Statistics

Statistics is the discipline that concerns the collection, organization, displaying, analysis,
interpretation and presentation of data.[1][2][3] In applying statistics to a scientific, industrial, or
social problem, it is conventional to begin with a statistical population or a statistical
model to be studied. Populations can be diverse groups of people or objects such as "all
people living in a country" or "every atom composing a crystal". Statistics deals with every
aspect of data, including the planning of data collection in terms of the design
of surveys and experiments.[4] See glossary of probability and statistics.
When census data cannot be collected, statisticians collect data by developing specific
experiment designs and survey samples. Representative sampling assures that inferences and
conclusions can reasonably extend from the sample to the population as a whole.
An experimental study involves taking measurements of the system under study,
manipulating the system, and then taking additional measurements using the same procedure
to determine if the manipulation has modified the values of the measurements. In contrast,
an observational study does not involve experimental manipulation.
Two main statistical methods are used in data analysis: descriptive statistics, which
summarize data from a sample using indexes such as the mean or standard deviation,
and inferential statistics, which draw conclusions from data that are subject to random
variation (e.g., observational errors, sampling variation).[5] Descriptive statistics are most
often concerned with two sets of properties of a distribution (sample or population): central
tendency (or location) seeks to characterize the distribution's central or typical value,
while dispersion (or variability) characterizes the extent to which members of the distribution
depart from its center and each other. Inferences on mathematical statistics are made under
the framework of probability theory, which deals with the analysis of random phenomena.
A standard statistical procedure involves the test of the relationship between two statistical
data sets, or a data set and synthetic data drawn from an idealized model. A hypothesis is
proposed for the statistical relationship between the two data sets, and this is compared as
an alternative to an idealized null hypothesis of no relationship between two data sets.
Rejecting or disproving the null hypothesis is done using statistical tests that quantify the
sense in which the null can be proven false, given the data that are used in the test. Working
from a null hypothesis, two basic forms of error are recognized: Type I errors (null
hypothesis is falsely rejected giving a "false positive") and Type II errors (null hypothesis
fails to be rejected and an actual difference between populations is missed giving a "false
negative").[6] Multiple problems have come to be associated with this framework: ranging
from obtaining a sufficient sample size to specifying an adequate null hypothesis.[citation needed]
Measurement processes that generate statistical data are also subject to error. Many of these
errors are classified as random (noise) or systematic (bias), but other types of errors (e.g.,
blunder, such as when an analyst reports incorrect units) can also occur. The presence
of missing data or censoring may result in biased estimates and specific techniques have been
developed to address these problems.
Statistics can be said to have begun in ancient civilization, going back at least to the 5th
century BC, but it was not until the 18th century that it started to draw more heavily
from calculus and probability theory. In more recent years statistics has relied more on
statistical software to produce tests such as descriptive analysis.[7]
Introduction[edit]
Main article: Outline of statistics

Some definitions are:

 Merriam-Webster dictionary defines statistics as "a branch of mathematics dealing with the
collection, analysis, interpretation, and presentation of masses of numerical data."[8]
 Statistician Arthur Lyon Bowley defines statistics as "Numerical statements of facts in any
department of inquiry placed in relation to each other."[9]
Statistics is a mathematical body of science that pertains to the collection, analysis, interpretation
or explanation, and presentation of data,[10] or as a branch of mathematics.[11] Some consider
statistics to be a distinct mathematical science rather than a branch of mathematics. While many
scientific investigations make use of data, statistics is concerned with the use of data in the
context of uncertainty and decision making in the face of uncertainty.[12][13]
In applying statistics to a problem, it is common practice to start with a population or process to
be studied. Populations can be diverse topics such as "all people living in a country" or "every
atom composing a crystal".
Ideally, statisticians compile data about the entire population (an operation called census). This
may be organized by governmental statistical institutes. Descriptive statistics can be used to
summarize the population data. Numerical descriptors include mean and standard
deviation for continuous data types (like income), while frequency and percentage are more
useful in terms of describing categorical data (like education).
When a census is not feasible, a chosen subset of the population called a sample is studied.
Once a sample that is representative of the population is determined, data is collected for the
sample members in an observational or experimental setting. Again, descriptive statistics can be
used to summarize the sample data. However, the drawing of the sample has been subject to an
element of randomness, hence the established numerical descriptors from the sample are also
due to uncertainty. To still draw meaningful conclusions about the entire population, inferential
statistics is needed. It uses patterns in the sample data to draw inferences about the population
represented, accounting for randomness. These inferences may take the form of: answering
yes/no questions about the data (hypothesis testing), estimating numerical characteristics of the
data (estimation), describing associations within the data (correlation) and modeling relationships
within the data (for example, using regression analysis). Inference can extend
to forecasting, prediction and estimation of unobserved values either in or associated with the
population being studied; it can include extrapolation and interpolation of time series or spatial
data, and can also include data mining.

Mathematical statistics[edit]
Main article: Mathematical statistics

Mathematical statistics is the application of mathematics to statistics. Mathematical techniques

used for this include mathematical analysis, linear algebra, stochastic analysis, differential
equations, and measure-theoretic probability theory.[14][15]
History[edit]

Gerolamo Cardano, a pioneer on the mathematics of probability.

