1 Introduction to Statistics (I.C.

S Part-1)/Prepared by Fozia Yamin

Chapter No.1:
INTRODUCTION TO STATISTICS
ORIGIN AND GROWTH OF STATISTICS:
In 18th century German scholar Gotifried Achenwall used the word Statistik for the first time.
The word Statistics has either been derived from the Latin word “Status” or Italian word “Statstica” or
German word “Statistik”.
Meaning of each word is “an organized political state”.
DEFINITIONS OF STATISTICS:
“It is the mathematical science of making decisions and drawing conclusions from data in situation of
uncertainty.”
Definition by Croxton and Cowden:
According to Croxton and Cowden statistics may be defined as
“Statistics is the science of collection, presentation, analysis and interpretation of numerical data.”
The definition points out the four stages:
1. Collection of data.
2. Presentation of data.
3. Analysis of data.
4. Interpretation of data.

1. Collection of Data: It is the first step and this is the foundationupon which the entire data set. Careful
planning is essential before collecting the data.
2. Presentation of data: The mass data collected should bepresented in a suitable, concise form for further
analysis.
3. Analysis of data: The data presented should be carefullyanalyzed for making inference from the presented
data.
4. Interpretation of data: The final step is drawing a valid conclusionfrom the data collected.
Population:
The total group under discussion having some common characteristic of interest is called population/universe.
Or
A population consists of the totality of the observations with which we are concern.
Sample:
A sample is an observed subset of population values.
Or
A sample is a representative part of population.
Parameter:
Any numerical value calculated from population when entire population is available called parameter.
Parameters are constants and are usually unknown. Parameters are denoted by Greek letters.
Example:Population mean denoted by μ, Population variance denoted by σ2
Statistic:
Any numerical value calculated from sample is called statistic.
Statistic varies from sample to sample so it is variable.
Example:Sample Mean denoted by𝑋̅, Sample Variance denoted by S2 etc.
Ratio:
2 Introduction to Statistics (I.C.S Part-1)/Prepared by Fozia Yamin

The ratio is a fraction. The ratio of A to B is A/B.

Example: in a class there are 150 male students and 200 female students. So, the female and male student’s ratio is
200/150.
Proportion:
The specific ratio of a part to its total is called proportion.
Example: In a class there are total 350 students from which 150 are male and 200 are female. So, the female proportion
is 200/350 and male proportion is 150/350.
Experiment:
Any study in which the scientist can control the allocation of treatments to the experimental units is called an experiment.
Sample Survey:
A survey is sampling of facts or opinion on the basis of selection that is used to estimate how an entire group
would respond.
Data:
The collection of numerical raw facts and figures is called data. It is the plural of the word datum.
Datum:
A single numerical fact is called datum.

Data

Constant Variable

Qualitative Quantitative
Variable Variable

Continuous
Discrete Variable
Variable

Constant:
Any observed characteristics is called constant if it attains identical values from person to person, place to
place or time to tome
Quantities which don’t vary from individual to individual are called constant.
Example: π≈3.14159, e≈2.71828, 8,3 etc.
Variable:
Any observed characteristics is called variable if it attains different values from person to person, place to
place or time to tome
Example: Age, wage, height, temperature and number of family members etc.
1.Qualitative Variable/Categorical Variable/Attribute:
A variableis classified as qualitative variable if observed characteristic is not realized in numeral but one can
feel the presence or absence of particular characteristic. A qualitative variable is also called Attribute.
Example: Martial status, gender, eye color etc.
3 Introduction to Statistics (I.C.S Part-1)/Prepared by Fozia Yamin

2.Quantitative Variable:
A variableis classified as quantitative variable if observed characteristic is numeral.
Example: Age, rate, height etc.
(i) Discrete Variable:
Any quantitative variable is regarded as discrete if it attains only finite or count ably infinite number of values.
Example: No. of family members, number of students in a class, number of matches in a box etc.
Discrete Data:
A data based on discrete variables is called discrete data.
(ii) Continuous Variable:
Any quantitative variable is regarded as continuous if it attains or can attain each and every value in its range.
Continuous Data:
A data based on continuous variables is called continuous data.

