CHAPTER 4
Classification of data according to source
Lesson 4:DATA MANAGEMENT
Introduction
• Statistics is the branch of science that deals with
the collection, presentation, organization, analysis
and interpretation of data.
• The population is the collection of all elements
under consideration in a statistical inquiry. The
sample is a subset of the population.
• The variable is a characteristics or attributes of
the elements in a collection that can assume
different values for the different elements.
• The parameter is a summary measure describing
a specific characteristic of the population. The
statistic is a summary measure describing a specific
characteristic of the sample.
Areas in Applied Statistics
1. Descriptive statistics includes all the techniques
used in organizing, summarizing and presenting the
data on hand.
2. Inferential statistics includes all the techniques
used in analysing the sample data that will lead to
generalizations about a population from which the
sample came from.
Collection of Data
• Measurement is the process of determining the
value or label of the variable based on what has
been observed.
Levels of Measurement
1. The ratio level of measurements has all of the
following properties:
a) The numbers in the system are used to
classify a person/object into distinct and
nonoverlapping categories.
b) The system arranges the categories
according to magnitude
c) The system has a fixed unit of
measurement representing a set size throughout the
scale
d) The system has an absolute zero
2. The interval level of measurement satisfies only
the first three properties of the ratio level.
3. The ordinal level of measurement satisfies only
the first two properties of the ratio level.
4. The nominal level of measurement satisfies
only the first property of the ratio level.
• Primary data are data documented by the
primary source. The data collectors themselves
documented this data.
• Secondary data are data documented by a
secondary source. An individual/agency other than
the data collectors, documented this data.
Method of collecting data
• The survey is a method of collecting data on the
variable of interest by asking people questions.
• The experiment is a method of collecting data
where there is a direct human intervention on the
conditions that may affect the values of the
variables of interest.
• The observation method is a method of collecting
data on the phenomenon of interest by recording the
observations made about the phenomenon as it
actually happens.
Sampling and Sampling Techniques
• The target population is the population we want
to study. The sampled population is the population
from where we actually select the sample.
• Probability sampling is a method of selecting a
sample wherein each element in the population has
a known, nonzero chance of being included in the
sample; otherwise it is nonprobability sampling.
Methods of Probability Sampling
1. Simple random sampling
2. Stratified sampling
3. Systematic sampling
4. Cluster sampling
Methods of Nonprobability Sampling
1. Haphazard or convenience
2. Judgement or purposive
3. Quota sampling
Presentation of Data
• Textual presentation of data incorporates
important figures in a paragraph of text.
• Tabular presentation of data arranges figures in
a systematic manner in rows and columns.
• Graphical presentation of data portrays
numerical figures or relationships among variables
in pictorial form.
Organization of Data
• Raw data are data in their original form.
• The array is an ordered arrangement of data according
to magnitude.
• The frequency distribution is a way of summarizing
data by showing the number of observations that belong
in the different categories or classes.
Measures of Central Tendency
Measures of Central Tendency are descriptive
measures that are used to describe the center of a set of
data, arranged numerically.
1. The arithmetic mean is the most common type of
average. It is the sum of all the observed values divided
by the numbers of observations.
2. The median is the value that divides the array into
two equal parts.
3. The mode is the observed value that occurs with the
greatest frequency in a data set.
Measures of Location
Measures of Location, on position or fractiles are used
to specify the location of specific data in relation to the
rest of the sample. It divides the distribution into equal
number of parts.
1. The percentiles divide the ordered observation into
100 equal parts.
2. The quartiles divide the ordered observations into 4
equal parts.
3. The decile divides that observed observation into 10
equal parts.
Consider the given set of data:
Set A: 9, 12, 13, 15, 15, 17, 24
Set B: 7, 11, 15, 15, 17, 19, 21 Set C: 11, 11, 15, 15, 15,
18, 20
Measures of Dispersion
Measures of Dispersion or Variability describes the
spread or the scatterings of the values around the mean
1. The range is the distance between the maximum
value and the minimum value.
2. The variance is the average squared difference of
each observation from the mean.
3. The standard deviation is the positive square root of
the variance.
4. The coefficient of variation is the ratio of the
standard deviation to the mean, expressed as a
percentage.
Measures of Skewness and Kurtosis
Measure of skewness measures the degree of symmetry
of a distribution.
• 𝑆𝑘 = 0, symmetric distribution
• 𝑆𝑘 > 0, positively skewed distribution
• 𝑆𝑘 < 0, negatively skewed distribution
X−Mo
• 𝑆𝑘1 ¿
s
3 ( X−Md )
• 𝑆𝑘2 ¿
s
Measures of Skewness
1. Symmetrical or Normal Distribution In a
symmetrical distribution the mean, median, and
mode all fall at the same point or equal.
2. Positively Skewed Distribution In a positively
skewed distribution, the extreme scores are larger,
thus the mean is larger than the median.
3. Negatively Skewed Distribution The order of
the measures of central tendency would be the
opposite of the positively skewed distribution, with
the mean being smaller than the median, which is
smaller than the mode.
Measure of kurtosis refers to the peakedness or
flatness of the curve of the distribution.