Main articles: History of statistics and Founders of statistics

The earliest writing on statistics was found in a 9th-century book entitled Manuscript on
Deciphering Cryptographic Messages, written by Arab scholar Al-Kindi (801–873). In his book,
Al-Kindi gave a detailed description of how to use statistics and frequency analysis to
decipher encrypted messages. This text laid the foundations for statistics
and cryptanalysis.[16][17] Al-Kindi also made the earliest known use of statistical inference, while he
and other Arab cryptologists developed the early statistical methods for decoding encrypted
messages. Arab mathematicians including Al-Kindi, Al-Khalil (717–786) and Ibn Adlan (1187–
1268) used forms of probability and statistics, with one of Ibn Adlan's most important
contributions being on sample size for use of frequency analysis.[18]
The earliest European writing on statistics dates back to 1663, with the publication of Natural and
Political Observations upon the Bills of Mortality by John Graunt.[19] Early applications of statistical
thinking revolved around the needs of states to base policy on demographic and economic data,
hence its stat- etymology. The scope of the discipline of statistics broadened in the early 19th
century to include the collection and analysis of data in general. Today, statistics is widely
employed in government, business, and natural and social sciences.
The mathematical foundations of modern statistics were laid in the 17th century with the
development of the probability theory by Gerolamo Cardano, Blaise Pascal and Pierre de
Fermat. Mathematical probability theory arose from the study of games of chance, although the
concept of probability was already examined in medieval law and by philosophers such as Juan
Caramuel.[20] The method of least squares was first described by Adrien-Marie Legendre in 1805.
Karl Pearson, a founder of mathematical statistics.

The modern field of statistics emerged in the late 19th and early 20th century in three
stages.[21] The first wave, at the turn of the century, was led by the work of Francis
Galton and Karl Pearson, who transformed statistics into a rigorous mathematical discipline used
for analysis, not just in science, but in industry and politics as well. Galton's contributions
included introducing the concepts of standard deviation, correlation, regression analysis and the
application of these methods to the study of the variety of human characteristics—height, weight,
eyelash length among others.[22] Pearson developed the Pearson product-moment correlation
coefficient, defined as a product-moment,[23] the method of moments for the fitting of distributions
to samples and the Pearson distribution, among many other things.[24] Galton and Pearson
founded Biometrika as the first journal of mathematical statistics and biostatistics (then called
biometry), and the latter founded the world's first university statistics department at University
College London.[25]
Ronald Fisher coined the term null hypothesis during the Lady tasting tea experiment, which "is
never proved or established, but is possibly disproved, in the course of experimentation".[26][27]
The second wave of the 1910s and 20s was initiated by William Sealy Gosset, and reached its
culmination in the insights of Ronald Fisher, who wrote the textbooks that were to define the
academic discipline in universities around the world. Fisher's most important publications were
his 1918 seminal paper The Correlation between Relatives on the Supposition of Mendelian
Inheritance, which was the first to use the statistical term, variance, his classic 1925
work Statistical Methods for Research Workers and his 1935 The Design of
Experiments,[28][29][30][31] where he developed rigorous design of experiments models. He originated
the concepts of sufficiency, ancillary statistics, Fisher's linear discriminator and Fisher
information.[32] In his 1930 book The Genetical Theory of Natural Selection he applied statistics to
various biological concepts such as Fisher's principle[33]). Nevertheless, A.W.F. Edwards has
remarked that it is "probably the most celebrated argument in evolutionary biology".[33] (about
the sex ratio), the Fisherian runaway,[34][35][36][37][38][39] a concept in sexual selection about a positive
feedback runaway affect found in evolution.
The final wave, which mainly saw the refinement and expansion of earlier developments,
emerged from the collaborative work between Egon Pearson and Jerzy Neyman in the 1930s.
They introduced the concepts of "Type II" error, power of a test and confidence intervals. Jerzy
Neyman in 1934 showed that stratified random sampling was in general a better method of
estimation than purposive (quota) sampling.[40]
Today, statistical methods are applied in all fields that involve decision making, for making
accurate inferences from a collated body of data and for making decisions in the face of
uncertainty based on statistical methodology. The use of modern computers has expedited large-
scale statistical computations and has also made possible new methods that are impractical to
perform manually. Statistics continues to be an area of active research for example on the
problem of how to analyze Big data.[41]

