Basic Statistics Lecture Note 2024/2025

CHAPTER ONE
1. INTRODUCTION

1.1 Definition and Classification of Statistics

We can define the word statistics in two ways.
Definition1. Statistics (Plural sense): statistics are numerical statements of facts in any
department of enquiry placed in relation to each other. The classified facts respecting the
condition of the people in a stated especially those facts which can be stated in numbers or in
tables of numbers or in any tabular or classified arrangement. The statistics of raw data
themselves like numerical data on births, marital status, death, transmitted diseases, employment (rates),
unemployment(rates), production, price, inflation rate.

Definition 2: Statistics (singular sense): Statistics is defined as the science of collecting,

organizing, presenting, analyzing and interpreting numerical data for the purpose of assisting in
making a more effective decision.
Classification of Statistics
Statistics is broadly divided into two categories based on how the collected data are used.
a) Descriptive Statistics: It is an area of statistics which is mainly concerned with the
methods and techniques used in collection, organization, presentation, and analysis of a set
of data without making any conclusions or inferences.

Example 1.2: Suppose that the mark of 10 students in Statistics course for sport science section
A is given as 55, 40, 50, 60, 78,90,80,75, 70 and 85. The average mark of the 10 students is 68.3
and it is considered as descriptive statistics.
b) Inferential Statistics: Inferential statistics is an area of statistics which deals with the
method of inferring or drawing conclusion about the population based upon the results of
a sample. It consists of performing hypothesis testing, determining relationships among variables
and making predictions.
Example 1.3: the average income of all families (the population) in Ethiopia can be estimated
from figures obtained from a few hundred (the sample) families.
 It is important because statistical data usually arises from sample.

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 Basic Statistics Lecture Note 2024/2025

1.2 Stages in Statistical Investigation

The area of statistics points out the following five stages. These are collection, organization,
presentation, analysis and interpretation of data.
i. Collection of data: This is the process of obtaining measurements or counts or obtaining raw
data.
Data can be collected in a variety of ways; one of the most common methods is through the use
of sample or census survey. Survey can also be done in different methods, three of the most
common methods are:
 Telephone survey
 Mailed questionnaire
 Personal interview.
ii. Organization of data: Data collected from published sources are generally in organized form.
However if an investigator has collected data through a survey, it is necessary to edit these data
in order to correct any apparent inconsistencies, ambiguities, and recording errors.
This phase also includes correcting the data for errors, grouping data into classes and tabulating.
iii. Presentation of data: After the data have been collected and organized they can be presented
in the form of tables, charts, diagrams and graphs. This presentation in an orderly manner
facilitates the understanding as well as analysis of data.
iv. Analysis of data: the basic purpose of data analysis is to dig out useful information for
decision making. This analysis may simply be a critical observation of data to draw some
meaningful conclusions about it or it may involve highly complex and sophisticated
mathematical techniques.
v. Interpretation of data: Interpretation means drawing conclusions from the data collected and
analyzed. Correct interpretation will lead to a valid conclusion of the study & thus can aid in
decision making.
1.3 Definition of some basic statistical terms

Population: A population is a totality of things, objects, peoples, etc about which

information is being collected. It is the totality of observations with which the researcher
is concerned. The population represents the target of an investigation, and the objective
of the investigation is to draw conclusions about the population hence we sometimes call

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 Basic Statistics Lecture Note 2024/2025

it target population.
Examples
 Population of trees under specified climatic conditions.
 Population of animals fed a certain type of diet.
 Population of farms having a certain type of natural fertility
 Population of households, etc
The population could be finite or infinite (an imaginary collection of units).
There are two ways of investigation: Census and sample survey.
Census: Censes survey (studying the whole population without considering samples)
requires a great deal of time, money and energy. Trying to study the entire population is
in most cases technically and economically not feasible. To solve this problem, we take a
representative sample out of the population on the basis of which we draw conclusions
about the entire population.
Sample survey: A sample is a subset or part of a population selected to draw conclusions
about the population
Therefore, sampling survey

 Helps to estimate the parameter of a large population.

 Is cheaper, practical, and convenient.
 Save time and energy.
 Easy to handle and analysis.
Sampling: The process of selecting a sample from the population is called sampling.
Parameter: Characteristic or measure obtained from a population. It is the population
measurement used to describe the population.
Example: population mean and population standard deviation

Statistic: Characteristic or measure obtained from a sample. It is a measure used to describe the
sample
Sampling frame: A list of people, items or units from which the sample is taken.

Sample size: The number of elements or observation to be included in the sample.

Data: Data as a collection of related facts and figures from which conclusions may be drawn.

