1-1

What is Statistics?

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1-2

When you have completed this chapter, you will be able to:

1.
2. 3.

Explain what is meant by statistics.

Identify the role of statistics in the development
of knowledge and everyday life.

Explain what is meant by descriptive statistics

and inferential statistics.

4.

Distinguish between a qualitative variable and

a quantitative variable.

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1-3

5.
6. 7.

Distinguish between a discrete variable and

a continuous variable.

Collect data from published and unpublished sources. Distinguish among the nominal, ordinal, interval, and ratio levels of measurement.

8.

Identify abuses of statistics.

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1-4

9. Gain an overview of the art and science of

statistics.

We recommend that you read this chapter at least twice, once at the beginning and once at the end of your course!

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1-5 it is the art and science of

collecting

What is Meant by

organizing

presenting data
drawing inferences from a sample of information about an entire population as well as predicting and developing policy analysis

Statistics?
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1-6

in everyday life

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Who uses Statistics?

Those using Statistical techniques include :

1-7

Marketers
Accountants Hospitals Educators

Investors
Sports people Economists

Statisticians Politicians

Consumers

Quality Controllers
Physicians

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Who uses Statistics?

1-8

Weather Forecasters

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Who uses Statistics?

1-9

Sports

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 10

Types of Statistics

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Types of Statistics
Descriptive Inferential

1 - 11

Methods of collecting organizing presenting and analyzing data

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Science of making inferences about a population, based on sample information.

Identify the following

Descriptive A. A Gallup poll found that 83% of the people in a survey knew which country won the gold medal in Mens Hockey in 2002. B. The accounting department of a firm will select a sample of invoices to check for accuracy of all the invoices of the company. C. Wine tasters sip a few drops of wine to make a decision with respect to all the wine waiting to be released for sale.
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 12

Inferential

The Method of Experimentation

We start off with particular observations from the real world and draw conclusions about the general patterns in the real world! 1. 2. 3. 4. 5. 6.

1 - 13

Define the experimental goal or a working hypothesis Design an experiment Chapters 8 and 12 Collect data Estimate the values/relations Chapters 3 and 4 Draw inferences Chapters 5,7,8 and 9 Predict and prepare policy analysis

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Inductive Method
Statistical Techniques

The Method of Experimentation

1 - 14

Deductive Method
Definitions & Assumptions

Experimental Design & Data Collection

Rules of Logic

Objective or WorkingHypothesis
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Implications or Hypotheses

1 - 15

A study was undertaken to estimate the average height of penguins in Antarctica.

Lets review the steps they would take to prepare the estimate.
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 16

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 17

A population is a collection of all possible individuals, objects, or measurements of interest

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 18

From

Take a

which are deemed to be representative of the

What we now need is

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 19

Take a Measurement for each one in the sample

Record

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 20

to put the data

into a readable and understandable format!

Displaying Data Results

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 21

Two methods that can be used to see what the data conveys are

Tables and Graphs/Charts

More on these in chapter 2

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 22

Tables
e.g.

are an efficient method of displaying data and depicting data accurately.

More on these in chapter 2

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 23

Line

Pie

Bar
More on these in chapter 2
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 24

Why take a sample instead of studying every member of the population?

Costs of surveying the entire population may be too large or prohibitive Destruction of elements during investigation

Accuracy of results
More in chapter 8
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 25

Data are everywhere

Statistical techniques are used to make many decision that affect our lives
No matter what your future line of work, you will make decisions that involve data. An understanding of statistical methods will help you make these decisions more effectively.
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 26

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Types of Data
A Variable

1 - 27

a characteristic of a population or sample that is of interest to us

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Types of Data Variables

Qualitative
Categorical Observations

1 - 28

Quantitative
Numerical Observations

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Variables
Qualitative or Attribute
Country of Birth U.K. Eye Colour Germany Blue Gender Taiwan Brown Male China Hazel India Female Green Japan Red Russia
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 29

Variables
Quantitative Numeric
Minutes to end of Class 55 Number of 45 Children in 30 a Family 5
0 1 2 3 4

