MODULE 1.

INTRODUCTION TO STATISTICS

Subject: STT 041

Lesson Title: Introduction to Statistics

Lesson Objectives: At the end of this chapter, the student is expected to

1. to describe the nature and scope of descriptive statistics, and the
design and analysis of experiments
2. to differentiate a sample from a population
3. to distinguish parameter from statistic

Overview/Introduction:
In this chapter, you will be introduced to the basic concepts and goals of statistics. For
instance, statistics were used to construct the following graphs, which show the fastest
growing U.S. cities (population over 100,000) in 2008 by percent increase in population,
U.S. cities with the largest numerical increases in population, and the regions where the
cities are located.

For the 2010 Census, the Census Bureau sent short forms to every household. Short forms
ask all members of every household such things as their gender, age, race, and ethnicity.
Previously, a long form, which covered additional topics, was sent to about 17% of the
population. But for the first time since 1940, the long form is being replaced by the
American Community Survey, which will survey about 3 million households a year
throughout the decade. These 3 million households will form a sample. In this course, you
will learn how the data collected from a sample are used to infer characteristics about the
entire population.

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A census consists of data from an entire population. But, unless a population is small, it is
usually impractical to obtain all the population data. In most studies, information must be
obtained from a sample.

Data Sets
There are two types of data sets you will use when studying statistics. These data sets are
called population and sample.

A population is the collection of all outcomes, responses, measurements, or counts that are
of interest.

A sample is a subset, or part, of a population.

A sample should be representative of a population so that sample data can be used to form
conclusions about that population. Sample data must be collected using an appropriate
method, such as random sampling.

Example 1. Identifying Data Sets

In a recent survey, 1500 adults in the United States were asked if they thought there was
solid evidence of global warming. Eight hundred fifty-five of the adults said yes. Identify
the population and the sample. Describe the sample data set. (Adapted from Pew Research
Center)

Solution
The population consists of the responses of all adults in the United States, and the sample
consists of the responses of the 1500 adults in the United States in the survey. The sample is
a subset of the responses of all adults in the United States. The sample data set consists of
855 yes’s and 645 no’s.

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Parameter and Statistic

A parameter is a numerical description of a population characteristic.
A statistic is a numerical description of a sample characteristic.

Example 2. Distinguishing Between a Parameter and a Statistic

Decide whether the numerical value describes a population parameter or a sample statistic.
Explain your reasoning.
1. A recent survey of 200 college career centers reported that the average starting salary for
petroleum engineering majors is $83,121. (Source: National Association of Colleges and
Employers)
2. The 2182 students who accepted admission offers to Northwestern University in 2009
have an average SAT score of 1442. (Source: Northwestern University)

Solution
1. Because the average of $83,121 is based on a subset of the population, it is a sample
statistic.
2. Because the SAT score of 1442 is based on all the students who accepted admission offers
in 2009, it is a population parameter.

BRANCHES OF STATISTICS
The study of statistics has two major branches: descriptive statistics and Inferential statistics.
Descriptive statistics is the branch of statistics that involves the organization,
summarization, and display of data.
Inferential statistics is the branch of statistics that involves using a sample to draw
conclusions about a population. A basic tool in the study of inferential statistics is
probability.

Example 3. Descriptive and Inferential Statistics

A large sample of men, aged 48, was studied for 18 years. For unmarried men,
approximately 70% were alive at age 65. For married men, 90% were alive at age 65.
(Source: The Journal of Family Issues)

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Solution
Descriptive statistics involves statements such as “For
unmarried men, approximately 70% were alive at age 65”
and “For married men, 90% were alive at 65.” A possible
inference drawn from the study is that being married is
associated with a longer life for men.

A statistical technique may be classified as univariate, bivariate or multivariate depending

on the number of variables involved in the analysis. The technique is univariate if it applies
to as single variable, bivariate if it applies to two and multivariate when more than two
variables are involved. The technique is inferential when it involves estimation of population
parameters and tests hypothesis.

MEASUREMENT

Measurement refers to the process of determining the value or label, either qualitatively or
quantitatively, of a particular variable for a particular unit of analysis.

Levels of Measurement

1. Level Characteristics
2. 1.Nominal - numbers or symbols are used simply to classify an object, person,
or characteristics into categories
- the categories must be distinct, non-overlapping and exhaustive
and weakest level of measurement
Example: Religious Affiliation:
 Roman Catholic  Iglesia Ni Cristo  Baptist

 Alliance  Islam  Others

2. Ordinal - contains the property of the nominal level
- the numbers assigned to categories of any variable may be ranked
or ordered in some low-to-high manner
Example: Blood Pressure:  High  Normal  Low/

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Anemic
3. Interval - contains the properties of the ordinal level
- the distances between any two numbers on the scale are of known
sizes
- characterized by a common and constant unit of measurement
- units of measurement are arbitrary
- the number zero does not imply the absence of the characteristic
under consideration (thus, the zero point is arbitrary)
Examples: Temperature in oC and oF Intelligence quotient
(75,100, etc.)
4. Ratio - contains the properties of the interval level
- has a true zero point, that is, the number zero indicates the absence
of the characteristic under consideration
- strongest level of measurement
Examples: Scores in a test Height in meters,
feet, etc.

