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Chapter11Chapter11ChapterOneWhatisStatistics?ONEUnderstandwhywestudystatistics.TWOExplainwhatismeantbydescriptivestatisticsandinferentialstatistics.THREEDistinguishbetweenaqualitativevariableandaquantitativevariable.FOUR
Distinguishbetweenadiscretevariableandacontinuousvariable.FIVEDistinguishamongthenominal,ordinal,interval,andratiolevels
ofmeasurement.SIXDefinethetermsmutuallyexclusiveandexhaustive.GOALSWhenyouhavecompletedthischapter,youwillbeableto:2ChapterOneWhatisStatistics?Whystudystatistics?NumericalinfoiseverywhereButhowdoweknowifconclusionsreportedareaccurate?StatisticaltechniquesareusedtomakedecisionsthataffectourlivesThisiswhyyoungerpeoplepaymoreforinsurance…KnowledgeofstatisticalmethodsatleasthelpsyouunderstandwhydecisionsaremadeInfutureyouwillmakedecisionsthatinvolvedata3Whystudystatistics?NumericalWhatisMeantbyStatistics?
Statistics
isthescienceofcollecting,organizing,presenting,analyzing,andinterpretingnumericaldatatoassistinmakingmoreeffectivedecisions.
Incommonusagestatisticsreferstonumericalinformation…..Butinthiscoursethetermhasawidermeaning….4WhatisMeantbyStatistics? SWhoUsesStatistics?
Statisticaltechniquesareusedextensivelybymanagersinmarketing,accounting,qualitycontrol,consumers,professionalsportspeople,hospitaladministrators,educators,politicians,physicians,gamblers,etc...5WhoUsesStatistics? StatisticTypesofStatistics
DescriptiveStatistics:Methodsoforganizing,summarizing,andpresentingdatainaninformativeway.EXAMPLE1:AGalluppollfoundthat49%ofthepeopleinasurveyknewthenameofthefirstbookoftheBible.Thestatistic49describesthenumberoutofevery100personswhoknewtheanswer.6TypesofStatistics DescriptivTypesofStatistics
DescriptiveStatistics:Methodsoforganizing,summarizing,andpresentingdatainaninformativeway.EXAMPLE2:AccordingtoConsumerReports,GeneralElectricwashingmachineownersreported9problemsper100machinesduring2002.Thestatistic9describesthenumberofproblemsoutofevery100machines.7TypesofStatistics DescriptivTypesofStatistics
DescriptiveStatistics:Methodsoforganizing,summarizing,andpresentingdatainaninformativeway.EXAMPLE3:TheCanadiangovernmentreportsthatthepopulationofCanadawas18,238,000in1961,21,568,000in1971,24,820,000in1981,28,031,000in1991,and31,050,700in2001.Ifwecalculatepercentagegrowthoverthedecadesitisalsodescriptivestatistics.8TypesofStatistics DescriptivTypesofStatistics
InferentialStatistics:Themethodsusedtodeterminesomethingaboutapopulation,basedonasample.
O
EXAMPLE1:IntheprecedingexampleonCanadianpopulationchanges,ifyouusethepastdatatoforecastthepopulationofCanadaintheyear2010orexpectedpercentageofgrowthfrom2000to2010,thenthisisconsideredinferentialstatistics.9TypesofStatistics InferentiTypesofStatistics
InferentialStatistics:Themethodsusedtodeterminesomethingaboutapopulation,basedonasample.
EXAMPLE2:Theaccountingdepartmentofalargefirmwillselectasampleoftheinvoicestocheckforaccuracyforalltheinvoicesofthecompany.10TypesofStatistics InferentiTypesofStatistics
InferentialStatistics:Themethodsusedtodeterminesomethingaboutapopulation,basedonasample.
EXAMPLE3:Winetasterssipafewdropsofwinetomakeadecisionwithrespecttoallthewinewaitingtobereleasedforsale.11TypesofStatistics InferentiPopulationvs.SamplePopulation
istheentiresetofindividualsorobjectsofinterestorthemeasurementsobtainedfromallindividualsorobjectsofinterest.Sample
isaportion,orpart,ofthepopulationofinterest12Populationvs.SamplePopulatioSeealsop.7Population:AllitemsSample:Itemsselectedfromthepopulation13Seealsop.7Population:AllitNB:don’tconfusepopulationinstatisticswithacountry’spopulation!ApopulationmightconsistofallthepeopleinNanaimobutalsomaymeanthePEratiosforallchemicalstocks,ortotalassetsofthe20largestbanksinNorthAmerica,totalcollectionofprices,ages,squarefootageofretailspaceinNanaimo,andsoon.14NB:don’tconfusepopulationiTypesofVariables
Fora
QualitativeorAttributevariable
thecharacteristicbeingstudiedisnonnumeric.EXAMPLES:Gender,religiousaffiliation,typeofautomobileowned,countryofbirth,eyecolourareexamples.15TypesofVariables ForaQualTypesofVariables
Ina
Quantitativevariableinformationisreportednumerically.EXAMPLES:balanceinyourchequingaccount,minutesremaininginclass,ornumberofchildreninafamily.16TypesofVariables EXAMPLES:bTypesofVariables
Quantitativevariablescanbeclassifiedaseitherdiscreteorcontinuous.
