Unit 1 – INTRODUCTION:

NATURE OF STATISTICS
 Learning Objectives
At the end of the lesson, the learner is expected to:
1. Demonstrate knowledge of all statistical terms.
2. Differentiate between the two branches of
statistics.
3. Identify types of data.
4. Identify the four basic sampling techniques.
Statistics consists of conducting studies to collect, organize,
summarize, analyze, and draw conclusions.

Descriptive and Inferential Statistics

Data are the values (measurements or observations) that
the variables can assume.

Variables whose values are determined by chance are

called random variables.
A collection of data values forms a data set.
Each value in the data set is called a data value or a
datum.

Descriptive statistics consists of the collection,

organization, summation, and presentation of data.

A population consists of all subjects (human or otherwise)

that are being studied.
A sample is a subgroup of the population.
Inferential statistics consists of
generalizing from samples to
populations, performing hypothesis
testing, determining relationships
among variables, and making
predictions.
Variables and Types of Data

Qualitative variables are variables that can be placed into

distinct categories, according to some characteristic or
attribute. For example, gender (male or female).

Quantitative variables are numerical in nature and can be

ordered or ranked. Example: age is numerical and the values
can be ranked.
Discrete variables assume values that can be counted.

Continuous variables can assume all values between any two

specific values. They are obtained by measuring.

The nominal level of measurement

- the data consist of categories (names, labels, colors, gender,
geographic location, etc.) only.

The ordinal level of measurement classifies data into

categories that can be ranked; precise differences between
the ranks do not exist.
PROBLEMS: For each of the quantitative data sets
described in a–d, classify the data as
discrete or continuous.

a. Number (0, 1, 2, or so on) of people attending a

conference

b. Ages (in years) of participants in a survey

c. Number (0, 1, 2, or so on) of male children in a family

d. Heights (in inches) of plants in a plot of land

SOLUTIONS:
a. Discrete, because number (0, 1, 2, or so on) of people is
count data.

b. Continuous, because ages (in years) can assume any value

within a range of values on a numerical scale. For example, a
person could be 5 1/2 years old or 35.67 years old.

c. Discrete, because number (0, 1, 2, or so on) of male children

is count data.

d. Continuous, because heights (in inches) can assume any

value within a range of values on a numerical scale.
Types of Data
❖ Primary Data – data collected from where they
arise can be obtained from direct observation or
measurements, interview, mail inquiry and from
the questionnaire

❖ Secondary Data – data taken from a published

source. This can be obtained from various sources
such as published research, private and
government agencies, scientific journals and
statistical information published on newspaper and
magazine.
 Demographics
▪ Information about the people you are
gathering data from is important.
▪ Collect the specific demographics necessary.
Some examples
▪ Age
▪ Gender
▪ Income level
▪ Ethnic background
▪ Status (student, teacher, visitor)
▪ Be careful not to collect demographics that
are not specific to your data collection
purpose
 Data Collection Strategies
➢No one best way - decision
depends on:
▪ What you need to know: numbers or stories
▪ Where the data reside: environment, files,
people
▪ Resources and time available
▪ Complexity of the data to be collected
▪ Frequency of data collection
▪ Intended forms of data analysis
Data Collection Strategies
➢ Each method has advantages and
problems.
Examples:
▪ Questionnaires and surveys are open to self-
report biases, such as respondents’ tendency to
give socially desirable answers rather than
honest opinions.
▪ Observations are susceptible to observer biases,
such as seeing what one wants to see rather
than what is actually there.
Data Collection Strategies
➢ Because of the biases inherent in
any data-collection method, it is
best to use more than one method
when collecting diagnostic data.
➢ The data from the different
methods can be compared, and if
consistent, it is likely the variables
are being validly measured.
1. Interview Method – person to
person encounter between the
one soliciting information and
the one supplying the data.
The interview can be
structured or unstructured.
▪ most widely used technique for collecting data.
▪ permit the interviewer to ask the respondent direct
questions.
▪further probing and clarification is possible as the
interview proceeds.
▪questions can be clarified for better understanding.
▪ this flexibility is invaluable for gaining private
views and feelings about the organization and
exploring new issues that emerge during the
interview.
▪ may be highly structured, resembling
questionnaires, or highly unstructured, starting
with general questions that allow the
respondent to lead the way.
▪ are usually conducted one-to-one but can be
carried out in a group.
▪ group interviews save time and allow people to
build on other’s responses.
▪ group interviews may, however, inhibit
respondent’s answers if trust is an issue.
 Interviews / Focus Groups
▪ Another unstructured group meeting
conducted by a manager or a consultant.
▪ A small group of 10-15 people is selected
representing a larger group of people
▪ Group discussion is started by asking general
questions and group members are encouraged
to discuss their answers in some depth.
▪ The richness and validity of this information
will depend on the extent that trust exists.
 Drawback to interviews
▪ can consume a great deal of time if interviewers
take full advantage of the opportunity to hear
respondents out and change their questions
accordingly.
▪ personal biases can also distort the data.
▪ the nature of the question and the interactions
between the interviewer and the respondent
may discourage or encourage
certain kinds of responses.
▪ It take considerable skill to
gather valid data.
2. Questionnaire Method – utilize questions to
obtain information. It can be closed ended or
open ended questionnaire. Advantages
includes:
▪ one of the most efficient ways to collect data.
▪ they contain fixed-response questions about
various features of an organization.
▪ these on-line or paper-and pencil measures can
be administered to large numbers of people
simultaneously.
▪ they can be analyzed quickly.
▪ they can be easily be fed back to employees.
▪ can be standard based on common research or
they can be customized to meet the specific
data gathering need.
 Drawbacks to Questionnaires are:
▪ Responses are limited to the questions asked
in the instrument.
▪ They provide little opportunity to probe for
additional data or ask for points of
clarification.
▪ They tend to be impersonal.
▪ Often elicit response biases
– tend to answer in a socially
acceptable manner.
3. Observation Method – data pertaining
to behaviors of individuals or group of
individuals can be best obtained by
direct observation.
▪ are free of the biases
inherent in the self-report data.
▪ put the practitioner directly
in touch with the behaviors
in question.
▪ involved real-time data, describing behavior
occurring in the present rather than the past.
▪ are adapting in that they can be modified
depending on what is being observed.
 Problems with Observation
▪ Difficulties interpreting the meaning
underlying the observations.
▪ Observers must decide which people to
observe; choose time periods, territory and
events
▪ Failure to attend to these sampling issues
can result in a biased sample of data.
 Observation Protocol
A decision needs to be made on
what to observe.
Example:
▪ Observe how managers and employees interact
in the office.
▪ Observe who has lunch with whom. (Do
managers and non-managers eat together? Do
executives have a private lunch area?)
4. Use of documents – historical data,
government records, school and
company records, text books and
published thesis and journals are the
best sources for data collection.
5. Experimentation – experimental
researches obtain or collect their data
through a series of measurement.
Data Collection and Sampling Techniques

To obtain samples that are unbiased, statisticians use four

methods of sampling.

1. Random samples are selected by using chance

methods or random numbers.

2. Systematic samples are obtained by numbering each

value in the population and then selecting the kth value.

3. Stratified samples are selected by dividing the

population into groups (strata) according to some
characteristic and then taking samples from each group.
4. Cluster samples are selected by dividing the
population into groups and then taking samples of the
groups.