Chapter

1
The Nature of Statistics
Chapter Outline
Introduction Descriptive and Inferential Statistics Sampling and Sampling Techniques Basic Statistical Terms Summation Notation

The Nature of Statistics

Introduction
Everyone, whether aware of it or not, uses statistics in daily life. Statistics is utilized in almost every field. Through statistical procedures and techniques we are able to obtain the state of unemployment in the country, the leading television program in a certain timeslot, the survey rankings of the political candidates for the upcoming elections, the top selling brand of a commodity, the strength of a particular material, and many others. These are but a few examples of how statistics shape our decision making in life.

Definition and Division of Statistics

The word statistics may mean two things. Statistics, as a science, deals with the collection, organization, presentation, analysis and interpretation of quantitative data. On the other hand, statistics, as a plural of statistic, refer to measures or information derived from the data coming from a small portion of the group under study, such as means or averages. The study of statistics is divided into two branches, namely descriptive statistics and inferential statistics. Descriptive statistics is concerned with describing the characteristics and properties of a group of persons, places or things of interest. Inferential statistics is concerned with drawing inferences or conclusions about the properties or characteristics of a large group of people, places, or things on the bases of the information obtained from a small portion a large group.

Example 1 Determine whether in the given situation, descriptive statistics or inferential statistics have been used. a. A bowler finds his bowling average for the past 12 games. b. A store manager predicts, based on previous years sales, the sales performance of a company for the next five years. c. A teacher determines the percentage of students who passed the examination. d. A student computes his average monthly expenditure on school supplies for the past five months. e. A politician estimates, based on an opinion poll, his chance of winning in the upcoming election. Solution

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The Nature of Statistics

Basic Statistical Terms

Time, financial considerations, and availability of resources may sometimes hinder a researcher to examine the entire group, called the population. Thus, he may opt to consider a small portion or subset of the population, called a sample. Any characteristic or information derived from a population under study is called a parameter. An estimate of a parameter, that is, information obtained from a sample is known as a statistic. In conducting any statistical study, measures or values, called data, are obtained about a certain attribute, called variable. A collection of values forms a data set. Example 2 Identify the variables and data in the following information on a certain student. Age : 17 years Gender : Male Year Level : Fourth Solution

In general, variables may be classified as qualitative or quantitative. Qualitative variables are variables that can assume values that manifest the concept of attributes. These are sometimes called categorical data. Data falling in this category cannot be subjected to meaningful arithmetic. They cannot be added, subtracted, multiplied or divided. Quantitative variables are those that are numerical in nature and in purpose. These are data obtained from counting or measuring. In addition, meaningful arithmetic operations can be done with this type of data.

Example 3 Classify each variable as qualitative or quantitative. a. outcome in tossing a coin b. monthly salary of an employee c. height of trees d. subjects enrolled this term e. year level f. hourly output of a machine g. speed of a car h. student number Solution

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Quantitative variables can be classified as either discrete or continuous. A discrete variable produces a response that represents count data such as number of students in a class, number of defective items produced by a machine, or the number of dengue fever patients in a certain hospital. A continuous variable, on the other hand, represents measured data such as heights, weights, temperatures, or distances. Example 4 Classify each of the following quantitative variables as discrete or continuous. a. weight of a body b. length of a rod c. number of chairs in a room d. dimensions of a table e. number of possible outcomes in throwing a die Solution

In experiments, variables may be classified further as dependent or independent. A dependent variable is a variable, which is affected or influenced by another variable. An independent variable is one that affects or influences another variable. A constant is a property or characteristic of a population or sample, which makes the members of the group similar to each other. Example 5 In an experiment about the effect of decaffeinated coffee on the cholesterol level of males over fifty years of age, identify the dependent and independent variables and the constant used. Solution

Another common way to classify data is to use four levels of measurement. The level of measurement of data determines the algebraic operations that can be performed and the statistical tools that can be applied to the data set. 4
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The nominal level of measurement is used when we want to distinguish one object from another for identification purposes. In this scale, we can only say that one object is different from another, but the amount of difference between them cannot be determined. In the ordinal level of measurement, data are arranged in some specified order or rank. When objects are measured in this level, we can say that one is greater than the other, but we cannot tell how much more of the characteristic one has than the other. If data are measured in the interval level, we can say not only that one object is greater or less than another, but we can also specify the amount of difference. The ratio level of measurement is like the interval level. The only difference is that the ratio level always starts from the absolute or true zero point. Example 6 Identify the level of measurement for each variable. a. religion b. quiz scores c. ranking of winners in a contest d. lot area e. speed of a car f. civil status g. number of books in the library h. temperature Solution

Sampling and Sampling Techniques

One of the most important parts of the research work that needs preparation and planning is the sampling method. Sampling is a process of selecting units, like people, organizations or objects, from a population of interest in order to study and fairly generalize the results back to the population where the sample was taken. There is no absolute rule in determining the size of a sample from a population. Some statisticians say, a sample should represent at least 10% of the population. In educational researches, one common way to determine the sample size is to use Slovins formula. To determine the sample size from a given population size, the Slovins formula is given by the following.
n= N 1 + Ne 2

where n = sample size N = population size e = margin of error 5

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The Nature of Statistics

Example 7 A group of researchers will conduct a survey to find out the opinion of residents of a particular community regarding the oil price hike. If there are 10 000 residents in the community and the researchers plan to use a sample using a 10% margin of error, what should the sample size be? If the researchers would like to use a 5% margin of error, what should the sample size be? Solution

As soon as we have decided on or determined the sample size to be used in the study, the next step is to choose the sampling technique to be employed. Sampling technique is a procedure used to determine the individuals or members of a sample. In general, sampling may be done using probability and non-probability techniques. Probability Sampling is a sampling technique wherein each member or element of the population has an equal chance of being selected as a member of the sample.