K=∑ ¿ ¿ ¿
i. when K > 3, the distribution is
Leptokurtic
ii. when K = 3, the distribution is
Mesokurtic
iii. when K < 3, the distribution is
Platykurtic
Measure of Kurtosis
• Leptokurtic. The curve is more peaked and the
hump is narrower or sharper than the normal curve.
• Platykurtik. The curve is less peaked and the
hump is flatter than the normal curve.
• Mesokurtic. The hump is the same as the normal
curved. It is neither too flat nor too peaked.
Normal Distribution
•The normal distribution is pattern for the
distribution of a set of data which follows a bell
shaped curve.
•The graph of a normal distribution is called a
normal curve.
Properties of Normal Distribution
1. Normal curve is bell shaped.
2. The mean, median and mode are located at the
center of the distribution and it is unimodal.
3. It is symmetrical about mean.
4. It is continuous and is asymptotic with respect to
the x-axis.
5. The total area under curve is 1.00 or 100%.
 statistic for which we do not reject the null
Many Normal Distributions hypothesis.
•There are an infinite number of normal curves • These two regions are separated by the critical
•By varying mean and standard deviation, we obtain value of the set statistic.
different normal distributions
Critical Value
The Standard Normal Distribution • The critical value of the tabular value for the
• A normal distribution with a mean of 0 and a hypothesis test is a threshold to which the value of
standard deviation of 1 is called the standard normal the test statistic in a sample is compared to
distribution. • The z-score measures how many determine whether or not the null hypothesis is
standard deviations an observed value is above or rejected.
lower the mean. • Sample z score is given by the • We reject the null hypothesis if the computed
x−X value is greater than or equal to the critical value.
formula
s
• The standard score is useful when we want to Types of Error
compare two or more observed values from • The Type I error is the error committed when we
different data set. decide to reject the null hypothesis when in reality
the null hypothesis is true.
Area under the Standard Normal Curve • The Type II error is the error committed when
Given Steps we decide not to reject the null hypothesis when in
Between zero and any Look up the area in reality the null hypothesis is false.
number the table
Between two Look up both areas in The Level of Significance
positives, or Between the table and subtract • The level of significance, denoted by 𝛼, is the
two negatives the smaller from the maximum probability of committing a type I error
larger. that the researcher is willing to commit.
Between a negative Look up both areas in • Very frequently used are the .05 and .01 level of
and a positive the table and add them significance.
together • Note: 0.05 level of significance implies that we
Less than a negative, Look up the area in are willing to commit an error of 5% therefore a
or Greater than a the table and subtract confidence level of 95%.
positive from 0.5000
Greater than a Look up the area in p-value
negative, or Less than the table and add to The p-value is the probability of selecting a sample
a positive 0.5000 whose computed value for the test statistic is equal
Test of Hypothesis or more extreme than the realized value computed
• A one-tailed test of hypothesis is a test where the from the sample data, given that the null hypothesis
alternate hypothesis specifies a one-directional is true. As a rule, if the p-value is greater than the
difference for the parameter of interest. level of significance, then we do not reject the
• A two-tailed test of hypothesis is a test where the null hypothesis. On the other hand, if the p-value
alternate hypothesis does not specify a directional is less than or equal to the level of significance,
difference for the parameter of interest. then we reject the null hypothesis.
Test of Hypothesis
• A test statistic is a statistic whose value is Steps in Hypothesis Testing
calculated from sample data, which be the basis for 1. State the null and alternative hypotheses.
deciding whether to reject 𝐻0 or not in a test of 2. Choose the level of significance
hypothesis. 3. Determine the appropriate statistical technique
• The critical region is the set of values of the test and corresponding test statistic to use.
statistic for which we reject the null hypothesis. The 4. Perform the computation. Compare the computed
acceptance region is the set of values of the test value with the critical value (others use the p-value
instead)
5. Make the decision rule (Reject the null
hypothesis or failed to reject it).
Decision Rule
• Reject 𝐻0 if the value of the test statistic falls in
the region of rejection (that is, test statistics is
greater than the critical value.)
• Reject 𝐻0 if the p-value is less than or equal to the
level of significance.
The parametric tests are tests applied to data that
are normally distributed, the levels of measurement
of which are expressed in interval and ratio.
t-test for Dependent Samples (paired)
• A parametric test applied to one group of samples.
• It can be used in evaluation of a certain program
or treatment.
• It is applied when the mean before and the mean
after are being compared.
t-test for Independent Samples (unpaired)
• Used when we compare the means of two
independent groups.
• Used when the sample is less than 30.
z-test
• It is used to compare two means: the sample
means and the perceived population mean.
• It is also used to compare the two sample means
taken from the same population.
• When samples are equal to or greater than 30.
• It can be applied in two ways: the One-sample
mean test and the two sample mean test.
F-test
• It is another parametric test used to compare the
means of two or more independent groups.
• It is also known as the analysis of variance
(ANOVA).
• Kinds of ANOVA: One-way, two-way, three-way
• We used ANOVA to find out if there is a
significant difference between and among the
means of two or more independent groups.
