© 2000 Prentice-Hall, Inc.

Statistics

Statistics, Data, &

Statistical Thinking
Chapter 1

1-1
 Learning Objectives
© 2000 Prentice-Hall, Inc.

1. Define Statistics
2. Describe the Uses of Statistics
3. Distinguish between Descriptive &
Inferential Statistics
4. Define Population, Sample, Parameter,
& Statistic
5. Learn data types / collection methods
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 What Is Statistics?
© 2000 Prentice-Hall, Inc.

1. Collecting Data Data Why?

Analysis
 e.g. Survey

2. Presenting Data © 1984-1994 T/Maker Co.

 e.g., Charts & Tables

Decision-
3. Characterizing Data Making
 e.g., Average

1-3 © 1984-1994 T/Maker Co.

 Statistics Defined
© 2000 Prentice-Hall, Inc.

Statistics is the science of data that

involves:
 Collecting
 Classifying
 Summarizing
 Organizing and
 Interpreting
numerical information.

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 Statistical Methods
© 2000 Prentice-Hall, Inc.

Statistical
Methods

Descriptive Inferential
Statistics Statistics

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 Application Areas
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Economics Engineering
 Forecasting  Construction
 Demographics  Materials

Sports Business
 Individual & Team  Consumer Preferences
Performance  Financial Trends

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 Methods Defined
© 2000 Prentice-Hall, Inc.

Descriptive statistics uses numeric and graphic methods

To look for patterns in a data set, to summarize the
information revealed in a data set, and to present that
Information in a convenient form.

Inferential statistics uses sample data to make

estimates, decisions, predictions,
Or other generalizations about a larger set of data..

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 Descriptive Statistics
© 2000 Prentice-Hall, Inc.

1. Involves $
 Collecting Data 50
 Presenting Data 25
 Characterizing
Data 0
Q1 Q2 Q3 Q4
2. Purpose
 Describe Data X = 30.5 S2 = 113

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 Inferential Statistics
© 2000 Prentice-Hall, Inc.

1. Involves Population?
 Estimation
 Hypothesis
Testing

2. Purpose
 Make Decisions
About Population
Characteristics
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 Key Terms
© 2000 Prentice-Hall, Inc.

1. Population (Universe)
 All Items of Interest
2. Sample
 Portion or subset of a Population
3. Parameter
 Summary Measure about Population
4. Statistic
 Summary Measure about Sample

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 More Key Terms
© 2000 Prentice-Hall, Inc.

1. Variable
 Property of an individual population unit
2. Measurement
 Process that assigns numbers to
variables
3. Census
 Measuring variable for every unit in the
population

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 Key Terms
© 2000 Prentice-Hall, Inc.

1. Population (Universe) • P in Population

& Parameter
 All Items of Interest
• S in Sample
2. Sample & Statistic
 Portion of Population
3. Parameter
 Summary Measure about Population
4. Statistic
 Summary Measure about Sample
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 Reliability
© 2000 Prentice-Hall, Inc.

A measure of reliability is a statement –

usually quantified – about the degree
of uncertainty associated with a
statistical inference.

51% of all people surveyed preferred Pepsi over Coke

In a cola taste test plus or minus 5%.

The reliability measure

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 Four Elements of Descriptive
© 2000 Prentice-Hall, Inc.
Statistics Problems

• The population or sample of interest

• One or more variables to be
investigated
• Tables, graphs and numeric summary
tools
• Identification of patterns in the data

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 Five Elements of Inferential
© 2000 Prentice-Hall, Inc.
Statistics Problems

• The population of interest

• One or more variables to be
investigated
• Sample of population units
• Inference about population based on
the sample results
• Measure of reliability for the inference

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 Types of Data
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Data Types

Quantitative Qualitative
Data Data

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 Quantitative Data
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Measurements recorded on a naturally

occurring numerical scale.

• Interval Data
 No common ‘0’ point
• Ratio Data
 Origin (0) is meaningful and consistent

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 Qualitative Data
© 2000 Prentice-Hall, Inc.

Measurements that do not exist on any

naturally occurring numerical scale;
they can only classified into categories.

• Nominal
 Numeric codes
• Ordinal
 Arbitrary numeric ranking scale

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 How to Obtain Data
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• Published source
• Designed experiment
• Survey
• Observational study

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 A Word About Samples
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1. Representative
• Exhibits characteristics typical of
the target population

2. Random
 Each element has an equally likely
chance of being selected

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 Statistical
© 2000 Prentice-Hall, Inc.
Computer Packages

1.Typical Software
 SAS
 SPSS
 MINITAB
 Excel

2. Need Statistical
Understanding
 Assumptions
 Limitations

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 Expert Commentary
© 2000 Prentice-Hall, Inc.

“There are lies, damned lies, and statistics.”

~ Benjamin Disraeli

“Statistical thinking will one day be as

necessary for efficient citizenship as the
ability to read and write.”

~ Herbert George Wells

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 Conclusion
© 2000 Prentice-Hall, Inc.

1. Defined Statistics
2. Described the Uses of Statistics
3. Distinguished Descriptive & Inferential
Statistics
4. Defined Population, Sample, Parameter,
& Statistic
5. Discussed data types/collection methods

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 End of Chapter

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