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STATISTICS
QMT412
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Learning Outcomes
What is statistics?
Uses of statistics
Types of statistics
Common statistical terms
Sources of data
Types of variables
Scales of measurement
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What is Statistics?
Statistics is the science of:
1.Collecting Data
4. Analyzing
Data
2.Organizing Data
3.Presenting
5.
Interpreting
/DecisionMaking
Data
sanizah@tmsk.uitm.edu.my
Why?
Uses of Statistics
Education
subject
Predict CGPA
Law
Organize evidence to
make decision
Medicine
Effectiveness of drugs
Predict diseases
Business/Marketing
Predict Sales
Consumer Preferences
Financial Trends
TYPES OF STATISTICS
DESCRIPTIVE
INFERENTIAL
Types of STATISTICS
DESCRIPTIVE
-describe and summarize
characteristics
-consist collecting, organizing,
summarizing and presentations
of data
Ex: percentage, mean, median
Bar chart, pie chart, frequency
table, box plot
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INFERENTIAL
-make inference from sample
populations
-involve statistical tests
-results used to make conclusion
Ex: estimation, hypothesis testing
(t- test, z-test, forecasting,
regression)
Subject or member
or element
Population : consists of ALL subjects/members/element (human or otherwise)
that are being studied
Sample
Data
Statistical Terms
POPULATION
SAMPLE
All Items of
Interest
Portion of
Population
CENSUS
SAMPLE SURVEY
if the study is
carried out using
the whole
population
P in Population
& Parameter
S in Sample
& Statistic
involved a subgroup
(or sample) of a
population being
chosen
Parameter
Statistic
summary measure
for the entire
population
summary measure
computed from
sample data
Pilot Study:
a small survey
taken in advance
before a major
observation
SOURCE OF DATA
PRIMARY
SECONDARY
Example 1
Advance Co. has established a new service to the customers
% Of Warranty Cards
40%
30%
20%
10%
Example 1questions
i) What is the population under study?
ii) What is the sampling frame?
iii) What is the variable to be measured?
sanizah@tmsk.uitm.edu.my
Example 1.solution
i) What is the population under study?
A: ALL customers who have purchased the Advance
Co. products
ii) What is the sampling frame?
A: LIST of Advance Co. customers in warranty cards
iii) What is the variable to be measured?
A: Effectiveness of helpline
sanizah@tmsk.uitm.edu.my
Types of variables
Variable
Quantitative
Discrete (e.g.,
number of
houses, cars,
accidents)
Continuous
(e.g., length,
age, height,
weight, time)
Qualitative or
categorical (e.g.,
make of a computer,
hair color, gender)
13
Levels of Measurement
When we observe and record a
Nominal
Lowest
scale
Ordinal
to
Interval
highest
scale
Ratio
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Nominal Scales
Nominal:
- Represent observations that can be categorized,
do not have a meaningful numeric value
- Examples:
Gender
Religion
Nationality
Favorite colour
Number on a football jersey
Note:
The values cannot be compared to see if one is larger than the other
Cannot calculate the MEAN
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Ordinal Scales
Ordinal:
the other
Examples:
Consumer satisfaction ratings
Military rank
Grade (A, B, C, D, E, F)
Note:
cannot assume the differences between adjacent scale values are
equal
cannot make this assumption even if the labels are number, not
words
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Interval Scales
Interval:
Represent observations that can be categorized, rank
ordered, and have an unit of measure
Examples:
- Farenheit temperature scale, shoe size
Note:
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Ratio Scales
Ratio:
Highest and most informative scale
Observations that can be categorized, rank ordered, have
an unit measure and have a true zero (an absolute zero
point)
The true zero implies that a value zero represents the
complete absence of the variable
Examples:
amount of money zero money indicates the absence of money
Weight, height, time
Note: Can be multiplied or divided
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Example 2
Traffic offence is a growing concern at Dewan
Bandaraya in Kuala Lumpur. A study was
conducted to determine the profile of these traffic
offenders. A researcher from this office collected
data on the age, gender, race, types of offence, the
amount of fine paid and the years of driving
experience from a sample of traffic offenders as
they entered the building to pay their fines. The
researcher also checked the office database to
obtain the number of traffic offences by these
drivers.
sanizah@tmsk.uitm.edu.my
Example 2.cont.
i)
Example 2.solution
i)
State the population for the above study.
A: ALL the traffic offenders in K.L.
ii) Is the above study a census study or sample study?
A: Sample
iii) Was any secondary data used for the above study? If
there was, please state the data.
A: Yes. Number of traffic offense by the drivers
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Example 2.solution
iv) State the variable(s) and measurement scale from this
study.
A:
Variable
Level of measurement
Age
Ratio
Gender
Nominal
Race
Nominal
Types of offence
Nominal
Ratio
Ratio
expensive