The Pearson Product Moment Coefficient
Correlation, r
• It is used to analyze if a relationship exists
between two variables (measured in the interval or
ratio scale) say variable x and y.
• It was developed by Karl Pearson that is why the
correlation coefficient is sometimes called
"Pearson's r." The formula is defined by:
r =n ¿ ¿
Basic properties of r
The range of the correlation coefficient is -1 and
+1. If the value of the coefficient is close to -1.00,
it represents a perfect negative correlation while a
value of +1.00 represents a perfect positive
correlation.
If the value is equal to 0.00, it means
that there is no relation between the variables.
Simple Linear Regression Analysis
• The simple linear regression analysis predicts the
value of y given the value of x.
• It is used when there is a relationship between the
independent variable x and the dependent variable
y.
• The formula for the simple linear regression is
𝑦 = 𝑎 + 𝑏𝑥, where y = dependent variable, x =
independent variable, a = y-intercept,
- This statistical procedure is concerned with
prediction or forecasting
- It is a statistical method that allows us to
summarize and study relationships between two
continuous (quantitative) variables.
- In simple linear regression, we predict scores on
one variable (dependent) from the scores on a
second variable (independent).
- The variable we are predicting is called the
criterion variable and is referred to as Y. The
variable we are basing our predictions on is called
the predictor variable and is referred to as X.
Nonparametric tests are tests that do not require
a normal distribution. They utilize both nominal and
ordinal data.
Chi-Square Test
• This is the test of difference between the observed
and expected frequencies.
• The Test for Goodness of fit determines if the
sample under analysis was drawn from a population
that follows some specified distribution.
• The Test for Homogeneity answers the
proposition that several populations are
homogeneous with respect to some characteristic.
• The Test for independence (one of the most
frequent uses of Chi Square) is for testing the null
hypothesis that two criteria of classification, when
applied to a population of subjects are independent.
If they are not independent then there is an
association between them.
Lesson 4.1:Hypothesis Testing
What is Hypothesis?
•An assumption about the population parameter.
•An educated guess about the population parameter.
• Hypothesis Testing:This is the process of
making an inference or generalization on population
parameters based on the results of the study on
samples.
• Statistical Hypothesis: It is a guess or
prediction made by the researcher regarding the
possible outcome of the study.
•Null Hypothesis (H0 ):is always hoped to be
rejected. It always contains “=“ sign
•Alternative Hypothesis (Ha ):
o Challenges H0
o Never contains the “=“ sign
o Uses the “< or >” or “ ≠ ”
o generally represents the idea which the
researcher wants to prove.  The null
hypothesis (H0 )
•The null hypothesis (Ho ) represents the current
line of thought concerning population parameters,
prior to any application of inferential statistics.
While; 
•The alternative hypothesis (Ha ) is accepted only
after the validity of the null hypothesis is
statistically inferred to be incorrect.
Example: “The dependant is assumed to be
innocent until proven guilty beyond all reasonable
doubt.
What are the steps in hypothesis testing?
1. State the null hypothesis and alternative
hypothesis
• Begin with very clear, precisely stated research
question that will guide the way we conduct and
ensure that we do not just end up with a jumble of
information
that do not create any real knowledge.
Example: Research Questions
1. Are men from America on the average taller
than men from the Philippines?
2. Is the proportion of cigarette smokers who
suffer from lung cancer higher than the proportion
of non-smokers who suffer from lung cancer?
3. Do students from private schools have higher
drop-out rates at university than students from state
universities?
Crucial elements:
•They identify the population (s) we want to make a
statement about;
•They identify variables for which we will gather
data; and
•They identify the relevant descriptive statistic for
describing the data.
2. Set the level of significance
3. Formulate the direction rule (DR)
4. Compute the test statistics
5. make a decision
What are the two kinds of research
questions?
1. The first is where a particular value is chosen for
practical or policy reasons.
2. The other situation in which we will have a
specified test value where we want to compare the
population under investigation with another
population whose parameter region is known.
The null hypothesis of no difference (Ho)
•The null hypothesis must be clearly capable of
being rejected, that is, it can be shown to be false.
•The null hypothesis is also called the statistical
hypothesis because it is stated for the purpose of
either accepting or rejecting it after submitting the
data to statistical analysis.
Examples:
Title 1: An evaluation of the effectiveness of online
learning
Problem: The researcher wants to know if online
learning has increased the average GPA of NEU
students from 80%.
H0 :  = 80; Online learning has not increased the
average GPA of NEU students
Ha :  > 80; Online learning has increased the
average GPA of NEU students
Explanation: This is because the researcher is
interested in knowing if online learning has
increased the average GPA of NEU students ( >,
because of the word increased)

Lesson 4.2: Types of Hypothesis Test
1. One-tailed left directional test
• this is used if Ha uses the < symbol
Left directional test: It is used when the
alternatives hypothesis uses comparative such as
less than, smaller than, inferior to, below, etc.
The figure above illustrates the acceptance and
rejection regions. Left tail tests normally used when
we want to test to see if some minimum
requirement has been met.