1. Simple Random Sampling This is the simplest form of random sampling. It is the basic sampling technique where a group of subjects (sample) is selected for study from a larger group (population). Each individual is chosen entirely by chance and each member of the population has an equal chance of being included in the sample. The most common technique s for selecting simple random sample are by using strips of paper (lottery method), use of printed table of random numbers, or use of random numbers generated by computer programs or scientific calculators. 2. Systematic Random Sampling If we are to select the members of the sample from a large population, the simple random technique is a long and difficult process. An easier method is to use the systematic sampling technique. To draw the members of the sample using this method, we have to select a random starting point, and then draw successive elements

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from the population. In other words we pick every nth element of the population as a member of the sample. 3. Stratified Random Sampling When we use this method we are actually dividing the population into different categories or subpopulations and then the members of the sample are drawn or selected proportionally from each subpopulation. 4. Cluster Sampling Sometimes the population is too large that the use of simple random sampling will prove tedious and difficult. Under this condition we can use cluster sampling. Cluster sampling involves dividing the population into clusters, usually along geographic boundaries, then randomly taking samples of cluster, and measuring all units within sampled clusters. 5. Multi-Stage Sampling Multi-stage sampling is a combination of several sampling techniques. Usually, this method is used by researchers who are interested in studying a very large population, say the whole island of Luzon. This is done by starting the selection of the members of the sample using cluster sampling and then dividing each cluster into strata. Then from each stratum individuals are drawn randomly using simple random sampling.

Non-Probability Sampling is a sampling technique wherein members of the sample are drawn from the population based on the judgment of the researchers. The result of the study using this technique is relatively biased. This technique lacks objectivity of selection; hence, it is sometimes called subjective sampling. Non-probability sampling techniques are sometimes used because they are convenient and economical. Researchers use this method because they are inexpensive and easy to conduct. 1. Convenience Sampling Convenience sampling is used because of the convenience it offers to the researcher. A researcher who wishes to investigate the most popular noontime show may just interview the respondents through the telephone. The result of this interview will be biased because the opinions of those without telephones will not be included. Although convenience sampling may be used occasionally, we cannot depend on it in making inferences about a population. 2. Quota Sampling In this type of sampling, the proportions of the various subgroups in the population are determined and the sample is drawn to have the same percentage in it. This is very similar to the stratified random sampling. The only difference is that the selection of the members of the sample using quota sampling is not done randomly. 7
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3. Purposive Sampling In purposive sampling, samples are taken with a purpose in mind. Usually, one or more specific predefined groups are sought. The members of the sample are selected as to whether they meet the requirements of the study. If the target is to find out the effectiveness of a certain brand of shampoo, of course bald fellows will not be included in the sample.

SUMMATION NOTATION
The most common symbol or notation used in statistics is the summation notation or simply summation ( ).The following expression
n

x i = x1 + x 2 + x 3 + ... + x n .
i =1

is read as the summation of x sub i , from i = 1 to i = n ", and where i is called the index of summation, 1 is the lower limit, and n is the upper limit.

Basic Properties of Summation 1. c = c + c +4+... + c = cn , c is constant 1 2c 4 3

i =1 n n n n

2. cxi = cx1 + cx 2 + ... + cx n = c xi ,

i =1 n i =1 i =1

c is constant
n n

3. ( xi + y i ) = ( x1 + y1 ) + ( x 2 + y 2 ) + ... + ( x n + y n ) = xi + y i
i =1 i =1

Example 8 Write the following in full.

i =1

i =3

i =2

i =1

Solution

Lecture Notes in Probability and Statistics

3.

3 xi 2

4.

1.

5x i

2.

( xi + 2 y i - 5 )
4

( 3 xi )2

5.

( xi + 2 + 3 )
i =1

The Nature of Statistics

Example 9 Write each of the following expressions in summation notation with appropriate limits. a. 2x 1 + 2x 2 + 2x 3 + 2x 4 + 2x 5 + 2x 6 + 2x 7 + 2x 8 b. ( x2 3 y 2 ) + ( x3 3 y3 ) + ( x4 - 3 y 4 ) + ( x5 - 3 y5 ) c. ( a3 + 5 )2 + ( a4 + 5 )2 + ( a5 + 5 )2 + ( a6 + 5 )2
2 2 2 2 2 d. ( x1 + 1 ) + ( x2 + 2 ) + ( x3 + 3 ) + ( x4 + 4 ) + ( x5 + 5 ) e. 1 + 4 + 9 + 16 + 25 + ... + n 2

Solution

Example 10 Evaluate the following. a. 25

i =1 5

b. Let x1 = 2 c. Let x1 = 2

x 2 = 1 x3 = 4 x 4 = 0 x 5 = 3 , find

7 xi .
i =2

x 2 = 1 x3 = 4 x 4 = 0 x 5 = 3 , y1 = 3 y 2 = 4 y 3 = 5 y 4 = 1 y 5 = 2 ,

find

( 2 xi + y i ) .
i =1

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Solution

Example 11 Given y1 = -2 x1 = 4 y2 = 5 x2 = -3 y3 = -1 x3 = 6 y4 = 3, x4 = 2 evaluate the following.

2 3 a. x i y i

i =1

i =1

4 b. xi i =1

4 yi i =1

Solution

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