Statistical data[edit]
Main article: Statistical data

Data collection[edit]
Sampling[edit]
When full census data cannot be collected, statisticians collect sample data by developing
specific experiment designs and survey samples. Statistics itself also provides tools for prediction
and forecasting through statistical models. The idea of making inferences based on sampled
data began around the mid-1600s in connection with estimating populations and developing
precursors of life insurance.[42]
To use a sample as a guide to an entire population, it is important that it truly represents the
overall population. Representative sampling assures that inferences and conclusions can safely
extend from the sample to the population as a whole. A major problem lies in determining the
extent that the sample chosen is actually representative. Statistics offers methods to estimate
and correct for any bias within the sample and data collection procedures. There are also
methods of experimental design for experiments that can lessen these issues at the outset of a
study, strengthening its capability to discern truths about the population.
Sampling theory is part of the mathematical discipline of probability theory. Probability is used
in mathematical statistics to study the sampling distributions of sample statistics and, more
generally, the properties of statistical procedures. The use of any statistical method is valid when
the system or population under consideration satisfies the assumptions of the method. The
difference in point of view between classic probability theory and sampling theory is, roughly, that
probability theory starts from the given parameters of a total population to deduce probabilities
that pertain to samples. Statistical inference, however, moves in the opposite direction—
inductively inferring from samples to the parameters of a larger or total population.
Experimental and observational studies[edit]
A common goal for a statistical research project is to investigate causality, and in particular to
draw a conclusion on the effect of changes in the values of predictors or independent variables
on dependent variables. There are two major types of causal statistical studies: experimental
studies and observational studies. In both types of studies, the effect of differences of an
independent variable (or variables) on the behavior of the dependent variable are observed. The
difference between the two types lies in how the study is actually conducted. Each can be very
effective. An experimental study involves taking measurements of the system under study,
manipulating the system, and then taking additional measurements using the same procedure to
determine if the manipulation has modified the values of the measurements. In contrast, an
observational study does not involve experimental manipulation. Instead, data are gathered and
correlations between predictors and response are investigated. While the tools of data analysis
work best on data from randomized studies, they are also applied to other kinds of data—
like natural experiments and observational studies[43]—for which a statistician would use a
modified, more structured estimation method (e.g., Difference in differences
estimation and instrumental variables, among many others) that produce consistent estimators.
Experiments[edit]
The basic steps of a statistical experiment are:

1. Planning the research, including finding the number of replicates of the study, using the
following information: preliminary estimates regarding the size of treatment
effects, alternative hypotheses, and the estimated experimental variability. Consideration
of the selection of experimental subjects and the ethics of research is necessary.
Statisticians recommend that experiments compare (at least) one new treatment with a
standard treatment or control, to allow an unbiased estimate of the difference in
treatment effects.
2. Design of experiments, using blocking to reduce the influence of confounding variables,
and randomized assignment of treatments to subjects to allow unbiased estimates of
treatment effects and experimental error. At this stage, the experimenters and
statisticians write the experimental protocol that will guide the performance of the
experiment and which specifies the primary analysis of the experimental data.
3. Performing the experiment following the experimental protocol and analyzing the
data following the experimental protocol.
4. Further examining the data set in secondary analyses, to suggest new hypotheses for
future study.
5. Documenting and presenting the results of the study.
Experiments on human behavior have special concerns. The famous Hawthorne study examined
changes to the working environment at the Hawthorne plant of the Western Electric Company.
The researchers were interested in determining whether increased illumination would increase
the productivity of the assembly line workers. The researchers first measured the productivity in
the plant, then modified the illumination in an area of the plant and checked if the changes in
illumination affected productivity. It turned out that productivity indeed improved (under the
experimental conditions). However, the study is heavily criticized today for errors in experimental
procedures, specifically for the lack of a control group and blindness. The Hawthorne
effect refers to finding that an outcome (in this case, worker productivity) changed due to
observation itself. Those in the Hawthorne study became more productive not because the
lighting was changed but because they were being observed.[44]
Observational study[edit]
An example of an observational study is one that explores the association between smoking and
lung cancer. This type of study typically uses a survey to collect observations about the area of
interest and then performs statistical analysis. In this case, the researchers would collect
observations of both smokers and non-smokers, perhaps through a cohort study, and then look
for the number of cases of lung cancer in each group.[45] A case-control study is another type of
observational study in which people with and without the outcome of interest (e.g. lung cancer)
are invited to participate and their exposure histories are collected.

Types of data[edit]
Main articles: Statistical data type and Levels of measurement

Various attempts have been made to produce a taxonomy of levels of measurement. The
psychophysicist Stanley Smith Stevens defined nominal, ordinal, interval, and ratio scales.
Nominal measurements do not have meaningful rank order among values, and permit any one-
to-one (injective) transformation. Ordinal measurements have imprecise differences between
consecutive values, but have a meaningful order to those values, and permit any order-
preserving transformation. Interval measurements have meaningful distances between
measurements defined, but the zero value is arbitrary (as in the case
with longitude and temperature measurements in Celsius or Fahrenheit), and permit any linear
transformation. Ratio measurements have both a meaningful zero value and the distances
between different measurements defined, and permit any rescaling transformation.
Because variables conforming only to nominal or ordinal measurements cannot be reasonably
measured numerically, sometimes they are grouped together as categorical variables, whereas
ratio and interval measurements are grouped together as quantitative variables, which can be
either discrete or continuous, due to their numerical nature. Such distinctions can often be
loosely correlated with data type in computer science, in that dichotomous categorical variables
may be represented with the Boolean data type, polytomous categorical variables with arbitrarily
assigned integers in the integral data type, and continuous variables with the real data
type involving floating point computation. But the mapping of computer science data types to
statistical data types depends on which categorization of the latter is being implemented.
Other categorizations have been proposed. For example, Mosteller and Tukey
(1977)[46] distinguished grades, ranks, counted fractions, counts, amounts, and balances. Nelder
(1990)[47] described continuous counts, continuous ratios, count ratios, and categorical modes of
data. See also Chrisman (1998),[48] van den Berg (1991).[49]
The issue of whether or not it is appropriate to apply different kinds of statistical methods to data
obtained from different kinds of measurement procedures is complicated by issues concerning
the transformation of variables and the precise interpretation of research questions. "The
relationship between the data and what they describe merely reflects the fact that certain kinds of
statistical statements may have truth values which are not invariant under some transformations.
Whether or not a transformation is sensible to contemplate depends on the question one is trying
to answer" (Hand, 2004, p. 82).[50]
Statistical methods[edit]
Descriptive statistics[edit]
Main article: Descriptive statistics

