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Chapter 1: Introduction To Statistics Sher Muhammad CH

The document provides an introduction to key concepts in statistics including: 1) Descriptive statistics involves summarizing and describing data through methods like condensing, graphical displays, and computing numerical quantities about the data. 2) Inferential statistics deals with using samples to make inferences about populations, including estimating population parameters and testing hypotheses. 3) A variable is any characteristic that can take on different values, and they can be either qualitative (non-numerical) or quantitative (numerical). Quantitative variables are further classified as discrete or continuous. 4) There are different measurement scales used in statistics including nominal, ordinal, interval, and ratio scales. Primary data is originally collected while secondary data has already undergone

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100% found this document useful (1 vote)
175 views

Chapter 1: Introduction To Statistics Sher Muhammad CH

The document provides an introduction to key concepts in statistics including: 1) Descriptive statistics involves summarizing and describing data through methods like condensing, graphical displays, and computing numerical quantities about the data. 2) Inferential statistics deals with using samples to make inferences about populations, including estimating population parameters and testing hypotheses. 3) A variable is any characteristic that can take on different values, and they can be either qualitative (non-numerical) or quantitative (numerical). Quantitative variables are further classified as discrete or continuous. 4) There are different measurement scales used in statistics including nominal, ordinal, interval, and ratio scales. Primary data is originally collected while secondary data has already undergone

Uploaded by

Kashif Asghar
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Ms.

Amna Riaz
Lecturer, Department of Statistics, UOG
Email: [email protected]

Chapter 1: Introduction to Statistics


Sher Muhammad Ch.
Statistics:
The word “Statistics” comes from the Latin word “Status”, meaning Political state, originally
meant information useful to state, for example, information about the sizes of populations and
armed forces. But now the word Statistics acquired different meanings.

Firstly, the word Statistics is defined as “numerical facts systematically arranged”. In this sense
the word statistics is always used as plural. For example statistics of prices, statistics of road
accidents, statistics of births, statistics of crimes, etc.

Secondly, the word Statistics is referred as a discipline that includes procedures and techniques
used to collect, process and analyses numerical data to make inferences and to reach decisions in
the face of uncertainty. As it embodies more or less all stages of the general process of learning,
sometimes called scientific method, statistics is characterized as a science.

Statistics may be divided into Descriptive Statistics and Inferential Statistics.

Descriptive Statistics Inferential Statistics


Descriptive Statistics is that branch of statistics Inferential Statistics deals with the procedures for
which deals with concepts and methods concerned making inferences about the characteristics that
with summarization and description of the describe the large group of data or the whole, called
important aspects of numerical data. This area of the population, from the knowledge derived from
study consists of the condensation of data, their only a part of the data, known as sample. This area
graphical displays and the computation of few includes the estimation of population parameters
numerical quantities that provide information about and testing of statistical hypotheses. This phase of
the Centre of the data and indicate the spread of the statistics is based on probability theory as the
observations. inferences which are made on the basis of sample
evidence, cannot be absolutely certain.

Jhon wants to determine the average weekly Based on the last 4 months fast food bills, Jhon
amount he spent on fast food in the past 4 months. would like to predict the average amount he spent
on fast food for the upcoming year.

Population and Sample:

A population or statistical population is a collection or set of all possible observations whether


finite or infinite, relevant to some characteristic of interest. A statistical population may be real
such as heights of students, marks of students or hypothetical such as all the possible outcomes
from the toss of a coin. The number of observations in a finite population is called the size of the
population and is denoted by letter “N”.
A sample is a representative part or a subset of a population. Generally it consists of some of the
observations. The number of units in sample is called size of sample and is denoted by letter “n”.

Parameter and Statistic:

Numerical quantities describing a population are called parameters, customarily represented by


Greek letters.

A numerical quantity computed from a sample, is called a statistic, which is usually represented
by Latin letter.

Observation and Variable:

Observation often mean any set of numerically recording of information, whether it is a physical
measurement such as height, weight; a classification such as heads or tails, or an answer to a
question such as yes or no.

A characteristic that varies with an individual or an object is called a variable. For example, age
is a variable it varies from person to person. Variables may be classified into quantitative or
qualitative according to the form of the characteristic of interest.

Qualitative Variable and Quantitative Variables:

A characteristic which cannot be expressed numerically is called qualitative variable. The non-
numerical characteristic such as education, gender, eye-color, intelligence etc. is known as
Qualitative Variable. A qualitative variable is also called an attribute.

On the other hand a characteristic which can be expressed numerically is called quantitative
variable such as age, height, weight, income, etc.

A quantitative variable may be classified as discrete or continuous variable.

Discrete and Continuous Variables:

Discrete Variable:

A discrete variable is one that can only take a discrete set of integers or whole numbers as
response that is the values are taken by jumps or breaks. A discrete variable represents count
data.

For example: No. of family members, No. of students, No. of books in library etc.

Continuous Variable:
A variable is said to be the continuous variable if it can take on any value fractional or integer
within a given interval. A continuous variable represents measurement data.

For example: height, weight, temperature, marks, income, Age etc.


Measurement Scales

1- Nominal Scale

The classification or grouping of the observations into Mutually exclusive qualitative


categories or classes is said to constitute a Nominal Scale. For example, students are
classified as male or female (Gender).

2- Ordinal Scale (Ranking)

It includes the characteristics of a nominal scale and in addition has the property of ordering
or ranking of measurements. For example, the performance of Students is rated as Excellent,
Good, fair or poor.

3- Interval Scale

A measurement scale possessing a constant interval size but not a true zero point (0), is called
an interval scale. For example, Temperature, IQ score.

4- Ratio Scale

It is the special case of interval scale that the scale of measurement has true zero point as its
origin. For example, money, marks, age.

Collection of Data

The most important part of statistical work is perhaps the collection of data. Statistical data are
collected either by complete enumeration of the whole field, called census, or by partial
enumeration called Survey.

Type of Data:

Data are classified according to source. Data that have been originally collected and have not
undergone any sort of Statistical treatment are called Primary Data, while data that have been
collected, classified, tabulated or presented in some form for a certain purpose are called
Secondary Data.

Collection of Primary Data: One or more of the following methods are employed to collect
primary data.

Survey Research:

 Direct Personal Investigation


 Indirect Investigation
 Collection through Questionnaire
 Collection through Enumerators
 Collection through Local Sources
 Computer Interviews

Experimental Research

 Laboratory Experiments

 Field Experiments

Collection of Secondary Data Secondary Research

Internal Secondary Data

External Secondary Data

1- Official (Ministry of Food, Agriculture, Industry etc.)


2- Semi Official (state Bank of Pakistan, Railway Board etc.)
3- Publication of Trade Association
4- Research Organizations (universities)

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