AMA Computer College - Makati Campus

Graduate Studies Program

Masters in Business Administration
1
st
Trimester 2014-2015


Professor Ivy M. Boca, MPA
Introduction to Statistics

Background and Development of Statistics
Statistical information and development can be traced
back from ancient times.
- Agricultural crops, taxes, athletics events, commerce and
trade, etc.
- Statistical work has continued to have a marked influence
on the activities of mankind in a wider scope from
describing important features of the data and analyzing
them.
- Biostatistics is the branch of applied statistics that
concerns the application of statistical methods to medicine
and biological problems.
- The present state of the science and art of statistic is an
outcome of the very active researches of the statisticians
during the past 400 years.
- John Graunt an English man in 1662 observed that
percentages of deaths and suicides, accidents and various
diseases remained remarkable constant throughout the
years.

- Abraham de Moivre discovered the equation of the
normal distribution in 1773.
- Carl Gauss who made its derivation from study of
errors in repeated measurement which he called
Gaussian Distribution.
- Sir Francis Galton & Karl Pearson developed the
theory of regression and correlation.
- Adolf Quetelet a Belgian is referred to as the Father
of Modern Statistics.Considers Statistics as queen
of science.
- William S. Gosset developed the small-sample
theory and further developed by Sir Ronald Fisher
in the 20
th
Century.

Meaning of Statistics
Statistics refers to set of pertinent activities such as
collection, presentation, analysis and interpretation of
quantitative data.
A field of study which deals with mathematical
characterization of a group or group of items.
Collection of data refers to the process of gathering
numerical information.( interview, questionnaire,
experiments, observation & documentary analysis).
Once the data are gathered, the next step is statistical
inquiry is the presentation of data in appropriate tables (
refer to frequency distribution which may be one-
dimensional or two-dimensional) and graphs which
includes bar graphs, frequency polygon, pie-graph, etc.)

>Analysis of the data refers to activity of
describing the properties or behavior of the
data or the possible correlation of different
quantities or variables.( can be obtained after
summarizing the data into measurement like
the averages).
Finally, interpretation has to be made based
on the preliminary activities and other
statistical methods.
( such methods involve testing the
significance of the results).

Nature of Statistics: Two Sub-areas/Categories
1. Descriptive Statistics
Field of statistics that includes the methods of collecting,
classifying, graphing, and averaging data with objective of
simply describing the properties or characteristics of the
data on hand.
The task of the statistician in this area is simply to select a
few procedures, do some averaging and eventually be
able to identify significant features of the given data.
2. Inferential Statistics
Demands a higher degree of critical judgment and
advanced mathematical models.
Concerned on drawing conclusion or generalization from
organized data.
Task of the statistician is not just to devise ways to give a
summary description of the data but ways to test the
significance of the results.


Its main concern is to analyze the organized
data leading to prediction or inference.
It implies that before carrying out an
inference, appropriate and correct
descriptive measures or methods are
employed to bring about good results.
The area o f inferential statistics called
hypothesis testing.
Examples of Descriptive & Inferential Statistics
Descriptive
1. Based on the research conducted
by the DOH 63% of those found
to have diabetes were not aware
that they have such disease.
2. Cigarettes were associated with
29% of the 4,470 civilian fire
deaths in 1989.
3. According to the nationwide
survey, the three highest
responses to persons living with
older persons are: grandchild
(61.8%), spouse (59%) and
daughter ( 50.9%).
4. According to the Court
Administration of the Phils. 14%
of trail-ready civil actions and
equity cases in Metro Manila
during 1993 were decided in less
than six months.
Inferential
1. Drinking red wine may
reduce the risk of heart
disease by 12%.
2. Aspirin may lower the rate of
heart attacks by 50%.
3. Carrot juice may strenghten
the lungs.
4. Eating chilli food may cause
shrinkage of the liver.
5. Drinking coffee may help
reduce the sugar level of
diabetic person.
SAMPLE & POPOULATION
Population
- refers to the groups or aggregate of people,
objects, materials, events, or things of any
form.
Sample
- is a subgroup of a population.
- taken from the population so as to
represent the population characteristics
or traits.
The measure of the population are called
Parameters.
The measure of samples are called
estimates or statistics.
Contrast Between Population &
Sample
Example of Population Example of Sample
1. Scores of entire
students of
secondary level.
2. All children of any
ages who have
older or younger
siblings.
1. Scores of
students in a
class.
2. The 40 children
who actually
participated in
one specific
study about
siblings.
How to determine the sample size?
What must be the percentage of the sample size to the population size?
Formula
n = N
1 + Ne

Where:
N = is the population size
e = is the margin of error
n = is the sample size





Example 1
Find the sample size if the population size is 250 at 95% accuracy.

Solution:
At 95% accuracy, the corresponding percentage error is 5% or 0.5
n = N
1 + Ne

n = 250
1 + 250 ( .05 )
n = 153.85

n = 154

Therefore at 95% accuracy , we can take a sample of 154 members from
a population of 250.