Example:
1.It is known in our school canteen that the average
waiting time for a customer to receive and pay his
order is 20 minutes. Additional personnel have been
assigned and now the management wants to know if
the average waiting time had been reduced.
H0: The average waiting time had not been reduced
H0: The average waiting time is equal to 20 minutes
Ha: The average waiting time had been reduced or
Ha: The average waiting is less than 20 minutes.
2. One-tailed right directional test
• this is used if Ha uses the > symbol
Right directional test: It is used when the
alternatives hypothesis uses comparative such as
greater than, higher than, better than, superior
to, exceeds, etc. The figure above illustrates the
acceptance and rejection regions. A right tail tests
normally used when we want to test whether some
maximum limit or standard has not been exceeded.
3. Two-tailed test: Non-directional
Two-tailed test: It is used when the alternative
hypothesis uses words such as not equal to,
significantly different, etc.
Alternative hypothesis Tail of sampling
distribution
H1 :  ≠ X Both
H1 :  < X Left
H1 :  > X Right
Therefore:
1. If Ha uses the ≠, the test is two-tailed non-
directional
2. If Ha uses the <, the test is one-tailed left
directional
3. If Ha uses the >, the test is one-tailed right
directional
Level of Significance
The level of significance is the area of the rejection
region designated by the Greek Letter  (alpha)
while the area of the acceptance region is designed
by the Greek Letter  (beta). If  =0.05,  = 0.95,
the typical values of  are 0.01 and 0.05.
But you are not prevented from 0.02, 0.03, … etc.
In your research, however, you just have to use =
0.05.
Decisions Made Regarding H0
(Reject H0 / Do not reject H0 )
If you reject H0 , it means it is wrong!
If you do not reject H0 , it doesn’t mean it is
correct! – you simply don’t have enough evidence
to reject it!
What is Type I error?
• Type I error () is the error of rejecting the true
null hypothesis (H0 ).
• It is called the level of significance of a test.
What is Type II error?
• Type II error () is the error of accepting the false
null hypothesis when the alternative hypothesis (H1
) is true.
•An  of 0.01 (compared with 0.05) means the
researcher is being relatively careful. He/she is only
willing to risk being wrong once in a 100 times in
rejecting the null hypothesis which is true.
•If the null hypothesis is rejected at  = 0.05, the
perceived difference is significant, but if it is
rejected at  = 0.01, the difference is highly
significant.
Testing the Significance of Difference Between
Means
z – test n  30 →  is known
t – test n < 30 →  is known
F – test (ANOVA)→ 3 or more μs
•To reiterate, the z – test is used when “n is large”
or when “n  30” and  (population standard
deviation) is known. Three types of hypotheses can
be tested by z – test
Testing the significance of difference between
•Population or hypothesized mean, that is •The second compares the pvalue (the area to the
Population mean vs Sample mean right of the computed value) and .
•Two sample means and two sample standard
deviations are known, that is Sample mean 1 vs
Sample mean 2
•Two sample means and population standard Lesson 4.3: The Z-Test
deviation is known, that is Sample mean 1 vs
Sample mean 2 •A table is constructed so that you don’t have to go
back to the areas under the normal curve table. You
Testing the Significance of Difference Between will always refer to this table whenever you use the
Means “n is large or when n  30 and  is ztest in hypothesis testing.
unknown”
Test  0.01 0.05
z – test n  30 →  is known One-tailed 2.33 1.65
•Hypothesized/population mean vs Sample mean Two-tailed 2.58 1.96
and population standard deviation is known Examples:
( x́−μ ) √ n 1.A supermarket owner believes that the mean
Z=
σ income of its customers is P50, 000 per month. One
x́- is the sample mean hundred customers are randomly selected and asked
 - is the population mean of their monthly income. The sample mean is P48,
n - is the sample size 500 per month and standard deviation is P3, 200. Is
 - is the population standard deviation there sufficient evidence to indicate that the mean
income of the customers of the supermarket is P50,
z – test n  30 →  is known 000 per month? Use a = 0.05.
•Sample mean 1 vs Sample mean 2 and 2 sample Answer:
standard deviation are known. Since n = 100, and only one sample mean is given,
( x 1−x 2 ) use the z-test, and the test statistic is:
Z=
s12 s 22
√ +
n1 n2
x 1- is the mean of sample 1
Z=
( x́−μ ) √ n
σ
Substituting μ=50000 , x́=48500 ,
x 2- is the mean of sample 2 n=100 , σ=3200 in the formula, you obtain
n1 & n2 - are the sample sizes ( 48500−50000 ) √ 100
Z=
s1 & s2 - are the sample standard deviations 3200
−1500 ( 10 ) −1500
z – test n  30 →  is known ¿ =
3200 3200
•Sample mean 1 vs Sample mean 2 and population ¿−4.69
standard deviation is known. 5 – Step solution

( x 1−x 2 ) 1. H σ : μ=50000; The mean income of the

Z= customers in the supermarket is 50000.
