Descriptive Statistics and Probability Distributions

Munmun Biswas

Dept. of Statistics, Brahmananda Keshab Chandra College

July 9, 2019

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Introduction

“Statistics is the universal tool of inductive inference, research in natural

and social sciences, and technological applications.
Statistics, therefore, must always have purpose, either in the pursuit of
knowledge or in the promotion of human welfare.”
- Prasanta Chandra Mahalanobis

A Roadmap.. Collection of Data - Summarization of Data - Analysis

of Data- Interpretation of Data towards a VALID DECISION.

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Application of Statistics in Real World Problem

Finance - correlation and regression, index numbers, time series

analysis, volatility modelling.
Marketing - hypothesis testing, chi-square tests, nonparametric
statistics.
Development Studies - Gender Inequality, Child Health, Poverty :
Econometrics and Applied Statistics.
Forecasting - Weather Forecasting using TS.
Self-Driving Cars, Robotics, AI, Image and Video Processing etc. as
well uses STATISTICS extensively.

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Outline:

Descritive Statistics
Data Type
Data Representation
Data Summery
Data Shape
Bivariate Data
Probability Distributions
Probability
Random Variable
Probability Distribution Function
Expectation and Variance
Moments
Binomial, Poisson
Normal Distribution

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 Descriptive Statistics

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Descritive Statistics: Data Type

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 Quantitave data has numerical values. This can also be called
variables
Examples: Height, Weight, Number of defectives in a particular lot of
products, Number of accidents in a traffic signal per week
Variables can be discrete when it takes only discrete values in a
certain interval
Variables can be continuous when it may take all the values of an
interval
Qualitative (or Categorical) data do not have numerical values. It can
also be called attribute.
Examples: Blood groups, gender, exam grades, income groups
Categories which can be ordered can be classified as ordinal data, if
not they are called as nominal data.

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Questions

Examples of continuous variables?

Examples of discrete variables?
Examples of oridal data?
Examples of nominal data?

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Graphical Representation

Line Diagram: Discrete time series data

Monthly electric consumption

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Graphical Representation

Line Diagram: Discrete time series data

Monthly electric consumption

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Graphical Representation

Line Diagram: Discrete time series data

Monthly electric consumption

Bar Diagram: Discrete variable, Categorical data

Vertical bars
Horizontal bars
Multiple bars
Divided bar

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Bar Diagrams
Bar Diagram: To represent Discrete variable, Categorical data
Examples:

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Bar Diagrams
Bar Diagram: To represent Discrete variable, Categorical data
Examples:

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Bar Diagrams
Bar Diagram: To represent Discrete variable, Categorical data
Examples:

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Bar Diagrams
Bar Diagram: To represent Discrete variable, Categorical data
Examples:

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Continuous data: Histogram

Histogram is the graphical representation of frequency distribution of

continuous data.

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Continuous data: Histogram

Histogram is the graphical representation of frequency distribution of

continuous data.

test scores frequency (f ) class width (d) frequency density (r = df )

0-10 7 10 0.70
10-30 11 20 0.55
30-50 14 20 0.70
50-60 16 10 1.60
60-80 20 20 1.00
80-100 9 20 0.45
100-120 3 20 0.15

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Histogram

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Frequency Distribution

Frequency distribution is a form of data summarization. It is obtained by

first dividing the range of (sample) values into a number of class-intervals,
and then classifying the values into these intervals. A frequency
distribution thus consists of a set of class-intervals and the frequency of
values in each of them.
It helps comprehension of both location and dispersion of data.

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Data Summary

Location / Central Tendency – Measure of the center point of any

data set
Measures of location: Mean, Median, Mode, Quartiles
Spread / Dispersion – Measure of the spread of any data set around
its center
Measures of dispersion: Variance, Range, Quartile deviation
Shape – Measure of symmetry of any data set around its center.
The data may be symmetric or asymmetric. Asymmetric data can be
positively or negetively skewed.

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Measures of Location

Arithmatic Mean: Simple average or weighted average

x̄ = x1 +x2 +...+x
n
n
OR x̄ = x1 f1f+x 2 f2 +...+xk fk
1 +f2 +...+fk
Mode: Mode is the most frequently occurring data point in a data set
Median: Median is the middle most point of a data set arranged in
an ascending or descending order
Example:

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Spread Measures

Range is the difference between the maximum and minimum data

value R(x) = xmax − xmin
Variance or Standard Deviation tell us how individual data points
2 2 +...+(x −x̄)2
are spreaded around mean V (x) = (x1 −x̄) +(x2 −x̄)
n
n

