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Chapter
One
Sarif Mohammad Khan
Associate Professor
Khulna University
sarif_ku@yahoo.com
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Chapter One
What is Statistics?
1. Understand why we study statistics.
2. Explain what is meant by descriptive statistics and
inferential statistics.
3. Distinguish between a qualitative variable and a
quantitative variable.
4. Describe how a discrete variable is different from a
continuous variable.
5. Distinguish among the nominal, ordinal, interval, and
ratio levels of measurement.
2 Goals
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Numerical information is everywhere
Statisticaltechniques are used to make
decisions that affect our daily lives
No matter what your career, you will make
professional decisions that involve data
Why Study
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Statistics is the science of collecting,
organizing, tabulating, summarizing,
presenting, analyzing, and interpreting
data as well as drawing valid conclusions
and making reasonable decisions about
population based on such data analysis.
What is Meant by Statistics?
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Statistical techniques
are used by almost
every one in all fields.
It is extensively used by
marketing, accounting,
quality control,
consumers, professional
sports people, hospital
administrators, educators,
politicians, physicians,
and many others.
Who Uses Statistics?
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Data collection
Data organization and tabulation
Data summarization
Data presentation
Data analysis and interpretation
Making reasonable decisions and
drawing valid conclusions
What are the functions of Statistics?
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A population is A sample is a
a collection of portion, or
all possible part, of the
individuals, population of
objects, or interest
measurements
obtained from all
individuals or
objects of
interest.
What are the definitions of Population and
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Parameters Statistics
are the are the
characteristics of characteristics
the population of the sample
Example:
–x= Mean
Example:
= Mean s=Sigma
=Sigma s²=Variance
²=Varianc
e
What are the definitions of Parameters and Statistics?
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Population Sample
Use statistics to
summarize features
Use parameters to
summarize features
Inference on the population from the sample
How to draw inference about
population based on sample?
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Data are specific observations of measured
numbers.
Information is processed and summarized data,
that are expressed in meaningful forms.
Knowledge is selected and organized information,
that provides understanding, recommendations, and
the basis for decisions.
What are data, information, and knowledge?
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Decision
Knowledge
Experience, Theory,
Literature, Inferential
Statistics, Computers
Information
Descriptive Statistics,
Probability, Computers
Begin Here:
Data
Identify the
Problem
The Journey to Making Decisions
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Descriptive
statistics deals with EXAMPLE: A Gallup
poll found that 49% of the
collecting organizing, people in a survey knew
summarizing, and the name of the first book
presenting data in an of the Bible. The statistic
informative way, 49 describes the number
without drawing any out of every 100 persons
conclusion or who knew the answer.
inference about the
population
Two Types of Statistics
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Inferential Example:
statistics deals The accounting
with drawing department of a large
conclusions and/or firm will select a sample
making decisions of the invoices to check
concerning a for accuracy for all the
population based invoices of the
on sample data. company.
Two Types of Statistics
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A variable is a symbol that takes on any value
Qualitative or Categorical or Attribute
variable is the characteristic being studied
is nonnumeric.
Examples: Gender, religious affiliation, type of
automobile owned, state of birth, eye color.
Quantitative or Numerical variable is
information that is reported numerically.
Examples: Balance in your checking account,
minutes remaining in class, or number of
children in a family.
Types of Variables
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Discrete variables can only assume certain
values and there are usually “gaps” between
values.
EXAMPLE: the number of bedrooms in a house,
or the number of hammers sold at the local Home
Depot (1,2,3,…,etc).
Continuous variable can assume any value
within a specified range.
EXAMPLE: The pressure in a tire, the weight of
a pork chop, or the height of students in a class.
Quantitative variable classification
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There are four levels of
data:
Nominal
Ordinal
Interval
Ratio
Levels of Measurement
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Nominal level: Data are classified into categories
and cannot be arranged in any particular order.
G ender E ye
C olor
Nominal data
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Nominal level variables must be:
Mutually exclusive
An individual, object, or measurement is
included in only one category.
Exhaustive
Each individual, object, or
measurement must appear in one of
the categories.
Levels of Measurement
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Ordinal level: Data are arranged in some order,
but the differences between data values cannot be
determined or are meaningless.
During a taste test of
4 soft drinks, Coca
Cola was ranked 4
number 1, Dr. Pepper 2
number 2, Pepsi
number 3, and Root 3
Beer number 4. 1
Levels of Measurement
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Interval level: Similar to the ordinal level, with the
additional property that meaningful differences between
values can be determined. There is no natural 0 point.
Temperature
on the
Fahrenheit
scale.
Levels of Measurement
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Ratio level: The interval level with an inherent 0
starting point. Differences and ratios are meaningful
for this level of measurement.
M iles traveled by sales M onthly income
representative in a month of surgeons
Levels of Measurement
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Nominal Data may only be Jersey numbers of
classified football players, Make
of car
Ordinal Data are ranked Your rank in the class,
Team standing in the
Pac-10
Interval Meaningful difference Temperature, Dress size
between values
Ratio Meaningful 0 point Number of patients
and ratio between seen, Number of sales
values calls made
Summary of the Characteristics for Levels of Measurement
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Statistics are abused either ignorantly or
deliberately and lead us to arrive at fallacious
and misleading conclusions
Benjamin Disraeli: ‘Lies, Dam lies and Statistics.’
Old saying: ‘Figures don’t lie; liars figure.’
Darrell Huff: ‘The secret language of statistics is
employed to sensationalize, inflate, confuse, and
oversimplify.’
Thus, verify them by asking some questions
Evidence of abuse of Statistics
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The frequently used average is not
always the representative of the data
Statistics may be manipulated
Figures, charts and graphs may
exaggerate the facts
Association between variables may be
misinterpreted
Witty tricks may be applied
What are the abuses of
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End of Chapter 1
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