A descriptive statistic (in the count noun sense) is a summary statistic that quantitatively
describes or summarizes features of a collection of information,[51] while descriptive statistics in
the mass noun sense is the process of using and analyzing those statistics. Descriptive statistics
is distinguished from inferential statistics (or inductive statistics), in that descriptive statistics aims
to summarize a sample, rather than use the data to learn about the population that the sample of
data is thought to represent.

Inferential statistics[edit]
Main article: Statistical inference

Statistical inference is the process of using data analysis to deduce properties of an

underlying probability distribution.[52] Inferential statistical analysis infers properties of
a population, for example by testing hypotheses and deriving estimates. It is assumed that the
observed data set is sampled from a larger population. Inferential statistics can be contrasted
with descriptive statistics. Descriptive statistics is solely concerned with properties of the
observed data, and it does not rest on the assumption that the data come from a larger
population.
Terminology and theory of inferential statistics[edit]
Statistics, estimators and pivotal quantities[edit]
Consider independent identically distributed (IID) random variables with a given probability
distribution: standard statistical inference and estimation theory defines a random sample as
the random vector given by the column vector of these IID variables.[53] The population being
examined is described by a probability distribution that may have unknown parameters.
A statistic is a random variable that is a function of the random sample, but not a function of
unknown parameters. The probability distribution of the statistic, though, may have unknown
parameters.
Consider now a function of the unknown parameter: an estimator is a statistic used to estimate
such function. Commonly used estimators include sample mean, unbiased sample
variance and sample covariance.
A random variable that is a function of the random sample and of the unknown parameter, but
whose probability distribution does not depend on the unknown parameter is called a pivotal
quantity or pivot. Widely used pivots include the z-score, the chi square statistic and Student's t-
value.
Between two estimators of a given parameter, the one with lower mean squared error is said to
be more efficient. Furthermore, an estimator is said to be unbiased if its expected value is equal
to the true value of the unknown parameter being estimated, and asymptotically unbiased if its
expected value converges at the limit to the true value of such parameter.
Other desirable properties for estimators include: UMVUE estimators that have the lowest
variance for all possible values of the parameter to be estimated (this is usually an easier
property to verify than efficiency) and consistent estimators which converges in probability to the
true value of such parameter.
This still leaves the question of how to obtain estimators in a given situation and carry the
computation, several methods have been proposed: the method of moments, the maximum
likelihood method, the least squares method and the more recent method of estimating
equations.
Null hypothesis and alternative hypothesis[edit]
Interpretation of statistical information can often involve the development of a null
hypothesis which is usually (but not necessarily) that no relationship exists among variables or
that no change occurred over time.[54][55]
The best illustration for a novice is the predicament encountered by a criminal trial. The null
hypothesis, H0, asserts that the defendant is innocent, whereas the alternative hypothesis, H1,
asserts that the defendant is guilty. The indictment comes because of suspicion of the guilt. The
H0 (status quo) stands in opposition to H1 and is maintained unless H1 is supported by evidence
"beyond a reasonable doubt". However, "failure to reject H0" in this case does not imply
innocence, but merely that the evidence was insufficient to convict. So the jury does not
necessarily accept H0 but fails to reject H0. While one can not "prove" a null hypothesis, one can
test how close it is to being true with a power test, which tests for type II errors.
What statisticians call an alternative hypothesis is simply a hypothesis that contradicts the null
hypothesis.
Error[edit]
Working from a null hypothesis, two basic forms of error are recognized:

 Type I errors where the null hypothesis is falsely rejected giving a "false positive".
 Type II errors where the null hypothesis fails to be rejected and an actual difference between
populations is missed giving a "false negative".
Standard deviation refers to the extent to which individual observations in a sample differ from a
central value, such as the sample or population mean, while Standard error refers to an estimate
of difference between sample mean and population mean.
A statistical error is the amount by which an observation differs from its expected value,
a residual is the amount an observation differs from the value the estimator of the expected value
assumes on a given sample (also called prediction).
Mean squared error is used for obtaining efficient estimators, a widely used class of
estimators. Root mean square error is simply the square root of mean squared error.

A least squares fit: in red the points to be fitted, in blue the fitted line.

