CH 01

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BASIC STATISTIC

CH 01
INTRODUCTION TO STATISTICS
LEARNING OBJECTIVES

After completing this chapter, you should be able to

➢Define the statistics and other important statistical terms

➢Differentiate descriptive and inferential statistics

➢Distinguish qualitative and quantitative variable

➢Compare the four different levels of data: nominal, ordinal,


interval, and ratio
WHAT IS STATISTICS ?

Definition

Statistics is the science of collecting, organizing


presenting, analysing and interpreting data, in order to
make decisions.
TYPES OF STATISTICS
The two main branches of statistics are:.
1) Descriptive statistics
2) Inferential statistics
TYPES OF STATISTICS
Definition
Descriptive Statistics consists of methods for
organizing, displaying, and describing data by using
tables, graphs, and summary measures.
TYPES OF STATISTICS
Definition
Inferential Statistics consists of methods that use
sample results to help make decisions or predictions
about a population.
POPULATION VERSUS SAMPLE
Definition
A population consists of all elements – individuals,
items, or objects – whose characteristics are being
studied. The population that is being studied is also called
the target population.
Example
❖All potential voters in a presidential election
❖All subscribers to cable television
❖The prices of all houses in Hargeisa
POPULATION VERSUS SAMPLE
Definition
A portion of the population selected for study is referred
to as a sample.
Example
❖Weekly salaries of 25 employees of a Telesom company
❖Cattle owned by 100 farmers in Iowa
❖Number of computers sold during the past week at a
Super Data Stores.
POPULATION AND SAMPLE
EXAMPLE

In a recent survey, 1500 adults in the United States were *


asked if they thought there was solid evidence of global
warming. Eight hundred fifty-five of the adults said yes.
1. Identify the population and the sample*
2. what is the variable of study?*
3. Describe the sample data set.*
4. Make an inference based on the results of the survey*
SOLUTION
1.The population consists of the responses of all adults in *
the United States, and the sample consists of the responses
of the 1500 adults in the United States in the survey.

2. Global warming *
3. The sample data set consists of 855 yes’s and 645 no’s.*

4. we can inference that there is a global warming*


CLASS WORK 1
Identify the population and the sample.
1. A survey of 1000 U.S. adults found that 59% think
buying a home is the best investment a family can make
2. A survey of 800 registered voters found that 50% think
economic stimulus is the most important issue to
consider when voting for Congress
3. A survey of 496 students at a college found that 10%
planned on traveling out of the country during spring
break
CLASS WORK
The Somaliland Department of Energy conducts weekly
surveys of approximately 500 gasoline stations to determine
the average price per litter of regular gasoline. On January 11,
2023, the average price was $1.1per litter.

1. Identify the population and the sample.

2. Describe the sample data set

3. What is your inference from the survey?


POPULATION VERSUS SAMPLE
Definition

A survey that includes every member of the population is


called a census. The technique of collecting information
from a portion of the population is called a sample
survey.
POPULATION VERSUS SAMPLE
Definition
A sample that represents the characteristics of the
population as closely as possible is called a
representative sample.
POPULATION VERSUS SAMPLE
Definition
A sample drawn in such a way that each element of the
population has a chance of being selected is called a
random sample. If all samples of the same size selected
from a population have the same chance of being
selected, we call it simple random sampling. Such a
sample is called a simple random sample.
POPULATION VERSUS SAMPLE
A sample may be selected with or without replacement.

In sampling with replacement, each time we select an


element from the population, we put it back in the
population before we select the next element.

Sampling without replacement occurs when the selected


element is not replaced in the population.
BASIC TERMS
Definition
An element or member of a sample or population is
a specific subject or object (for example, a person,
firm, item, state, or country) about which the
information is collected.
BASIC TERMS
Definition
A variable is a characteristic under study that
assumes different values for different elements.
In contrast to a variable, the value of a constant is
fixed.
BASIC TERMS
Definition
The value of a variable for an element is called an
observation or measurement.

A data set is a collection of observations on one or


more variables.
TOTAL REVENUES FOR 2010 OF SIX
COMPANIES
Example

Variables

id gender age Nationality


Data Saudi
1 male 20
Set Yemeni Data
2 male 25
3 female 30 Egypt
4 male 23 Somali Data
5 female 30 Lebanese value

Note: This PowerPoint is only a summary and your main source should be the book.
TYPES OF VARIABLES
• Quantitative Variables
• Discrete Variables
• Continuous Variables

• Qualitative or Categorical Variables


QUANTITATIVE VARIABLES
Definition
A variable that can be measured numerically is called a
quantitative variable. The data collected on a quantitative
variable are called quantitative data.
QUANTITATIVE VARIABLES:
DISCRETE
Definition
A variable whose values are countable is called a
discrete variable. In other words, a discrete variable
can assume only certain values with no intermediate
values.
QUANTITATIVE VARIABLES:
CONTINUOUS
Definition
A variable that can assume any numerical value over a
certain interval or intervals is called a continuous variable.
QUALITATIVE OR
CATEGORICAL VARIABLES
Definition

