Lesson 1

Definition of Terms Related to Statistics

Statistics is a branch of mathematics that deals with the collection, classification, description, and interpretation of data obtained by the
conduct of surveys and experiments. Its fundamental purpose is to describe and draw inferences about the numerical properties of a
population.
STATISTICS refer to numerical observations of almost any kind.
- refers to the science that deals with the collection, tabulation or presentation, analysis, and interpretation of numerical or quantitative
data.
Collection of data - refers to the process of obtaining numerical measurements,
Tabulation or presentation of data - refers to the organization of data into tables, graphs or charts, so that logical and statistical
conclusions can be derived from the collected measurements.
Analysis of data - pertains to the process of extracting from the given data relevant information from which numerical description can be
formulated.
Interpretation of data - refers to the task of drawing conclusions from the analyzed data.
- normally involves the formulation of forecasts or predictions about larger groups on the data collected from small groups.
Two important terms that you should understand in studying statistics are population and sample.
In statistics, population does not only mean a group of people. Population may also mean a defined group or aggregates of objects,
animals, materials, measurements, “things”, “events” or “happenings” of any kind. Thus, a sack of rice, a whole pizza pie, or a set of
weights and heights are considered population.
Since it would be impractical to study the whole population as in the case of a sack of rice, then it is necessary to just take a sample of
the population. Thus, a handful of rice is a sample of the population in a sack of rice. Thus, sample is defined as any subgroup of the
population drawn by some appropriate method from the population. It should be a representative of the population, that is, the sample
will show the properties of the population.
Originally, statistical data took the forms of

1. Figures on tax returns

2. Population
3. Births
4. Deaths
5. Trade
6. Others which were considered important information to a political state
Today, the use of statistics has extended to such things as:

1. Theater attendance
2. Basketball results
3. Car sales in in a month
4. Heights
5. Weights
6. So many others that can be expressed numerically

THE USES OF STATISTICS

Statistics has general applicability:

1. It is an essential tool in education, government, business, economics, medicine, psychology, sociology, sports and others.

2. One of the most common exposures of the youth today to statistics is in the existing world of sports- in basketball, for
instance. After each quarter of a game, the newscaster would report numerical figures and their averages to millions of thrilled
basketball fans watching the game on television. These figures normally consist of points made out of so many attempts from
the field or from the foul line. These “statistics” would eventually decide whether a player deserves to be paid more or is being
paid more than he deserves.

3. In education, statistical tools are used to get information on enrollment, finance,physical facilities, and so on. Such data are
needed for intelligent administration and management.
 4. Statistics are gathered for the purpose of providing government heads with data necessary to guide them in managing the
affairs of the State. From earlier times, most civilized countries have compiled large-scale “statistics” in order to ascertain the
manpower and material strength of the nation. These data are needed for military and fiscal reasons. A large amount of
organized records on the movement of population, cost of living, taxes, wages, and material resources is necessary for
intelligent policy-making and administration.
Methods for the statistical design of experiments are valuable to researchers in medicine and the physical sciences. Causes
and effects of factors which affect experiments are best evaluated using statistical techniques.

5. Psychologists are able to understand the human person better if they are able to systematize, analyze, and interpret data
on intelligence scores, aptitudes, personality trait ratings and attitudes.

6. In sociology, Statistics is used in the study of the conditions of the society in which man lives. Observations, when properly
analyzed and interpreted, may effect positive action toward the improvement of society.

7. In business and economics, statistics plays an important role in the exploration of new markets for a product, forecasting of
business trends, control on the quality of goods produced, and improvement of personnel relations. Decisions and policies for
efficient business and economic management must be based on data which have been properly analyzed and interpreted.
Everyday life is influenced more and more by decision based on quantitative information.

A good survey research paper relies on the precision of the methods and procedures of conducting the study. This includes
reliability of the selected subjects or respondents of the study. The validity of information gathered out of the distributed
questionnaires and the accuracy of measurements used in answering the research questions and other observations.

