MATH 403- ENGINEERING DATA ANALYSIS

• Statistics - the discipline that concerns the collection, organization, OBJECTIVES OF DATA ANALYSIS PROCESS
analysis, interpretation, and presentation of data • Improved Decision Making
• The use of statistical methods in manufacturing, development of food • Better Customer Service
products, computer software, energy sources, pharmaceuticals, and • Efficient Operations
many other areas involves the gathering of information or scientific data. • Effective Marketing

THE TWO MAIN DIVISIONS OF STATISTICS STEPS INVOLVED IN DATA ANALYSIS

1. UNDERSTAND THE PROBLEM- The first step in any data analysis
INFERENTIAL STATISTICS process is to define your objective. In data analysis, this is sometimes
• Use samples to make generalizations about larger populations. called the ‘problem statement’.
• Help us to make estimates and predict future outcomes. 2. DATA COLLECTION- Once you’ve established your objective, you’ll
• Present final results in the form of probabilities. need to create a strategy for collecting and aggregating the
• Draw conclusions that go beyond the available data. appropriate data. A key part of this is determining which data you
• Use techniques like hypothesis testing, confidence intervals, and need.
regression and correlation analysis. 3. CLEANING THE DATA
DESCRIPTIVE STATISTICS • Removing major errors, duplicates, and outliers- all of which are
• Describe the features of populations and/or samples. problems when aggregating data from numerous sources.
• Organize and present data in a purely factual way. • Removing unwanted data points- extracting irrelevant observations
• Present final results visually, using tables, charts, or graphs. that have no bearing on your intended analysis.
• Draw conclusions based on known data. • Bringing structure to your data- general ‘housekeeping’.
• Use measures like central tendency, distribution, and variance. • Filling in major gaps- as you’re tidying up, you might notice that
important data are missing.
• Probability- the extent to which something is probable; the likelihood 4. DATA EXPLORATION AND ANALYSIS
of something happening or being the case. • Descriptive analysis- identifies what has already happened.
• Diagnostic analytics- understanding why something has happened.
COMPANY ORGANIZATION
• Predictive analysis- identify future trends based on historical data.
• Administration
• Prescriptive analysis- make recommendations for the future.
• Human Resources and Development
5. INTERPRETING THE RESULT- The final step of the data analytics
• Sales And Marketing
process is to share these insights with your organization’s stakeholders
• Engineering And Construction
or the higher management.
• Procurement
6. EMBRACE THE FAILURES/MISTAKES- This could send you back to
• Logistics – Warehousing, Delivery, Inventory
step one (to redefine your objective). An exploratory analysis might
• Accounting And Finance
highlight a set of data points you’d never considered using before.
• Information Technology

STATISTICAL TERMS THREE BASIC METHODS OF COLLECTING DATA

• Population or Universe- refers to the totality of objects, persons, • Retrospective study- would use the population or sample of the
places, things used in a particular study. historical data which had been archived over some period of time.
• Sample- any subset of population or few members of a population. • Observational study- process or population is observed and disturbed
• Data- facts, figures and information collected on some characteristics as little as possible, and the quantities of interests are recorded.
of a population or sample. These can be classified as qualitative or • Designed experiment- deliberate or purposeful changes in the
quantitative data. controllable variables of the system or process is done.
• Ungrouped (or raw) data- data which are not organized in any
specific way. They are simply the collection of data as they are PLANNING AND CONDUCTING SURVEYS
gathered. • Survey - a method of asking respondents some well-constructed
• Grouped Data- raw data organized into groups or categories with questions.
corresponding frequencies. Organized in this manner, the data is • Sampling- is the process of selecting units from a population of
referred to as frequency distribution. interest.
• Parameter- the descriptive measure of a characteristic of a • Target population- entire group a researcher is interested in; the
population. group about which the researcher wishes to draw conclusions.
• Statistic- a measure of a characteristic of sample.
• Constant- a characteristic or property of a population or sample TWO WAYS OF CONDUCTING A SURVEY
which is common to all members of the group. • Face-to-face interviews
• Variable- a measure or characteristic or property of a population or • Self-administered through the use of questionnaires.
sample that may have a number of different values. - less expensive than interviews.