If the graph represents delivery time of an item to different customers then

individual customer’s experience about delivery time would be different.
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Different Shapes

Symmetric data: Mean= Median= Mode

Positive skew data: Mean> Median> Mode
Negative skew data: Mean< Median< Mode

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Inter Quartile Range

The lower quartile Q1 is the value such that 1/4th of the observations
fall below it and 3/4ths fall above it.
The middle quartile Q2 is the median
The third quartile Q3 is the value such that 3/4ths of the
observations fall below it and 1/4th above it.
The Inter Quartile Range IQR is the difference between the third
quartile and he first quartile.
Thus IQR = Q3 − Q1

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Box Plot

Box Plots are simple means of providing a useful picture of how the
data are distributed.
To draw Box Plot
Determine Q1 , Q3 and IQR
A line is drawn at the median to divide the box
Two lines, known as Whiskers are drawn outward from the box.
One line extends the top edge of the box at Q3 to either xmax or
Q3 + 1.5 × IQR whichever is lower. Another line from the bottom
edge of the box at Q1 extends downward to a value that is either the
xmin or Q1 –1.5 × IQR whichever is greater.
The end points of the whiskers are known as upper and lower adjacent
values
Values that fall outside the adjacent values are candidates for
consideration as outliers. They are plotted as bullets (◦).

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Box Plot

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 Probability Distribution

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Probability

Probability is a mathematical language for quantifying uncertainty.

Few terminologies:
Sample Space Ω is the set of possible outcomes of an emperiment
Points ω in Ω are called sample outcomes
Subsets of Ω are called events
Example: A coin is tossed twice. Then Ω = {HH, HT , TH, TT }. The
event (A) that the first toss is a head is A = {HH, HT }

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Definition of Probability

A function P that assigns a real number P(A) to each event A is a

probability distribution or a probability measure if it satisfies the
following three axioms:
Axiom 1: P(A) ≥ 0 for every A
Axiom 2: P(Ω) = 1
Axiom 3: If A1 , A2 , . . . are pairwise disjoint then
∞
X
P(∪∞
i=1 Ai ) = P(Ai )
i=1

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Few Properties of Probability

P(φ) = 0
A ⊂ B ⇒ P(A) ≤ P(B)
0 ≤ P(A) ≤ 1
P(Ac ) = 1 − P(A)
A ∩ B = φ ⇒ P(A ∪ B) = P(A) + P(B)
For any two events A and B, P(A ∪ B) = P(A) + P(B) − P(A ∩ B)
|A|
If Ω is finite and if each outcome is equally likely then P(A) = |Ω| ,
where |.| denotes cardinality of a set

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Independent Events, Conditional Probabity

Two events are independent if P(AB) = P(A)P(B)

Conditional Probability of event A given B is defined as

P(A|B) = P(AB)
P(B) , if P(B) > 0

If A and B are independent then P(A|B) = P(A)

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Random Variables

A random variable (r.v) is a mapping X : Ω → R that assigns a real

number X (ω) to each outcome ω
Example: A coin is tossed three times.
Ω = {HHH, HHT , HTH, HTT , THH, THT , TTH, TTT }. Let X is
the number of heads in a particular trial

ω HHH HHT HTH HTT THH THT TTH TTT

X (ω) 3 2 2 1 2 1 1 0
P(X (ω)) 1/8 1/8 1/8 1/8 1/8 1/8 1/8 1/8
The probability distribution of the random variable X is given by
x 0 1 2 3
P(X (ω)) 1/8 3/8 3/8 1/8

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Probability Distribution of a RV

If X is a discrete r.v f (x) = P(X = x) is called the Probability mass

function (p.m.f) of X

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Probability Distribution of a RV

If X is a discrete r.v f (x) = P(X = x) is called the Probability mass

function (p.m.f) of X
Any function f (x) to be a p.m.f of a r.v X must satisfy

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Probability Distribution of a RV

If X is a discrete r.v f (x) = P(X = x) is called the Probability mass

function (p.m.f) of X
Any function f (x) to be a p.m.f of a r.v X must satisfy
i) f (x) ≥ 0

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Probability Distribution of a RV

If X is a discrete r.v f (x) = P(X = x) is called the Probability mass

function (p.m.f) of X
Any function f (x) to be a p.m.f of a r.v X must satisfy
(x) ≥ 0
i) fP
ii) i f (xi ) = 1 where x1 , x2 , . . . are all possible values taken by X

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Probability Distribution of a RV

