BASIC CONCEPTS IN STATISTICS

What is Statistics?
The term STATISTICS has both a plural and singular sense. In its plural sense, it refers to
numerical facts that are systematically collected and analyzed.
Example: Readers of a business section of a newspaper would think of statistics as the
consumer price index, the returns of a particular stock, the peso to dollar
exchange rate, among others, being discussed in the newspaper.
In its singular sense, the word statistics refers to scientific discipline consisting of theory
and methods for processing numerical information that one can use when making decisions in
the face of uncertainty. The recognition of uncertainty and the importance of statistical
activities are likely to be as old as civilization itself. Even before the art of counting was perfected,
there is evidence to suggest that herdsmen were putting notches on trees to keep track of their
cattle. In its plural and singular sense, the term Statistics refers to quantities computed from
numerical information.

As a branch of applied mathematics, it deals with the systematic method of collecting,

classifying, presenting, analyzing, and interpreting numerical data.

Statistical methods range from the most elementary descriptive tools for summarizing data,
to rather esoteric procedures and models. These methods enable us to develop a way of
thinking that helps us

 describe or characterize persons, objects, situations, and phenomena with some

reliability;
 make assessments and comparisons in an objective manner;
 make evidenced-based decisions

Statistical methods typically have two broad aims: (a) to describe, and (b) to infer. In the
first case, the main task is that of data organization and presentation ( without drawing
conclusions or inferences beyond the data). These tools are called descriptive statistical
methods. In the second case, the task is to generalize results beyond the data collected is a part
( sample ) of a large set of items ( population). In this case, the statistical analysis required is
inferential statistical methods.

PROCESSESS /STEPS IN STATISTICAL INVESTIGATION OR INQUIRY

1. COLLECTION is the process of obtaining numerical measurements.

2. TABULATION/PRESENTATION is the process of organizing data into tables, graphs,
or charts.
3. ANALYSIS is the process of extracting from the given data relevant information from
which numerical descriptions can be formulated. Statistical tools are being used in
this process.
4. INTERPRETATION refers to the task of drawing conclusions from the analyzed data.
DATA is a set of observations, values, elements, or objects under consideration. The statistical
facts, principles, opinions and items of various sources.

VARIABLE is the attribute of interest observable of each entity in the universe. It is an observable
characteristics or phenomena which is capable of taking several values or of being expressed in
several different categories.
Ex. Sex, age, eye color, weight, age

POPULATION is the set of all possible values of the variable. It is the totality of all the actual
objects of a certain class under consideration. It is denoted by a capital N

SAMPLE is the subset or representative of the population. It is denoted by a small n

PARAMETER is a numerical measure that describes the population of interest.

STATISTIC is a numerical summary measure pertaining to sample. It is an estimate of a

parameter.

Kinds of Variables and Data:

1. Qualitative( Categorical ) Data Variable are results when the information have been
sorted into categories. Answer questions “what kind”. They can either be ordered or
unordered.
Examples: Ordered – income data grouped into high, middle and low income status.
Unordered – sex, religion, part affiliation
2. Quantitative Data (Numerical ) are results of counting and measuring. Answer questions
such as “how much” or “how many “.
Examples: height, weight, number of registered cars, household size

Quantitative Data may be further classified into :

 Discrete data ( variable ) are those data that can be counted. They are quantified by the
use of whole numbers.
Examples: the number of days before some equipment fails, the ages of survey
respondents measured to the nearest year, the number of pandesal sold on a certain
day.
  Continuous data ( variable ) are those that can be measured. May take values within a
specified range of values.
Examples: heights of survey respondents, exact volume of some liquid substance,
weights of a sample of 10 children

TWO TYPES OF DATA ACCORDING TO SOURCES

1. PRIMARY DATA are data that come from primary sources such as government
agencies, business establishments, organizations and individuals who carry firsthand
information.
2. SECONDARY DATA are data that come from secondary source such as newspapers,
magazines, journals, and published or republished materials.

LEVELS OR SCALES OF MEASUREMENT

The measurement process is an integral part of data collection. If the unit of analysis is an
individual person, many characteristics of that person, some visible and other invisible can be
measured.
Measurement is the assignment of numbers to objects or events according to a
predetermined set of rules. To measure a property means to assign numbers to units as a way
or representing that property.
The kind of analysis that one can perform on the available data critically depends on its
scale of measurement. We speak of the kind of information a measurement give by saying what
kind of scale the measurement is made in

NOMINAL SCALE is the most limited type of measurement. A measurement of a property has a
nominal scale if the measurement tells only what class a unit falls in with respect to that property.
It is used to differentiate classes or categories for purely classification or identification purposes.
Examples: sex, employment status, race, language spoken at home, plate numbers of cars

ORDINAL SCALE is a measurement used to tell when one unit has more of the property than
does another unit. It specifies the relative positive of items with respect to a given characteristics.
It is like the nominal scale in that it consists of mutually exclusive and exhaustive categories.
However, categories are ranked in order of their value on the property.
Examples: employees ratings, salary grade, ranks given to contestants in an essay writing contest

INTERVAL SCALE is used when one unit differs by a certain amount of the property from another
unit. It possesses the properties of the ordinal scale with the additional property of equal
intervals between ranked ordered item. It allows addition and subtraction operations, but it does
not possess an absolute zero.
Examples: mental ability scores, aptitude tests
RATIO SCALE is used when one unit has so many times as much of the property as does another
unit. The ratio scale possesses an absolute, fixed zero point and allows all arithmetic operations.
The existence of zero point is the only difference between ratio and interval measurements.
Examples: heights, weights, ages

METHODS OF COLLECTING DATA

1. DIRECT OR INTERVIEW METHOD is a person to person exchange of ideas bet the

interviewer and interviewee. This is a personal communication with the individual you
want to interview.
2. INDIRECT OR QUESTIONNAIRE METHOD is a method of gathering data by constructing
questionnaire and asking the person to answer the questionnaire from whom you
would like to get the information.
3. REGISTRATION METHOD is a method where the researcher utilized existing records.
This is enforced by laws.
4. OBSERVATION METHOD is a method that can be done directly or indirectly.
5. EXPERIMENTATION METHOD is a method of collecting data by making or conducting
scientific inquiry. This is used when the researcher would like to determine cause and
effects.

Why do we use samples ?

1. Reduced cost
2. Greater speed or timeliness
3. Greater efficiency and accuracu
4. Convenience
5. Necessity
6. Ethnical considerations