Chapter 1: Defining & Collecting Data

Learning Objectives

In this chapter you learn:

 The types of variables used in statistics

 The measurement scales of variables
 How to collect data
 The different ways to collect a sample
 About the types of survey errors

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-2
 Types of Variables
DCOVA
Define(D)
>Collect(C)
>Organize(O)
>Visualize(V)
>Analyze(A)

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-3
 DEFINING DATA
DCOVA

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 2-4
 Types of Variables

 Categorical (q……..) variables have values that can

only be placed into categories, such as “yes” and “no.”
(=> They are not really “numbers”)

 Numerical (q……….) variables have values that

represent quantities.
 Discrete variables arise from a c……. process
 Continuous variables arise from a measuring process

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-5
 Types of Variables

Variables

Categorical Numerical

Examples:
 Marital Status
 Political Party Discrete Continuous
 Eye Color
(Defined categories) Examples: Examples:
 Number of Children  Weight
 Defects per hour  Voltage
(Counted items) (Measured characteristics)

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-6
 Levels of Measurement

A nominal scale classifies data into distinct

categories in which no ranking is implied.

Categorical Variables Categories

Personal Computer Yes / No

Ownership

Type of Stocks Owned Growth / Value / Other

Internet Provider AT&T, Verizon, Time Warner Cable

Q: Is red colour ranked higher thank brown?

Q: Is hazel eyes ranked higher than blue eyes?
Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-7
 Levels of Measurement (con’t.)

An ordinal scale classifies data into distinct

categories in which ranking / order is implied
Categorical Variable
Student class designation
Product satisfaction
Ordered Categories
Freshman, Sophomore, Junior,
Senior
Satisfied, Neutral, Unsatisfied

Faculty rank Professor, Associate Professor,

Assistant Professor, Instructor
Standard & Poor’s bond ratings AAA, AA, A, BBB, BB, B, CCC, CC,
C, DDD, DD, D
Student Grades A, B, C, D, F
Q: Is Grade ‘A’ better than ‘B’, in turns better than ‘C’?
Q: What is the difference in marks between ‘A’ and ‘B’?
Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-8
 Levels of Measurement (con’t.)

 An interval scale is an ordered scale in which the

difference between measurements is a meaningful
quantity but the measurements do not have a true zero
point.

 A ratio scale is an o………….. scale in which the

difference between the measurements is a meaningful
quantity and the measurements have a true zero point.

 When to use Interval or Ratio : depends on context

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-9
 Interval and Ratio Scales

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-10
 COLLECTING DATA
DCOVA

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 2-11
 METHODS of Data Collection

 Survey  Testimonial
 Interview  Tests
 Observation  Photos
 Case Study  Videoclips
 Group  Diaries, Journals
assessment  Documents
 Expert / Peer reviews
reviews

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-12
 METHODS of Data Collection
Quantitative Qualitative
 Surveys  Focus group

 Questionnaire discussions
 Test  Executive

 Observation
interviews
 Unstructured
 Mystery shoppers
observation
Quantitative
1. Structured research instruments
2. Large sample size
3. Data collected are usu. In the forms of numbers and statistics
Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-13
 Population vs. Sample

Population Sample

All the items or individuals about A portion of the population of

which you want to draw conclusion(s) items or individuals

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-14
 Population vs. Sample

Population S……..

All the items or individuals about A portion of the population of

which you want to draw conclusion(s) items or individuals

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-15
 Types of Samples

Samples

Non-Probability Probability Samples

Samples

Simple Stratified
Random
Judgment Convenience

S…………. C……..

Q: Discussion: Why need sampling and not census instead?

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-16
 Types of Samples:
Nonprobability Sample

 In a nonprobability sample, items included are

chosen without regard to their probability of
occurrence.
 In convenience sampling, items are selected based
only on the fact that they are easy, inexpensive, or
convenient to sample.
 In a judgment sample, you get the opinions of pre-
selected experts in the subject matter.

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-17
 Types of Samples:
Probability Sample

 In a probability sample, items in the

sample are chosen on the basis of known
probabilities.
Probability Samples

Simple
Random Systematic Stratified Cluster

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-18
 Probability Sample:
Simple Random Sample

 Every individual or item from the frame has an

equal chance of being selected

 Selection may be with replacement (selected

individual is returned to frame for possible
reselection) or without replacement (selected
individual isn’t returned to the frame).

 Samples obtained from table of random

numbers or computer random number
generators.
Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-19
 Probability Sample:
Systematic Sample
 Decide on sample size: n
 Divide frame of N individuals into groups of k
individuals: k=N/n
 Randomly select one individual from the 1st
group
 Select every kth individual thereafter
N = 40 First Group
n=4
k = 10

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-20
 Probability Sample:
Stratified Sample
 Divide population into two or more subgroups (called strata) according
to some common characteristic
 A simple random sample is selected from each subgroup, with sample
sizes proportional to strata sizes
 Samples from subgroups are combined into one
 This is a common technique when sampling population of voters,
stratifying across racial or socio-economic lines.

Population
Divided
into 4
strata

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-21
 Probability Sample
Cluster Sample
 Population is divided into several “clusters,” each representative of
the population
 A simple random sample of clusters is selected
 All items in the selected clusters can be used, or items can be
chosen from a cluster using another probability sampling technique
 A common application of cluster sampling involves election exit polls,
where certain election districts are selected and sampled.

Population
divided into
16 clusters. Randomly selected
clusters for sample

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-22
 Types of Survey Errors(S)
 Coverage error or selection bias
 Exists if some groups are excluded from the frame and have
no chance of being selected

 Nonresponse error or bias

 People who do not respond may be different from those who
do respond

 S………… error
 Variation from sample to sample will always exist

 Measurement error
 Due to weaknesses in question design, respondent error, and
interviewer’s effects on the respondent (“Hawthorne effect”)

Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-23
 Types of Survey Errors(S)
(continued)

 Coverage error Excluded from

frame

 Nonresponse error Follow up on

nonresponses

 Sampling error Random

differences from
sample to sample
 Measurement error Bad or leading
question
Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-24
 Chapter Summary

In this chapter we have discussed:

 The types of variables used in statistics

 The measurement scales of variables
 How to collect data
 The different ways to collect a sample
 The types of survey errors
 Socrative :
 Login – “student” ID/Classroom – “STATS16”
Data Analysis for Decision Makers (MIS2001S) – BBS31 / BBS55 Chap 1-25