If X is a discrete r.v f (x) = P(X = x) is called the Probability mass

function (p.m.f) of X
Any function f (x) to be a p.m.f of a r.v X must satisfy
(x) ≥ 0
i) fP
ii) i f (xi ) = 1 where x1 , x2 , . . . are all possible values taken by X
If the r.v X is continuous
R∞ and if there exists a function f (x) such that
f (x) ≥ 0 for all x, −∞ f (x)dx = 1 and for every a ≤ b,
Rb
P(a < X < b) = a f (x)dx.
The function f (x) then is called the probability density function
(pdf) of X

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Expectation and Variance

The expected value/ mean/ first moment of X

n P xf (x) if X is discrete
µ = E(X ) = R xfx (x)dx if X is continuous

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Expectation and Variance

The expected value/ mean/ first moment of X

n P xf (x) if X is discrete
µ = E(X ) = R xfx (x)dx if X is continuous

If there is a large number of iid draws X1 , X2 , . . . , Xn from the

probability distribution of X then E(X ) ≈ ni=1 Xi /n (Weak Law of
P
Large Numbers)

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Expectation and Variance

The expected value/ mean/ first moment of X

n P xf (x) if X is discrete
µ = E(X ) = R xfx (x)dx if X is continuous

If there is a large number of iid draws X1 , X2 , . . . , Xn from the

probability distribution of X then E(X ) ≈ ni=1 Xi /n (Weak Law of
P
Large Numbers)
Any function
R Y = r (X ) of r.v X is also a r.v and
E(Y ) = r (x)f (x)dx

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Expectation and Variance

The expected value/ mean/ first moment of X

n P xf (x) if X is discrete
µ = E(X ) = R xfx (x)dx if X is continuous

If there is a large number of iid draws X1 , X2 , . . . , Xn from the

probability distribution of X then E(X ) ≈ ni=1 Xi /n (Weak Law of
P
Large Numbers)
Any function
R Y = r (X ) of r.v X is also a r.v and
E(Y ) = r (x)f (x)dx
The variance of a r.v RX denoted by σ 2 is defined by
V (X ) = E(X − µ)2 = (x − µ)2 f (x)dx

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Binomial Distribution: Example

Suppose a company producing bulbs is packing it in a lot of size 10.

The company has a 5% chance of producing a defective bulb.
Therefore each lot may contain some defective bulbs.

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Binomial Distribution: Example

Suppose a company producing bulbs is packing it in a lot of size 10.

The company has a 5% chance of producing a defective bulb.
Therefore each lot may contain some defective bulbs.
Define X to be the number of defective bulbs in a randomly chosen
lot.

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Binomial Distribution: Example

Suppose a company producing bulbs is packing it in a lot of size 10.

The company has a 5% chance of producing a defective bulb.
Therefore each lot may contain some defective bulbs.
Define X to be the number of defective bulbs in a randomly chosen
lot.
What are the values X can take?

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Binomial Distribution: Example

Suppose a company producing bulbs is packing it in a lot of size 10.

The company has a 5% chance of producing a defective bulb.
Therefore each lot may contain some defective bulbs.
Define X to be the number of defective bulbs in a randomly chosen
lot.
What are the values X can take?
X may take value x ∈ {0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10}

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Binomial Distribution: Example

Suppose a company producing bulbs is packing it in a lot of size 10.

The company has a 5% chance of producing a defective bulb.
Therefore each lot may contain some defective bulbs.
Define X to be the number of defective bulbs in a randomly chosen
lot.
What are the values X can take?
X may take value x ∈ {0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10}
Check P(X = x) = 10 x 10−x for x ∈ {0, 1, . . . , 10}


x (0.05) (1 − 0.05)

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Binomial Distribution: Example

Suppose a company producing bulbs is packing it in a lot of size 10.

The company has a 5% chance of producing a defective bulb.
Therefore each lot may contain some defective bulbs.
Define X to be the number of defective bulbs in a randomly chosen
lot.
What are the values X can take?
X may take value x ∈ {0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10}
Check P(X = x) = 10 x 10−x for x ∈ {0, 1, . . . , 10}


x (0.05) (1 − 0.05)
P10 10

Check x=0 x (0.05)x (1 − 0.05)10−x = 1

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Binomial Distribution: Example

Suppose a company producing bulbs is packing it in a lot of size 10.

