Chapter One

CHAPTER 1:
INTRODUCTION TO
STATISTICS
SQQS1013 ELEMENTARY STATISTICS
malina
GET READY: WHO IS TODAY’S LUCKY
STUDENT!
1.1 WHAT IS STATISTICS?
› The word statistics is derived from classical Latin root,
status which means state.
› Statistics has become the universal language of the
sciences
› As potential users of statistics, we need to master both
the “science” and the “art” of using statistical
methodology correctly.
› In Today’s Business World You Need To Think Differently
About Statistics
› Modern-day information technology enables businesses
to apply statistics in new ways to solve business problems
by utilizing:
• Vast amounts of summarized, unsummarized, numerical, and

non-numerical data (facts about the world).
• Software to perform calculations.

› Statistics are generally consists of methods that allow
people to effectively work with data
› Statistics provides a formal basis to:
• Summarize and visualize data.
• Reach conclusions from data.
• Make reliable predictions about the activities.
• Improve the processes.

Statistical Framework
• Define the data you want to study to solve a problem or meet an
D objective.
• Collect the data from appropriate sources.

C
• Organize the data collected by developing tables

O
• Visualize the data by developing charts.

V
• Analyze the data collected to reach conclusions and present those

A results.
Nowadays statistics is used in almost all field:
HEALTH/PUBLIC
EDUCATION AGRICULTURE BUSINESSES SPORTS FINANCIAL
HEALTH
ASPECTS IN STATISTICS
Statistics
Theoretical Applied Statistics

Statistics
Applications of those
Development, derivation theorems, formulas, rules and
and proof of theorems, laws to solve real problems.
formulas, rules and laws.
Descriptive Statistics Inferential Statistics

Methods for collecting, Methods that use results
organizing, analyzing and obtained from sample to derive
summarizing data conclusions about a population
Common examples for Descriptive vs
Inferential Statistics
Descriptive Statistics: Inferential Statistics:
• Estimation of number of students • Average marks obtained by all
(boys and girls separately) in a the students.
school.
• Grades or percentile of the scores.
• Population of particular county
or city. • Average score in cricket.
• Prediction by a dentist about the
• Frequency of the variables. teeth that are susceptible to have
• Estimation of number of cavity or damage in future.
damaged or cavity teeth by a
dentist.
1.2 BASIC TERM IN STATISTICS
POPULATION SAMPLE
• a collection of all individuals about • A subset of the population.

which information is desired. • e.g.?
• Finite population
• When the membership of a
population can be (or could be)
physically listed.
• e.g. the employees of a given
company, the number of
airplanes owned by an airline, or
the potential consumers in a
target market.
• Infinite population
• When the membership is
unlimited.
• e.g. the number of germs in the
body of a patient of malaria.
PARAMETER STATISTICS
• numbers that summarize • numbers that summarize
data for an entire data from a sample
population. • English alphabet is used
• Greek letter is used to to symbolize the name of
symbolize the name of statistic
parameter. • Average/Mean (X-bar)
• Average/Mean (µ) • Standard deviation (s)
• Standard deviation () • e.g. The “average” height,
• e.g. The “average” age at found by using the set of
time of admission for all 25 heights.
students who have ever
attended our college
• a characteristic of interest about each individual
VARIABLE element of a population or sample.

• e.g. student’s age at entrance into college, the color of
student’s hair
• the value of variable associated with one element of a

DATA population or sample.
• This value may be a number, a word, or a symbol.
VALUE • e.g. Farah entered college at age “23”, her hair is
“brown”
• The set of values collected from the variable from each

DATA of the elements that belong to sample.
• e.g. : The set of 25 heights collected from 25 students.
CENSUS SAMPLE SURVEY
• a survey includes • a survey includes

every element in every element in
the population selected sample
• might say a only
census is a 100%
sample survey.
What are example of census and sample survey?

