Lesson 1 - Basic Statistical Concepts
Lesson 1 - Basic Statistical Concepts
INTRODUCTION:
OBJECTIVES:
At the end of this lesson, you should be able to:
1. Define the basic concepts of statistics;
2. Give examples of the different levels of measurement;
3. Differentiate:
a. Descriptive vs. inferential statistics
b. Data vs. variable
c. Population vs. sample
d. Parameter vs. statistics
Areas of Statistics
There are two broad areas of statistics- the descriptive and inferential.
Descriptive statistics can be defined as a set of methods involving the
collection, presentation and summarization by means of numerical descriptions.
Inferential statistics, on the other hand, is a set of methods that allow
estimation or testing of the characteristics of the population based only from the
sample drawn from that population.
Examples of Descriptive Statistics
1. The weekly mean sales of TV sets in a certain stores.
2. Alcohol is the most frequent disinfectant against COVID – 19.
3. At least 5% discount is deducted on the online sale.
4. The rice importation was doubled last year compare to the rice
importation two years ago.
5. The median age of the College of Business and Accountancy students is
25 years old.
Examples of Inferential Statistics
1. Salary predicts the life satisfaction of businessmen in Antique.
2. Productivity of crops is a factor in determining the choice of students to
go into farming.
3. Awareness of COVID – 19 symptoms is directly related to resiliency of the
residents living in Cebu City.
4. Number of received calls predicts the number of orders in a certain flower
shop.
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Scale of Measurement
There are four (4) scales of measurement – nominal, ordinal, interval and
ratio.
Nominal scale objects or individuals are assigned into categories and
have no numerical properties. This is the lowest scale. For examples, sex (male,
female), marital status (single, married), highest educational attainment
(elementary, secondary, or college graduate) and bath soap brand (Safeguard,
Palmolive, Zest, Bioderm, etc.) are nominal in nature. They do not possess
quantitative properties.
Ordinal scale objects or individuals form a category and the categories
form a rank along continuum. Ordinal data are sometimes referred to as ranked
data and they can be arranged in order either descending or ascending. Even
the data are ranked; their distances may not be equal. For example, the top
three performing students in a class are ranked as first, second and third. The
difference of scores between the first and the second may not be equal to the
difference between the scores of the second and third. Another example of
ranked data are academic rank (Instructor I, II, III, Asst. Instructor I, II, III,
etc.) and shoe size (small, medium, large).
Interval scale objects or individuals include the characteristics of ordinal
scale objects in addition to that the differences between the values is a constant
size. Another property of an interval scale measurement is that there is no
absolute zero. Meaning, zero does not denote the absence quantity being
measured. For example, temperature is an interval scale. The difference between
790C and 800C is equal to the difference between 80 0C and 810C. Furthermore,
00C does not denote absence of temperature.
Ratio scale objects or individuals has the characteristics than that of the
interval scale but an addition to that is that it has absolute zero. In ratio scale,
zero represents nothing. Zero means absence of the quantity being measured.
For example, weight, length, number of students inside the classroom or price of
commodities.
Type of Variables
There are two types of variables – qualitative and quantitative.
Qualitative Variables are variables that can be classified into
categories, according to characteristics or attributes. For example, sex is a
qualitative variable because you can classify as either male or female. Another
example is the color of the eyes (blue, brown, etc).
Quantitative variables are variables that are numerical or you can
possibly rank them. The example s of quantitative variables are age, number of
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deliveries, amount of sugar, etc. Quantitative variables can further be classified
discrete or continuous. Discrete variables can assume only certain values.
Usually, discrete variables are countable. Continuous variables are variables
that can assume any values between two values. For example, weight of cargo
vessels, time consumed in reading a novel and others.
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