The company has a 5% chance of producing a defective bulb.
Therefore each lot may contain some defective bulbs.
Define X to be the number of defective bulbs in a randomly chosen
lot.
What are the values X can take?
X may take value x ∈ {0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10}
Check P(X = x) = 10 x 10−x for x ∈ {0, 1, . . . , 10}


x (0.05) (1 − 0.05)
P10 10

Check x=0 x (0.05)x (1 − 0.05)10−x = 1
X ∼ Binomial(10, 0.05)

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Binomial Distribution

X ∼ Binomial(n,

p), where n is an integer and 0 < p < 1 if
P(X = x) = xn p x (1 − p)n−x for x ∈ {0, 1, . . . , n}

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Binomial Distribution

X ∼ Binomial(n,

p), where n is an integer and 0 < p < 1 if
P(X = x) = xn p x (1 − p)n−x for x ∈ {0, 1, . . . , n}
Check E(X ) = ni=0 x xn p x (1 − p)n−x = np
P

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Binomial Distribution

X ∼ Binomial(n,

p), where n is an integer and 0 < p < 1 if
P(X = x) = xn p x (1 − p)n−x for x ∈ {0, 1, . . . , n}
Check E(X ) = ni=0 x xn p x (1 − p)n−x = np
P

Check V(X ) = E (X 2 ) − (np)2 = np(1 − p)

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Binomial Distribution

X ∼ Binomial(n,

p), where n is an integer and 0 < p < 1 if
P(X = x) = xn p x (1 − p)n−x for x ∈ {0, 1, . . . , n}
Check E(X ) = ni=0 x xn p x (1 − p)n−x = np
P

Check V(X ) = E (X 2 ) − (np)2 = np(1 − p)

It is a symmetric distribution if p = 1/2

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Binomial Distribution

X ∼ Binomial(n,

p), where n is an integer and 0 < p < 1 if
P(X = x) = xn p x (1 − p)n−x for x ∈ {0, 1, . . . , n}
Check E(X ) = ni=0 x xn p x (1 − p)n−x = np
P

Check V(X ) = E (X 2 ) − (np)2 = np(1 − p)

It is a symmetric distribution if p = 1/2

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Binomial Distribution

X ∼ Binomial(n,

p), where n is an integer and 0 < p < 1 if
P(X = x) = xn p x (1 − p)n−x for x ∈ {0, 1, . . . , n}
Check E(X ) = ni=0 x xn p x (1 − p)n−x = np
P

Check V(X ) = E (X 2 ) − (np)2 = np(1 − p)

It is a symmetric distribution if p = 1/2

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Poisson Distribution

X is said to have a Poisson distribution with parameter λ if

x
P(X = x) = e −λ λx! for x ∈ {0, 1, 2, . . .}

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Poisson Distribution

X is said to have a Poisson distribution with parameter λ if

x
P(X = x) = e −λ λx! for x ∈ {0, 1, 2, . . .}
Check ∞ −λ λx = e −λ e λ = 1
P
x=0 e x!

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Poisson Distribution

X is said to have a Poisson distribution with parameter λ if

x
P(X = x) = e −λ λx! for x ∈ {0, 1, 2, . . .}
Check ∞ −λ λx = e −λ e λ = 1
P
x=0 e x!
Poisson distribution can be seen as an approximation to Binomial
distribution when n → ∞ and np ≈ finite.

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Poisson Distribution

X is said to have a Poisson distribution with parameter λ if

x
P(X = x) = e −λ λx! for x ∈ {0, 1, 2, . . .}
Check ∞ −λ λx = e −λ e λ = 1
P
x=0 e x!
Poisson distribution can be seen as an approximation to Binomial
distribution when n → ∞ and np ≈ finite.
Example: Let X is defined as the number of accidents in a particular
traffic signal in a year. Suppose the signal has a history of average 5
accidents per year. Then X ∼ Poisson(5)

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 −λ λx
P∞
Check E(X ) = x=0 xe x! =λ
V(X ) = E(X − λ)2 = λ

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Normal Distribution

Most frequently used probability distribution in Statistics

Many natural phenomena follows Normal Distribution – Human
characteristics such as weights, heights and IQ’s
A continuous r.v X is said to follow Normal distribution
2
with
(x−µ)
−
parameters µ and σ 2 if it has pdf f (x) = √1 e 2σ 2 for
σ 2π
−∞ < x < ∞
Symmetric distribution: Mean=Median=Mode=µ
Variance=σ 2

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M.Biswas (BKC College) Descriptive Statistics and Probability Distributions July 9, 2019 34 / 37
Standard Normal Distribution

X −µ
If X ∼ N(µ, σ 2 ), then Z = σ ∼ N(0, 1). Z is then called the Standard
Normal Variable

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Central Limit Theorem

Theorem (Central Limit Theorem)

Let X1 , X2 , . . .P
, Xn be i.i.d random variables with mean µ and variance
σ . Let X̄n = ni=1 Xi , then
2

√
X̄n − µ n(X̄n − µ)
Zn = p = Z ∼ N(0, 1)
V(X̄n ) σ

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 Thank You

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