A study which was conducted in the entire population assures us of 100% reliability since the responses are obtained from all
members of the population. This means that data was collected by a complete enumeration method or the so-called census
taking. However, it is impossible for many types of research to conduct a survey to all members of the population especially if
the population size is infinite or finite but very large. To minimize the time and cost involved in conducting the survey to a
large population, it has been accepted that the information about the population will be based only from a small portion of the
population, called sample. On the other hand considering only the responses of a small portion of the population may result
into some possible biases due to improper selection of the samples and errors due to the manner of measuring the desired
observations since the selected sample may not have equally represented the characteristics of the entire population.

It also normally involves the formulation of forecasts or predictions about larger groups based on the data collected from small
groups.

THE FIELD OF STATISTICS CAN BE DIVIDED INTO :

1. Descriptive statistics
2. Inferential statistics

Descriptive Statistics is concerned with the gathering, classification, and presentation of data and the collection of summarizing values
to describe group characteristics of the data. The summarizing values most commonly used in descriptive statistics are the measures
of central tendency, of variability, and of skewness and kurtosis.
Inferential Statistics demands a higher order of critical judgment and mathematical methods. It aims to give information about large
groups of data without dealing with each and every element of these groups. It uses only a small portion of the total set of data in order
to draw conclusions or judgments regarding the entire set.
Topics included in the study of Inferential Statistics:

1. the testing of hypothesis using the z-test

2. The t- test
3. Simple linear correlation
4. Analysis of variance
5. The chi-square test
6. Regression analysis
7. Time series analysis
.
HISTORY OF STATISTICS
Statistics dates back to the beginnings of recorded history; As early as 3800 B>C> there were records on population in Babylonia; The
same was true of China in 3000 B<C< Al most five thousand years ago the Sumerians counted their citizens for taxation purposes, and
at various times later the Egyptians conducted their inquiries into the occupations of their people.
In Biblical times, censuses were undertaken by:

1. Moses in 1491 B.C.

2. By David in 1017 B.C.
3. Indian literature dating back from the reign of the northern Hindustan Kin Asoka (270 - 230 B.C.) also describes methods of taking
censuses.
4. The Athenians and other classical Greeks took censuses in times of stress, carefully counting the adult male citizens in wartime and
the general populace when the food supply was endangered.
5. The Romans registered adult males and their property for military and administrative purposes.
6. Servinus Tullius who ruled as the sixth King of Rome from 578 to 534 B.C. is given credit for instituting the gathering of population
data. Two thousand years ago, each male in the Roman empire had to return to the city of his birth to be counted and taxed.
Thus the Bible gives an account of the return of Joseph and Mary to Bethlehem for such purpose.
In the Middle Ages, registrations on land ownership and on manpower for wars were made. In the 13 th century, tax lists of Paris
included the registration of those who were subject to tax;
In England, William the Conqueror required the compilation of information on population and resources. This compilation, “The
Domesday Book” is the first landmark in British statistics. Later births, deaths, baptisms, and marriages had to be registered.
It was Achenwall (1719 - 1772) who first introduced the word “statistiks” in a preface to a statistical work. Zimmerman and Sinclair
introduced and popularized the name “statistics” in their books.
In the 16th century, European mathematicians and gamblers suspected that games of chance such as rolled dice, playing cards, and
tossed coins followed certain laws.
Girotamo Cardano, an Italian Mathematician, physician, and gambler wrote “Liber de Ludo Aleae” in which appeared the first known
study of the principles of probability.
Another gambler, Chavalier de Mere, made a proposal to Blaise Pascal in the famous “Problem of Points,” a work which marked the
beginning of the mathematics of probability.
Laplace’s “Theories Analytique des Probabilities” of 1812 further supported and stabilized the said theory.
In the 18th century, statistics was used in the study entitled “Political Arrangement of the Modern States of the Known World.” The
description of the work was at first verbal. Gradually, an increasing proportion of numerical data was used in the description of the
work.
In the 19th century, a Belian astronomer named Quetelet applied the theory of probability to anthropological measurements and
expanded the same principle to the physiological and psychological, physical, and chemical fields. After studying with the best known
mathematicians of his day, Quetelet established a central commission for Statistics which became a model for similar organizations in
other countries.
Francis Galton,(1822 - 1911) and Karl Pearson (1857 - 1936) also contributed much to the field of statistics, Galton developedthe use
of percentiles. A cousin of Charles Darwin, Galton became deeply interested in the problem of heredity to which he also applied
statistical tools.
Pearson made many statistical discoveries, too. Both Galton and Pearson contributed greatly to the development of the correlation
theory.
In the twentieth century, the most prominent figure in the foield of Statistics was Sir Ronald Fisher (1890 - 1962). Fiaher made
contributions from 1912 - 1962, and many of these contributions have great impact on contemporary statistical procedures. One of
these is the Fisher’s test used in the analysis of variance in Inferential Statistics.
Shortly before the second world war, the number of applications of statistical methods in the social sciences began to increase. The
number of surveys of all kinds increased, and the need to interpret data in mathematics, business and the social sciences made it
necessary for workers to have at least a basic understanding of Statistics. Today, students, housewives, policy makers , businessmen,
and workers in other fields of human behavior are expected to have at least a basic knowledge of Statistics. Statistical literacy has
become a necessity in today’s modern world.