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Variable: It is an item of interest that can take on many different numerical values.
1.4 Application, Uses and Limitation of Statistics
Application
No research activity can takes place without having the knowledge and application of statistics
 To control the quality of product in a given production process
 To compare the breaking strength of two types of minerals
 To determine the probability of reliability (how often the product fails?) of a product.
if a product requires frequently repairs it is unreliable
 To compare the improvement of yield due to certain additives like fertilizer,
herbicides, pesticide
Function/Uses of Statistics
Today the field of statistics is recognized as a highly useful tool to making decision process by managers
of modern business, industry, frequently changing technology. It has a lot of functions in everyday
activities. The following are some uses of statistics:

a. It condenses and summarizes a mass of data: the original set of data (raw data) is
normally voluminous and disorganized unless it is summarized and expressed in few
presentable, understandable & precise figures. The complex data may be reduced to
totals, averages, percentages, etc and presented either graphical or diagrammatically.
These devices help us to understand quickly the significant characteristics of the
numerical data. Single figures like averages & percentages can be grasped more easily
than a mass of statistical data.
b. Statistics facilitates comparison of data: measures obtained from different set of data
can be compared to draw conclusion about those sets. Certain facts, by themselves, may
be meaningless unless they are capable of being compared with similar facts at other
places or at other period of time.
Example: we estimate the national income of Ethiopia not essentially for the value of
that fact itself but mainly in order to compare the income of today with that of the past &
thus draw conclusions as to whether the standard living of the people is on the increase,
decrease or stationary. Some of the methods of comparisons provided by statistics are

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totals, ratios, averages (measures of central tendency), and measure of variation, graphs,
diagrams & coefficients.
c. Statistics helps to predict future trends: statistics is very useful for analyzing the past
and present data and forecasting future events.
d. Statistics helps to formulate & review policies: Statistics provide the basic material for
framing suitable policies. Statistical study results in the areas of taxation, on
unemployment rate, on inflation, on the performance of every sort of military equipment,
etc, may convince a government to review its policies and plans with the view to meet
national needs and aspirations.
e. Formulating and testing hypothesis: Statistical methods are extremely useful in
formulating and testing hypothesis and to develop new theories.
Limitations of Statistics
The field of statistics, though widely used in all areas of human knowledge and widely applied in
a variety of disciplines such as engineering, economics and research, has its own limitations.
Some of these limitations are:
a) It does not deal with individual values: as discussed earlier, statistics deals with aggregate of
facts. For example, wage earned by an individual worker at any one time, taken by itself is not a
statistics.
b) It does not deal with qualitative characteristics directly: statistics is not applicable to
qualitative characteristics such as beauty, honesty, poverty, standard of living and so on since
these cannot be expressed in quantitative terms. These characteristics, however, can be
statistically dealt with if some quantitative values can be assigned to these with logical criterion.
For example, intelligence may be compared to some degree by comparing IQs or some other
scores in certain intelligence tests.
c) Statistical conclusions are not universally true: since statistics is not an exact science, as is
the case with natural sciences, the statistical conclusions are true only under certain assumptions.
d) It can be misused: statistics cannot be used to full advantage in the absence of proper
understanding of the subject matter.

1.5 Types of Variables & Measurement Scales

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1.5.1 Types of Variables

A variable is a condition that can differ from one case to another or one object to the other. It is a
quantity which shows variability & takes on different values.
Example:- weight , height, age, production, blood pressure, heart beat, number of patients on a
given hospital, sex etc
There are two types of variables
A. Qualitative variables:
These are variables that can be placed in distinct category according to some characteristics.
Qualitative variables are nonnumeric and cannot be measured or counted.
Example: - religion, gender, race, beauty, religion, degree of pain, place of birth, ethnic group,
type of drug, stages of breast cancer (I, II, III, or IV), degree of pain (minimal, moderate, severe
or unbearable).
B. Quantitative variables:
Quantitative variables are that can be quantified or can have numerical values and it can be
measured and counting.
Example: weight, height, age, production, blood pressure, heart beat, number of patients on a
given hospital etc
A quantitative variable is one that can be measured and expressed numerically and they can be of
two types (discrete or continuous).
i. Discrete variables: are variables which can assume only a specific number of values.
Discrete variables are a result of counting and values are usually whole numbers,
Example: the number of items purchased, the number of HIV patient indifferent year, number of
students in Assosa university, number of chairs, number of accidents in a given year, number of
defective items in a given production process, number of employees, number of family
members....
ii. Continuous variable: continuous variables are variables that can have any value with in
an interval. The values of continuous variables are obtained by measurement.
Example: weight, height, blood pressure, age, expenditure, productions, rainfall generally any
measurable quantity etc.

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1.5.2 Scale of Measurement

Proper knowledge about the nature and type of data to be dealt with is essential in order to
specify and apply the proper statistical method for their analysis and inferences. Measurement
scale refers to the property of value assigned to the data based on the properties of order, distance
and fixed zero.
In mathematical terms measurement is a functional mapping from the set of objects {Oi} to the
set of real numbers {M(Oi)}.

