Unit-one

Introduction to Statistics
Definition
• The term statistics have two definitions;
• In its plural sense, it is equivalent to numerical facts,
figures or measurements.
• But all numerical figures/data are not statistics.
A numerical data to be statistical data
 The data should be numerically expressed.
 The data must be comparable.
 The data should be collected in systematic manner.
 The data should be collected for a pre-determined
purpose.
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 Definition …
Statistics in its singular sense:
The branch of applied research that deals with the
development and application of methods for
collecting, organizing, presenting, analysing and
interpreting of numerical data.
Generally [Statistics]
• Is a science that helps us make better decisions in
business and economics as well as in other fields.
• Teaches us how to summarize, analyze, and draw
meaningful inferences from data that then lead to
improve decisions.
• Maximizing information by reducing error
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 Classifications of statistics

Depending on how data can be used

Descriptive Statistics:
Is concerned with summary calculations,
graphs, charts and tables.
A statistical method that is concerned with the
collection, organization, summarization, and
analysis of data from a sample of population.
Helps to describe a given set of data without
going beyond that data themselves.
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 ……….Continued
Inferential Statistics:
 is a method used to generalize from a sample to
a population(helps to make inference /conclusion
about a population based on the selected
sample).
It consists of
 Predict and forecast values of population
parameters
 Test hypotheses about values of population
parameters
 Make decisions
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 Stages in Statistical Investigation

There are five stages in any statistical investigation.

A. Collection of data: the process of measuring,
gathering, assembling the raw data up on which the
statistical investigation is to be based.
The process of obtaining measurements or counts.
B. Organization of data: Summarization of data in some
meaningful way, e.g. table form
Includes editing, classifying, and tabulating the collected
data.

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 ……….Continued
C. Presentation of the data: The process of re-
organization, classification, compilation, and
summarization of data to present it in a meaningful
form
 overall view of what the data actually looks like.
 facilitate further statistical analysis.
 Can be done in the form of tables and graphs or diagrams.
D. Analysis of data: The process of extracting
relevant information from the summarized data(like
mean,median,mode,range,variance….)
 To dig out useful information for decision
making
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 ……….Continued
E. Inference(Interpretation) of data:
 Concerned with drawing conclusions from
the data collected and analyzed; and giving
meaning to analysis results.
 A difficult task and requires a high degree of skill
and experience.

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 Definition of Some Basic terms
A population consists of the set of all measurements/elements
under study for which the investigator is interested.

Sample: It is a subset of the population, selected using some

predefined sampling technique in such a way that they
represent the population.

Sample size: The number of elements or observation to be included in the

sample.

Census: Complete enumeration or observation of the elements of the

population.( it is the collection of data from every element in a
population)
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 ……….Continued

Parameter: A statistical characteristic or measure

obtained from a population data.
Sampling: The process or method of sample
selection from the population.
Statistic: A statistical characteristic or measure
obtained from a sample data

Data refers to a collection of facts, values,

observations, or measurements that the
variables can assume.
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 ……….Continued
Variable: It is an item of interest that can take on
many different numerical values
Examples :
 age,
 diastolic blood pressure,
 heart rate,
 the height of adult males,
 the weights of preschool children,
 gender of economics students,
 marital status of instructors at Bahirdar University,
 ethnic group of patients 10
 Applications, uses and limitations of
Statistics
Applications of statistics:
It is applicable in any field of study which seeks quantitative
evidence. For instance,
• In almost all fields of human endeavor.
• Almost all human beings in their daily life are
subjected to obtaining numerical facts e.g. about price.
• Applicable in some process e.g. invention of certain
drugs, extent of environmental pollution.
• In industries especially in quality control area.
• To compare the improvement in yield due to
application of fertilizer, pesticide………..
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 Uses of statistics:
 The main function of statistics is to
enlarge our knowledge of complex
phenomena. The following are some uses
of statistics:
• It presents facts in a definite and precise
form.
• Data reduction.
• Measuring the magnitude of variations in
data.

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 ……….Continued
• Furnishes a technique of comparison
• Estimating unknown population
characteristics.
• Testing and formulating of hypothesis.
• Studying the relationship between two or
more variable.
• Forecasting future events.

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 Limitations of statistics
 As a science statistics has its own limitations. The
following are some of the limitations:
• Deals with only quantitative information(It does not
study qualitative characteristics directly).
• Deals with only aggregate of facts and not with
individual data items.
• Statistical data are only approximately and not
mathematical correct.
• Statistics can be easily misused and therefore
should be used be experts.
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 Types of variables(Data)
 On the basis of information
contained by the data
Qualitative Variables :- Are non
numeric variables and can't be measured.
Examples gender, religious affiliation,
Color, Nationality, marital status of
patients and state of birth.
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 ……….Continued
Quantitative Variables are numerical variables and
can be measured.
Examples balance in checking account, number of
children in family, Temperatures, Salaries, Number
of points scored on a 100 point exam, Number of
students in a class; number of cars in a parking lot etc

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 ……….Continued
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.)

