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Research Methods

What does Statistics Mean?

• Descriptive statistics

– Number of people

– Trends in employment

– Data

• Inferential statistics

– Make an inference about a population from a

sample

Population Parameter Versus

Sample Statistics

Population Parameter

• Variables in a population

• Measured characteristics of a population

• Greek lower-case letters as notation

Sample Statistics

• Variables in a sample

• Measures computed from data

• English letters for notation

Making Data Usable

• Frequency distributions

• Proportions

• Central tendency

– Mean

– Median

– Mode

• Measures of dispersion

Frequency Distribution of

Deposits

Frequency (number of

people making deposits

Amount (in Rs.) in each range)

3,000 - 4,999 530

5,000 - 9,999 562

10,000 - 14,999 718

15,000 or more 811

3,120

Percentage Distribution of

Amounts of Deposits

Amount Percent

less than 3,000 16

3,000 - 4,999 17

5,000 - 9,999 18

10,000 - 14,999 23

15,000 or more 26

100

Probability Distribution of

Amounts of Deposits

Amount Probability

less than 3,000 .16

3,000 - 4,999 .17

5,000 - 9,999 .18

10,000 - 14,999 .23

15,000 or more .26

1.00

Measures of Central Tendency

• Mean - arithmetic average

– µ, Population; X , sample

• Median - midpoint of the distribution

• Mode - the value that occurs most often

Population Mean

X

i

N

Sample Mean

Xi

X

n

Number of Sales Calls Per Day

by Salespersons

Number of

Salesperson Sales calls

Mike 4

Patty 3

Billie 2

Bob 5

John 3

Frank 3

Chuck 1

Samantha 5

26

Sales for Products A and B,

Both Average 200

Product A Product B

196 150

198 160

199 176

199 181

200 192

200 200

200 201

201 202

201 213

201 224

202 240

202 261

Measures of Dispersion

• The range

• Standard deviation

Measures of Dispersion

or Spread

• Range

• Mean absolute deviation

• Variance

• Standard deviation

The Range

as a Measure of Spread

• The range is the distance between the smallest

and the largest value in the set.

• Range = largest value – smallest value

Deviation Scores

value and the mean:

di xi x

Low Dispersion Verses High

Dispersion

5

Low Dispersion

4

Value on Variable

Low Dispersion Verses High

Dispersion

5

4 High dispersion

Value on Variable

Average Deviation

(X i X )

0

n

Mean Squared Deviation

( Xi X )

2

n

The Variance

Population

2

Sample

2

S

Variance

X X ) 2

S

2

n 1

Variance

• The variance is given in squared units

• The standard deviation is the square root of

variance:

Sample Standard Deviation

Xi X 2

S

n 1

Population Standard Deviation

2

Sample Standard Deviation

S S 2

Sample Standard Deviation

Xi X 2

S

n 1

The Normal Distribution

• Normal curve

• Bell shaped

• Almost all of its values are within plus or

minus 3 standard deviations

• I.Q. is an example

Normal Distribution

MEAN

Normal Distribution

2.14%

2.14%

Normal Curve: IQ Example

Standardized Normal Distribution

• Mean identifies highest point

• Infinite number of cases - a continuous

distribution

• Area under curve has a probability density = 1.0

• Mean of zero, standard deviation of 1

Standard Normal Curve

• The curve is bell-shaped or symmetrical

• About 68% of the observations will fall

within 1 standard deviation of the mean

• About 95% of the observations will fall

within approximately 2 (1.96) standard

deviations of the mean

• Almost all of the observations will fall

within 3 standard deviations of the mean

A Standardized Normal Curve

-2 -1 0 1 2 z

The Standardized Normal is the

Distribution of Z

–z +z

Standardized Scores

x

z

Standardized Values

• Used to compare an individual value to the

population mean in units of the standard

x

deviation

z

Linear Transformation of Any Normal

Variable Into a Standardized Normal Variable

X

scale is stretched scale is shrunk

x

z

-2 -1 0 1 2

•Population distribution

•Sample distribution

•Sampling distribution

Population Distribution

x

Sample Distribution

_

C S X

Sampling Distribution

X SX X

Standard Error of the Mean

• Standard deviation of the sampling

distribution

Central Limit Theorem

Standard Error of the Mean

Sx

n

Distribution Mean Standard

Deviation

Population

Sample X S

Sampling X SX

Parameter Estimates

• Point estimates

• Confidence interval estimates

Confidence Interval

SMALL SAMPLING ERROR Z cl S X

E Z cl S X

X E

Estimating the Standard Error of

the Mean

S

S x

n

S

X Z cl

n

Random Sampling Error and

Sample Size are Related

Sample Size

• Variance (standard

deviation)

• Magnitude of error

• Confidence level

Sample Size Formula

zs

n

E

Sample Size Formula - Example

expenditures on lipstick, wishes to have a

95 percent confident level (Z) and a

range of error (E) of less than 2.00. The

estimate of the standard deviation is

29.00.

Sample Size Formula - Example

1.9629.00

2 2

zs

n

E 2.00

2

56.84

28.42 2

808

2.00

Sample Size Formula - Example

before, the range of error (E) is

acceptable at 4.00, sample size is

reduced.

Sample Size Formula - Example

1.9629.00

2 2

zs

n

E 4.00

2

56.84

14.212

202

4.00

Calculating Sample Size

99% Confidence

2

2

( 2.57)(29) ( 2.57)(29)

n n

2 4

74.53

2 2

74.53

2 4

[

37.265] 18.6325]

[

2 2

1389 347

Standard Error of the Proportion

sp

pq

n

or

p (1 p )

n

Confidence Interval for a

Proportion

p ZclSp

Sample Size for a Proportion

2

Z pq

n 2

E

z2pq

n 2

E

Where:

n = Number of items in samples

in standard error units.

between the true proportion and sample proportion

or zsp squared.

Calculating Sample Size

at the 95% Confidence Level

n

q .4 ( . 035 )2

(3. 8416)(. 24)

001225

. 922

. 001225

753

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