CHAPTER#1

INTRODUCTION

BY NAWAB ALI

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Meanings of the word Statistics

The term statistics is used in singular sense as well as in plural sense.
In the singular sense, it refers to the subject of statistics which is defined as: The branch of
science which deals with the collection, presentation, analysis and drawing conclusions from
the data is called Statistics.
In the plural sense, the word statistics conveys two meanings.
Firstly, the word statistics means a collection of numerical facts and figures. e.g. statistics
of prices, statistics of deaths, statistics of births, statistics of road accidents etc.
Secondly, the word statistics is the plural of the word statistic which means a numerical
quantity such as mean, median, mode etc. calculated from sample data.

Definition of Statistics
The branch of science which deals with the collection, presentation, analysis and
drawing conclusions from the data is called Statistics.

Branches of Statistics
Statistics, as a subject, is divided into two branches.

1. Descriptive Statistics
The branch of statistics which deals with the summarization and description of
numerical data is called Descriptive Statistics.
This branch includes the construction of graphs, charts and tables and the calculation of
numerical quantities such as averages, measures of dispersion etc.

2. Inferential Statistics
The branch of statistics which deals with drawing conclusions about the population on
the basis of sample data is called Inferential Statistics or Statistical Inference.
This branch is further divided into two branches Estimation and Testing of Hypothesis.

Importance of Statistics
Following are the some uses of statistics which shows its importance in various fields of life.
1. Statistics is used in taking administrative decisions like opening new schools, colleges
and hospitals etc., to revise the pay scales of employees etc.
2. Statistics plays an important role in business.
3. Statistics is used for the prediction of future events.
4. Statistics provides tools for the analysis of data.
5. Statistics helps in presenting the collected data in more understandable form through
tables, graphs and diagrams.
6. Statistics helps in efficient design of experiments and surveys in any field of life.
7. The banks make use of statistics while framing their policies.
8. Statistics is used in various other disciplines like Astronomy, Biology, Physics, Chemistry,
Agriculture, Economics, Education, Psychology and Sociology etc.

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CHAPTER#1

INTRODUCTION

BY NAWAB ALI

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Data
A collection of facts and figures is called Data.
For example:
Data of selected students heights like: 60, 65, 63, 62, 66 etc.
Data of selected students grades like: B, A, C, D, A+ etc.
Data number of children in a family like: 2,4,3,1 etc.
Data of hair color of selected persons like: black, gray, white, brown, etc.

Population and Sample

Population
The aggregate or totality of all the items of interest is called Population.
For example:
All the blood in the body of a patient
All the food prepared by a house wife
All the students in the class

Sample
A part or subset of the population is called Sample.
For example:
A few drops of blood selected from the patients body
A little bit of food tasted by the house wife
A few students selected for some purpose

Parameter and Statistic

Parameter
A numerical quantity such as mean, median, mode, standard deviation etc. calculated
from population data is called Parameter.

Statistic
A numerical quantity such as mean, median, mode, standard deviation etc. calculated
from sample data is called Statistic.
For example, if a class consists of 50 students and we find their mean height, then this mean
will be called parameter. If we select 20 students from the class and find their mean height,
then this mean will be called statistic.

Variable and Constant

Variable
A quantity which changes from time to time, place to place or person to person is
called Variable.
e.g. height, weight, price, hair color, No of children in a family, No of students in a class etc.
Variables are usually denoted by capital letters of English alphabets such as X, Y, Z (last
letters).

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INTRODUCTION

BY NAWAB ALI

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Constant
A quantity which can assume only one value and which does not changes is called
Constant.
e.g.

= 3.14, e = 2.71828 etc.

Constants are usually denoted by small letters of English alphabets such as a, b, c etc (first
letters).

Types of variable
There are two types of variable.

1. Quantitative Variable
A variable which can be expressed numerically is called Quantitative Variable.
For example height, weight, price, age, income, No of children in a family etc.

2. Qualitative Variable
A variable which cannot be expressed numerically is called Qualitative Variable.
For example hair color, honesty, poverty, marital status, happiness, education, quality etc. A
qualitative variable is also called an Attribute.

Types of Quantitative Variable

There are two types of quantitative variable.

1. Discrete Variable
A variable which takes only whole numbers is called Discrete Variable.
e.g. No of children in a family, No of students in a class, No of road accidents, No of rooms
in a house etc.
In discrete variable, the values are taken by jumps or by breaks. e.g. No of children in a
family can be 0, 1, 2, 3, etc. but cannot be 2.5 or 3.84.

2. Continuous Variable
A variable which can take any possible value in the given range is called Continuous
Variable.
e.g. height, weight, temperature, speed etc.
There are no jumps or breaks in the values of a continuous variable. e.g. height of a person
can be 62, 62.5, 62.9 etc.

Types of Data
There are two types of data.

1. Primary Data
The data that have been collected for the first time and have not undergone through
any statistical process or technique is called Primary Data.

2. Secondary Data
The data that have already been collected by someone and have undergone through
any statistical process or technique at least once is called Secondary Data.

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INTRODUCTION

BY NAWAB ALI

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Methods of collecting Primary Data

The primary data can be collected by the following methods:

1. Direct Personal Investigation

In this method, the investigator collects the data personally from the individual
concerned.

2. Indirect Investigation
Here the investigator gets the information indirectly. In this method, a third person is
contacted who is expected to know the necessary details about the persons concerned.
3. Collection through Questionnaires
In this method, questionnaires are sent to the persons from whom the information is
required and they are requested to return the questionnaires after filling it properly.
4. Collection through Enumerators
Under this method, the information is collected by employing trained enumerators who
help the informants in filling the questionnaires correctly.
5. Collection through Local Sources
In this method, the investigator appoints agents or local correspondents. These agents
collect the required information and send to the investigator.
6. Computer Interviews
Respondents enter data directly into a computer in response to questions presented on the
monitor.

Methods of collecting Secondary Data

The secondary data can be collected by the following methods:
i.
Official sources such as Federal Bureau of Statistics, Provincial Bureau of
Statistics, Ministry of Finance, Ministry of Agriculture, etc.
ii.
Semi-official sources e.g. State bank of Pakistan, District Councils, Municipal
Committees, etc.
iii.
Private sources like Trade Associations, Chambers of Commerce and Industry,
Banks, etc.
iv. International agencies like UNO, WHO, UNESCO, IMF, World Bank, etc.
v. Non-government organizations (NGOs)
vi.
Research organizations
vii.
Newspapers, magazines and journals, etc.

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