CHAPTER 1

INTRODUCTION TO STATISTICS

1.1 What is statistics?

Statistics is the science of conducting studies to collect, organize, summarize, analyze and
draw conclusions from data.
There are two major areas of Statistics: Descriptive statistics and Inferential statistics.
Descriptive statistics consists of the collection, organization, summarization, and presentation of
data. Inferential statistics consists of generalizing from samples to populations, performing
estimations and hypothesis testing, determining the relationship among variables, and making
predictions.
A population consists of all subjects (human or otherwise) that being studied. A sample is
a group of subjects selected from a population.

1.2 Variables and Types of Data

The word data refers to observations and measurements which have been collected in some
way, often through research. Data that is recorded as numbers (and therefore measures quantities)
is quantitative data, while data that is recorded as test (and therefore records qualities) is
qualitative data.
Variables are the characteristics or attributes that you are observing, measuring and
recording data for. Some examples include height, weight, eye color, dog breed, climate, electrical
conductivity, customer satisfaction and class attendance, just to name a few.

1.3 Level of measurement

The level of measurement has four types and arranged in the following manner.

• Nominal measurement characterizes by data that consist of names, labels or categories

only. Nominal scales have no numerical value. This is the lowest form of measurement.
Examples are color of the dress, sex of the newborn baby and type of school.

• Ordinal measurement classifies data into categories that can be ranked; however, precise
differences between the ranks do not exist. For example, from student-evaluation, guest
speakers might be ranked as superior, average, or poor. Floats in a homecoming parade
might be ranked as first place, second place, etc.

• Interval measurement ranks data, and precise between units of measure do exit; however,
there is no absolute zero. Absolute zero means that it has nothing of the characteristic of
being measured. Examples are the intelligence score and temperature.

• Ratio measurement possesses all the characteristics of interval measurement, and there
exists of absolute zero. Examples of ratio scales are those used to measure height, weight,
area, and number of phone calls received.

1.4 Data Collection

Data can be collected directly through surveys, or by taking performing experiments.
Indirectly, they can be taken from existing records and documents, which can be written, printed
or in electronic devices.
 A popular method of collecting data is by conducting surveys. Surveys can be done through
direct interview of persons, by telephone, by use of questionnaires, or by making actual
observations.
1. Interview
A very common and effective method of obtaining information is by conducting
interviews, which can be done in an in-person or face-to-face manner or by telephone. In
this type of data gathering method, researchers can collect more information from many
subjects, based on the requirements of the study. Interviewers can select respondents and
control the order in which data are obtained.

2. Questionnaires
The use of questionnaires is a common tool for gathering information but
respondents should be available and are willing to participate as research subjects.

3. Observation
Researchers may also use videotapes, audio tapes, event recorders or other
audiovisual equipment to collect data.

4. Records
A very convenient way obtaining data is by utilizing existing records.

1.5 Sampling Techniques

Conducting a census is the more thorough method of gathering information. But this
process is expensive and very time-consuming, or it is simply not possible at all for some
situations. There are several methods for obtaining a sample from the population and can be
generally be classified as Probability Sampling and Non-Probability Sampling.
A. Probability Sampling
Probability Sampling is based on the principle that every element in the population
has non-zero chance of being chosen.
a. Simple Random Sampling (SRS)
When the population is not so large, and a frame or the listing of the
population elements is available, simple random sampling is the sampling
method that is recommended to use. In this method all the elements in a
population have an equal probability or chance of being included in the sample.
Example is the lottery method. Lottery Method is commonly labelled as
“drawing of lots”.

b. Systematic Random Sampling

A random starting point is selected and then every kth member of the
population is selected.

In a systematic random sample the items or individuals of the population

are arranged in some way — alphabetically, in a file drawer by date received,
or by some other method. A random starting point is selected, and then every
kth member of the population is selected for the sample where k, the sampling
interval, is calculated as:

𝑁
𝑘=
𝑛

where
N = number in population
n = number in sample.
 In a systematic random sample, you might take all the items in the
population and number them 1, 2, 3, . . . . Next, a random starting point is
selected, let's say 39. Every kth item thereafter, such as every 100th, is selected
for the sample. This means that 39, 139, 239, 339, and so on would be a part of
the sample.

c. Stratified Simple Random Sampling

There may often be factors which divide up the population into sub-
populations (groups / strata) and we may expect the measurement of interest to
vary among the different sub-populations. This has to be accounted for when
we select a sample from the population in order that we obtain a sample that is
representative of the population. This is achieved by stratified sampling.

A stratified sample is obtained by taking samples from each stratum or sub-

group of a population.

When we sample a population with several strata, we generally require that

the proportion of each stratum in the sample should be the same as in the
population.

Stratified sampling techniques are generally used when the population is

heterogeneous, or dissimilar, where certain homogeneous, or similar, sub-
populations can be isolated (strata). Simple random sampling is most
appropriate when the entire population from which the sample is taken is
homogeneous. Some reasons for using stratified sampling over simple random
sampling are:

a. the cost per observation in the survey may be reduced

b. estimates of the population parameters may be wanted for each
sub-population
c. increase accuracy at given cost

d. Cluster Sampling

Cluster sampling is a sampling technique where the entire population is divided

into groups, or clusters, and a random sample of these clusters are selected. All
observations in the selected clusters are included in the sample.

Cluster sampling is typically used when the researcher cannot get a complete
list of the members of a population, they wish to study but can get a complete list
of groups or 'clusters' of the population. It is also used when a random sample would
produce a list of subjects so widely scattered that surveying them would prove to
be far too expensive.

B. Non-Probability Sampling

A non-probability sampling method is a big part of population is ignored in the

selection of respondents, or in statistical terminology, they have a zero chance of being
selected. When non-probability sampling is used, care must be exercised in the
interpretation of the results.

a. Convenient Sampling

Convenience sampling is defined as a method adopted by researchers where they

collect market research data from a conveniently available pool of respondents. It is the
most commonly used sampling technique as it’s incredibly prompt, uncomplicated, and
economical. In many cases, members are readily approachable to be a part of the
sample.
b. Purposive or Judgment Sampling
In this method, sampling respondents are chosen based on the judgment or the
opinion of the researcher or upon the advice of certain experts. Based on the past
experience, a researcher selects particular element from the population that are
representative or may provide information on the topic being studied. This leads to
personal biases and the exclusion of the other units of the study. If this method is
applied sincerely, better results may be achieved but inference about the population will
be difficult to justify.
c. Quota Sampling
Quota sampling is like stratified random sampling but without randomization. The
population is normally subdivided into subgroups, like gender or year-level of students.
When stratification is done, a quota for each stratum is determined, representing the
sample size for each stratum. However, in filling up the quota, convenience sampling
or judgment sampling is used instead of Simple Random Sampling.
d. Snowball Sampling
In snowball sampling, a few initial samples are taken by Simple Random Sampling.
The sample is then expanded through referrals. Sometimes, referrals are done through
social network, so this method is also network sampling. This is cost effective way of
developing a sample, especially when a sampling frame is difficult to construct, like
when a researcher is interested in cancer patients, drug users or ex-prisoners as
respondents.