THE HISTORY OF STATISTICS IN THE PHILIPPINES

Although crude and incomplete, several estimates of the population of the Philippines were made during the Spanish period, the
earliest dating back to about 1570 when Legazpi conquered the islands. The people were estimated to be a million in number,
In 1576, Hernando Riquel, a government notary, also attempted to estimate the population in connection with the list of encomiendas
he prepared. An account of the socio-economic conditions of the peoiple was written in 1582 by Miguel de Loarca in “Relacion de las
Islas Filipinas.” This included some details about the size of the islands, the encomiendas therein, the officials in the Spanish
settlements, and the tributes collected.
By order of Governor and Captain General Gomez Dasmariňas, a second estimate was made in the year 1591 which was based on the
number of encomiendas. There were approximately 667,617 people as there were 166,904 encomiendas, each encomienda
representing four persons. No further estimates based on the encomienda were made because the system closed in 1600.
Other estimates of the population were based mostly on church records because people were distributed among religious orders by
parishes. Births, deaths and marriages were made the bases of population estimates. In 1799, the Christian population was 1,502,574
as compiled by Buzeta.
Another source of information concerning the population was the number of “cedulas” sold. A “cedula” was a per capita tax which was
obligatory upon all males between 18 and 60 years old.
In 1877, civil censuses were taken by the Spanish authorities. This formed the basis of the estimated population for 1896.
During the American regime, data collection became more systematized. This was marked by the creation of a statistical unit in the
Bureau of Customs to collect, tabulate and disseminate statistics on imports and exports. Although no statistical units were formally
created in other government offices during that time, informal data were collected and compiled for administrative purposes.
The Bureau of Agriculture, which was created in 1902, compiled data on

1. the number of farms,

2. the extent of irrigated areas, and
3. land put into cultivation
The Bureau of Labor, which was created in 1908, furnished data on the number of labor organizations and members. It also compiled
statistics on labor cases.
Vital registration likewise improved during this period. Section 961 of the Revised Ordinance of the City of Manila provided for the
registration of births and deaths. Section 2214 of the Revised Administrative Code of the Philippines required physicians to report births
and deaths they have attended to. They made these reports to the municipal secretary.
In 1925, a survey on the educational system was made by a board of distinguished educators headed by Dr. Paul Monroe.
During the Commonwealth regime, all statistical activities were centralized in the Bureau of Census and Statistics. This agency which
was created on August 19, 1940 had the following functions:

1. To prepare and conduct periodic censuses on population, housing, agriculture, fisheries, industry, business, and other sectors of the
economy.
2. To prepare and conduct statistical surveys, researches, and studies on all aspects of socioeconomic conditions.
3. To collect and process for statistical purposes data and records from the different departments, bureaus, offices and agencies of the
government.
4. To conduct researches and studies on census in cooperation with national or local statistical organizations.
5. To develop a well- integrated, consolidated, and coordinated program of up-to-date statistical collection, production, analysis, and
publication for the use of the government and the public.
6. To maintain an efficient system of civil registration.
At present, statistics is a reliable means of describing accurately the values of economic, political, social, psychological, biological, and
physical data. Statistics serves as a tool to correlate and analyze collected data. It is no longer confined to gathering and tabulating
data. Now, it is also a process of interpreting the information that serves as a basis for preparing plans.