The goal of measurement systems is to structure the rule for assigning numbers to objects in such
a way that the relationship between the objects is preserved in the numbers assigned to the
objects. The different kinds of relationships preserved are called properties of the measurement
system.
Order
The property of order exists when an object that has more of the attribute than another object, is
given a bigger number by the rule system. This relationship must hold for all objects in the "real
world". The property of ORDER exists When for all i, j if Oi > Oj, then M(Oi) > M(Oj).

Distance

The property of distance is concerned with the relationship of differences between objects. If a
measurement system possesses the property of distance it means that the unit of measurement
means the same thing throughout the scale of numbers. That is, an inch is an inch, no matters
were it falls - immediately ahead or a mile downs the road.

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More precisely, an equal difference between two numbers reflects an equal difference in the "real
world" between the objects that were assigned the numbers. In order to define the property of
distance in the mathematical notation, four objects are required: Oi, Oj, Ok, and Ol . The
difference between objects is represented by the "-" sign; Oi - Oj refers to the actual "real world"
difference between object i and object j, while M(Oi) - M(Oj) refers to differences between
numbers.
The property of distance exists, for all i, j, k, l
If Oi-Oj ≥ Ok- Ol then M(Oi)-M(Oj) ≥ M(Ok)-M( Ol ).

Fixed Zero
A measurement system possesses a rational zero (fixed zero) if an object that has none of the
attribute in question is assigned the number zero by the system of rules. The object does not need
to really exist in the "real world", as it is somewhat difficult to visualize a "man with no height".
The requirement for a rational zero is this: if objects with none of the attribute did exist would
they be given the value zero. Defining O0 as the object with none of the attribute in question, the
definition of a rational zero becomes: The property of fixed zero exists if M(O0) = 0.
Scale Types
Measurement is the assignment of values to objects or events in a systematic fashion. Four levels
of measurement scales are commonly distinguished: nominal, ordinal, interval, and ratio and
each possessed different properties of measurement systems. The first two are qualitative while
the last two are quantitative.

Nominal scale: The Nominal scales are measurement systems that possess none of the three
properties stated above. The nominal scale applies to data that are used for category
identification. The nominal level of measurement is characterized by data that consist of names,
labels, or categories only. Nominal scale data cannot be arranged in an ordering scheme. The
arithmetic operations of addition, subtraction, multiplication, and division are not performed for
nominal data. In this scale one different from the other, they are not interchangeable & ranking,
ordering, mathematical comparisons (<,>, =) is impossible.
Example1.4: eye color: (brown, black, others), sex: (male, female), Political party preference
(Republican, Democrat, or Others), Marital status: (married, single, widow, divorce), Regional
differentiation of Ethiopia.

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Ordinal scale: - Ordinal Scales are measurement systems that possess the property of order, but
not the property of distance. The property of fixed zero is not important if the property of
distance is not satisfied. Thus nominal and ordinal scales are sometimes collectively called
categorical scales. However, an ordinal scale provides additional information. An ordinal scale
of measurement, in addition to the function of classification, allows cases to be ordered or ranked
by degree according to measurements of the variable. Arithmetic operations (+, -, *, ÷) are not
applicable but relational operations (<, >) are applicable.
Example1.5: Letter grading (A, B, C, D, F), rating scales (excellent, very good, good), etc

Interval Level: Interval scales are measurement systems that possess the properties of Order and
distance, but not the property of fixed zero. Level of measurement which classifies data that can
be ranked and differences are meaningful. However, there is no meaningful zero, so ratios are
meaningless. Arithmetic operations such as Multiplication and division are not possible. But
addition, subtraction and Relational operations are applicable.
Note: Celsius & Fahrenheit temperature readings have no meaningful zero and ratios are
meaningless. The zero point of interval scale of measurement does not indicate an absence of the
measured scale. Example 0℃ does not mean absence of temperature.
Example 1.5: IQ, Temperature.

Ratio scale: Ratio scales are measurement systems that possess all three properties: order,
distance, and fixed zero. There exist a zero point (true zero, absolute zero, unique zero point) that
means True zero starting point. Ratio data Set apart from ordinal (increasing order) and interval
data (equal spacing) by having the additional property of an absolute lower value (such as zero)
that corresponds to the absence of the measure. There is a physical significant to this zero point,
this means the zero point of this scale indicate an absence of the measured scale. All arithmetic
(+, -, *, ÷) and relational operations are applicable. Ratio variables exhibit the characteristics of
nominal, ordinal and interval measurement. Ratio variables can be continuous or discrete.
Example 1.6: weight, length (height), volume, age(time), blood pressure(pressure), heartbeat,
area, rainfall, monthly consumption, amount of money in the pocket etc...

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