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    Chapter 4: Data Analysis and Summarization

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    Henry Duna
    This document discusses key concepts in statistics including: - Statistics is the science of making inferences from sample data and includes data collection, analysis, and interpretation. A population is the total set being studied and a sample is a subset of units from the population. - Sampling is done instead of measuring entire populations because it is more practical and saves time and money. - There are different types of variables including dependent variables that are measured and independent variables that are controlled or manipulated. Descriptive statistics are used to describe or summarize sample data through measures like mean, median, mode, variance, and standard deviation.

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    Chapter 4: Data Analysis and Summarization

    Uploaded by

    Henry Duna
    26 views14 pages
    This document discusses key concepts in statistics including: - Statistics is the science of making inferences from sample data and includes data collection, analysis, and interpretation. A population is the total set being studied and a sample is a subset of units from the population. - Sampling is done instead of measuring entire populations because it is more practical and saves time and money. - There are different types of variables including dependent variables that are measured and independent variables that are controlled or manipulated. Descriptive statistics are used to describe or summarize sample data through measures like mean, median, mode, variance, and standard deviation.

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    Testbank for Business Finance

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    4

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    This document discusses key concepts in statistics including: - Statistics is the science of making inferences from sample data and includes data collection, analysis, and interpretation. A population is the total set being studied and a sample is a subset of units from the population. - Sampling is done instead of measuring entire populations because it is more practical and saves time and money. - There are different types of variables including dependent variables that are measured and independent variables that are controlled or manipulated. Descriptive statistics are used to describe or summarize sample data through measures like mean, median, mode, variance, and standard deviation.

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    © All Rights Reserved
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    Download as ppt, pdf, or txt
    26 views14 pages

    Chapter 4: Data Analysis and Summarization

    Uploaded by

    Henry Duna
    This document discusses key concepts in statistics including: - Statistics is the science of making inferences from sample data and includes data collection, analysis, and interpretation. A population is the total set being studied and a sample is a subset of units from the population. - Sampling is done instead of measuring entire populations because it is more practical and saves time and money. - There are different types of variables including dependent variables that are measured and independent variables that are controlled or manipulated. Descriptive statistics are used to describe or summarize sample data through measures like mean, median, mode, variance, and standard deviation.

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    Download as ppt, pdf, or txt
    of 14

    CHAPTER 4: DATA ANALYSIS AND

    SUMMARIZATION

    What is statistics?
    It is the science of making inference based on
    sample data.
    It includes collection, analysis and interpretation
    of data
    Population is the aggregate of all arbitrarily
    defined sample units.
    It is basically very large.

    Sample is any subset (collection) of


    units from a population of units

    Example:
    choosing 10 rich households from AA.
    Selecting Econometrics over others.

    Why sample?
    Measuring all units is impractical, if not impossible.

    Sampling saves money.

    Sampling saves time.


    A Parameter is a characteristics of the population or
    constants that describe the population as a whole.
    A statistics is a characteristics of the sample or
    parameter of a sample (sample distribution).

    Type of data/variable

    Qualitative data
    Quantitative data

    Nominal categories
    eg. gender,
    race, religion,

    Ordinal categories
    strongly disagree,
    disagree,
    agree,
    strongly agree

    Discrete

    Continuous

    A variable is a characteristic that may vary from one


    sample to the next.

    Examples:

    Age
    Farm size
    Household income
    Students mark

    Types of variables
    Dependent variable:
    not controlled but simply measured or registered

    Independent variables:
    are more or less controlled.

    Independent

    Vs Dependent

    Intentionally
    manipulated

    Intentionally left alone

    Vary at known rate

    Vary at unknown rate

    Cause

    Effect

    Example: What affects a bond demand?


    Independent Variables
    Income
    Family size
    Farm size
    Livestock owned
    Access to education
    Dependent variable: demand for a bond

    ESTIMATION
    We estimate parameters such as
    Means
    Variances
    Correlations

    However, if the primary goal is to draw a


    conclusion about a state of nature or the result
    of an experiment, we are interested in statistical
    testing.

    Descriptive statistics
    Primarily aimed to describe data.
    But we are also interested in estimation parameters
    such as
    Percentage
    Frequency
    Measure of central tendency
    Mean (Average )
    Medium( middle number)
    Mode( number most frequently appearing value)

    x
    n
    Mean

    Measure of dispersion/variability
    It is a numeric representation of how much data
    points differ from one another.
    Variance: A measure of dispersion among
    individual observations about their average
    value
    x x 2

    n 1

    Standard deviation
    s

    x x 2
    n 1

    Range: max- min


    Coefficient of variation: it permits a comparison of
    relative variability about means of different sizes
    CV

    s
    100%
    x

    Standard error of the mean


    It is a measure of variation among sample
    means calculated from the same population.

    It is used to determine required sample sizes for


    a sampling effort.

    SE

    Example:
    1
    2
    3
    4

    Mean age:
    mean = (19 + 21 + 21 + 24 + 30 + 20) / 6
    mean = 22.5
    Variance of the mean:
    s2 = 81.5 / 5
    s2 = 16.3
    Standard Deviation of the mean:
    SD = 16.3
    SD = 4.04
    Coefficient of Variation:
    CV = 4.04 / 22.5
    SE = 0.18 or 18%

    df = n-1= 5
    n = 2.45

    mean

    (xmean)

    (x-mean)2

    19

    22.5

    -3.5

    12.25

    21

    22.5

    -1.5

    2.25

    21

    22.5

    -1.5

    2.25

    24

    22.5

    1.5

    2.25

    30

    22.5

    7.5

    56.25

    20

    22.5

    -2.5

    6.25

    81.5

    N=6

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