1 1
σ
√ +
n1 n 2
x 1- is the mean of sample 1
H a : μ≠ 50000; The mean income of the
customers in the supermarket is not
x 2 - is the mean of sample 2 50000.
n1 & n2 - are the sample sizes 2. a=0.05; two-tailed test; Ztab = -1.96
 - is the population standard deviations 3. Decision rule: Reject H σ if
|Z c ( – 4.69 )|≥|Z tab (−1.96)| that is if 4.69 
•The first is the critical value approach which 1.96
compares the computed value of the test statistic 4. Decision: Reject H σ , since Z c (2.50) >
and the critical value. Ztab (1.96)
 5. Conclusion: The mean income of the
customers in the supermarket is not
50000.
Lesson 4.4: The t-Test
• The t-test is used if n is small, it will be used if
n<30 and  is known
• If the sample size is small the value (n<30), the
values of the mean and standard deviation fluctuate
from sample to sample.
• The sampling distribution of sample mean and
standard deviation is no longer a standard normal
distribution, thus you call it t-distribution.
• The t-distribution is similar to z-distribution.
• They are both symmetrical about the mean. Both
are bell-shaped.
• The t-distribution is more variable since t-values
depend on the fluctuation of the mean and the
standard deviation, whereas the z-values depend
only on the fluctuation of the mean from sample to
sample.
• The two distributions differ in standard
deviation: z has a standard deviation of 1 while t
has a standard deviation which is always greater
than 1.
• The divisor n – 1 in the formula for the variance
and standard deviation is called the degree of
freedom (df). • If the mean and standard deviation
are computed from samples of size n, the values of t
are said to belong to a t distribution with df = n – 1.
• Therefore, you have a different t curve for each
possible sample size, such that a curve becomes
more and more like the standard normal curve as n
becomes larger or as n approaches infinity.
Degree of freedom: It is the number of variables
which are free to vary.
t- distribution w/ different df
df =  , df = 10, df = 4
• The figure above shows the t-distribution with df
= 4, 10 and . The curve for df=4, represents a
sampling distribution of all t-values computed from
repeated random samples of size n = 5 taken from a
normal population. Similarly the curve for df = 10
represents sampling distribution of all t-values
computed from samples of size n = 11.
• The steps in testing the significance of difference
between means using the t-test are just the same as
in the z-test.
• The difference lies in the use of the t-distribution
with n – 1 degree of freedom instead of the normal
distribution.
• The t-distribution is also known as the student’s
distribution since it was developed by Gosset in
1908 under the name Student.
•Notice that as “n approaches infinity, the critical
value of t approaches the critical value of z”, that
is t becomes z.
How to use the t-table, “Student Distribution”
If  = 0.05; df = 9 and the test is two-tailed; t tab =
2.262.
If  = 0.01; df = 10 and the test is one-tailed; t tab =
2.764.
Testing the Significance of Difference Between
Means “n is small or when n < 30 and  is
unknown.”
t – test n < 30 →  is known
• Hypothesized/population mean vs Sample mean
and population standard deviation is unknown.
( x́−μ) √ n
t= df = n – 1
s
Given one sample mean and one standard deviation.
Example:
A ten randomly selected oil wells in a large field
produced 21, 19, 20, 22, 24, 21, 19, 22, 22, and 20
barrels of crude oil per day. Is this enough evidence
to conclude that the oil wells are not producing an
average of 22.5 barrels of crude oil per day? Test at
0.01 level of significance.
21+19+20+22+24+ 21+ 19+22+22+ 20
x́= x́=21
10
The given data are:  = 22.5,  = 0.01. The sample
mean and standard deviation are not given,
therefore solve it first using calculator. Then x́ = 21,
sx = 1.56. Substituting the value, you have the
following solutions:
( x́−μ) √ n (21−22.5) √10
t= = =−3.04
s 1.56
5– step solution
1.H0 :  = 22.5 (The oil wells are producing 22.5
barrels of oil a day)
Ha :  ≠ 22.5 (The oil wells are not producing 22.5
barrels of oil a day.
2.  = 0.01; df = 9; t tab = -3.250 (from the table of
Student distribution)
3. Decision rule: Reject H0 if , 3. Decision rule: Reject H0 if ,
|t c (−3.04 )|≥|ttab (−3.250)|that is if 3.04  3.250 |t c ( 1.69 )|≥|t tab (1.703 .)|that is if 1.69  1.703.
4. Decision: Do not Reject H0 ,/Accept H0 because 4. Decision: Do not Reject H0 , since tc (1.69) <
3.04 < 3.250 ttab (1.703).
5. Conclusion: The oil wells are producing 22.5 5. Conclusion: The Team-based Instruction method
barrels of oil a day. of teaching Statistics is as effective as the
•Two independent sample means and two sample Individually-guided Instruction method.
standard deviations are unknown. • Dependent or Correlated Sample Means
x 1−x 2 d́ n
t= t= √ df = n-1
(n¿¿ 2−1)s 22 1 1 ; df = sd
√ (n ¿ ¿ 1−1) s 21+

n1+n2 -2
√
n1 +n2 −2
+ ¿¿
n1 n 2 • Dependent samples are drawn from the same
population or the same set of samples subjected to
different experimental conditions, like weight
S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 before and after attending aerobics, pretest and
TBI 30 28 29 20 18 19 16 27 22 24 26 28 30 29 18 posttest, etc. • Correlated samples are two
IGI 25 27 20 30 16 21 15 25 28 21 19 17 18 1 different sets of samples which are related, like
Method n x́ sx mother and daughter, brother and sister, old and
TBI 15 24.27 4.98 new machine, etc.
