each year is 2.367 seconds.

Among 200 consumers surveyed, 186 recognize the Ligo Sardines brand name.

Upon completion of a diet and exercise program, Tony weighed 12.37 lbs. less than
when he started the program.

Identify the population, variable of

interest, and type of variable:

Example1. The researcher would like to determine the average height of

BTM students at DLSU-Dasmarias.

Example 2. The librarian would like to determine the books commonly

borrowed by DLSU-D students

Example 3. The researcher would like to know the time (in minutes) it will
take a student to finish a quiz in statistics.

Example 4. The dean of a certain college would like to determine the average
weekly allowance of BS Computer Science students.

Definition of Some Basic Statistical

Terms

Sample part of the population or a sub-collection of elements drawn from the

population

Parameter numerical measurement describing some characteristics of a

population.

Statistic numerical measurement describing some characteristics of a sample.

Survey conducted to gather opinions or feedbacks about a variety of topics

Census

survey conducted by gathering information from the entire

population

Sampling

population

survey conducted by gathering information only from part of the

Levels of Measurement

Level 1. Nominal is characterized by data that consists of names,

labels, or categories only.

Ex.

name

civil status

religion

address

sex

degree program

Levels of Measurement

Level 2. Ordinal involves data that may arranged in some order,

but differences between data values either cannot be determined

or are meaningless.
Ex. 1. military rank

2. job position

3. year level

Levels of Measurement
Level

3. Interval is like the ordinal level, with the additional

property that meaningful amounts of differences between data
can be determined. However, there is no inherent (natural) zero
starting point.

Ex.

1. IQ score

2. temperature (in 0C)

Levels of Measurement

Level 4. Ratio the interval level modified to include the inherent

zero starting point. For values at this level, differences and ratios are
meaningful.

Ex. 1. height

2. area

3. weekly allowance

Characteristics of 4 levels of
measurements.
have an inherent order
from more to less
or higher to lower

are numbers with

equal intervals
between them

are numbers that

have a theoretical
zero point

Type

Level

are
names

Categorical/
Qualitative

Nominal

Ordinal

Interval

Ratio

Numerical/
Quantitative