CENSUS vs. SURVEY SAMPLING

Census or Complete the process of gathering information from every unit in

Enumeration the population

Survey Sampling the process of obtaining information from only a subset

unit in the population

A census is a count or measure of an entire population. Taking a census provides complete

information, but it is often costly and difficult to perform. A sampling is a count or measure
of part of a population, and is more commonly used in statistical studies. To collect
unbiased data, a researcher must ensure that the sample is representative of the population.
Appropriate sampling techniques must be used to ensure that inferences about the
population are valid. Remember that when a study is done with faulty data, the results are

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questionable. Even with the best methods of sampling, a sampling error may occur. A
sampling error is the difference between the results of a sample and those of the population.

When you learn about inferential statistics, you will learn techniques of controlling sampling
errors.
Advantages of Survey Sampling
 reduced cost  greater speed
 greater scope  greater accuracy

PROBABILITY and NONPROBABILITY SAMPLING

Probability procedure wherein every element of the population is given a

Sampling (known) nonzero chance of being selected in the sample

Nonprobability procedure wherein not all the sampling elements in the

population are given a chance of being included in the sample

Methods of Nonprobability Sampling

Purposive Sampling sets out to make a sample agree with the population
in regard to certain characteristics

Quota Sampling a specific number of particular types of elements are

selected

Convenience Sampling chooses units which come to hand or are convenient

Judgment Sampling selects a sample in accordance with an expert’s

judgment

Cases wherein Nonprobability Sampling is Useful

 Only few are willing to be interviewed

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 Extreme difficulties are experienced in locating or identifying subjects

 Lower budget (probability sampling is more expensive to implement)

Methods of Probability Sampling

• A random sample is one in which every member of the population has an equal chance of
being selected. A simple random sample is a sample in which every possible sample of the
same size has the same chance of being selected. One way to collect a simple random
sample is to assign a different number to each member of the population and then use a
random number table like the one in Appendix B. Responses, counts, or measures for
members of the population whose numbers correspond to those generated using the table
would be in the sample.
When you choose members of a sample, you should decide whether it is acceptable to have
the same population member selected more than once. If it is acceptable, then the sampling
process is said to be with replacement. If it is not acceptable, then the sampling process is
said to be without replacement.
Advantages
 The theory involved is easier to understand than the theory behind other sampling
designs
 Estimation methods are simpler and easier.

Disadvantages
 The sample chosen may be widely spread, thus entailing high transportation
costs.
 A population list, or frame, is needed.
 The sample chosen may not be truly typical of the population if the population is
heterogeneous with respect to the characteristic under study.

There are several other commonly used sampling techniques. Each has advantages and
disadvantages.
• Stratified Sample When it is important for the sample to have members from each segment
of the population, you should use a stratified sample. Depending on the focus of the study,
members of the population are divided into two or more subsets, called strata, that share a
similar characteristic such as age, gender, ethnicity, or even political preference. A sample is
then randomly selected from each of the strata. Using a stratified sample ensures that each
segment of the population is represented. For instance, to collect a stratified sample of the
number of people who live in West Ridge County households, you could divide the
households into socioeconomic levels, and then randomly select households from each level.

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Stratified random sampling then consists of selecting a SRS from each of the strata into
which the population has been divided.

Advantages
 Stratification may bring about a gain in precision of the estimates of characteristics
of the population.
 It allows a more comprehensive data analysis since information is provided in each
stratum.
 It is administratively convenient.

Disadvantages
 A listing of the population for each stratum is needed.
 The stratification of the population may require additional prior information about
the population and its strata.

• Cluster Sample When the population falls into naturally occurring subgroups, each having
similar characteristics, a cluster sample may be the most appropriate. To select a cluster
sample, divide the population into groups, called clusters, and select all of the members in
one or more (but not all) of the clusters. Examples of clusters could be different sections of
the same course or different branches of a bank. For instance, to collect a cluster sample of
the number of people who live in West Ridge County households, divide the households into
groups according to zip codes, then select all the households in one or more, but not all, zip
codes and count the number of people living in each household. In using a cluster sample,
care must be taken to ensure that all clusters have similar characteristics. For instance, if one
of the zip code clusters has a greater proportion of high-income people, the data might not
be representative of the population.

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Advantages
 A population list is not needed.
 Listing cost is reduced.

Disadvantages
 The costs and problems of statistical analysis are greater.
 Estimation procedures are difficult.

• Systematic Sample A systematic sample is a sample in which each member of the

population is assigned a number. The members of the population are ordered in some way, a
starting number is randomly selected, and then sample members are selected at regular
intervals from the starting number.
(For instance, every 3rd, 5th, or 100th member is selected.) For instance, to collect a
systematic sample of the number of people who live in West Ridge County households, you
could assign a different number to each household, randomly choose a starting number,
select every 100th household, and count the number of people living in each. An advantage
of systematic sampling is that it is easy to use. In the case of any regularly occurring pattern
in the data, however, this type of sampling should be avoided.

Advantages
 Drawing of the sample is administratively easy.
 It is possible to select a sample in the field without a frame.
Disadvantage
 If periodic irregularities are found in the list, a systematic sample may consist only of
similar types.

A type of sample that often leads to biased studies (so it is not recommended) is a
convenience sample. A convenience sample consists only of available members of the
population.

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 MODULE 1. INTRODUCTION TO STATISTICS
Assessment:

Take the quiz on Moodle.

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