Order Statistics:
The order statistics of data is just the arrangements of data in order of magnitude.

Model:
A model is a mathematical statement used in studying the results of an experiment.
Simplest Model:
Yi =𝛍 + 𝛆i
Where as
Yi = Individual Observation
μ= Population Mean
εi(epsilon) = Random Error
Random Error:
The random error εiis a chance variation in the observational process. It may be written as
𝛆i = Yi–𝛍
εi’sare usually assumed from a population having zero mean.
The term (Yi-μ) is known as deviation of an observation Yi from mean μ.
𝚺 (Sigma):
It is a Greek letter, used to denote the summation of a series of numbers.
For example, the sum of Y1,Y2,Y3,….Ynis written as:
𝑛

𝑌1 + 𝑌2 + 𝑌3 + ⋯ . +𝑌𝑛 = ∑ 𝑌𝑖 𝑜𝑟 𝑠𝑖𝑚𝑝𝑙𝑦 ∑ 𝑌
𝑖=1
(Pie):
It is a Greek letter used to denote the product the series of numbers.
For example, the sum of Y1,Y2,Y3,….Ynis written as:
𝑛

𝑌1 × 𝑌2 × 𝑌3 × … .× 𝑌𝑛 = ∏ 𝑌𝑖 𝑜𝑟 𝑠𝑖𝑚𝑝𝑙𝑦 ∏ 𝑌
𝑖=1
Factorial (n!):
The product of first n natural numbers is called factorial and is denoted by n!is given below:
4 Introduction to Statistics (I.C.S Part-1)/Prepared by Fozia Yamin

n! = n.(n-1).(n-2).(n-3)…(3).(2).(1)
5! = 5.4.3.2.1
= 120

Econometrics:
When statistics applied in Economics, then it is called Econometrics.
Biometry:
When statistics applied in Biology, then it is called Biometry.

BRANCHES OF STATISTICS:
1. Descriptive Statistics:
It is the branch of statistics which deals with collection, presentation and analysis of data is called descriptive statistics.
2. Inferential Statistics:
It is the branch of statistics which deals with drawing inferences about population on the basis of sample information is
called inferential statistics.

SOURCES OF DATA:
There are two sources of data collection which are as follows:

1. Primary Data:
The data that have been initially collected and have not under gone any statistical treatment is called primary data.
Sources of Primary Data:
(i). Personal investigation:
The researcher conducts the experiments or survey himself and collects data from it. It is feasible for small scale and
generally collects accurate and reliable data.
(ii). Through investigators:
The trained investigators are employed to collect data. This method is costly but provides reasonably accurate
information.
(iii). Through Questionnaires:
In this method, the required information is collected by sending questionnaires to selected candidates by mail. Candidates
fill in the questionnaires and return to the investigator.
(iv). Through Local Sources:
In this method, the local agents are hired for collection of required information. It is cheap but provides rough estimates.
(v). Through Electronic Media:
The electronic media is the most efficient way of data collection. Electronic media includes telephone, television, internet
etc.

2. Secondary Data:
The data that have been under gone any sort of statistical treatment at least once is called secondary data.
The data that have been collected, tabulated or presented is called secondary data.
Sources of Secondary Data:
(i). Government Sources:
The publications of Statistical Division, Federal & Provincial Bureau of Statistics, Ministries of Food, Agriculture,
Industry, etc.
(ii). Semi-Government Resources:
State Bank of Pakistan, Railway Board, Municipal Committees, and District Councils etc.
(iii). Research Organizations:
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Such as universities and other institutions etc.

(iv). Technical, Trade Journals & Newspapers
(v). Electronic Media & Internet