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Chapter 1 - Introduction To Statistics

This document provides an introduction to key concepts in statistics, including: 1) Statistics is defined as the science of collecting, organizing, summarizing, presenting, analyzing and interpreting data to help make effective decisions. 2) There are two main types of statistics - descriptive statistics which organizes and summarizes data, and inferential statistics which estimates properties of populations based on samples. 3) Key variables discussed include quantitative and qualitative variables, as well as the different scales of measurement used in statistics.

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Tanveer Ahmed
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30 views

Chapter 1 - Introduction To Statistics

This document provides an introduction to key concepts in statistics, including: 1) Statistics is defined as the science of collecting, organizing, summarizing, presenting, analyzing and interpreting data to help make effective decisions. 2) There are two main types of statistics - descriptive statistics which organizes and summarizes data, and inferential statistics which estimates properties of populations based on samples. 3) Key variables discussed include quantitative and qualitative variables, as well as the different scales of measurement used in statistics.

Uploaded by

Tanveer Ahmed
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter- One

Introduction to Statistics
Topics to be discussed

1. Definition of statistics
2. Types of statistics
3. Importance and scope of statistics
4. Use of statistics in business
5. Characteristics or properties of
statistics
6. Limitations of statistics
7. Types of variables
8. Scale /level of measurement
Data and information:

 Theraw, unorganized facts that need to be


processed are called data. Data can be
something simple and seemingly random and
useless until it is organized.
 When data is processed, organized,
structured or presented in a given context so
as to make it useful, it is called information.

Data Statistics Information


Definition of Statistics
In narrow sense, statistics refers to numerical facts and
figures.
In broader sense, statistics is the science of collecting,
organizing, summarizing, presenting, analyzing and
interpreting data to help in making more effective
decision.
According to Croxton and Cowden, “Statistics is the
science which deals with the collection, presentation and
interpretation of numerical data.”
Example: Mean life expectancy of Bangladeshi people is
70.7 years.
 Annual death rate is 5.3 (per 1000).
 Increasing rate of population is 1.36%.
Types of
statistics 1. Descriptive statistics
2. Inferential statistics
1. Descriptive statistics: Statistics which deals with
the methods of organizing, summarizing, and
presenting data in informative way is called
descriptive statistics.
Example: Increasing rate of population 1.36% means
that 1.36 persons are increasing in every year in
Bangladesh out of every 100 persons.
2. Inferential statistics: Statistics
which deals with the methods used
to estimate a property of a
population on the basis of a sample
is called inferential statistics.
Example: A random sample of
400 graduate of from a department
of a university contains 3000 total
students showed their average
starting salary is 42500 taka. We,
therefore estimate the average
starting salary for all graduate of
this department to be 42500 taka.
1. Statistics in state craft
2. Statistics in economics
3. Statistics in trades and commerce

Importance 4. Statistics in medical science


Statistics in demography
and scope
5.

6. Statistics in weather forecasting


of statistics 7. Statistics in insurance companies
8. Statistics in law- reformation and
human rights
9. Statistics in science
Use of Statistics in business

Reference:

Business Statistics by S.P. Gupta and


M.P. Gupta

Page no:8-9
Characteristics or properties of
statistics
1. Statistics are aggregate of interrelated information
2. Statistics are numerically expressed
3. Statistics are affected by various causes
4. Statistics are the result of interrelated investigation
5. Statistics are comparable and homogenous
6. Statistics are enumerated or estimated according to
reasonable standards of accuracy
7. Statistics obtained in a well-organized manner
Limitation of statistics
 Statistics laws are true on average. Statistics are
collections of facts. It does not deal with isolated
measurement. So, single observation is not a statistics.
 Statistics does not deal with qualitative phenomenon. It
deals with only quantitative characteristics
 If sufficient care is not done in collecting, analyzing and
interpretation the data, statistical results might be
misleading.
 Only a person who has an expert knowledge of statistics
can handle statistical data efficiently.
 Some errors are possible in statistical decisions. We do
not know whether an error has been committed or not.
Population

Some Sample
important
terminologies
Parameter

Statistic
Population: A collection of all possible individuals, objects,
units, measurements of interest is called population.
Example: If we want to know the average age of all students
of BUP, all the students of BUP will be a population.
Sample: A representative and considerably small part of a
population is known as a sample of that population.
Example: A group of 500 students from 2000 students
constitutes a sample.
Parameter: Any statistical measure computed from
population is called parameter. Parameter is generally an
unknown quantity.
Example: Population mean, population variance etc.
Statistic: Any statistical measure computed from sample is
called statistic. For a sample, statistic is known.
Example: Sample mean, sample variance etc.
Variable: A characteristic that can be vary from
person to person, object to object, or from phenomenon
to phenomenon either in magnitude or in quality is
called variable.

Example: Heights of students, age of persons, family


size etc.
Types of variables
1. Qualitative variable or an attribute:
For the variable numerical measurement is not possible and has only several
categories is called qualitative variable. The observations can be neither
meaningfully ordered nor physically measured. We can only classify and then
enumerate.
Example: Gender (male, female), Religion (Muslim, non-Muslim), Marital
status (single, married, widow, divorced, separated)
2. Quantitative variable:
For the variable numerical measurement is possible and contains a natural
ordering is called quantitative variable.
Example: Height of persons, Weight of persons, Family size, No. of accidents
in a day.
Quantitative variables are either discrete or continuous.
i) Discrete variable: When a variable can take only the isolated values which
are countable within a given range is called discrete variable.
Example: Family size, no. of accident in one day, no. of children in a family
etc.
ii) Continuous variable: When a variable can take any values within a given
range is called continuous variable.
Example: Height of persons, Weight of persons, Price of commodities etc.
Scale/ Level of measurement
There are
four levels
of 1.Nominal scale
measureme
nts.

2. Ordinal scale
3. Interval scale
4. Ratio scale
1. Nominal scale: The scale that measures a variable
by name without an order is called nominal scale. We
can set numerical values for the names but cannot
order them meaningfully. The variable which is
measured in nominal scale is known as nominal
variable.
2. Ordinal scale: The scale that measures a variable
by name with an order is called ordinal scale. The
magnitude is used only for comparison and not for any
mathematical operation. The variable which is
measured in ordinal scale is known as ordinal variable.
3. Interval scale: The scale that measures a variable by its
value with an order of amount, includes the idea of equal
distance between the categories and contains the
meaningless zero is called interval scale. The variable
which is measured in interval scale is known as interval
variable.
4. Ratio scale: The scale that measures a variable by its
value with an order of amount includes the idea of equal
distance between the categories and including the concept
of zero is called ratio scale. The variable which is measured
in ratio scale is known as ratio variable.
Practice from book

Chapter 1: What is statistics


 Self review 1-1, 1-2
 Exercises 1-4
 Chapter exercise: 8-11,13

1. Define Statistics.
2. Define/ difference different types of statistics.
3. Define all the types of variables with examples
4. Define all scales of measurement with examples.
GOOD LUCK!!

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