Many statistical methods seek to minimize the residual sum of squares, and these are called
"methods of least squares" in contrast to Least absolute deviations. The latter gives equal weight
to small and big errors, while the former gives more weight to large errors. Residual sum of
squares is also differentiable, which provides a handy property for doing regression. Least
squares applied to linear regression is called ordinary least squares method and least squares
applied to nonlinear regression is called non-linear least squares. Also in a linear regression
model the non deterministic part of the model is called error term, disturbance or more simply
noise. Both linear regression and non-linear regression are addressed in polynomial least
squares, which also describes the variance in a prediction of the dependent variable (y axis) as a
function of the independent variable (x axis) and the deviations (errors, noise, disturbances) from
the estimated (fitted) curve.
Measurement processes that generate statistical data are also subject to error. Many of these
errors are classified as random (noise) or systematic (bias), but other types of errors (e.g.,
blunder, such as when an analyst reports incorrect units) can also be important. The presence
of missing data or censoring may result in biased estimates and specific techniques have been
developed to address these problems.[56]
Interval estimation[edit]
Main article: Interval estimation

Confidence intervals: the red line is true value for the mean in this example, the blue lines are random
confidence intervals for 100 realizations.

Most studies only sample part of a population, so results don't fully represent the whole
population. Any estimates obtained from the sample only approximate the population
value. Confidence intervals allow statisticians to express how closely the sample estimate
matches the true value in the whole population. Often they are expressed as 95% confidence
intervals. Formally, a 95% confidence interval for a value is a range where, if the sampling and
analysis were repeated under the same conditions (yielding a different dataset), the interval
would include the true (population) value in 95% of all possible cases. This does not imply that
the probability that the true value is in the confidence interval is 95%. From
the frequentist perspective, such a claim does not even make sense, as the true value is not
a random variable. Either the true value is or is not within the given interval. However, it is true
that, before any data are sampled and given a plan for how to construct the confidence interval,
the probability is 95% that the yet-to-be-calculated interval will cover the true value: at this point,
the limits of the interval are yet-to-be-observed random variables. One approach that does yield
an interval that can be interpreted as having a given probability of containing the true value is to
use a credible interval from Bayesian statistics: this approach depends on a different way
of interpreting what is meant by "probability", that is as a Bayesian probability.
In principle confidence intervals can be symmetrical or asymmetrical. An interval can be
asymmetrical because it works as lower or upper bound for a parameter (left-sided interval or
right sided interval), but it can also be asymmetrical because the two sided interval is built
violating symmetry around the estimate. Sometimes the bounds for a confidence interval are
reached asymptotically and these are used to approximate the true bounds.
Significance[edit]
Main article: Statistical significance

Statistics rarely give a simple Yes/No type answer to the question under analysis. Interpretation
often comes down to the level of statistical significance applied to the numbers and often refers
to the probability of a value accurately rejecting the null hypothesis (sometimes referred to as
the p-value).
In this graph the black line is probability distribution for the test statistic, the critical region is the set of
values to the right of the observed data point (observed value of the test statistic) and the p-value is
represented by the green area.

The standard approach[53] is to test a null hypothesis against an alternative hypothesis. A critical
region is the set of values of the estimator that leads to refuting the null hypothesis. The
probability of type I error is therefore the probability that the estimator belongs to the critical
region given that null hypothesis is true (statistical significance) and the probability of type II error
is the probability that the estimator doesn't belong to the critical region given that the alternative
hypothesis is true. The statistical power of a test is the probability that it correctly rejects the null
hypothesis when the null hypothesis is false.
Referring to statistical significance does not necessarily mean that the overall result is significant
in real world terms. For example, in a large study of a drug it may be shown that the drug has a
statistically significant but very small beneficial effect, such that the drug is unlikely to help the
patient noticeably.
Although in principle the acceptable level of statistical significance may be subject to debate,
the p-value is the smallest significance level that allows the test to reject the null hypothesis. This
test is logically equivalent to saying that the p-value is the probability, assuming the null
hypothesis is true, of observing a result at least as extreme as the test statistic. Therefore, the
smaller the p-value, the lower the probability of committing type I error.
Some problems are usually associated with this framework (See criticism of hypothesis testing):

 A difference that is highly statistically significant can still be of no practical significance, but it
is possible to properly formulate tests to account for this. One response involves going
beyond reporting only the significance level to include the p-value when reporting whether a
hypothesis is rejected or accepted. The p-value, however, does not indicate the size or
importance of the observed effect and can also seem to exaggerate the importance of minor
differences in large studies. A better and increasingly common approach is to
report confidence intervals. Although these are produced from the same calculations as
 those of hypothesis tests or p-values, they describe both the size of the effect and the
uncertainty surrounding it.
 Fallacy of the transposed conditional, aka prosecutor's fallacy: criticisms arise because the
hypothesis testing approach forces one hypothesis (the null hypothesis) to be favored, since
what is being evaluated is the probability of the observed result given the null hypothesis and
not probability of the null hypothesis given the observed result. An alternative to this
approach is offered by Bayesian inference, although it requires establishing a prior
probability.[57]
 Rejecting the null hypothesis does not automatically prove the alternative hypothesis.
 As everything in inferential statistics it relies on sample size, and therefore under fat tails p-
values may be seriously mis-computed.[clarification needed]
Examples[edit]
Some well-known statistical tests and procedures are:

 Analysis of variance (ANOVA)

 Chi-squared test
 Correlation
 Factor analysis
 Mann–Whitney U
 Mean square weighted deviation (MSWD)
 Pearson product-moment correlation coefficient
 Regression analysis
 Spearman's rank correlation coefficientIn statistics, exploratory data analysis (EDA) is an
approach to analyzing data sets to summarize their main characteristics, often with visual
methods. A statistical model can be used or not, but primarily EDA is for seeing what the
data can tell us beyond the formal modeling or hypothesis testing task.
 Student's t-test
 Time series analysis
 Conjoint Analysis
Exploratory data analysis[edit]
Main article: Exploratory data analysis

Exploratory data analysis (EDA) is an approach to analyzing data sets to summarize their main
characteristics, often with visual methods. A statistical model can be used or not, but primarily
EDA is for seeing what the data can tell us beyond the formal modeling or hypothesis testing
task.

Misuse[edit]
Main article: Misuse of statistics

Misuse of statistics can produce subtle, but serious errors in description and interpretation—
subtle in the sense that even experienced professionals make such errors, and serious in the
sense that they can lead to devastating decision errors. For instance, social policy, medical
practice, and the reliability of structures like bridges all rely on the proper use of statistics.
Even when statistical techniques are correctly applied, the results can be difficult to interpret for
those lacking expertise. The statistical significance of a trend in the data—which measures the
extent to which a trend could be caused by random variation in the sample—may or may not
agree with an intuitive sense of its significance. The set of basic statistical skills (and skepticism)
that people need to deal with information in their everyday lives properly is referred to
as statistical literacy.
There is a general perception that statistical knowledge is all-too-frequently
intentionally misused by finding ways to interpret only the data that are favorable to the
presenter.[58] A mistrust and misunderstanding of statistics is associated with the quotation,
"There are three kinds of lies: lies, damned lies, and statistics". Misuse of statistics can be both
inadvertent and intentional, and the book How to Lie with Statistics[58] outlines a range of
considerations. In an attempt to shed light on the use and misuse of statistics, reviews of
statistical techniques used in particular fields are conducted (e.g. Warne, Lazo, Ramos, and
Ritter (2012)).[59]
Ways to avoid misuse of statistics include using proper diagrams and avoiding bias.[60] Misuse
can occur when conclusions are overgeneralized and claimed to be representative of more than
they really are, often by either deliberately or unconsciously overlooking sampling bias.[61] Bar
graphs are arguably the easiest diagrams to use and understand, and they can be made either
by hand or with simple computer programs.[60] Unfortunately, most people do not look for bias or
errors, so they are not noticed. Thus, people may often believe that something is true even if it is
not well represented.[61] To make data gathered from statistics believable and accurate, the
sample taken must be representative of the whole.[62] According to Huff, "The dependability of a
sample can be destroyed by [bias]... allow yourself some degree of skepticism."[63]
To assist in the understanding of statistics Huff proposed a series of questions to be asked in
each case:[64]

 Who says so? (Does he/she have an axe to grind?)

 How does he/she know? (Does he/she have the resources to know the facts?)
 What's missing? (Does he/she give us a complete picture?)
 Did someone change the subject? (Does he/she offer us the right answer to the wrong
problem?)
 Does it make sense? (Is his/her conclusion logical and consistent with what we already
know?)

The confounding variable problem: X and Y may be correlated, not because there is causal relationship
between them, but because both depend on a third variable Z. Z is called a confounding factor.

Misinterpretation: correlation[edit]
The concept of correlation is particularly noteworthy for the potential confusion it can cause.
Statistical analysis of a data set often reveals that two variables (properties) of the population
under consideration tend to vary together, as if they were connected. For example, a study of
annual income that also looks at age of death might find that poor people tend to have shorter
lives than affluent people. The two variables are said to be correlated; however, they may or may
not be the cause of one another. The correlation phenomena could be caused by a third,
previously unconsidered phenomenon, called a lurking variable or confounding variable. For this
reason, there is no way to immediately infer the existence of a causal relationship between the
two variables. (See Correlation does not imply causation.)
Branches of Statistics

Descriptive Statistics and Inferential Statistics

Every student of statistics should know about the different branches of
statistics to correctly understand statistics from a more holistic point of
view. Often, the kind of job or work one is involved in hides the other
aspects of statistics, but it is very important to know the overall idea
behind statistical analysis to fully appreciate its importance and beauty.

The two main branches of statistics are descriptive statistics and inferential statistics. Both of
these are employed in scientific analysis of data and both are equally important for the student of
statistics.

Descriptive Statistics
Descriptive statistics deals with the presentation and collection of data. This is usually the first
part of a statistical analysis. It is usually not as simple as it sounds, and the statistician needs to
be aware of designing experiments, choosing the right focus group and avoid biases that are so
easy to creep into the experiment.
Different areas of study require different kinds of analysis using descriptive statistics. For
example, a physicist studying turbulence in the laboratory needs the average quantities that vary
over small intervals of time. The nature of this problem requires that physical quantities be
averaged from a host of data collected through the experiment.