IGI 14 21.07 5.21 Example:
•Based on the result of the test, can you say that the The following are the weights in pounds of 15
TBI method of teaching is more effective than the students before and after six months of attending
IGI method? Use  = 0.05. aerobics.
Example: Weights Before 243 179 201 165 183 153 170
A teacher wants to find out if the Team-based Weights After 231 173 199 162 179 152 164
Instruction (TBI) method of teaching Statistics is Difference 12 6 2 3 4 1 6
more effective than the Individually-guided Weights Before 180 212 169 178 209 158 192 144
Instruction (IGI) method. Two classes of Weights After 177 207 170 171 196 159 190 140
approximately equal intelligence were selected. Difference 3 5 -1 7 13 -1 2 4
From one class, he/she considered 15 students with •Test at  = 0.05 if aerobics is effective in reducing
whom he/she used TBI method of teaching and weight.
from the other class, he/she considered 14 students Solution: Since the two sets of data are taken from
with whom he/she used IGI method. After several the same set of sample, use the t-test and the test
sessions, a 30-item test was given. The scores are statistic is :
shown in the following table. •First, get d́and sd . By using the formula or
Solution: Since n1 = 15 and n2 = 14, and there are calculator for finding the mean and standard
two independent samples, use the t-test and the test deviation, you find that the mean of the difference is
statistic is: 4.40 and standard deviation is 4.05.
Substituting: Substituting:
x 1=24.27 x 2=21.07 d́=4.40 s d =4.05 n=15
s1=4.98 s2=5.21
4.40 √ 15
n1 =15 n2 =14 t= =4.21 ; df =15−1=14
4.05
24.27−21.07 If you let :
t=
√ (15−1 ) ¿¿ ¿ ¿ μ B=The mean before attending aerobics
df =15+14−2=27 μ A =The mean after attending aerobics
5 – step solution
1.H0 : The TBI method of teaching Statistics is as 5 – step solution
effective as the IGI method. (H0 : TBI=IGI) 1.H0 : Aerobics is not effective in reducing weight.
Ha : The TBI method of teaching Statistics is more (H0 : B=A )
effective as the IGI method. (Ha : TBI>IGI) Ha : Aerobics is effective in reducing weight.
2.  = 0.05; one-tailed; df = 27; t tab = 1.703 (Ha : B ≠A )
2.  = 0.05; two-tailed; df = 14; t tab = 2.145 σ 2 = 1,120 / 5 = 224
3. Decision rule: Reject H0 if , s2 = 1,120 / 4 = 280
|t c ( 4.21 )|≥|t tab ( 2.145.)|that is if 4.21  2.145. STANDARD DEVIATION: The square root of the
4. Decision: Reject H0 , since tc (4.21) > t tab Variance
(2.145). BOYS
5. Conclusion: Based on the sample evidence, σ 2 = 224 s2 = 280
aerobics is effective in reducing weight. σ = 14.97 s = 16.73

Lesson 4.5: Measures of Variability of Lesson 4.6: Correlation Analysis

Ungrouped Data
• A correlation is a relationship or association
Boys Girls between two variables.
Frederick 70 Grace 82 • A correlation coefficient is a numerical measure
Russel 95 Irish 80 of the linear relationship between two variables.
Murphy 60 Abigail 83
Jerome 80 Sherry 81 A direct or positive relationship between two
variables implies that an increase in value of one of
Tom 100 Kristine 79
the variables corresponds to an increase in value of
Mean: 81 Mean: 81
the other variable. r = 1
A direct or positive relationship between two
Measures of Variability or Dispersion
variables implies that an increase in value of some
RANGE: The difference between the highest and
of the variables corresponds to an increase in value
the lowest observation R = H – L
of the other variable. 0 < r < 1
Boys: R = 100 – 60 R = 40
• In reality, you could seldom find variables with
Girls: R = 83 – 79 R = 4
perfect positive correlation. Oftentimes, you will
come across variables with only some degree of
Mean Deviation: The average of the summation of
positive relationship.
the absolute deviation of each observation from the
• In a perfect positive correlation, all the points
| Xi− X́|
mean. MD= ∑ can be contained in a straight line whose
n movement is upward right. Now what do you notice
Boys Xi Xi-X in the “some positive correlation”? Can they
Frederick 70 11 contained in one straight line? If not describe the
Russel 95 14 general direction of the points.
Murphy 60 21
Jerome 80 1 What do you think is the relationship between the
Tom 100 19 number of absences in class (variable 1) and the
Mean: 81 ∑405 ∑66 grades received (variable 2)?