Discretevariables:canonlyassumecertainvaluesandthereareusually“gaps”betweenvalues.EXAMPLE:thenumberofbedroomsinahouse,orthenumberofhammerssoldatthelocalHomeDepot(1,2,3,…,etc).Butyoucannothave2.3bedroomsor10.6hammers…Thusdiscretevariablesresultfromcounting.17TypesofVariables QuantitativTypesofVariables
Acontinuousvariablecanassumeanyvaluewithinaspecifiedrange.
Examplesare:Thepressureinatire,theweightofaporkchop,ortheheightofstudentsinaclass.Typically,continuousvariablesaretheresultofmeasuringsomething.18TypesofVariables AcontinuouSummaryofTypesofVariables19SummaryofTypesofVariables1LevelsofMeasurementDatamaybeclassifiedintofourclassesorlevelsofmeasurement:nominal,ordinal,interval,andratio.
Nominallevel:Datathatisclassifiedandcounted.EXAMPLES:eyecolour,gender,religiousaffiliation.20LevelsofMeasurementDatamayLevelsofMeasurement
Mutuallyexclusive:Anindividual,object,ormeasurementisincludedinonlyonecategory.
Exhaustive:Eachindividual,object,ormeasurementmustappearinoneofthecategories.Nominaldatahavenoparticularorderorrankandaremutuallyexclusive.21LevelsofMeasurement ExhaustiMaritalStatus2000(population15yearsandolder)StatusNumberSingle(nevermarried)7,285,560Married(legally,separated,common-law)14,614,564Divorced1,452,000Widowed1,527,075Total24,879,199Thesedataareanominallevelofmeasurementbecauseitcanonlybeclassifiedintoclassesandtheorderofthemaritalstatusisnotimportant.Theclassesarealsomutuallyexclusiveandexhaustive.22MaritalStatus2000(populatioLevelsofMeasurement
Ordinallevel:involvesdataarrangedinsomeorder,butthedifferencesbetweendatavaluescannotbedeterminedoraremeaningless.EXAMPLE:Duringatastetestof4softdrinks,MountainDewwasrankednumber1,Spritenumber2,Seven-upnumber3,andOrangeCrushnumber4.23LevelsofMeasurement OrdinalLevelsofMeasurement
Intervallevelissimilartotheordinallevel,withtheadditionalpropertythatmeaningfulamountsofdifferencesbetweendatavaluescanbedetermined.Thereisnonaturalzeropoint.EXAMPLE:TemperatureontheCelsiusscale.0degreesdoesnotrepresenttheabsenceoftemperature,justthatitiscold!24LevelsofMeasurement IntervalLevelsofMeasurement
Ratiolevelistheintervallevelwithaninherentzerostartingpoint.Differencesandratiosaremeaningfulforthislevelofmeasurement.EXAMPLES:
Monthlyincomeofsurgeons,ordistancetraveledbymanufacturer’srepresentativespermonth.25LevelsofMeasurement EXAMPLES26262727282829293030Chapter131Chapter11ChapterOneWhatisStatistics?ONEUnderstandwhywestudystatistics.TWOExplainwhatismeantbydescriptivestatisticsandinferentialstatistics.THREEDistinguishbetweenaqualitativevariableandaquantitativevariable.FOUR
Distinguishbetweenadiscretevariableandacontinuousvariable.FIVEDistinguishamongthenominal,ordinal,interval,andratiolevels
ofmeasurement.SIXDefinethetermsmutuallyexclusiveandexhaustive.GOALSWhenyouhavecompletedthischapter,youwillbeableto:32ChapterOneWhatisStatistics?Whystudystatistics?NumericalinfoiseverywhereButhowdoweknowifconclusionsreportedareaccurate?StatisticaltechniquesareusedtomakedecisionsthataffectourlivesThisiswhyyoungerpeoplepaymoreforinsurance…KnowledgeofstatisticalmethodsatleasthelpsyouunderstandwhydecisionsaremadeInfutureyouwillmakedecisionsthatinvolvedata33Whystudystatistics?NumericalWhatisMeantbyStatistics?
Statistics
isthescienceofcollecting,organizing,presenting,analyzing,andinterpretingnumericaldatatoassistinmakingmoreeffectivedecisions.
Incommonusagestatisticsreferstonumericalinformation…..Butinthiscoursethetermhasawidermeaning….34WhatisMeantbyStatistics? SWhoUsesStatistics?
