Lesson 1

NATURE OF STATISTICS
•Statistics
A branch of applied mathematics
that examines and investigates
ways to process and analyze
the data gathered.
•Statistics
A branch of applied mathematics
that deals with data collection,
organization, presentation,
analysis and interpretation.
Example:
• DOH estimates the number
of COVID 19 cases with
decrease by the end of
September. They collect data
and present it in tabular or
graphical forms.
DIVISION OF STATISTICS
•Descriptive Statistics
The totality of methods and
treatments employed in the
collection, description, and
analysis of numerical data.
Example of statement for Descriptive
Statistics
•There are 40 students enrolled
in this class.
•The students are not happy on
online class.
•The age of my students ranges
from 16 to 25.
Inferential Statistics
The logical process from sample
analysis to a generalization,
inferences or conclusion about
a population.
It is also called as statistical
inference or inductive statistics.
Example of statement for Inferential
Statistics
• Garlic can lower the blood
pressure.
• The millennials are well verse on
using computer.
• There is a significant relationship
between IQ and EQ of a person.
1.4 SOURCES OF DATA
•Primary data
Data that come from original
source, and are intended to
answer specific research
questions.
Example:
• Interview
• Mail-in questionaire

• Survey

• Experiment
•Secondary data
Data that are taken from
previously recorded data.
Example:
• Information in research
studies
• Industry financial statement
• Business periodicals
• Internet websites
• Compact disk
Types of Data
•Qualitative data
Data cannot be expressed as
numbers.
Ex. beauty, attitude
•Quantitative data
Data can be expressed by
numbers
Ex. age, IQ
•Population
Consists of all the members of
the group about which you
want to draw a conclusion.
•Sample
A portion, or part, of the
population of interest selected
for analysis.
Figure Relation between Population
1.1 and Sample

Population Sample
L B D N G
A F E H J T M
N Q K C M
R S W Q V O
R W P D
P
C I K
 EXERCISE
In each of these statements, tell
whether descriptive or
inferential statistics have been
used.
1. The average price of houses
in Rizal Province.
2. Birth rate in rural areas in the
Philippines.
3. Financial analysis say that
mortgage may soon hit bottom.
4. The monthly average
expenditure of per household is
12,000 pesos.
5. Enrollment record of all
colleges and universities in the
Philippines.
6. The effects of AH1N1 (Swine
flu) virus to the death rate
worldwide.
7. The guard in the SM Mall of
Asia records the number of
shoppers for the past 15 days.
8. A campaign manager analyzes
the effect of TV ads on the
promotion of a presedential
candidate.
9. The political views of the youth
in the urban areas with respect to
inflation rate in the Southeast
Asia.
10. A researcher tested the
difference on the customers
buying preference in different
coffee shops.
1.3 PARAMETER AND STATISTIC
•Parameter
A numerical index describing a
characteristic of a population.
•Statistic
A numerical index describing a
characteristics of a sample.
1.5 CONSTANT AND VARIABLE
•Constant
Characteristics of objects, people,
or events that does not vary.
Example:
Temperature at which water boils
is a constant. (100 degrees
Celcius)
•Variable
A characteristic of objects,
people, or events that can take
of different values. It can vary
in quantity, or in quality.
Example of Quantity:
•weight of people
•height of tree
Example of Quality:
•hair color of people
 EXERCISE
Classify each variable as
qualitative or quantitative.
1. Type of telephone.
2. Cost of smart phones.
3. Favorite department store.
4. Brand of personal computer
used.
5. Automobile ownership by
students.
6. Number of international calls
made per month.
7. Political party affiliation of
civil service workers.
8. Primary type of transportation
used for clothing shopping.
9. Number of persons in the
household who use personal
desktop computers.
10. Amount of money spent on
wardrove in the last month.
1.6 TYPES OF DATA
•Qualitative Variable
Conceptualized and analyzed as
distinct categories, with no
continuum implied.
Also termed categorical
variable.
Example:
•eye color
•gender
•occupation
•religious preference
•Quantitative Variable
Conceptualized and analyzed
along a continuum implied.
Also termed numerical variable,
it can be discrete or continuous
variable.
Example:
• height
• weight
• math aptitude
• salary
Figure Types of Variables
1.2