M.D = 66 / 5 = 13.2
An inverse or negative relationship between two
VARIANCE: The average of the squared deviation variables implies that an increase in value of one of
from the mean. the variables corresponds to a decrease in value of
Population Variance σ 2=∑ ¿ ¿ ¿ the other variable. r = -1
Sample Variance s2=∑ ¿ ¿¿ • Again, this type of relationship is not true for all.
In real life, you can only get some degree of
Boys Xi Xi-X ¿
negative relationship.
Frederick 70 -11 121 An inverse or negative relationship between two
Russel 95 14 196 variables implies that an increase in value of some
Murphy 60 -21 441 of the variables corresponds to a decrease in value
Jerome 80 -1 1 of the other variable. -1 < r < 0
Tom 100 19 361
Mean: 81 ∑405 ∑66 ∑ 1,120
Yes! There are many variables which do not have r =0.89
correlation at all. Thus, there exists a zero • To get the correlation coefficient, press SHIFT or RCL
correlation. then “r”, 0.8851144396 will be display. In two decimal
places, rxy = 0.89 which is interpreted as high
A zero relationship exists between two variables if correlation.
an increase in value of one of the variables is not Another important and interesting statistics which
accompanied by either an increase or a decrease can be obtained from the correlation coefficient (r),
in value of the other variable. r = 0 is the coefficient of determination “r2 ”. This tells
us how much of Y (grades) is due to or can be
• To determine the degree of relationship between attributed to X (number of hours spent in studying).
two variables, the “Pearson product-moment Thus, if you square “r”, that is 0.8851143962 ,
correlation coefficient or simply Pearson’s “r” you will get 0.783427495.
formula will be used.” The formula and the extent
or the degree of relationship are given in the boxes • This value is interpreted as follows:
below. “Seventy-eight percent (78%) of the variation in
The Pearson product-moment correlation grades received (Y) is due to or can be attributed to
coefficient or simply Pearson r the variation in the number of hours spent in
r =n ¿ ¿ studying (X), and the remaining 22% (100% -
78%) is due to the other factors such as IQ, teacher,
etc…
A correlation coefficient is the magnitude or the Testing the significance of correlation
degree of relationship between two variables. • After learning how to get and interpret the value
of “r”, your next task is to determine whether the
between to  0.80 0.99 high correlation correlation, which exists between the variables, is
between to  0.60  0.79 moderately high correlation significant and not just due to chance. This time, it
between to  0.40  0.59 moderate correlation is testing the significance of correlation.
between to  0.20  0.39 low correlation • There are several ways to test if “r” is significant.
between to  0.01  0.19 negligible correlation One can use the t-test for correlation coefficient
with the formula:
• For manual computation, you may refer to the r n−2
formula. However, it will be easier if you have the t= √ 2
√1−r
required calculator with LR/stat1/stat2/statxy 0.8851143962 √ 10−2
mode. t=
• Do the computation using the example on the √ 1−0.8851143962 2
number of hours spent in studying and the grades t=5.379511443
received. t=5.3795
Hours Grades x2 y2 xy
x y
2 57 4 3249 114
2 63 4 3969 126
2 70 4 4900 140
3 72 9 5784 216
3 69 9 4761 207
4 75 16 5625 300
5 73 25 5329 365
5 84 25 7056 420 5– step solution (Let r be the pop. Correlation)
6 82 36 6724 492 1.H0 : r = 0; There is no correlation between the
6 89 36 7921 534 no. of hours spent in studying and the grades
38 734 168 54718 2914 received. (rho is the symbol for population r)
10 ( 2914 )−( 38 ) ( 734 ) Ha : r ≠ 0; There is a correlation between the
¿
√¿ ¿ ¿ number of hours spent in studying and the grades
r =0.8851144396 received.
2.  = 0.05; t comp = 5.3795 and cv = 2.306
3. Decision rule: Reject H0 if |5.3795|≥|2.306|
4. Decision: Reject H0 , because 5.3795 > 2.306
5. Conclusion: There is a significant correlation
between the number of hours spent in studying and
the grades received. Hence, as the number of hours
spent in studying increases, the grades received also
increase.
Lesson 4.7: Spearman Rank-Order Correlation
Spearman Rank-Order Correlation Coefficient
•This known as Spearman’s rho. The basic logic
underlying rho is that it tries to predict the ranking
of pairs of cases on the dependent variable given
their ranking on the independent variable. However,
it makes use of the longer scale.
•This is a very simple and quick method when there
the paired data expressed in ranks are less than 30.
•Spearman’s rho of the ranks of the two variables
is used to determine the degree of relationship.
5 – step solution:
1.H0 : = 0; There is no correlation between the
rankings of the characteristics of professors
preferred most by BSE and BA students.
Ha :  ≠ 0; There is correlation between the
rankings of the characteristics of professors
preferred most by BSE and BA students.
2. : 0.05; -computed = 0.93; -tab = 0.683
3. Direction Rule: Reject H0 if  - comp (0.93)  
- tab (0.683).
4. Decision: Reject H0 because 0.94 > 0.683
5. Conclusion: There is a significant correlation
between the rankings of the characteristics of
professors preferred most by BSE and BA students.
