MODULE 1

INTRODUCTION AND DATA

COLLECTION
Is an art and science that deals with the collection, organization, creative
presentation, analysis, and interpretation quantitative of data.
Statistics helps people answer questions and make decisions about many
things.

Uses of Statistics : in Business and Economics

Statistics is used to analyze a wide range of data like sales, outputs, price indices, revenues, costs,
inventories, accounts and the like.
This monitor status of customers, employees, and production.

Uses of Statistics : in Research and Experimentation

Statistics is used to validate or test a claim or inferences about a group of people or object, or a series
of events.

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Descriptive Statistics – is concerned with the methods of collecting, organizing,
and presenting data appropriately and creatively to describe or assess group
characteristics.

Descriptive Normative Approach is basically concerned with the percentage distribution

of respondents, average or typical characteristics of the group, homogeneity or
heterogeneity of characteristics and degree of relationships of group of characteristics.

✓Measures of location (Mean, Median, Mode, Quartiles, Deciles, Percentiles)

✓Measure of Variability (Range, Variance, Standard Deviation, Coefficient of Variability)
✓Measure of Tendencies (Skewness and Kurtosis)

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Inferential Statistics – is concerned with inferring or drawing conclusions about
the population based on preselected elements of that population.

In inferential statistics, testing the significant difference and independence between two
or more variables are given emphasis.

Some tools under this field:

✓Normal Distribution (area under curve)

✓Sampling Distribution (sample size, standard scores)
✓Probability Distribution (priori, posteriori, binomial, Bernoulli, geometric, hypergeometric)
✓Estimation (confidence interval, test of significance, alpha/beta errors)
✓Hypothesis Testing (z-test, t-test, Chi-Square test, F-test or Analysis of Variance)

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Credit to Dr. Jean Lacap

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Credit to Dr. Jean Lacap

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Population is a finite or infinite collection of objects, events or individuals with specified
class or characteristics under consideration – example, such students in a certain
university, legitimate taxi drivers in Metro Manila, network used by cellphone users.

Sample is a finite of limited collection of objects, events, or individuals selected from a

population.

Sample is expected to possess characteristics identical to those of the population,

otherwise, the validity and reliability of information regarding the population will be
questioned.
Census is a vital tool if the information gathered would use for administrative
purposes and if is local or national concern.

Surveys are preferred due to material constraints like money, time and efforts.
Surveys are allowed since the entire population of a study is unavailable to the
researcher.
Constants – refer to the fundamental qualities that do not change in
value (example: fixed cost and acceleration due to gravity)

Variables – are quantities that may take anyone of a specified set of

values.

These set of values can be classified as:

✓Qualitative (categorical) – are non-measurable characteristics that cannot assume a numerical

value but can be classified into two or more categories.
a. Gender – qualitative dichotomous variable since individual may take one of the two values male or
female.
b. Opinion poll – the response of individuals toward an issue whether to go “for” or “against” it or
“undecided” is an example of qualitative trichotomous variable.
c. Smoking habits of an individual in different situations may be classified as “Always/Very Often,”
“Often,” “Seldom,” “Very Seldom,” or “Never”. This set of qualitative values is called multinomous
variable.
Data that are obtained about a qualitative variable is called qualitative data.
✓Quantitative (numerical) – are those quantities that can be counted with
your bare hands, can be measured with the use of some measuring devices, or
can be calculated with the use of mathematical formula.

✓Quantitative Variables are classified as discrete and continuous.

a. Discrete Variables – consist of variates (actual values) usually obtained by
counting.
b. Continuous Variables – are obtained by measurements, usually with units
such as height in meters, weight in kgs and time in minutes.
✓Data – usually refers to facts concerning things such as status in life of
people, defectiveness of objects or effect of an event to the society.

➢Primary Source - which a firsthand information is obtained usually by means of

personal interview and actual observation.

➢Secondary Source – of information taken from other’s works, news reports, readings,
and those that are kept by the National Statistics Office, Securities & Exchange
Commissions, SSS, and other government and private agencies.

✓Information – is a set of data that have been processed and presented in a

form suitable for human interpretation, usually with a purpose of revealing
trends or patterns about the population.
✓Direct or Interview Method – is a person-to-person interaction between an
interviewer and an interviewee. (Tape recorded or written interviews)

✓Indirect or Questionnaire Method – written responses are obtained by

distributing questionnaires to the respondents.

✓Registration Method – is enforced by private organizations or government

agencies for recording purposes.

✓Observation Method – is a scientific method of investigation that makes

possible use of all senses to measure or obtain outcomes/responses form the
object of study.

✓Experimentation – is used when the objective is to determine the cause-

and-effect of a certain phenomenon under some controlled conditions.
➢Nominal Scale – Classifies objects or people’s responses so that all those in a single
category are equal with respect to some attributes and then each category is coded
numerically.

✓Example: Respondents can be grouped according to marital status based on four

nominal scales: single – 1, married – 2, separated – 3, or widow – 4.

➢Ordinal Scale – classifies objects or individual’s responses according to degree or

level, then each level is coded numerically.

✓Example: Customer’s responses regarding their satisfaction towards company’s

services can fall between an ordinal scale: Excellent – 1, Very Satisfactory – 2,
Satisfactory – 3, Fair – 4, or Poor/Needs Improvement – 5.
➢Interval Scale – refers to quantitative measurements in which lower and upper control
limits are adapted to classify relative order and difference if item numbers or actual
scores.

✓Examples: Household’s socioeconomic status are classified based on what income

level and age bracket they belong.

➢Ratio Scale – considers the interval size and ratio of two related quantities, which are
usually based on a standard measurement.
➢Example: Weight, time, height, rate of change in production, return on investments, and
economic order quantity are measured with the use of a ratio scale.
THANKS!
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