Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 3
CHAPTER ONE: INTRODUCTION
Definition and Classification of Statistics
Statistics can be defined in two senses: Plural sense(Statistical Data) Statistics are collection of facts (figures). This meaning of the word is widely used when reference is made to facts and figures on sales, employment or unemployment, accident, weather, death, education, etc. Examples: Sales Statistics, Labor Statistics, Employment Statistics, etc. In this sense the word Statistics serves simply as data. “But not all numerical data are statistics”. Singular sense(Statistical Methods) Statistics is the science that deals with the methods of data collection, organization, presentation, analysis and interpretation of data. It refers the subject area that is concerned with extracting relevant information from available data with the aim to make sound decisions. According to this meaning, statistics is concerned with the development and application of methods and techniques for collecting, organizing, presenting, analyzing and interpreting statistical data. Classifications of Statistics Data can be used in different ways. The body of knowledge called statistics is sometimes divided into two main areas, depending on how data are used. The two areas are 1. Descriptive statistics: consists of the collection, organization, summarization, and presentation of data. in descriptive statistics the statistician tries to describe a situation. Descriptive statistics are numbers that are used to summarize and describe data. The word “data” refers to the information that has been collected from an experiment, a survey, an historical record, etc. Descriptive statistics are just descriptive. They do not involve generalizing beyond the data at hand. Generalizing from our data to another set of cases is the business of inferential statistics. 2. Inferential Statistics: The second area of statistics is called inferential statistics.Inferential statistics consists of generalizing from samples to populations, performing estimations and hypothesis tests, determining relationships among variables, and making predictions. Here, the statistician tries to make inferences from samples to populations. Inferential statistics uses probability, i.e., the chance of an event occurring. You may be familiar with the concepts of probability through various forms of gambling. If you play cards, dice, bingo, or lotteries, you win or lose according to the laws of probability. Probability theory is also used in the insurance industry and other areas. Most of the time it uses words like (will, would, may, might, can, could, at least, chance of, etc and it explains about future conditions and known as future agenda).