STAT

CHAPTER 1

What is statistics? Briefly describe the two meanings of the word statistics.
Statistics is the science of collecting, analyzing, presenting, and interpreting data, as well as of making decisions
based on such analyses. The word statistics has two meanings. The first meaning of statistics refers to numerical
facts. For example: The numbers that represent the income of a family, the age of a student, weight, height etc.
The second meaning of statistics refers to the field or discipline of study.
Briefly explain the types of statistics.
There are two types of statistics-
➢ Descriptive Statistics: Descriptive statistics consists of methods for organizing, displaying, and describing data
by using tables, graphs, and summary measures.
➢ Inferential Statistics: Inferential statistics consists of methods that use sample results to help make decisions or
predictions about a population.

Difference between descriptive statistics and inferential statistics

Descriptive Statistics Inferential Statistics
Descriptive statistics consists of methods for Inferential statistics consists of methods that use
organizing, displaying, and describing data by using sample results to help make decisions or predictions
tables, graphs, and summary measures about a population
Organize, analyze and present data in a meaningful Compares , test and predicts future outcomes
manner
Final results are shown in form of charts, tables, Final result is the probability scores
graphs
Describes the data which is already known Tries to make conclusion about population that is
beyond the data available
Tools – mean, median, mode Tools – hypothesis tests, analysis of variance etc

❖ Data Set: A data set is a collection of observations on one or more variables .The whole set of numbers
that represents the score of students.
❖ Element: 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 .The name of each student.
❖ Observation: The value of a variable for an element is called an observation or measurement. The score
of each student
❖ Population: the collection of all elements of interest is called a population. Example: All the student of a
class.
❖ Sample: A portion of the population selected for study is referred to as a sample. Example: only boys or
only girls in a class.
❖ Census: A survey that includes every member of the population is called a census.
❖ Sample Survey: A survey that includes every member of the population is called a census.
❖ Variable: A variable is a characteristic under study that assumes different values for different elements.
Example: age, height
1.Quantitative Variables: A variable that can be measured numerically is called a quantitative
variable. Example : Income, height, gross sales, price of a home, number of cars owned.
 ➢ Discrete Variables: A variable whose values are countable with no
intermediate value is called a discrete variable. Example: the number of
selling cars like 1,5,10,60
➢ Continuous Variable: A variable that can assume any numerical value
over a certain interval or intervals is called a continuous variable. Example:
height such as 4.5, 5.7, 6.1
2. Qualitative or Categorical Variable: A variable that cannot be measurable but can be
classified into two or more nonnumeric categories is called a qualitative or categorical
variable. Example: make of a computer, opinions of people, gender
• The data collected on such a variable are called qualitative data
Explain the difference between cross-section and time-series data. Give an example of each of these two
types of data
Cross-section data Time-series data
Data collected on different elements at the same point in Data collected on the same element for the same
time or for the same period of time are called cross- variable at different points in time or for different periods
section data of time are called time-series data
Focuses on the same variable over a period of time Focuses on several variables at the same point of
time
Example: net profit of different banks in 2002 Example: net profit of Sonali Bank LTD from 2002-
Sonali Bank LTD 25% 2004
Janata Bank LTD 20% 2002 25%
Rupali Bank LTD 15% 2003 20%
2004 35%

Representative Sample: A sample that represents the characteristics of the population as closely as possible is
called a representative sample.
➢ With replacement: Each time we select an element from the population, we put it back in the population
before we select the next element. Example: Consider a box that contains 25 marbles of different colors.
Suppose we draw a marble, record its color, and put it back in the box before drawing the next marble. Every
time we draw a marble from this box, the box contains 25 marbles.
➢ Without replacement: The selected element is not replaced in the population. Example: Consider a box that
contains 25 marbles of different colors. Suppose we draw a marble, record its color, and don’t put it back in the
box before drawing the next marble. Every time we draw a marble from this box, one marble will decrease each
time.

Why we are concern about sample?

1) Saves time
2) Cost minimization
3) Impossibility of Conducting a Census
Random Samples: A random sample is a sample drawn in such a way that each member of the population has
some chance of being selected in the sample. A random sample is usually a representative sample. Suppose we
have a list of 100 students and we want to select 10 of them. If we write the names of all 100 students on pieces
of paper, put them in a hat, mix them, and then draw 10 names, the result will be a random sample of 10 students.
Nonrandom Samples: a nonrandom sample, some members of the population may not have any chance of being
selected in the sample. if we arrange the names of these 100 students alphabetically and pick the first 10 names,
it will be a nonrandom sample because the students who are not among the first 10 have no chance of being
selected in the sample. Pseudo polls are examples of nonrepresentative samples.
➢ Convenience sample: The sample which can be collected quickly. For example, creating an opinion poll.
➢ Judgment sample: The members are selected from the population based on the judgment and prior
knowledge of an expert so it needs time.
▪ Quota sample: Dividing the target population into different subpopulations based on certain
characteristics. Example: suppose we want to select a sample of 1000 persons from a city whose
population has 48% men and 52% women. To select a quota sample, we choose 480 men from the
male population and 520 women from the female population.
Sampling and Nonsampling Errors
1) Sampling Errors: The sampling error is the difference between the result obtained from a sample survey
and the result that would have been obtained if the whole population had been included in the survey.
2) Nonsampling Errors or Biases : The errors that occur in the collection, recording, and tabulation of data
are called nonsampling errors or biases.

➢ Selection Error or Bias :.The error that occurs because the sampling frame is not representative
of the population is called the selection error or bias

The list of members of the target population that is used to select a sample is called the sampling frame

➢ Nonresponse Error or Bias : The error that occurs because many of the people included in the
sample do not respond to a survey is called the nonresponse error or bias.
➢ Response Error or Bias : The response error or bias occurs when people included in the survey
do not provide correct answers.
➢ Voluntary Response Error or Bias : Voluntary response error or bias occurs when a survey is
not conducted on a randomly selected sample but on a questionnaire published in a magazine or
newspaper and people are invited to respond to that questionnaire.
Random Sampling Technique:
1) Simple Random Sampling: In this sampling technique, each sample of the same size has the same
probability of being selected.
2) Systematic Random Sample :In systematic random sampling, we first randomly select one member from
the first k units of the list of elements arranged based on a given characteristic where k is the number
obtained by dividing the population size by the intended sample size. Then every kth member, starting
with the first selected member, is included in the sample. Example: 100, 400, 700 ( gap=300)
3) Stratified Random Sample: In a stratified random sample, we first divide the population into
subpopulations, which are called strata. Then, one sample is selected from each of these strata. The
collection of all samples from all strata gives the stratified random sample. We can divide the population
on the basis of any characteristic, such as income, expenditure, gender, education, race, employment, or
family size
4) Cluster Sampling: The whole population is first divided into (geographical) groups called clusters. Each
cluster is representative of the population. Then a random sample of clusters is selected.
The difference between a census and a sample survey
Census Sample Survey
Collects information about every member of the Collects information from a sample of the
population population
Census is more detailed and accurate Sample survey is not accurate or reliable as a
census
Takes a long time to complete Can be done in a shorter period of time compared
to a census
Conducted by the government Conducted by anyone
Census are not conducted frequently Sample survey can be conducted frequently
High in cost Low in cost
Need more organizational skill Need less organizational skill