MTU Stat Dept Probability and Statistics Chapter-1
Chapter 1
1. Introduction
1.1 Definition and Classification of Statistics
Definition: Statistics is the science of conducting studies to collect, organize, analyzed and draw
conclusions from the data.
In general, statistics can be defined into two senses.
1. In singular sense: It is defined as the science that deals with the methods of collection,
organization, analysis of data and interpretation of the results.
2. In plural sense: It is defined as a set (aggregate) of numerical data or a quantitative aspects
of facts.
1.2 Classification of Statistics
Statistics can be classified into two broad areas.
1. Descriptive Statistics: It is a part of statistics which can be used to organize and summarize
masses of data.
The frequency distribution, measure of central tendencies such as mean and median, and
measure of variation such as range and standard deviation belong to this category of statistics.
Example: The average age of students in this class is 21.
2. Inferential Statistics: It is a major part of statistics which concerned with making decisions,
inferences (conclusions) and forecasting about the population based on sample results.
It includes estimation and test of hypothesis about the population.
Example: Drinking decaffeinated coffee can raise cholesterol levels by 7%.
Exercise: Describe the following sentences whether inferential statistics or descriptive statistics.
Suppose that the height of 6 randomly selected students from section 2 are the following:
160cm, 165cm, 175cm, 170cm, 180cm and 185cm.
1. The average height of six students is 172.5cm.
2. The average height of students in these section is not less than 172.5cm.
3. About half of the six students have the height more than 170cm.
4. The average height of students in section 2 is greater than that of section 1.
1.3 Stages in Statistical Investigation
According to the definition of statistics (in singular sense), there are 5 stages in statistical investigation.
Stage 1: Collection of Data: It is a process of obtaining data.
Stage 2: Organization of Data: This includes
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MTU Stat Dept Probability and Statistics Chapter-1
Editing: measurement of how important it is.
Classification: similar and differences.
Tabulation: organization of data in row and column.
Stage 3: Presentation of Data: It is a process of showing our data in understandable way.
Example: charts, graphs and tables.
Stage 4: Analysis of Data: It is a process of extracting a useful characteristics associated with
data.
Stage 5: Interpretation of Data (Inference): It is a process of making interpretations or
conclusions from sample data for the totality of the population.
It is the most difficult and risk stage. It needs professionals in statistics.
1.4 Definition of Some Basic Terms
Data: is any recordable interrelated observations.
Population: is the totality of all individuals of the phenomena under study.
Sample: It is a part of population selected in statistical manner to study the population.
Parameter: It is statistical value which refers to the population characteristics.
Or it is a result obtained from the population.
Statistic: It is statistical value which refers to the sample characteristics.
Or it is a result obtained from the sample.
Census: It is a process of studying a population at large.
Example: a researcher wants to study the academic performance of fist year
student in MTU. But for several constraints he cannot enumerate the whole
students. So he took randomly 500 students and obtained the average GPA to
be 2.58.
a. Identify the population? b. Identify the sample? c. Identify the statistic?
1.5 Uses, Applications and Limitation of Statistics
Uses of Statistics
a. It represents the facts in the form of numerical data.
b. It condenses and summarizes mass of data into a few presentable,
understandable and precise figures.
c. It facilitates comparison of data.
d. It helps in predicting future trends.
e. It helps in formulating policies.
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MTU Stat Dept Probability and Statistics Chapter-1
Applications of Statistics
Statistics can be applied in almost all fields of study. Some of these are:
1. In health 2. In education 3. In agriculture 4. In computer science etc
Limitations of Statistics
It is not suited to the study of qualitative phenomena.
It's results are true on the average. (It does not show the exact fact) like law of
physics.
It deals with a set (aggregate) of individuals not a single individual.
It can be easily misused.
Statistical interpretations requires a high degree of skill and understanding of the
subject.
1.6 Types of Variables and Level of Measurements
Types of variables: There are two types of variables.
1. Qualitative (Categorical) Variables: are variables that can be placed into distinct category
according to some characteristics. They are not numeric. They cannot be counted or measured.
Example: gender, religion, color etc
2. Quantitative Variables: are variables which are numerical in nature and can be measured
and counted.
Example: height, weight, no of students, GPA etc.
Quantitative variables can also divided into discrete and continuous variables.
Discrete variables: are variables whose values are determined by counting.
Example: no of students in the class.
Continuous Variables: are variables whose values are determined by measuring rather than
counting.
Example: height of a person.
Exercise: are the following variables discrete or continuous?
a. The no of correct answers on true false test.
b. The duration of effectiveness of a pain medication.
c. The weight of Sunday newspapers.
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MTU Stat Dept Probability and Statistics Chapter-1
Measurement Scales (Levels)
There are 4 types of measurement scales. These are:
1. Nominal Scale 3. Interval Scale
2. Ordinal Scale 4. Ratio Scale
1. Nominal Scale: When the possible categories of a variable have no a natural order then the
measurement is called nominal scale.
we cannot apply any mathematical operations and inequalities.
Example: Blood type (A,B,AB,O) , sex (f,m), no's given to region (1,2,3,...)
2. Ordinal Scale: When the possible categories of a variable have a natural order then the
measurement is called ordinal scale.
we can apply any mathematical inequalities but we can not apply any mathematical
operations.
Example: Economic status (low, medium, high), Education level (diploma, degree, master).
3. Interval Scale: It is a scale with arbitrary zero point, and zero does not shows a total absence
of the quantity being measured.
we can apply any mathematical inequalities.
we can also apply addition and subtraction but we cannot form
multiplication and division.
Example: a) The temperature of a certain area may be 00𝐶 . But this does not mean that
there is no heat at all. It simply indicates that it is too cool.
b) The temperature of a certain areas may be 630𝐹 , 680𝐹 , 1100𝐹 , 1260𝐹 & 1310𝐹 .
→ 𝑤𝑒 𝑐𝑎𝑛 𝑠𝑎𝑦 𝑡ℎ𝑎𝑡 680𝐹 > 630𝐹 => 680𝐹 𝑖𝑠 𝑤𝑎𝑟𝑚𝑒𝑟 𝑡ℎ𝑎𝑛 630𝐹 .
→ 680𝐹 − 630𝐹 = 1310𝐹 − 1260𝐹 => 𝑠𝑖𝑛𝑐𝑒 𝑒𝑞𝑢𝑎𝑙 𝑡𝑒𝑚𝑝𝑟𝑎𝑡𝑢𝑟𝑒 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒𝑠 𝑎𝑟𝑒 𝑒𝑞𝑢𝑎𝑙.
126
But we cannot say that 1260𝐹 is twice as hot as 630𝐹 . 𝐸𝑣𝑒𝑛𝑡ℎ𝑜𝑔ℎ 63
= 2.
To show this change the scale to degree Celsius.
5 A
1260𝐹 => ( 1260𝐹 − 32) = 52.20𝐶
9
5
630𝐹 => ( 630𝐹 − 32) = 17.20𝐶
9
=> 52.20𝐶 𝑖𝑠 𝑚𝑜𝑟𝑒 𝑡ℎ𝑎𝑛 3 𝑡𝑖𝑚𝑒𝑠 17.20𝐶
4. Ratio Scale: It is a scale with true zero point and zero shows a total absence of the quantity
being measured.
we can apply any mathematical operation and inequalities.
Example: weight 𝑥 = 40𝑘𝑔, 𝑦 = 80𝑘𝑔.
=> 𝑦 𝑖𝑠 𝑡𝑤𝑖𝑐𝑒 ℎ𝑒𝑎𝑣𝑦 𝑎𝑠 𝑥.
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