Variable

Qualitative Quantitative

Discrete Continuous
1.7 CLASSIFICATION OF VARIABLES
•Experimental Classification
A researcher may classify
variables according to the
function they serve in the
experiment.
1. Independent variable
(Explanatory variable)
controlled by the
experimenter/researcher, and
expected to have an effect on
the behavior of the subjects.
2. Dependent variable (Outcome
variable)
some measure of the behavior
of subjects and expected to be
influenced by the independent
variable.
Example:
To predict the value fertilizer on
the growth of plants, the
dependent variable is the
growth of the plants while the
independent variable is the
amount of fertilizer used.
•Mathematical Classification
Variables may also be classified
in terms of the mathematical
values they may take on
within given interval.
1. Continuos variable
a variable which can assume
any of an infinite number of
values, and can be associated
with points on a continuos line
interval.
Example:
• height
• wieght
• volume
2. Discrete variable
a variable which consist o
either a finite number of
values or countable number of
values.
Example:
•gender
•courses
•Olympic games
 EXERCISE
Identify each item as descrete
or continuous.
1. f(x) = 5x + 4
2. Square root of 3.
3. Student number.
4. Counting numbers.
5. Rational numbers.
6. Number of persons in a
family.
7. Outcomes in rolling a pair of
dice.
8. Mitsubishi Montero sales in
the 3 months.
1.8 LEVELS OF MEASUREMENT
A. Nominal level of measurement
Mutually exclusive and
exhaustive meaning it is used to
differentiate classes or
categories for purely
classification or identification
purpose.
*Nominal data are discrete
variables.
-Mutually Exclusive
Is a property of a set of
categories such that an
individual or object is incleded
in only one category.
-Exhaustive
Is a property of a set of
categories such that each
individual or object must
appear in a category.
 Example:
Qualitative
Categories
Variable
Sex Male, Female
Automobile
Yes, No
Ownership
Term, Endowment,
Type of Life
Straight-Life,
Insurance Owned
Others, None
B. Ordinal Level of Measurement
An observed value classified
into one category is said to
posses more of a property being
scaled than does an observed
value classified into another
category.
Nevertheless, whithin a
particular category no attempt is
made to account for differences
between the classified values.
*Ordinal data are discrete
variables.
 Example:
Qualitative Variable Categories
Student class Freshman, Sophomore,
designation Junior, Senior
Product satisfaction Unsatisfied, Neutral,
Satisfied, Very Satisfied
Movie Classification G, PG, PG-13, R-18, X
Faculty Rank Professor, Associate
Prof., Assistant Prof.,
Instructor
Student Grades 1.0, 1.25, 1.50, 1.75, 2.0,
…, 5
C. Interval Level of Measurement
Used to classify order and
differentiate between classes or
categories in terms of degrees of
differences.
*Either discrete or continuous
variables.
 Example:

Qualitative Variable

Temperature (in degree C or

F)
Calendar Time (Gregorian,
Hebrew, or Islamic)
D. Ratio Level of Measurement
Differs from interval
measurement only in one aspect;
it has a true zero point.
*Ratio data are either discrete or
continuous data.
 Example:

Qualitative Variable

Weight (in pounds or kilograms)

Age (in years or days)

Salary (in Philippine peso)

Table Characteristics of
1.1 Levels of Measurement
Level of Measurement Properties

Nominal Indicates a distinction

Ordinal Indicates a distinctionIndicates the direction of
the distinction
Interval Indicates a distinctionIndicates the direction of
the distinctionIndicates the amount of
distinction
Ratio Indicates a distinctionIndicates the direction of
the distinctionIndicates the amount of
distinctionIndicates an absolute zero
Table Classification of
1.1 Numerical Data
 EXERCISE
Determine whether each of the
following is nominal, ordinal,
interval, or ratio data.
1. Military ranks.
2. Beauty contest winners.
3. Ranking of tennis players.
4. Intelligence Quotient of
managers in Jollibee.
5. Pages in the PLDT telephone
book.
6. Nationality of certain
individuals.
7. Social Security System
number.
 REVIEW
EXERCISE
A. Indicate whether the
statement is TRUE or FALSE.
1. A large sample always gives
unbiased estimates regardless of
how the sample is chosen.
2. The time elapsed until the first
field goal at home basketball
games is a variable.
3. The amount of money of a
person have is a continuous
variable because there is no limit
it can keep going up as a person
earn more.
4. Quantitative variables can be
continuous variables.
5. The difference between
descriptive and inferential
statistics is focusing and
describing or explaining data
versus going beyond immediate
data and making inferences.
6. Another name for descriptive
statistics is inferential statistics.
7. Probability is used as a basis
for inferential statistics.
8. The age is an example of a
qualitative variable.
9. The NSO reported that there
are 40,440,000 Filipino currently
employed private institutions.
This one figure is called
statistics.
10.Increasing the sample size
tends to reduce survey bias.