MALAYSIA CENSUS 2010
-A REPORT-
EXAMPLE 1.1
1. At Sintok Community College, 150 students are randomly
selected and asked about the distance from their house to
campus. From this group, a mean of 5.2 km is computed.
a. What is the population? All Sintok Community College students
b. What is the sample? 150 students of Sintok Community College
c. What is the parameter? Mean of the population which is
unknown
d. What is the statistic? mean of the sample which is 5.2
e. What is the variable of the study? Distance from house to
campus
1.2 VARIABLES
 Categorical (qualitative) variables take categories as their values such
as “yes”, “no”, or “blue”, “brown”, “green”.
 Numerical (quantitative) variables have values that represent a

counted or measured quantity.
 Discrete variables arise from a counting process.
 Can assume any values corresponding to isolated points along a line interval.
That is, there is a gap between any two values
 e.g. Number of courses for which you are currently registered
 Continuous variables arise from a measuring process.
 Can assume any value along a line interval, including every possible value
between any two values.
 e.g. Weight of books and supplies you are carrying as you attend class today.
EXAMPLE 1.2 TYPES OF VARIABLES
Question Responses Variable Type
Do you have a Facebook

profile? Yes or No Categorical
How many text messages Numerical

have you sent in the past --------------- (discrete)
three days?
How long did the mobile Numerical
app update take to --------------- (continuous)
download?
Variables
Categorical Numerical
Nominal Ordinal Discrete Continuous
Examples: Examples: Ratings Examples: Examples:

 Marital Status  Good, Better, Best  Number of Children  Weight
 Political Party  Low, Med, High  Defects per hour  Voltage
 Eye Color (Ordered Categories) (Counted items) (Measured
(Defined Categories) characteristics)
CLASS ACTIVITY
SCALE OF MEASUREMENT
1.2 SCALE OF MEASUREMENT
› Data can also be classified by how they are categorized,
counted or measured.
› This type of classification uses measurement scales with

4 common types of scales: nominal, ordinal, interval and
ratio.
A nominal scale classifies data into distinct categories in which no
ranking is implied.
Categorical Variables Categories
Do you have a Yes, No

Facebook profile?
Type of investment Growth, Value, Other
Celcom, Maxis,
Cellular Provider UMobile, Digi, None
An ordinal scale classifies data into distinct categories
in which ranking is implied.
Categorical Variable Ordered Categories
Student class designation Freshman, Sophomore, Junior, Senior
Product satisfaction Very unsatisfied, Fairly unsatisfied, Neutral,

Fairly satisfied, Very satisfied
Faculty rank Professor, Associate Professor, Assistant

Professor, Instructor
Standard & Poor’s bond ratings AAA, AA, A, BBB, BB, B, CCC, CC, C,
DDD, DD, D
Student Grades A, B, C, D, F
• An interval scale is an ordered scale in which the difference
between measurements is a meaningful quantity but the
measurements do not have a true zero point.
• A ratio scale is an ordered scale in which the difference between the
measurements is a meaningful quantity and the measurements have
a true zero point.
EXAMPLE 1.2
1. Classify each variable as discrete or continuous.
a. Ages of people working in a large factory. Continuous
b. Number of cups of coffee served at a restaurant. Discrete
c. The amount of a drug injected into a rat. Continuous
d. The time it takes a student to walk to school. Continuous
e. The number of liters of milk sold each day at a grocery store. Continuous
2. Classify each as nominal-level, ordinal level, interval-level or

ratio level.
a. Rating of movies as U, SX and LP. Nominal
b. Number of candy bars sold on a fund drive. Ratio
c. Classification of automobile as subcompact, compact, standard and luxury. Ordinal
d. Temperatures of hair dryers. Interval
e. Weights of suitcases on a commercial airline. Ratio
1.3 SOURCE OF DATA
• Primary Sources: The data collector is the one using the data for
analysis:
• Data from a political survey.
• Data collected from an experiment.
• Observed data.
• Secondary Sources: The person performing data analysis is not
the data collector:
• Analyzing census data.
• Examining data from print journals or data published on the internet.
PRIMARY: SURVEY DATA
• A survey asking people which laundry detergent has the
best stain removal abilities.
• Political polls of registered voters during political