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 Discrete Variables
• are variables which assume a finite or countable number of
possible values.
• are usually obtained by counting.
• is characterized by gaps or interruptions in the values
that it can assume. These gaps or interruptions indicate the
absence of values between particular values that the
variable can assume.
Example:
• The number of daily admissions to a general hospital, and
• The number of first year statistics students
• The number of decayed, missing or filled teeth per child in
an elementary school.
 Continuous Variables
• are variables which assume an infinite number
of possible values between any two specific
values.
• are usually obtained by measurement.
• does not possess the gaps or interruptions
characteristic of a discrete variable.
Example:
• Weight, age, length, temperature, weight,
speed, salary and mark of students
 Types of Data…
On the basis of their source :
1. Primary data
 Data generated for the first time primarily/originally for the
study in question.
2. Secondary data
 Data obtained from other pre-existing/ priorly collected
sources.

On the basis of role of time:

2. Cross-sectional data
– observations taken at one point in time.
2. Time series data
– observations taken for a series of periods, usually at equal
intervals, may be on a weekly, monthly, quarterly, yearly,
etc, basis.
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 Scales of measurement
On the basis of the measurement scales
Four levels of measurement scales are commonly
distinguished:
– Nominal
– Ordinal
– Interval
– Ratio and
Each possessed different properties of measurement
systems.

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 Nominal Scales
 Only "naming" and classifying observations is possible.
When numbers are assigned to categories, it is only for
coding purposes and it does not provide a sense of size.
 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(+,-,*,/ are impossible) and relational operation

can’t be applied( Comparision is impossible).
 Used for grouping or classification.

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Examples:
– Political party preference (Republican,
Democrat, or Other,)
– Sex (Male or Female.)
– Marital status(married, single, widow, divorce)
– Country code
– Regional differentiation of Ethiopia.
– Eye color (e.g. brown, blue)
– religion (Muslim, Christian),
– place of residence (urban, rural) etc
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 Ordinal Scales
• Level of measurement which classifies data
into categories that can be ranked.
 We can talk of greater than or less than and it conveys
meaning to the value but;
 Impossible to express the real difference between
measurements in numerical terms.
• Ordering is the sole property of ordinal
scale.
• Used for grouping and ordering
 +, -, *, / are impossible
 The magnitude b/n the values is not clearly known 24
 ……….Continued
• Arithmetic operations are not applicable but relational
operations are applicable. Examples:
– Letter grades (A, B, C, D, F).
– Rating scales (Excellent, Very good, Good, Fair,
poor).
– Military status/ranks.
– Economic status (poor,medium,higher) or Socio-
economic status (very low, low, medium, high,
very high)
– severity(mild, moderate, sever)
– blood pressure (very low, low, high, very high etc.
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 Interval Scales
• Level of measurement which classifies data that can be ranked
and differences are meaningful. (The magnitude b/n the values
is clearly known)

• has arbitrary zero value

• + ,*& - are possible but / are impossible(All arithmetic
operations except division are applicable)
• However, there is no meaningful zero, so ratios are meaningless.
• Relational operations are also possible.
• Examples:
– IQ
– Temperature in oC It is meaningful to say the difference
between 30oC & 40 oC and 25oC & 35oC is equal (i.e. 10 oC).
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 Ratio Scales
• The highest level of measurement scale, characterized
by the fact that equality of ratios as well as equality of
intervals can be determined.
• 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.
Allarithmetic and relational operations are
applicable. (+, -, *, / are possible)

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 ……….Continued
Examples:
– Weight
– Height
– Number of students / items
– Age
– Salary
– Volume
– Length
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 Exercise-1
The following are list of different attributes/ variables or
data. Classify the variables/data in to different
measurement scales.
1. Your checking account number as a name for your account.
2. Your score on statistics test as a measure of your knowledge of
statistics.
3. A response to the statement "Abortion is a woman's right"
where "Strongly Disagree" = 1, "Disagree" = 2, "No Opinion"
= 3, "Agree" = 4, and "Strongly Agree" = 5, as a measure of
attitude toward abortion.
4. Times for swimmers to complete a 50-meter race
5. Months of the year as September, October…
6. Economic status of a family when classified as low, middle
and upper classes.
7. Blood type of individuals as A, B, AB and O.
8. Regions of Ethiopia as region 1, region 2, region 3…
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 LEVELS OF MEASUREMENT
• A level of measurement is the precision by which a
variable is measured.
• The four levels of measurement, from lowest to highest,
are:
– Nominal
– Ordinal
– Interval
– Ratio
• QUIZ: (Identify the usual level of measurement for each
of the following)
1. year in school 2. IQ scores
3. life expectancy 4. fatigue
5. cynicism 6. grade point average
7. hair color 8. type of neighborhood
9. temperature 10. climate