Lesson 1
Lesson 1
The Goal: Turn data into knowledge. Using data to generate value and translating it
into a competitive advantage.
Required: The knowhow to research data and generate significant insights with the
help of statistics. It is not enough to know how to extract data and produce
“beautiful” graphs.
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The Stages of Statistical Research:
Presentation of Conclusions
Descriptive Statistics
The field of descriptive statistics deals with methods to organize, describe, and
summarize data collected in statistical research.
Ways to summarize data:
1. Tables and graphs.
2. Numerical methods (such as average, mean, median etc.)
Statistical Inference
Study population- The collection of all investigated cases.
In most studies there is no practical possibility to examine the entire population,
therefore we collect data on part of the study population. This part constitutes the
sample.
Sample- Part of the population that is selected for the study out of the entire study
population.
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Random sample- each individual/member in/of the population has an equal chance
of being included in it independently.
Representative sample- represents all the relevant features that exist in the
population with respect to the researched question.
When making use of the sample, an additional stage before the presentation of the
results/findings needs to be added.
Using statistical methods to deduce from the index obtained in the sample to an
index attributed to the entire population. This is the stage of statistical inference,
making use of statistical methods to draw conclusions from “good” data.
Statistical inference deals with methods for generalization from the results of a
representative and random sample of the entire population being studied.
Estimation- estimation of the parameters of the population (prediction) based on the
observations in the sample.
Hypothesis testing- testing hypotheses with respect to the parameters of the
population by using statistical tests.
The inference from a sample is not a certainty but a probability. A complementary
field to understanding statistical inference is probability. To understand the
probabilistic methods of inference from a sample to a population one must learn
basic concepts in probability theory. Statistical inference uses concepts from
probability theory to determine whether the conclusions drawn are reliable or not.
Variables
Variable- a characteristic that is studied in the population and receives different
values in the population.
The values of the variable can vary from study to study.
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Examples: number of people in a family, number of rooms in an apartment.
Continuous variable- the values of the variable are continuous. Between any two
values of the variable there are infinitely many possible values.
Examples: height, age, weight.
Quantitative
Variable
Discrete
Qualitative
Continuous