campaigns.
• People surveyed to determine their satisfaction to recent

product or service experiences.
PRIMARY: DESIGNED EXPERIMENT
• Consumer testing of different versions of a product to
help determine which product should be pursued further.
• Material testing to determine which supplier’s material

should be used in a product.
• Market testing on alternative product promotions to

determine which promotion to use more broadly.
PRIMARY: OBSERVATIONAL STUDIES
› Market researchers utilizing focus groups to elicit
unstructured responses to open-ended questions.
› Measuring the time it takes for customers to be served in

a fast food establishment.
› Measuring the volume of traffic through an intersection to

determine if some form of advertising at the intersection
is justified.
SECONDARY:
› Financial data on a company provided by investment

services.
› Industry or market data from market research firms and

trade associations.
› Stock prices, weather conditions, and sports statistics in

daily newspapers.
TYPES OF SAMPLES
Samples
Non Probability Probability Samples

Samples
Simple Stratified
Random
Judgment Convenience
Systematic Cluster
Why do we have to study statistics?
• To read and understand various statistical studies in related
field.
• To communicate and explain the results of study in related field

using our own words.
• To become better consumers and citizens.

Can Statistics Lie?
• Faulty or invalid statistics can be produced if any tasks in
the DCOVA framework are applied incorrectly.
• Many statistical methods are valid only if the data being

analyzed have certain properties.
• For inferential methods you should always look for logical

causality.
Summary
• Statistics is a way of thinking that can lead to better decisions.

• Statistics requires analytics skills and is an important part of your
education.
• Recent developments such as the use of business analytics and “big
data” have made knowing statistics even more critical.
• The DCOVA framework guides your application of statistics.
• How to define variables.
• Understanding the different measurement scales.
• How to collect data.
• Identifying different ways to collect a sample.
END OF CHAPTER 1

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CHAPTER 1:

• Vast amounts of summarized, unsummarized, numerical, and

• Software to perform calculations.

• Summarize and visualize data.

• Reach conclusions from data.

• Make reliable predictions about the activities.

• Improve the processes.

• Collect the data from appropriate sources.

• Organize the data collected by developing tables

• Visualize the data by developing charts.

• Analyze the data collected to reach conclusions and present those

Theoretical Applied Statistics

Descriptive Statistics Inferential Statistics

• a collection of all individuals about • A subset of the population.

VARIABLE element of a population or sample.

• the value of variable associated with one element of a

• The set of values collected from the variable from each

CENSUS SAMPLE SURVEY

• a survey includes • a survey includes

What are example of census and sample survey?

 Numerical (quantitative) variables have values that represent a

Question Responses Variable Type

Do you have a Facebook

How many text messages Numerical

Nominal Ordinal Discrete Continuous

Examples: Examples: Ratings Examples: Examples:

› This type of classification uses measurement scales with

Categorical Variables Categories

Do you have a Yes, No

Type of investment Growth, Value, Other

Categorical Variable Ordered Categories

Student class designation Freshman, Sophomore, Junior, Senior

Product satisfaction Very unsatisfied, Fairly unsatisfied, Neutral,

Faculty rank Professor, Associate Professor, Assistant

2. Classify each as nominal-level, ordinal level, interval-level or

• Political polls of registered voters during political

• People surveyed to determine their satisfaction to recent

• Material testing to determine which supplier’s material

• Market testing on alternative product promotions to

› Measuring the time it takes for customers to be served in

› Measuring the volume of traffic through an intersection to

› Financial data on a company provided by investment

› Industry or market data from market research firms and

› Stock prices, weather conditions, and sports statistics in

Non Probability Probability Samples

• To communicate and explain the results of study in related field

• To become better consumers and citizens.

• Many statistical methods are valid only if the data being

• For inferential methods you should always look for logical

• Statistics is a way of thinking that can lead to better decisions.

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