AE 9 Module 1
AE 9 Module 1
A branch of
mathematics dealing with
the collection, analysis,
interpretation, and
presentation of masses of
numerical data.
APPLICATION OF
STATISTICS
1. Weather Forecasts
These computer models are built using statistics that compare prior weather conditions with current
weather to predict future weather.
2. Emergency Preparedness
Emergency management agencies move into high gear to be ready to rescue people. Emergency teams
rely on statistics to tell them when danger may occur.
3. Predicting Disease
For example, studies have shown that 85 to 95 percent of lung cancers are smoking related. The statistic
should tell you that almost all lung cancers are related to smoking and that if you want to have a good chance
of avoiding lung cancer, you shouldn't smoke.
4. Medical Studies
Scientists must show a statistically valid rate of effectiveness before any drug can be prescribed.
Statistics are behind every medical study you hear about.
5. Genetics
Many people are afflicted with diseases that come from their genetic make-up and these diseases can
potentially be passed on to their children. Statistics are critical in determining the chances of a new baby
being affected by the disease.
6. Political Campaigns
Whenever there's an election, the news organizations consult their models when they try to predict who
the winner is. Candidates consult voter polls to determine where and how they campaign. Statistics play a
part in who your elected government officials will be
7. Insurance
The rate that an insurance company charges you is based upon statistics from all drivers or homeowners
in your area.
8. Consumer Goods
Wal-Mart, a worldwide leading retailer, keeps track of everything they sell and use statistics to calculate
what to ship to each store and when. From analyzing their vast store of information, for example, Wal-Mart
decided that people buy strawberry Pop Tarts when a hurricane is predicted in Florida! So they ship this
product to Florida stores based upon the weather forecast.
9. Quality Testing
Companies make thousands of products every day and each company must make sure that a good
quality item is sold. But a company can't test each and every item that they ship to you, the consumer. So the
company uses statistics to test just a few, called a sample, of what they make. If the sample passes quality
tests, then the company assumes that all the items made in the group, called a batch, are good.
10. Stock Market
Another topic that you hear a lot about in the news is the stock market. Stock analysts also use statistical
computer models to forecast what is happening in the economy.
Difference between Descriptive and Inferential Statistics
Descriptive Statistics
Descriptive statistics is the term given to the analysis of data that helps
describe, show or summarize data in a meaningful way such that, for
example, patterns might emerge from the data. Descriptive statistics do
not, however, allow us to make conclusions beyond the data we have
analyzed or reach conclusions regarding any hypotheses we might have
made. They are simply a way to describe our data.
Inferential statistics are techniques that allow us to use
samples to make generalizations about the populations
from which the samples were drawn. It is, therefore,
important that the sample accurately represents the
population.
Difference between Population, Parameter and Sample
Sample is the specific group that you will collect data from. The
size of the sample is always less than the total size of the
population.
Activity: Identify the Population, Parameter and Sample
Problem 1
The main campus at Penn State University has a population
of approximately 42,000 students. A research question is
"what proportion of these students smoke regularly?" A
survey was administered to a sample of 987 Penn State
students. Forty-three percent (43%) of the sampled students
reported that they smoked regularly.
Problem 2