Statistics: Statistics, Data, & Statistical Thinking

© 2000 Prentice-Hall, Inc.
Statistics
Statistics, Data, &

Statistical Thinking
Chapter 1
1-1
Learning Objectives
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
1-2
What Is Statistics?
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
Statistics is the science of data that

involves:
 Collecting
 Classifying
 Summarizing
 Organizing and
 Interpreting
numerical information.
1-4
Statistical Methods
Statistical
Methods
Descriptive Inferential
Statistics Statistics
1-5
Application Areas
Economics Engineering
 Forecasting  Construction
 Demographics  Materials
Sports Business
 Individual & Team  Consumer Preferences
Performance  Financial Trends
1-6
Methods Defined
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..
1-7
Descriptive Statistics
1. Involves $
 Collecting Data 50
 Presenting Data 25
 Characterizing
Data 0
Q1 Q2 Q3 Q4
2. Purpose
 Describe Data X = 30.5 S2 = 113
1-8
Inferential Statistics
1. Involves Population?
 Estimation
 Hypothesis
Testing
2. Purpose
 Make Decisions
About Population
Characteristics
1-9
Key Terms
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
1 - 10
More Key Terms
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
1 - 11
Key Terms
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
1 - 12
Reliability
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
1 - 13
Four Elements of Descriptive
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
1 - 14
Five Elements of Inferential
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
1 - 15
Types of Data
Data Types
Quantitative Qualitative
Data Data
1 - 16
Quantitative Data
Measurements recorded on a naturally

occurring numerical scale.
• Interval Data
 No common ‘0’ point
• Ratio Data
 Origin (0) is meaningful and consistent
1 - 17
Qualitative Data
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
1 - 18
How to Obtain Data
• Published source
• Designed experiment
• Survey
• Observational study
1 - 19
A Word About Samples
1. Representative
• Exhibits characteristics typical of
the target population
2. Random
 Each element has an equally likely
chance of being selected
1 - 20
Statistical
Computer Packages
1.Typical Software
 SAS
 SPSS
 MINITAB
 Excel
2. Need Statistical
Understanding
 Assumptions
 Limitations
1 - 21
Expert Commentary
“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
1 - 22
Conclusion
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
1 - 23
End of Chapter
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© 2000 Prentice-Hall, Inc.

Statistics, Data, &

1. Collecting Data Data Why?

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

 e.g., Charts & Tables

1-3 © 1984-1994 T/Maker Co.

Statistics is the science of data that

Descriptive statistics uses numeric and graphic methods

Inferential statistics uses sample data to make

1. Population (Universe) • P in Population

A measure of reliability is a statement –

51% of all people surveyed preferred Pepsi over Coke

The reliability measure

• The population or sample of interest

• The population of interest

Measurements recorded on a naturally

Measurements that do not exist on any

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

“Statistical thinking will one day be as

~ Herbert George Wells

Any blank slides that follow are

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