1 - 30

Number of Two-Door Number of Garages Satisfied in a Street Maple Leafs Fans

10 20 30 40 ...
0 20 30 40

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Variables
Numerical Observations
Discrete or Continuous

1 - 31

Quantitative can be classified as either

Discrete

Characteristics can only assume certain values and there are usually gaps between values

e.g. - Number of bedrooms in a house - Number of hammers sold (1,2,3,etc)

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Variables
Numerical Observations
Discrete or Continuous
Characteristics

1 - 32

Quantitative can be classified as either

Continuous

can assume any value within a specified range!

e.g. - Pressure in a tire - Weight of a pork chop - Height of students in a class

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Summary of Types of Variables Data

Qualitative
Categorical Observations

1 - 33

Quantitative
Numerical Observations

Discrete
(number of children)
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Continuous
(time used for an exam)

1 - 34

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Sources of Statistical Information

1 - 35

Published Data

Statistical Abstracts Weather Sports

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Sources of Statistical Information

www.strategis.gc.ca www.bankofcanada.ca

1 - 36

Internet

Government of Canada & Provinces www.gc.ca

www.theweathernetwork.com

www.mcgrawhill.ca/college/lind
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Sources of Statistical Information

International www.census.gov www.bls.gov/ www.un.org
Organization for Economic Co-operation and Development

1 - 37

www.oecd.org

IMF

www.imf.org www.worldbank.org/

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Sources of Statistical Information

Commissioned surveys:

1 - 38

To develop information for the survey that they are doing, pollsters often contact the selected sample population. For ExampleAt home, over the telephone, by mail, by email, in the street, and at shopping malls!
How to collect data
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 39

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 40

Nominal Ordinal

Interval
Ratio

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 41

Nominal
Data can only be classified into categories or counted and cannot be arranged in any particular order
Example

M & Ms

Category: Classification:

Candy
By Colour only
(No natural order)

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 42

Nominal
Example

M & Ms
Mutually Exclusive:

where an individual, object, or measurement is included in ONLY ONE CATEGORY

Exhaustive: where each individual, object, or measurement MUST APPEAR in one of the categories
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 43

Ordinal
involves data arranged in some order, but the differences between data values cannot be determined or are meaningless!
Example

During a taste test of 4 soft drinks: Mello Yello was ranked number... 1. Sprite number. 2. Seven Up number....... 3. Orange Crush number ..4.

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 44

Interval
similar to the Ordinal Level, with the additional property that meaningful amounts of differences between data values can be determined.

There is no natural zero point

Example

Temperature on the Celsius scale.

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 45

Ratio
the Interval Level with an inherent zero starting point.

Differences and ratios are meaningful

for this level of measurement.
Examples

Monthly income

of surgeons

Distance

travelled by manufacturers representatives per month

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 46

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Benjamin Disraeli said

1 - 47

There are three kinds of lies

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 48

Figures dont lie.

Liars figure!

Caution
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Caution

1 - 49

As you begin to study statistical methods, you are cautioned to take what you see published as statistical facts with a healthy grain of skepticism!

an average may not be representative of all the data

graphs can also be misleading

be sure to study the sampling methods

For Example
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Caution
Review the following three slides and notice the effect that the different scales have on your interpretation of the pattern between Crime and Unemployment Rates.
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 50

1 - 51

Chart 1-11A
3200 3000

1986 - 1999

2800 2600 2400 2200 2000 0 1 2 3 4 5 6 7 8 9 10 11 12

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 52

Chart 1-11B
3000 2500

1986 -1999

2000 1500 1000 500 0 7 8 9 10 11 12

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 53

Chart 1-11C
3200 3000

1986 -1999

2800 2600 2400 2200 2000 7 8 9 10 11 12

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Test your learning

www.mcgrawhill.ca/college/lind
Online Learning Centre
for quizzes extra content data sets searchable glossary access to Statistics Canadas E-Stat data and much more!

1 - 54

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

1 - 55

This completes Chapter 1.

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.