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Chapter 1 Introduction

This document provides an introduction to statistics, including definitions, classifications, and key terms. It discusses descriptive and inferential statistics, the stages of statistical investigation, and different types of variables and scales of measurement. Specifically, it defines statistics as the science of collecting, organizing, analyzing, and interpreting numerical data to assist decision making. It also outlines the main uses and limitations of statistics.

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kader Arefe
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Download as PDF, TXT or read online on Scribd
18 views

Chapter 1 Introduction

This document provides an introduction to statistics, including definitions, classifications, and key terms. It discusses descriptive and inferential statistics, the stages of statistical investigation, and different types of variables and scales of measurement. Specifically, it defines statistics as the science of collecting, organizing, analyzing, and interpreting numerical data to assist decision making. It also outlines the main uses and limitations of statistics.

Uploaded by

kader Arefe
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Lecture notes on Introduction to Statistics Chapter 1: Introduction

CHAPTER 1
1. INTRODUCTION
Definition and classifications of statistics
Definition:
We can define statistics in two ways.
1. Plural sense (lay man definition).
It is an aggregate or collection of numerical facts.
2. Singular sense (formal definition)
Statistics is defined as the science of collecting, organizing, presenting, analyzing
and interpreting numerical data for the purpose of assisting in making a more
effective decision.
Classifications:
Depending on how data can be used statistics is divided in to two main areas or branches.
1. Descriptive Statistics: is concerned with summary calculations, graphs, charts and
tables. It describes the characteristics of the sample data.
2. Inferential Statistics: is a method used to generalize from a sample to a population. It
contains estimation (point and interval estimation) and hypothesis testing.
• It is important because statistical data usually arises from sample.
• Statistical techniques based on probability theory are required.

Stages in Statistical Investigation

There are five stages or steps in any statistical investigation.


1. Collection of data: the process of measuring, gathering, assembling the raw data up
on which the statistical investigation is to be based.
2. Organization of data: Summarization of data in some meaningful way, e.g table form
3. Presentation of the data: The process of re-organization, classification, compilation,
and summarization of data to present it in a meaningful form.
4. Analysis of data: The process of extracting relevant information from the summarized
data, mainly through the use of elementary mathematical operation.
5. Inference of data: The interpretation and further observation of the various statistical
measures through the analysis of the data by implementing those methods by which
conclusions are formed and inferences made.

Definitions of some terms

a. Statistical Population: It is the collection of all possible observations of a specified


characteristic of interest (possessing certain common property) and being under
study.
b. Sample: It is a subset of the population, selected using some sampling technique in
such a way that they represent the population.
c. Sampling: The process or method of sample selection from the population.
d. Sample size: The number of elements or observation to be included in the sample.
e. Census: Complete enumeration or observation of the elements of the population.

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Lecture notes on Introduction to Statistics Chapter 1: Introduction
f. Parameter: Characteristic or any measure obtained from a population.
g. Statistic: Characteristic or any measure obtained from a sample.
h. Variable: It is an item of interest that can take on many different numerical values.

Types of Variables or Data:


1. Qualitative Variables: are nonnumeric variables and can't be measured. Examples
include gender, religious affiliation, blood type, and state of birth.
2. Quantitative Variables: are numerical variables and can be measured. Examples
include balance in checking account, number of children in family, blood pressure. Note
that quantitative variables are either discrete (which can assume only certain values, and
there are usually "gaps" between the values, such as the number of bedrooms in your
house) or continuous (which can assume any value within a specific range, such as the
air pressure in a tire.)

Applications, Uses and Limitations of statistics

Applications of statistics:
• In almost all fields of human endeavor.
• Almost all human beings in their daily life are subjected to obtaining numerical
facts e.g. abut price.
• Applicable in some process e.g. invention of certain drugs, extent of
environmental pollution.
• In industries especially in quality control area.
Uses of statistics:
The main function of statistics is to enlarge our knowledge of complex phenomena. The
following are some uses of statistics:
1. It presents facts in a definite and precise form.
2. Data reduction.
3. Measuring the magnitude of variations in data.
4. Furnishes a technique of comparison
5. Estimating unknown population characteristics.
6. Testing and formulating of hypothesis.
7. Studying the relationship between two or more variable.
8. Forecasting future events.
Limitations of statistics
As a science statistics has its own limitations. The following are some of the limitations:
• Deals with only quantitative information.
• Deals with only aggregate of facts and not with individual data items.
• Statistical data are only approximately and not mathematical exact.
• Statistics can be easily misused and therefore should be used by experts.

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Lecture notes on Introduction to Statistics Chapter 1: Introduction
Scales of measurement

SCALE TYPES

Measurement is the assignment of numbers to objects or events in a systematic fashion.


Four levels of measurement scales are commonly distinguished: nominal, ordinal,
interval, and ratio and each possessed different properties of measurement systems.

Nominal Scales

• Level of measurement which classifies data into mutually exclusive, all inclusive
categories in which no order or ranking can be imposed on the data.
• No arithmetic and relational operation can be applied.

Examples:

o Political party preference (Republican, Democrat, or Other,)


o Sex (Male or Female.)
o Marital status(married, single, widow, divorce)
o Country code
o Regional differentiation of Ethiopia.

Ordinal Scales

Ordinal Scales are measurement systems that possess the property of order, but not the
property of distance.

• Level of measurement which classifies data into categories that can be ranked.
Differences between the ranks do not exist.
• Arithmetic operations are not applicable but relational operations are applicable.
• Ordering is the sole property of ordinal scale.

Examples:

o Letter grades (A, B, C, D, F)


o Rating scales (Excellent, Very good, Good, Fair, poor)
o Military status

Interval Scales

Interval scales are measurement systems that possess the properties of Order and
distance, but not the property of fixed zero.

• Level of measurement which classifies data that can be ranked and differences are
meaningful. However, there is no meaningful zero.

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Lecture notes on Introduction to Statistics Chapter 1: Introduction
Examples:

o IQ
o Temperature in oF

Ratio Scales

Ratio scales are measurement systems that possess all three properties: order, distance,
and fixed zero.

• Level of measurement which classifies data that can be ranked, differences are
meaningful, and there is a true zero. True ratios exist between the different units
of measure.

Examples: Weight, Height, Number of students, and Age

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