Jhirty A.

Pagcanlungan Professor Arsenio Macaspac

2:00-3:30 TTh Business Statistics

Statistics may be divided into two main branches:
(1) Descriptive Statistics (2) Inferential Statistics
(1) Descriptive Statistics:
In descriptive statistics, it deals with collection of data, its presentation in various forms, such
as tables, graphs and diagrams and findings averages and other measures which would describe
the data.
For Example: Industrial statistics, population statistics, trade statistics etc Such as
businessman make to use descriptive statistics in presenting their annual reports, final accounts,
bank statements.
(2) Inferential Statistics:
In inferential statistics, it deals with techniques used for analysis of data, making the estimates
and drawing conclusions from limited information taken on sample basis and testing the reliability
of the estimates.
For Example: Suppose we want to have an idea about the percentage of illiterates in our country.
We take a sample from the population and find the proportion of illiterates in the sample. This
sample proportion with the help of probability enables us to make some inferences about the
population proportion. This study belongs to inferential statistics

Basic Steps in Conducting Statistical Inquiry
1. Defining the problem
2. Gathering relevant information
3. Presenting/Organizing data
4. Analyzing data
5. Interpreting results

In statistics, a variable has two defining characteristics:
A variable is an attribute that describes a person, place, thing, or idea.
The value of the variable can "vary" from one entity to another.
For example, a person's hair color is a potential variable, which could have the value of "blonde" for one
person and "brunette" for another.

Qualitative vs. Quantitative Variables
Variables can be classified as qualitative (aka, categorical) or quantitative (aka, numeric).
Qualitative. Qualitative variables take on values that are names or labels. The color of a ball (e.g.,
red, green, blue) or the breed of a dog (e.g., collie, shepherd, terrier) would be examples of
qualitative or categorical variables.
Quantitative. Quantitative variables are numeric. They represent a measurable quantity. For
example, when we speak of the population of a city, we are talking about the number of people in
the city - a measurable attribute of the city. Therefore, population would be a quantitative
variable.
In algebraic equations, quantitative variables are represented by symbols (e.g., x, y, or z).
Discrete vs. Continuous Variables
Quantitative variables can be further classified as discrete or continuous. If a variable can take on any
value between its minimum value and its maximum value, it is called a continuous variable; otherwise, it is
called a discrete variable.
Some examples will clarify the difference between discrete and continouous variables.
Suppose the fire department mandates that all fire fighters must weigh between 150 and 250
pounds. The weight of a fire fighter would be an example of a continuous variable; since a fire
fighter's weight could take on any value between 150 and 250 pounds.
Suppose we flip a coin and count the number of heads. The number of heads could be any integer
value between 0 and plus infinity. However, it could not be any number between 0 and plus infinity.
We could not, for example, get 2.3 heads. Therefore, the number of heads must be a discrete
variable.
Univariate vs. Bivariate Data
Statistical data are often classified according to the number of variables being studied.
Univariate data. When we conduct a study that looks at only one variable, we say that we are
working with univariate data. Suppose, for example, that we conducted a survey to estimate the
average weight of high school students. Since we are only working with one variable (weight), we
would be working with univariate data.
Bivariate data. When we conduct a study that examines the relationship between two variables,
we are working with bivariate data. Suppose we conducted a study to see if there were a
relationship between the height and weight of high school students. Since we are working with
two variables (height and weight), we would be working with bivariate data.


Types of data

Numerical data. These data have meaning as a measurement, such as a persons height, weight, IQ,
or blood pressure; or theyre a count, such as the number of stock shares a person owns, how many
teeth a dog has, or how many pages you can read of your favorite book before you fall asleep.
(Statisticians also call numerical data quantitative data.)
Numerical data can be further broken into two types: discrete and continuous.
Discrete data represent items that can be counted; they take on possible values that can be
listed out. The list of possible values may be fixed (also called finite); or it may go from 0, 1, 2,
on to infinity (making it countably infinite). For example, the number of heads in 100 coin flips
takes on values from 0 through 100 (finite case), but the number of flips needed to get 100
heads takes on values from 100 (the fastest scenario) on up to infinity (if you never get to that
100th heads). Its possible values are listed as 100, 101, 102, 103, . . . (representing the countably
infinite case).
Continuous data represent measurements; their possible values cannot be counted and can only
be described using intervals on the real number line. For example, the exact amount of gas
purchased at the pump for cars with 20-gallon tanks would be continuous data from 0 gallons to
20 gallons, represented by the interval [0, 20], inclusive. You might pump 8.40 gallons, or 8.41, or
8.414863 gallons, or any possible number from 0 to 20. In this way, continuous data can be
thought of as being uncountably infinite. For ease of recordkeeping, statisticians usually pick
some point in the number to round off. Another example would be that the lifetime of a C
battery can be anywhere from 0 hours to an infinite number of hours (if it lasts forever),
technically, with all possible values in between. Granted, you dont expect a battery to last more
than a few hundred hours, but no one can put a cap on how long it can go (remember the
Energizer Bunny?).
Categorical data: Categorical data represent characteristics such as a persons gender, marital
status, hometown, or the types of movies they like. Categorical data can take on numerical values
(such as 1 indicating male and 2 indicating female), but those numbers dont have mathematical
meaning. You couldnt add them together, for example. (Other names for categorical data
are qualitative data, or Yes/No data.)
Ordinal data mixes numerical and categorical data. The data fall into categories, but the numbers placed
on the categories have meaning. For example, rating a restaurant on a scale from 0 (lowest) to 4
(highest) stars gives ordinal data. Ordinal data are often treated as categorical, where the groups are
ordered when graphs and charts are made. However, unlike categorical data, the numbers do have
mathematical meaning. For example, if you survey 100 people and ask them to rate a restaurant on a
scale from 0 to 4, taking the average of the 100 responses will have meaning. This would not be the case
with categorical data.