Statistics, Data, and Statistical Thinking
Statistics, Data, and Statistical Thinking
Collection
Evaluation (classification, summary, organization and
analysis)
Interpretation
2
Types of Statistical Applications
4
Fundamental Elements of Statistics
7
Fundamental Elements of Statistics
8
Types of Data
Quantitative Data
•measured on a naturally occurring scale
•equal intervals along scale (allows for
meaningful mathematical calculations)
•data with absolute zero (zero means no value)
is ratio data (bank balance, grade)
•Data with relative zero (zero has value) is
interval data (temperature)
9
Types of Data
Qualitative Data
•measured by classification only
•Non-numerical in nature
•Meaningfully ordered categories identify ordinal
data (best to worst ranking, age categories)
•Categories without a meaningful order identify
nominal data (political affiliation, industry
classification, ethnic/cultural groups)
10
Types of Data
12
Collecting Data
•Sampling
–Sampling is necessary if inferential statistics are to be
used
–Samples need to be representative
•Reflect population of interest
–Random Sampling
•Most common sampling method to ensure sample is
representative
•Ensures that each subset of fixed size is equally likely to be
selected
13
Collecting Data
Question – a local TV station conducts exit polling during
an election, selecting every 10th person who exits the
polling station. Is this a random sample?
No. Why?
14
The Role of Statistics in Critical
Thinking
Statistical literacy is necessary today to
make informed decisions both at work and
at home
Requires statistical thinking to critically
assess data and the inferences drawn from
it
Statistical thinking assists you in identifying
research resulting from unethical statistical
practices
15
The Role of Statistics in Critical
Thinking
Common Sources of Error in Survey Data
16
Summary
• 2 types of statistical applications in
business – Descriptive and Inferential
• 6 fundamental elements of statistics
– population
– experimental units
– variable
– sample
– inference
– measure of reliability
17
Summary
18
Summary
19