A variable that cannot assume a numerical value but can


be classified into two or more nonnumeric categories is
called a qualitative or categorical variable. The data
collected on such a variable are called qualitative data.
FIGURE 1.2 TYPES OF
VARIABLES
CLASS WORK 1:
Explain whether each of the following constitutes a
population or a sample.
• A. Credit card debts of 100 families selected from a city
• B. Amount spent on prescription drugs by 200 senior citizens
in a large city
• C. Weekly salaries of all employees of a company

Note: This PowerPoint is only a summary and your main source should be the book.
CLASS WORK 2
• Indicate which of the following variables are
quantitative and which are qualitative.
• a. Number of persons in a family
• b. Colors of cars
• c. Marital status of people
• d. Time to commute from home to work
• e. Number of typographical errors in newspapers
• f. Monthly TV cable bills
• g. Number of cars owned by families
CLASS WORK 3
Determine whether the statement is true or false.
1. A statistic is a measure that describes a population
characteristic.
2. A sample is a subset of a population.
3. Inferential statistics involves using a population to draw a
conclusion about a corresponding sample.
4. A population is the collection of some outcomes, responses,
measurements, or counts that are of interest.
5. A sample statistic will not change from sample to sample.
LEVELS OF MEASUREMENT
• Another characteristic of data is its level of measurement.
The level of measurement determines which statistical
calculations are meaningful.
• The four levels of measurement, in order from lowest to
highest, are:
1) Nominal
2) Ordinal
3) Interval, and
4) Ratio
Measurement levels

Qualitative Quantitative

Nominal Ordinal Interval Ratio

Note: This PowerPoint is only a summary and your main source should be the book.
NOMINAL LEVEL
• Data at the nominal level of measurement are qualitative
only.
• Data at this level are categorized using names, labels, or
qualities. No mathematical computations can be made at
this level.
Example
Eye color ,Gender , Political party , blood types …etc
ORDINAL LEVEL
Data at the ordinal level of measurement are qualitative.
Data at this level can be arranged in order, or ranked, but
differences between data entries are not meaningful.
For example:
Grade of course (A,B,C) ,
Size( S,M,L)
Rating scale (Poor ,Good ,Excellent )
Ranking of tennis players …etc
INTERVAL LEVEL
• Data at the interval level of measurement can be ordered, and
meaningful differences between data entries can be
calculated. At the interval level, a zero entry simply represents
a position on a scale; the entry is not an inherent zero.
Example
Temperature ,
IQ test…etc
RATIO LEVEL

• Data at the ratio level of measurement are similar to data at


the interval level, with the added property that a zero entry is
an inherent zero.
• A ratio of two data values can be formed so that one data
value can be meaningfully expressed as a multiple of another
Example
Height , Weight, Time, Salary , Age …etc
LEVELS OF MEASUREMENT

• The following tables summarize which operations are


meaningful at each of the four levels of measurement.
When identifying a data set’s level of measurement, use the
highest level that applies
CLASS WORK
1- Blood Type is ,an example of which type of data?
a) Qualitative c) Ordinal
b) Continuous d)Nominal
2- Classify " Temperature in Hargeisa":
a) Interval c) Qualitative
b) Nominal d) Ordinal
3- If you classified the fruit in a basket as apple, orange and
banana , this would be an example of which level of
measurement?
a) Ordinal c) Ratio
b) Nominal d) Interval
CLASS WORK
4- Which of the following represents ordinal level of
measurement?
a)Rating scale c) IQ score
d) Age b) Marital status

5- Which one of the following variables is Qualitative?


a) Amount of fat in a piece of cheese
b) Salary of college professors
c) Favorite TV program
d) Age of a person
CROSS-SECTION VS. TIME-
SERIES DATA

• Cross-Section Data
• Time-Series Data
CROSS-SECTION DATA
Definition
Data collected on different elements at the same
point in time or for the same period of time are
called cross-section data.
TOTAL REVENUES FOR 2010
OF SIX COMPANIES
TIME-SERIES DATA
Definition
Data collected on the same element for the same variable
at different points in time or for different periods of time
are called time-series data.
MONEY RECOVERED FROM
HEALTH CARE FRAUD
JUDGMENTS
CLASS WORK
Classify the following as cross-section or time-series data.
a) Food bill of a family for each month of 2009
b) Number of supermarkets in 40 cities on December 31, 2009
c) Gross sales of 200 ice cream parlors in July 2009
d) Average prices of houses in 100 cities
e) Number of cars sold each year by General Motors from 1980
to 2009
f) Number of employees employed by a company each year from
1985 to 2009

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