Types of Descriptive Statistics

Descriptive statistics allow you to characterize your data based on its properties.
There are four major types of descriptive statistics:

1. Measures of Frequency:

* Count, Percent, Frequency

* Shows how often something occurs

* Use this when you want to show how often a response is given

2. Measures of Central Tendency

* Mean, Median, and Mode

* Locates the distribution by various points

* Use this when you want to show how an average or most commonly indicated
response

3. Measures of Dispersion or Variation

* Range, Variance, Standard Deviation

* Identifies the spread of scores by stating intervals

* Range = High/Low points

* Variance or Standard Deviation = difference between observed score and mean

* Use this when you want to show how "spread out" the data are. It is helpful to know
when your data are so spread out that it affects the mean

4. Measures of Position

* Percentile Ranks, Quartile Ranks

* Describes how scores fall in relation to one another. Relies on standardized scores

* Use this when you need to compare scores to a normalized score (e.g., a national
norm)
Inferential Statistics
Inferential statistics, as the name suggests, involves drawing the right conclusions from the
statistical analysis that has been performed using descriptive statistics. In the end, it is the
inferences that make studies important and this aspect is dealt with in inferential statistics.
Most predictions of the future and generalizations about a population by studying a smaller
sample come under the purview of inferential statistics. Most social sciences experiments deal
with studying a small sample population that helps determine how the population in general
behaves. By designing the right experiment, the researcher is able to draw conclusions relevant
to his study.
While drawing conclusions, one needs to be very careful so as not to draw
the wrong or biased conclusions. Even though this appears like a science, there are ways in
which one can manipulate studies and results through various means. For example, data
dredging is increasingly becoming a problem as computers hold loads of information and it is
easy, either intentionally or unintentionally, to use the wrong inferential methods.
Both descriptive and inferential statistics go hand in hand and one cannot exist without the other.
Good scientific methodology needs to be followed in both these steps of statistical analysis and
both these branches of statistics are equally important for a researcher.

The following types of inferential statistics are extensively used and relatively easy to interpret:

1. One sample test of difference/One sample hypothesis test

2. Confidence Interval
3. Contingency Tables and Chi Square Statistic
4. T-test or Anova
5. Pearson Correlation
6. Bi-variate Regression
7. Multi-variate Regression

Kinds or Branches of Statistics

Statistics may be divided into two main branches:
(1) Descriptive Statistics (2) Inferential Statistics
(1) Descriptive Statistics
Descriptive statistics deals with the collection of data, its presentation in various forms, such
as tables, graphs and diagrams and finding averages and other measures which would
describe the data.
For example: Industrial statistics, population statistics, trade statistics, etc. Businessmen
make use of descriptive statistics in presenting their annual reports, final accounts, and bank
statements.

(2) Inferential Statistics

Inferential statistics deals with techniques used for the analysis of data, making estimates and
drawing conclusions from limited information obtained through sampling and testing the
reliability of the estimates.

For example: Suppose we want to have an idea about the percentage of the illiterate
population of our country. We take a sample from the population and find the proportion of
illiterate individuals in the sample. With the help of probability, this sample proportion
enables us to make some inferences about the population proportion. This study belongs to
inferential statistics.

Read more: https://www.emathzone.com/tutorials/basic-statistics/kinds-or-branches-

statistics.html#ixzz5zHxNmrZ8

Statistical Symbols
Probability and statistics symbols table and definitions.

Probability and statistics symbols table

Symbol Symbol Name Meaning / definition Example

probability
P(A) function
probability of event A P(A) = 0.5

probability of
probability that of
P(A ∩ B) events
events A and B
P(A∩B) = 0.5
intersection

probability of probability that of

P(A ∪ B) events union events A or B
P(A ∪ B) = 0.5

conditional
probability of event A
P(A | B) probability
given event B occured
P(A | B) = 0.3
function

probability P(a ≤ x ≤ b) = ∫
f (x) density function
f (x) dx
(pdf)
 Symbol Symbol Name Meaning / definition Example

cumulative
F(x) distribution F(x) = P(X≤ x)
function (cdf)

mean of population
μ population mean
values
μ = 10

expectation expected value of

E(X) value random variable X
E(X) = 10

expected value of
conditional
E(X | Y) expectation
random variable X E(X | Y=2) = 5
given Y

variance of random
var(X) variance
variable X
var(X) = 4

variance of population
σ2 variance
values
σ2 = 4

standard standard deviation of

std(X) deviation random variable X
std(X) = 2

standard deviation
standard
σX deviation
value of random σX = 2
variable X

middle value of random

median
variable x

covariance of random
cov(X,Y) covariance
variables X and Y
cov(X,Y) = 4

correlation of random
corr(X,Y) correlation
variables X and Y
corr(X,Y) = 0.6

correlation of random
ρX,Y correlation
variables X and Y
ρX,Y = 0.6

summation - sum of all

∑ summation values in range of
series

double
∑∑ summation
double summation
 Symbol Symbol Name Meaning / definition Example

