Statistics
Over the years, the field of statistics has evolved as a comprehensive
discipline providing analytical tools to interpret huge volumes of data.
Further, these tools help in the decision-making process as a scientific
inquiry. Statistics concerns itself with the collection, organization,
presentation, analysis, and interpretation of numerical data.
Definition of Statistics
“Statistics refers to the classified facts representing the conditions of the
people in the State … especially those facts which can be stated in numbers
or in tables of numbers or in any tabular classified arrangement.” – Merriam
Webster
“Statistics are a collection of noteworthy facts concerning state both
historical and descriptive.” – Gottfried and Achenwall
“Statistics is an aggregate knowledge brought together for a practical end
namely the knowledge of concrete states.” – Wappans
Definition of statistics as a Statistical Method
“Statistics may be called as the science of counting.” – A.L. Bowley
“Statistics may be rightly called the science of averages.” – A.L. Bowley
“Statistics is the science which deals with classification and tabulation of
numerical facts as the basis for explanation, description, and comparison of
phenomena.” – Lovin
What is a Statistical Inquiry?
A statistical inquiry is a method or process of transforming raw data
into useful information. The information will tell us more about a subject and
will allow us to make recommendations and possibly make predictions of
future outcomes.
Steps in Statistical Inquiry
1. Raising Questions
2. Collecting Data
The collection of statistical data is one of the most important aspects of a
statistical inquiry. In this stage, you collect relevant data from multiple
sources – both primary and secondary in nature. The source is primary if the
data (either published or unpublished) is originally collected by an
investigator or an agency.
On the other hand, the source is secondary if the data (published or
unpublished) is taken from an agency or a person who have already used
the data for their statistical requirements. It is also important to note that
the difference between primary and secondary data is a matter of degree
alone.
3. Organizing Numerical Data
While conducting a statistical inquiry, the second important stage is the
collection of numerical data. When you collect data, the secondary source
usually provides it in an organized form. However, data from the primary
source is “raw” and unorganized.
Therefore, you need to edit, classify, and tabulate the data in order to
organize it. Editing data involves the removal of omissions, inaccuracies, and
inconsistencies present in the data.
4. Summarizing and Presenting Numerical Data
Classifying data involves bringing together the data items which have
common characteristics. Subsequently, you put the data in a tabular format
and present it well. The presentation is either in the form of a chart,
diagram, graph, etc.
5. Analyzing the Numerical Data
Once the data is collected, organized, and presented, it is important to
analyze the numerical data in order to get a better understanding of the
subject matter. You can use some popular measures to analyze numerical
data such as:
Averages or measures of the central tendency (Mean, Median, Mode)
Dispersion (Variance, Standard Deviation, Interquartile Range)
Correlation – a statistical technique that can show whether and how
strongly pairs of variables are related.
Skewness – represents an imbalance and an asymmetry from the
mean of a data distribution.
Regression – a statistical measurement used in finance, investing and
other disciplines that attempts to determine the strength of the
relationship between one dependent variable (usually denoted by Y)
and a series of other changing variables (known as independent
variables).
Association and Attributes
An association tells you whether two variables are related.
An attribute refers to the quality of a characteristic.
Interpolation and Extrapolation –
Extrapolation is a way to make guesses about the future or about
some hypothetical situation based on data that you already know.
You’re basically taking your “best guess”. For example, let’s say your
pay increases average $200 per year. You can extrapolate and say
that in 10 years, your pay should be about $2,000 higher than today.
Interpolation allows you to estimate within a data set; it’s a tool to go
beyond the data. It comes with a high degree of uncertainty. For
example, let’s say you measure how many customers you get every
day for a week: 200, 370, 120, 310, 150, 70, 90. According to that
number, you should get just under 10 customers per hour (1,310
customers/ 168 hours in a week). Let’s say you staff your business 24-
7 to deal with those hourly customers. You’re probably going to get
zero customers at night and on the weekends, therefore wasting
resources.
Furthermore, in order to simplify the data, you can use probability and
distribution, sampling, index numbers, variance analysis, and time series.
6. Interpreting the Numerical Data/Conclusion/Writing a Report
Once you have analyzed the numerical data, you must draw conclusions and
inferences from it. This is the interpretation of numerical data. It is a
sensitive and difficult task requiring a high degree of skill, experience,
common sense, and also a sense of balanced judgment of the investigator.
Furthermore, if the investigator misinterprets the data, then he might draw
conclusions which lead to a waste of time and resources. This can eventually
defeat the purpose of the statistical inquiry.
Sources:
https://www.toppr.com/guides/business-economics-cs/descriptive-statistics/stages-of-statistical-
enquiry/
https://www.surveysystem.com/correlation.htm
https://study.com/academy/lesson/skewness-in-statistics-definition-formula-example.html
https://www.investopedia.com/terms/r/regression.asp
https://www.slideshare.net/mayankgoyal94849/association-of-attributes
https://www.statisticshowto.datasciencecentral.com/probability-and-statistics/statistics-
definitions/extrapolation/
https://www.scribd.com/document/345692822/Chapter-2-Steps-in-Conducting-Stat-Inquiry-May29-
2016