POPULATION AND SAMPLE

Population - refers to the totality of objects, individuals, or reactions that can be described as having a unique combination of qualities.
- in statistical investigations, it is defined by naming its unique properties.
- consists of numerical value associated with objects or individuals
- ordinarily, we use the term population to refer to the people within a specified time and and geographical area, or more precisely, to
facts and figures associated with these people
Examples:

1. the graduating students of a particular school

2. The employees of a company
3. The cars produced by a particular manufacturer
4. The depositors in a bank
5. The ages of graduating students
6. The IQ scores of employees
7. The selling prices of cars
8. The amounts of savings of depositors
9. Births
10. Deaths
11. Sex
12. Religion
13. Language
14. Occupation
15. Family size
The process of collecting, tabulating, compiling, and publishing data pertaining to each and every unit of a whole set of objects or
persons is called census-taking,

When the population is too big, census-taking is impractical, if not impossible.

Example:

1. if the population being considered is the length of life of all the batteries produced by company, then we would have to use up all
batteries in order to get data on their length of life.
2. Imagine that we are interested in the daily food consumption quantity of all families in Makati. So much time, energy, and oney will
be wasted just to get the needed information from each and every family.

This method is time consuming and requires too much effort and money
This is where statistical methods and techniques could come in. When the mass of data is too great to be handled in its entirety, the
sampling method is used. This is the method of getting facts from a small but representative cross-section pf the population. This
representative part of the population is called sample.
The sample is used to describe the population from which it was taken.

SUSCRIPT AND SUMMATION NOTATIONS

A subscript is a number or a letter representing several numbers placed at the lower right of a variable. It is used to specify the item
referred to.
Example:
If we have five numbers representing the ages of five students, and let x represent the age, will let X 1 stand for the age of the first
student, X2 , stand for the age of the second student, X3 , for the third student, X4 , for the fourth student, and X5 for the fifth student.
Sometimes we would like to summarize in just one term the idea that there are five students with their corresponding ages. Here,
instead of a numerical value, we may use a letter subscript. We would then write the symbol as X i (read “X sub i”) where I stands for the
numbers 1, 2, 3,.., n.
Xi stands for X1 , X2 , X3 , . . . , Xn
The summation symbol ∑ ( Greek capital letter “sigma”) is used to denote that the subscripted variables are to be added.

The Summation Process

The study of statistics involves the collection of data or measurement. Thus, there is always a need to add several numbers. The
Greek capital letter sigma, Σ is used in the process. The symbol Σ, read as the sum of tells you to add certain numerical values.
Example 1: Consider the scores obtained by 10 students in a 50-items mathematics test.

For convenience, variables will be used to Student No. Score present the data.
Let x = score obtained by each student 1 36
xi = different values or observations of x 2 28
Xi is read as “x sub i” where i is a subscript 3 46 which indicates the position of each value in the
series. In the given data, there are 10 4 65 observations denoted as x1, x2, x3, x4, x5, x6, x7, x8, x9,
x10. 5 26
Hence, ∑ = x1+ x2+ x3+ x4+ x5+ x6+ x7+ x8+ x9+ 6 38 x10.
I - 1 10 7 52
The symbol ∑ ix is read as “the sum of 10 8 47 observations x1 to x10 ”.
10 9 39
To substitute the data: ∑ ix = 36 + 28 +46 + 10 35 65 + 26 + 38 + 52 + 47 + 39 + 35
I-1

= 412
For large observations, say 50, the summation will be expressed as: ∑ xi = x1+ x2+ x3
i – I 50

+ …..+x50. In general, ∑ xi = x1+ x2+ x3 + …..+xn.

If all the given values of a variable are to be used in finding the sum, the limits of the summation are usually omitted, as ∑xi = ∑x
Example 2: Given are the ages of the first 4 shoppers at a newly opened convenience store in the neighborhood – 12, 24, 30, 45.
1. What will x represent in the information given?
2. What will the subscript i represent?
3. Write an expression for the sum.
4. What are the lower and upper limits of the expression?
5. Write the formula for the summation and find the sum of the given information.