Lesson 4.8: Regression Analysis
If two variables are correlated, that is if the
correlation coefficient (r) is significant, then it is
possible to predict or estimate the value of one
variable from the knowledge of the other variable.

Remember that Pearson’s r is appropriate to use Application of Regression Analysis

when data are interval or ratio scale. For ordinal
data, Spearman Rho () is used.
But Spearman Rho () is considered as a very
special type of Pearson’s r .
Formula:
• Suppose the advertising cost (x) and sales (y) are
correlated, then you can predict the future sales (y)
in terms of advertising cost (x).
• Predicting the value of certain variable several
years hence or several years back when the values
of that variable for corresponding years are given.

6 ∑ d2 Definition:
ρ ( rho )=1
[ n(n2−1) ] • Regression Analysis deals with the estimation of
one variable based on the changes or movements of
Where: the other variable.
1 and 6 = constant • Regression Equation: Y = a + bx
d = the difference in ranks and
n = the number of pairs
BSE Rank BA Rank d D squared a=
∑ y−b ∑ x
N
1 1 0 0 b=N ¿ ¿
6 5 1 1
5 6 -1 1 Linear Regression of Y on X
4 3 1 1 •In a regression equation Y = a + bx, “a” which is
9 9 0 0 constant is the value of y-intercept while “b” is the
3 2 1 1 slope of the regression line.
2 4 -2 4 •The regression line is the line which traces the
8 8 0 0 general direction of the points plotted in the scatter
7 7 0 0 diagram. It is called the Trend Line or the Least
8 Square Regression Line (LSRL) because it is the
6 (8) line which gives the minimum sum of the
ρ ( rho )=1
[
9(92−1) ] differences from the actual values.
•Thus, Y = a + bx is the linear regression of Y on
48
¿ 1− =0.93 X, and is used to predict the value of Y from the
720
knowledge of X. the line which gives the minimum sum of squares of
the differences from the line parallel to the x axis.
•Two types of variables are involved in the •Thus, “X = a + by” is the linear regression of X on
regression equation: Y, and is used to predict the value of X from the
1. The predictor (independent) variable which is knowledge of Y. The Formulas are indicated in the
“x” in the regression equation (Y = a + bx). box.
2. The predictand (dependent) variable which is
“y” in the regression equation.
•Again, take as your example the hours spent in • Regression of X to Y: X =a+by
studying (x) and grades received (y) to predict the b=N ¿ ¿
grades received (y) using the knowledge of the
number of hours spent in studying (x). 10 ( 2914 )−(38)( 734)
b= = 0.1481
•In getting Pearson’s r , the same value can be 10 ( 54718 )−¿ ¿
obtained even if x and y are interchanged. Enter x
then y or y then x and the same r (0.89) will be ∑ x−b ∑ y
obtained. •However, you have to enter first the a=
N
independent variable, in this case, x followed by
the dependent variable y. They cannot be 38−0.1481(734)
interchanged! a= =−7.07
10
Now predict the grade (Y) of students whose • Thus, X = -7.07 + 0.15Y. This is the equation
number of hours spent for studying are: which will be used to predict the number of hours
• First have to set up the regression equation “Y = a spent in studying from the knowledge of the grades
+ bx” received are:
• Get “a” by pressing SHIFT then “A” or its a) 87: X’ = -7.07 + 0.15(87) = 5.98  6 hours
equivalent, and “53.30508475” will display
b) 60: X’ = -7.07 + 0.15(60) = 1.93  2 hours
• Get “b” by pressing SHIFT then “B” or its
equivalent, and “5.288135593” will display
• Now, can you use the calculator to get the “a and
• Putting them together in the regression equation
b” for the regression equation of X and Y the way
“Y = a + bx”, you have: “Y = 53.31 + 5.29x”, that is
you did for the regression of Y and X? YES! But
rounding off A and B to two-decimal places.
you have to interchange “x and y” thus, the grade
takes the role of X while the number of hours spent
• To predict the grade received (Y’) when the
in studying becomes Y.
number of hours spent in studying is:
• Notice that you get exactly the same values for “a
a) 7 hours: substitute 7 to x in your equation, Y’ =
and b” as what you got using the formula. It gives
53.31 + 5.29(7)  90.34 or 90.
you the same equation X = -7.07 + 0.15Y.
b) 1 hour: substitute 7 to x in your equation, Y’ =
Therefore, to make your job easier, and to avoid
53.31 + 5.29(1)  58.6 or 59. using the formula, you can just interchange X and Y
c) 45 min: substitute 7 to x in your equation, Y’ = as what you did above.
53.31 + 5.29(45/60)  57.28 or 57. • Now since you interchanged X and Y, your
equation becomes: Y = -7.07 + 0.15X.
Linear Regression of X on Y
•If you want to predict the number of hours spent in
studying given the grades, can you use the same
equation “Y = 53.31 + 5.29x”.? The answer is
NO!
•This time, the independent variable (x) is the
grade while the dependent variable (y) is the
number of hours spent in studying.
•This is now the linear regression of X on Y. The
Least Square Regression Line (LSRL) this time is