value that occurs most

Mo mode
frequently in population

MR = (xmax + xmin) /
MR mid-range
2
half the population is
Md sample median
below this value

lower / first 25% of population are

Q1 quartile below this value

50% of population are

median / second
Q2 quartile
below this value =
median of samples

upper / third 75% of population are

Q3 quartile below this value

average / arithmetic
x sample mean
mean
x = (2+5+9) / 3 = 5.333

population samples
s2 sample variance
variance estimator
s2 = 4

population samples
sample standard
s deviation
standard deviation s=2
estimator

zx standard score zx = (x-x) / sx

distribution of random
X~ distribution of X
variable X
X ~ N(0,3)

normal
N(μ,σ2) distribution
gaussian distribution X ~ N(0,3)

uniform equal probability in

U(a,b) distribution range a,b
X ~ U(0,3)

exponential
exp(λ) distribution
f (x) = λe-λx , x≥0

gamma(c, gamma f (x) = λ c xc-1e-λx /

λ) distribution Γ(c), x≥0
 Symbol Symbol Name Meaning / definition Example

chi-square f (x) = xk/2-1e-x/2 / (

χ (k)
2
distribution 2k/2 Γ(k/2) )

F (k1, k2) F distribution

binomial
Bin(n,p) distribution
f (k) = nCk pk(1-p)n-k

Poisson
Poisson(λ) distribution
f (k) = λke-λ / k!

geometric
Geom(p) distribution
f (k) = p(1-p) k

hyper-geometric
HG(N,K,n) distribution

Bernoulli
Bern(p) distribution

Collection of Statistical Data

Statistical Data
A sequence of observations, made on a set of objects included in the sample drawn from
population, is known as statistical data.

(1) Ungrouped Data

Data which have been arranged in a systematic order are called raw data or ungrouped data.

(2) Grouped Data

Data presented in the form of a frequency distribution are called grouped data.

Collection of Data
The first step in any enquiry (investigation) is the collection of data. The data may be
collected for the whole population or for a sample only. It is mostly collected on a sample
basis. Collecting data is very difficult job. The enumerator or investigator is the well trained
individual who collects the statistical data. The respondents are the persons from whom the
information is collected.
Types of Data
There are two types (sources) for the collection of data:
(1) Primary Data (2) Secondary Data
(1) Primary Data
Primary data are the first hand information which is collected, compiled and published by
organizations for some purpose. They are the most original data in character and have not
undergone any sort of statistical treatment.
Example: Population census reports are primary data because these are collected, complied
and published by the population census organization.
(2) Secondary Data
The secondary data are the second hand information which is already collected by an
organization for some purpose and are available for the present study. Secondary data are not
pure in character and have undergone some treatment at least once.
Example: An economic survey of England is secondary data because the data are collected
by more than one organization like the Bureau of Statistics, Board of Revenue, banks, etc.

Methods of Collecting Primary Data

Primary data are collected using the following methods:

1. Personal Investigation: The researcher conducts the survey him/herself and collects data
from it. The data collected in this way are usually accurate and reliable. This method of
collecting data is only applicable in case of small research projects.
2. Through Investigation: Trained investigators are employed to collect the data. These
investigators contact the individuals and fill in questionnaires after asking for the required
information. Most organizations utilize this method.
3. Collection Through Questionnaire: Researchers get the data from local representations or
agents that are based upon their own experience. This method is quick but gives only a rough
estimate.
4. Through the Telephone: Researchers get information from individuals through the
telephone. This method is quick and gives accurate information.

Methods of Collecting Secondary Data

Secondary data are collected by the following methods:

1. Official: e.g. publications from the Statistical Division, Ministry of Finance, the Federal
Bureaus of Statistics, Ministries of Food, Agriculture, Industry, Labor, etc.
2. Semi-Official: e.g. State Bank, Railway Board, Central Cotton Committee, Boards of
Economic Enquiry, etc.
3. Publication of Trade Associations, Chambers of Commerce, etc.
4. Technical and Trade Journals and Newspapers.
5. Research Organizations such as universities and other institutions.

Difference Between Primary and Secondary Data

The difference between primary and secondary data is only a change of hand. Primary data
are the first hand information which is directly collected form one source. They are the most
original in character and have not undergone any sort of statistical treatment, while secondary
data are obtained from other sources or agencies. They are not pure in character and have
undergone some treatment at least once.

Example: Suppose we are interested in finding the average age of students in a certain
department. We collect the data by two methods: either by directly collecting information
from each student or getting their ages from the university records. The data collected by the
direct personal investigation is called primary data and the data obtained from the university
records is called secondary data.

Editing Data
After collecting the data either from primary or secondary sources, the next step is its editing.
Editing means the examination of collected data to discover any errors or mistakes before
presenting it. It has to be decided beforehand what degree of accuracy is desired and what
extent of errors can be tolerated in the inquiry. The editing of secondary data is simpler than
that of primary data.

Read more: https://www.emathzone.com/tutorials/basic-statistics/collection-of-statistical-

data.html#ixzz5zglbLxRK