Lecture

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INTRODUCTION
OF STATISTICS
Pham Uyen Phuong Thao – [email protected]
 Learning Outcomes

§ Comprehend the definition of statistics

§ Understand the main characteristics of data, information

and knowledge

§ Differentiate between data, information and knowledge

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 1. Definitions

v Statistics: A branch of mathematics dealing with the

collection, analysis, interpretation, and presentation of masses
of numerical data.

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 1. Definitions

Application:
• Accounting: Public accounting firms use statistical sampling procedures when
conducting audits for their clients.

• Economics: Economists use statistical information in forecasting future of the

economy or certain aspects of it.

• Finance: Financial advisors use price-earnings ratios and dividend yields to guide
their investment advice.

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 1. Definitions

Application:
• Marketing: Electronic point-of-scale scanners at retail checkout counters are
used to collect data for a variety of marketing research applications.

• Production: A variety of statistical quality control charts are used to monitor

the output of a production process.

• Information System: A variety of statistical information helps administrators

assess the performance of computer network.

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 1. Definitions
§ Descriptive Statistics:
- deals with the presentation and collection of data.

- is usually the first part of a statistical analysis.

§ Inferential Statistics:
- involves drawing the right conclusions from the statistical analysis that has been performed
using descriptive statistics.

- In the end, it is the inferences that make studies important and this aspect is dealt with in
inferential statistics.

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 2. Data

§ Data are raw facts and figures that on

their own have no meaning

§ These can be any alphanumeric

characters i.e. text, numbers, symbols

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 2. Data
§ Yes, Yes, No, Yes, No, Yes, No, Yes

§ 42, 63, 96, 74, 56, 86

§ 111192, 111234

➜ None of the above data sets have any meaning until they are
given a CONTEXT and PROCESSED into a useable form
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 3. Scales of Measurement
§ The scale defines the amount of information contained in the data.

§ The scale indicates the data summarization and statistical analyses

are more appropriate.
Nominal Interval

Scales of
measurement

Ordinal Ratio
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 3. Scales of Measurement
Nominal:
§ Data are labels or names used to identify an attribute of the element.
§ A non-numeric label or numeric code may be used.
Example:
§ Students of our university are classified by their enrolled majors using a
non-numeric label such as Business Administration, Computer Science,
Graphic Design…
§ A numeric code could be use for the majors: e.g. 1 denotes BA, 2 denotes
CS, 3 denotes GD… 10
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 3. Scales of Measurement
Ordinal:
§ Data have the properties of nominal data and the order or rank of the data
is meaningful.
§ A non-numeric label or numeric code may be used.
Example:

§ Students of a university are classified by their class standing using a non-

numeric label such as Freshman, Sophomore, Junior or Senior.
§ A numeric code could be use for the class standing: e.g. 1 denotes
Freshman, 2 denotes Sophomore, 3 denotes Junior and 4 denotes Senior 11
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 3. Scales of Measurement
Interval:
§ Data have the properties of ordinal data and the interval between
observations is expressed in terms of a fixed unit of measurement.
§ Are always numeric.
Example:

§ Francis has a SAT score of 1985, while Charles has a SAT score of 1880. So,
Francis has 105 points higher than Charles.

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 3. Scales of Measurement
Ratio:
§ Must contain a zero value indicating that nothing exits for the variable at
the zero point.
Example: -5oC; 0oC; 5oC

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 3. Scales of Measurement

Data

Categorical Quantitative

Numeric Non-numeric Numeric

Nominal Ordinal Nominal Ordinal Interval Ratio

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 4. Cross-sectional vs. Time-series Data

Are collected at the same or

Cross-sectional approximately the same point in time
data Ex: Sales Revenue of 10 companies listed
on the Vietnam stock market in 2018.

Are collected over several time periods

Time-series Ex: Sales Revenue of a company listed on
data the Vietnam Stock Market in period
2010-2018.

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 5. Data Sources

Secondary Data
• is available data collected from different sources online or
offline such as Journals, local governments, international
organisations…
Primary Data
• is the first-hand data collected by the researcher such as
questionnaires, surveys, interviews, experimental
observations, experiments…
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 6. Data into Information

§ To achieve its aims the organisation will need to process data

into information.

§ Data needs to be turned into meaningful information and

presented in its most useful format

§ Data must be processed in a context in order to give it meaning

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 7. Information

§ Data that has been processed within a context to give it meaning

OR

§ Data that has been processed into a form that gives it meaning

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 7. Information

§ In the next 3 examples explain how the data could be processed to

give it meaning

§ What information can then be derived from the data?

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Example 1

Yes, Yes, No, Yes, No, Yes, No, Yes, No, Yes,
Raw Data Yes

Responses to the market research

Context question – “Would you buy brand x at
price y?”
Processing

Information ???
Example 2

Raw Data 42, 63, 96, 74, 56, 86

Jayne’s scores in the six AS/A2 ICT

Context modules

Processing

Information ???
Example 3

111192, 111234
Raw Data

The previous and current readings of a

Context customer’s gas meter

Processing

Information ???
 8. Knowledge
§ Knowledge is the understanding of rules needed to interpret
information

“…the capability of understanding the relationship between

pieces of information and what to actually do with the
information”
Debbie Jones – www.teach-ict.com
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 8. Knowledge
§ Using the 3 previous examples:
• A Marketing Manager could use this information to decide whether or
not to raise or lower price y
• Jayne’s teacher could analyse the results to determine whether it would
be worth her re-sitting a module
• Looking at the pattern of the customer’s previous gas bills may identify
that the figure is abnormally low and they are fiddling the gas meter!!!

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 8. Knowledge
§ Knowledge workers
• Knowledge workers have specialist knowledge that makes them
“experts”
üBased on formal and informal rules they have learned through training
and experience

• Examples include doctors, managers, librarians, scientists…

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 Summary

Information = Data + Context + Meaning

Processing

§ Data – raw facts and figures

§ Information – data that has been processed (in a context) to give

it meaning

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 5. Summary
§ Example 1
• We could add up the yes and no responses and calculate the percentage of customers who
would buy product X at price Y. The information could be presented as a chart to make it easier
to understand.

§ Example 2
• Adding Jayne’s scores would give us a mark out of 600 that could then be converted to an A
level grade. Alternatively we could convert the individual module results into grades.

§ Example 3
• By subtracting the second value from the first we can work out how many units of gas the
consumer has used. This can then be multiplied by the price per unit to determine the
customer’s gas bill.
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 Q&A

§ Don’t hesitate to ask me directly in the class

§ Or contact me via email:

[email protected] or [email protected]

➜ Should formal format and words ➜ Good for you

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