Statisticaltechniquesareusedextensivelybymanagersinmarketing,accounting,qualitycontrol,consumers,professionalsportspeople,hospitaladministrators,educators,politicians,physicians,gamblers,etc...35WhoUsesStatistics? StatisticTypesofStatistics
DescriptiveStatistics:Methodsoforganizing,summarizing,andpresentingdatainaninformativeway.EXAMPLE1:AGalluppollfoundthat49%ofthepeopleinasurveyknewthenameofthefirstbookoftheBible.Thestatistic49describesthenumberoutofevery100personswhoknewtheanswer.36TypesofStatistics DescriptivTypesofStatistics
DescriptiveStatistics:Methodsoforganizing,summarizing,andpresentingdatainaninformativeway.EXAMPLE2:AccordingtoConsumerReports,GeneralElectricwashingmachineownersreported9problemsper100machinesduring2002.Thestatistic9describesthenumberofproblemsoutofevery100machines.37TypesofStatistics DescriptivTypesofStatistics
DescriptiveStatistics:Methodsoforganizing,summarizing,andpresentingdatainaninformativeway.EXAMPLE3:TheCanadiangovernmentreportsthatthepopulationofCanadawas18,238,000in1961,21,568,000in1971,24,820,000in1981,28,031,000in1991,and31,050,700in2001.Ifwecalculatepercentagegrowthoverthedecadesitisalsodescriptivestatistics.38TypesofStatistics DescriptivTypesofStatistics
InferentialStatistics:Themethodsusedtodeterminesomethingaboutapopulation,basedonasample.
O
EXAMPLE1:IntheprecedingexampleonCanadianpopulationchanges,ifyouusethepastdatatoforecastthepopulationofCanadaintheyear2010orexpectedpercentageofgrowthfrom2000to2010,thenthisisconsideredinferentialstatistics.39TypesofStatistics InferentiTypesofStatistics
InferentialStatistics:Themethodsusedtodeterminesomethingaboutapopulation,basedonasample.
EXAMPLE2:Theaccountingdepartmentofalargefirmwillselectasampleoftheinvoicestocheckforaccuracyforalltheinvoicesofthecompany.40TypesofStatistics InferentiTypesofStatistics
InferentialStatistics:Themethodsusedtodeterminesomethingaboutapopulation,basedonasample.
EXAMPLE3:Winetasterssipafewdropsofwinetomakeadecisionwithrespecttoallthewinewaitingtobereleasedforsale.41TypesofStatistics InferentiPopulationvs.SamplePopulation
istheentiresetofindividualsorobjectsofinterestorthemeasurementsobtainedfromallindividualsorobjectsofinterest.Sample
isaportion,orpart,ofthepopulationofinterest42Populationvs.SamplePopulatioSeealsop.7Population:AllitemsSample:Itemsselectedfromthepopulation43Seealsop.7Population:AllitNB:don’tconfusepopulationinstatisticswithacountry’spopulation!ApopulationmightconsistofallthepeopleinNanaimobutalsomaymeanthePEratiosforallchemicalstocks,ortotalassetsofthe20largestbanksinNorthAmerica,totalcollectionofprices,ages,squarefootageofretailspaceinNanaimo,andsoon.44NB:don’tconfusepopulationiTypesofVariables
Fora
QualitativeorAttributevariable
thecharacteristicbeingstudiedisnonnumeric.EXAMPLES:Gender,religiousaffiliation,typeofautomobileowned,countryofbirth,eyecolourareexamples.45TypesofVariables ForaQualTypesofVariables
Ina
Quantitativevariableinformationisreportednumerically.EXAMPLES:balanceinyourchequingaccount,minutesremaininginclass,ornumberofchildreninafamily.46TypesofVariables EXAMPLES:bTypesofVariables
Quantitativevariablescanbeclassifiedaseitherdiscreteorcontinuous.
Discretevariables:canonlyassumecertainvaluesandthereareusually“gaps”betweenvalues.EXAMPLE:thenumberofbedroomsinahouse,orthenumberofhammerssoldatthelocalHomeDepot(1,2,3,…,etc).Butyoucannothave2.3bedroomsor10.6hammers…Thusdiscretevariablesresultfromcounting.47TypesofVariables QuantitativTypesofVariables
Acontinuousvariablecanassumeanyvaluewithinaspecifiedrange.
Examplesare:Thepressureinatire,theweightofaporkchop,ortheheightofstudentsinaclass.Typically,continuousvariablesaretheresultofmeasuringsomething.48TypesofVariables AcontinuouSummaryofTypesofVariables49SummaryofTypesofVariables1LevelsofMeasurementDatamaybeclassifiedintofourclassesorlevelsofmeasurement:nominal,ordinal,interval,andratio.
Nominallevel:Datathatisclassifiedandcounted.EXAMPLES:eyecolour,gender,religiousaffiliation.50LevelsofMeasurementDatamayLevelsofMeasurement
Mutuallyexclusive:Anindividual,object,ormeasurementisincludedinonlyonecategory.
Exhaustive:Eachindividual,object,ormeasurementmustappearinoneofthecategories.Nominaldatahave
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