ROUNDING OFF NUMBERS

The following rules are to be observed in rounding off numbers
Rule 1: When the digits to be eliminated or replaced by 0 are greater than 5, 50, 500 and so forth, add 1 to the last digit to be retained.
Example:
672.52 to the nearest unit/ones locate the number in the position in the units digit. So the number to be drop is 52
which is greater than 50 therefore add 1 to the preceding number.
= 673
25,387 to the nearest hundred
Locate the number in the hundred position
The number in the hundred position is 3 and the number you are going to drop is 87. Since the number to be drop is greater than 50
then add 1 to the preceding number. Add zero as place holder
= 25,400
Rule 2. When the digits to be eliminated or replaced by 0 are less than 5, 50, 500 and so forth, do not change the value of the last
digit to be retained.
Example:
5,412 to the nearest tens
Locate the number in the tens position. So the number in the tens position is 1 and the number to be eliminated is 2 which is less
than 5.
= 5, 410
Rule 3: When the digits to be eliminated or replaced by zero are exactly 5, 50, 500 and so forth do not change the last digit to be
retained if it is even; add 1 if it is odd.
Example:
935 to the nearest tens
Locate the digit in the tens position. Three (3) is the digit in the tens position and the number to be eliminated is exactly 5. Since the
number in the tens digit is odd then add 1 to this number. = 940
7,250 to the nearest hundreds
The number in the hundreds digit is 2 and the number to be eliminated is exactly 50. Since the number in the hundreds digit is even
then retain 2 and place 0 as place holder.
= 7,200

A variable is an observable characteristics of a person or objects which is capable of taking several values or of being expressed in
several different categories.

Kinds of Variables:
1. Continuous Variable
A variable which may take any value within a specified range of values.
Example:
Weight height
2. Discontinuous/discrete variable
A variable that can take specific values only.
Values have breaks, gaps or jumps.
Example:
Number of BSA students enrolled in Statistical Analysis
Family size
MEASURENENT OF SCALES:
Four levels or types of measurement:
1. Nominal measurements
Most limited type of measurement.
Merely used to differentiate classes or categories for purely classification or identification purposes.
Example:
Sex ( male, female) the two groups formed can be identified by using numbers like 1 for male group and 0 for female group or vice
versa. These numbers are merely used for identification purposes. We cannot give meaning to the magnitude or size of such numbers.
Although numbers may be used to designate categories or groups, these numbers have very few of the usual properties of numbers.
We cannot use the four fundamental operations on these numbers because these numbers are merely labels or codes for categories.
2. Ordinal Measurements
These do not only classify but also order the classes.
Expressed in ranks is possible if different degrees of an attribute or property are present
Example:
Ranks 1, 2, 3 given by judges to the 3 finalist in a beauty contests
However we are usually unable to determine the degree of difference between any consecutive ordinal measures.
We cannot determine by just how much the beauty contest winner is more beautiful than the second place winner and to what degree
the second place winner is more beautiful than the third placer.
3. Interval Measurements
Has the attributes of ordinal measure plus one more: it can differentiate between any two classes in terms of degrees of differences.
Example:
Mental ability scores
Achievement scores
Temperatures in degrees Celsius
82º C is bigger than 80º C
68º C is lower than 72º C by 4º C
Addition and subtraction have meanings
Zero point of the interval scale is arbitrary and does not reflect the absence of the attribute.
4. Ratio Measurement
Differs from the interval measurement only in one aspect. It has a true zero point which indicates a total absence of the property being
measured.
Example:
Length (0 length means no length at all)
Age
Number of children in a family
Ratios of the numbers assigned in the type of measurement reflect ratios in the amounts of the property being measured.
Example:
If Lea is 180 centimetres tall and Lyka is 90 centimetres tall, we say that Lea is twice as tall than Lyka. Their heights can be
expresses in the ratio 2:1 (two is to one)
Multiplication and division have meanings.