Example 2
A research is conducting an investigation regarding
the factors affecting the efficiency of the 185 faculty
members of a certain college. If he wanted to have a
margin of error of 5%, then how of the faculty
members should be taken as respondents?
Solution :
The population size shall be represented by the entire
faculty force of the college. Hence, N= 185. At 5%
margin of error, the sample size n shall be

n = ___185____
1 + 185 ( .05 )2
n = 126.50
n = 126


ROUNDING OFF NUMBERS
To round off a number to a desired approximate
value, we shall consider the following rules:
1. If the first number of the portion to be dropped is less
than 5, change all the digits that are to the right of
the last retained digit zero.
2. If the first number of the portion to be dropped is
greater than 5, then simply add one to the last
retained digit.
3. If the number to be dropped is exactly equal to 5,
then
a. add 1 to the last retained digit if it is odd.
b. the last retained digit is unchanged if it is even.
Round off the following numbers to the indicated decimal place
value

1. 987.3567 to two decimal places
2. 5,555.555 to one decimal places
3. 458.785 to two decimal places
4. 35.575 to two decimal places
5. 234.4346 to two decimal places
Solution:
1. 987.3567 = 987.36
2. 5,555.555 = 5,555.6
3. 458.785= 458.78
4. 35.575= 35.58
5. 234.4346 = 234.43



Variables and Data
Variable
- Is a characteristic that takes two or more values which
varies across individuals.
- The characteristic that is being studied.
Two types of Variable or Data
1. Qualitative variables represent differences in quality,
character or kind but not in amount. Non
numeric variables.
Examples: sex, birth,geographical locations, religious
preference, marital status and eye color.
2. Quantitative variables are numerical in nature and
can be ordered or ranked.
Examples: weight, height,age, test scores, speed and
body temperature.
Classification of Quantitative Variables
1. Discrete variable is a varaible whose values can
be counted using integral values such as number of
enrollees,drop-outs,graduates in a certain
college,deaths, number of employees, number of
students in a classroom,number of cars owned,
number of calls received by an operator.
- assumes integral values.
2. Continuous variable is a variable that can assume
any numerical value over an interval or intervals.
- yields decimal or fractions.
Examples: Height, weight,temperature , time, pressure
in a tire, and number of miles driven.
A variable can be dependent or independent depending o its
use


Predictor the variable whose
value is
being predicted.

Example
To predict the value of sunlight on the growth of a certain
plant, the dependent variable is the growth of the plant while
the independent variable is the amount of sunlight exposed
to the plant.

Observing the values of a variable yields data. A set of data
is a collection of values for a particular variable. Terms such
as qualitative, quantitative, discrete and continuous are also
to described data.

Scales of Measurement of Data
(Stanley Stevens Psychologist Researcher 1946 )
Measurement Scale the manner of assigning a
numerical value to a variable.
Level of Measurement relates to the rules used to
assign scores and is in an indication of the kind of
information that the scores provides.

1. NOMINAL use number for the purpose of identifying
name or membership in a group or category.
It consist of naming observations or classifying them
into various mutually exclusive and collectively
exhaustive categories.
All qualitative variables are measure on a nominal
scale, classified and counted without particular order
or ranking imposed on data.
Note: a sub-type of nominal scale with only two categories
(e.g. male/female) is called dichotomous. If you are a
student, you can use that to impress your teacher.
Example of Nominal Data
Report on number of persons involved in different
religions in a certain school.

Religion Number ( Person)
Catholic 1,170
Protestants 45
Iglesia ni Cristo 62
El Shaddai 25
No religions 93
Not reported 153
Other examples of Nominal Data
1. Political Party
2. Marital Status
3. Brand of soaps purchased
4. Diagnosis
5. Major field of study
6. Names of schools attended
7. Classifying residents according to zip code
8. Classifying survey subjects according to gender
9. Telephone numbers
10. Species of flowers


2. ORDINAL DATA
Connote ranking of inequalities.
One category is higher than the other one.
In this type of data, numbers represent greater than
or less than .
Examples:
1. Levels of Intelligence excellent, very satisfactory,
satisfactory, good, fair.
2. Social Class or Income Upper,Middle,Lower.
3. Stages of cancer Stage 1,2,3, 4
4. Built of person small,medium,large.
5. Rating scales based on scores and percentage.



3. INTERVAL DATA
Indicate an actual amount and there is equal unit
measurement separating each score, specifically
equal intervals.
Not only include greater than and lesser than
relationships, but also has a limit measurement that
permits us to describe how much more or less one
object possessed than another.
Examples:
1. The difference between 2 and 3 is the same as
the difference between 3and 4.
2. The 4 kilos corn is twice that of 2 kilos.


4. RATIO DATA
Are similar to interval data but has an absolute zero
and multiple and are meaningful.
Include all the usual measurements of
length,height,weight,area,volume,density,
velocity,money and duration.
These are highest level of measurement.
Advanced Notes:
References:
Bolanos,Alex B.(2001)Probability and Statistical
Concepts: AN INTRODUCTION.
Manila,Philippines.REX Book Store, Inc.

http://www.mymarketresearchmethods.com/types-of-
data-nominal-ordinal-interval-ratio/