METHODS OF DATA COLLECTION

• Collection of the data - the first step in conducting statistical inquiry. TWO WAYS OF SELECTING A SAMPLE
It simply refers to the data gathering. • Non- Probability Sampling- judgment or subjective sampling.
• Experiments designed with basic principles such as randomization are Types:
needed to establish cause-and-effect relationships. • Convenience sampling- the researcher use a device in obtaining the
• The person who conducts the inquiry is an investigator, the one who information from the respondents
helps in collecting information is an enumerator and information is • Purposive sampling- the selection of respondents is predetermined
collected from a respondent. according to the characteristic of interest made by the researcher.
 Quota sampling:
• Probability- the likelihood or chance of an event occurring.
Proportional
𝑃𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 = 𝑡ℎ𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑤𝑎𝑦𝑠 𝑎𝑐ℎ𝑖𝑒𝑣𝑖𝑛𝑔 𝑠𝑢𝑐𝑐𝑒𝑠𝑠
Non- Proportional
𝑡ℎ𝑒 𝑡𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑜𝑠𝑠𝑖𝑏𝑙𝑒 𝑜𝑢𝑡𝑐𝑜𝑚𝑒
• Probability Sampling- every member of the population is given an
• Experiment– is used to describe any process that generates a set of
equal chance to be selected as a part of the sample.
data
Probability Techniques:
• Event– consists of a set of possible outcomes of a probability
• Simple Random Sampling- is the basic sampling technique where a
experiment. Can be one outcome or more than one outcome.
group of subjects is selected for study from a larger group (a
• Simple event– an event with one outcome.
population).
• Compound event– an event with more than one outcome.
• Stratified Sampling- There may often be factors which divide up the
• Sample space- is the set of all possible outcomes or results of a
population into sub-populations (groups / strata) and the measurement
random experiment and is called an element of that set.
of interest may vary among the different subpopulations.
• Null space– is a subset of the sample space that contains no elements
• Cluster Sampling- the entire population is divided into groups, or
and is denoted by the symbol . It is also called empty space
clusters, and a random sample of these clusters are selected.
• Intersection of events- The intersection of two events A and B is
FIVE STAGES TO BE CARRIED OUT FOR THE DESIGN OF EXPERIMENTS denoted by the symbol . It is It This is the event containing all elements
1. Planning- identification of the objectives of conducting the that are common to A and B.
experiment or investigation, assessment of time and available • Mutually Exclusive Events- If they have no elements in common.
resources to achieve the objectives. • Compliment of an Event- The complement of an event A with respect
2. Screening- used to identify the important factors that affect the to S is the set of all elements of S that are not in A and is denoted by A’.
process under investigation.
3. Optimization- After narrowing down the important factors affecting • Combinations Rule- A sample of k elements is to be chosen from a set
the process, then determine the best setting of these factors to of n elements.
achieve the objectives.
4. Robustness Testing- After determining optimal settings of the
factors, it is important to make the product or process insensitive to
variations.
5. Verification- This final stage involves validation of the optimum • Permutation Rule- arrangement of elements in a distinct order.
settings by conducting a few follow up experimental runs. This is to
confirm that the process functions as expected and all objectives
are achieved.

• Discrete distribution- the probability of occurrence of each value of ------------------------------------FORMULAS----------------------------------------

a discrete random variable.
• Random variable- a variable whose value is subject to variations due CUMULATIVE DISTRIBUTION FUNCTIONS
to chance.
- A random variable is called a discrete random variable if its set of
possible outcomes is countable. ("C.D.F.") OF A CONTINUOUS RANDOM VARIABLE X
• Discrete sample space- If a sample space contains a finite number
of possibilities or an unending sequence with as many elements as there
are whole numbers.
• Continuous sample space- If a sample space contains an infinite
number of possibilities equal to the number of points on a line segment.
BINOMIAL DISTRIBUTION
Binomial random variable- is the number of successes x in n repeated
trials of a binomial experiment.
• Cumulative binomial probability- refers to the probability that the
binomial random variable falls within a specified range.
• Poisson distribution- is the probability distribution that results from a
Poisson experiment.
• Poisson random variable- is the number of successes that result BINOMIAL FORMULA
from a Poisson experiment. The probability distribution of a Poisson
random variable is called a Poisson distribution.
• Cumulative Poisson probability- refers to the probability that the
Poisson random variable is greater than some specified lower limit
and less than some specified upper limit. CUMULATIVE BINOMIAL PROBABILITY

POISSON FORMULA

CUMULATIVE POISSON PROBABILITY