IBS Statistics Year 1

Dr. Ning DING

n.ding@pl.hanze.nl
I007, Friday & Monday

Table of content
Chapter 1: What is statistics?

Why study statistics?

What is meant by statistics?
Types of statistics
Types of variables
Levels of measurement
Norminal-Level Data
Ordinal-Level Data
Interval-Level Data

Ethics and Statistics

Chapter 2: Describing data

Frequency tables
Frequency distributions
Graphic presentation

Learning Goals
Chapter 1: What is statistics?

Understand why we study statistics

Explain what is meant by descriptive and inferential statistics
Distinguish between a qualitative and quantitative variable
Describe how a discrete variable is different from a continous variable
Distinguish among the nominal, ordinal, interval and ratio levels of measurement

Chapter 2: Describing data

Organize qualitative data into a frequency table

Present a frequency table as a bar chart or a pie chart
Organize quantitative data into a freqency distribution
Present a frequency distribution for quantitative data using histograms, frequency
polygons, and cumulative frequency polygons.

Chapter 1: What is
Statistics?

1. Introduction

Statistics are
everywhere.

Chapter 1: What is
Statistics?

1. Introduction

Chapter 1: What is
Statistics?

1. Introduction

Statistics
help you
make
decisions.

Chapter 1: What is
Statistics?

1. Introduction

Statistics give
you a better
understanding.

Chapter 1: What is
Statistics?

1. Introduction
1. Adequate information? Additional information?
2. No misleading information?
3. Summarize the information.
4. Analyze available information.
5. Conclusions!

Chapter 1: What is
Statistics?

1. Introduction
Statistics:

The science of collecting, organizing,

presenting, analyzing and interpreting data
to assist in making more effective decisions.

Chapter 1: What is
Statistics?

1. Introduction
Making
Making decisions
decisions

Interpret data
Present
data
Analyze
data
Organize
data

Collect data

Chapter 1: What is
Statistics?

2. Types of Statistics
Descriptive Statistics:
Methods of organizing, summarizing and
presenting data in an informative way.

Inferential Statistics:
Methods used to estimate a property of a
population on the basis of a sample.

Chapter 1: What is
Statistics?

2. Types of Statistics
Descriptive
Statistics:

Inferential
Statistics:

Chapter 1: What is
Statistics?

2. Types of Statistics
Population:

The entire set of individual or objects of

interest or the measurements obtained from all
individuals or objects of interest.
Sample:
A portion, or part, of the population of interest.

Chapter 1: What is
Statistics?

2. Types of Statistics
Population:
Sample:

Play

Chapter 1: What is
Statistics?

3. Types of Variables
Qualitative:
nonnumeric, attribute

Quantitative:
numerical

Chapter 1: What is
Statistics?

3. Types of Variables
Quantitative:
Quantitative:

Qualitative:
Qualitative:

Chapter 1: What is
Statistics?

3. Types of Variables
Discrete counting

or

Continuous measuring

Chapter 1: What is
Statistics?

4. Levels of Measurement
Nominal:

Data categories are represented by labels or names.

Even when the labels are numerically coded, the data categories
have no logical order.
Example:
Eye colour, gender, religious affiliation

Ordinal:
Data classifications are represented by sets of labels or names
(high, medium, low) that have relative values.
Because of the relative values, the data classified can be ranked or
ordered.
Example:
During a taste test of 4 soft drinks, Mellow Yellow was
ranked number 1, Sprite number 2, Seven-up number 3, and
Orange Crush number 4.

Chapter 1: What is
Statistics?

4. Levels of Measurement
Nominal:
Nominal:

No logical order

Ordinal:
Ordinal:

Ranked or ordered

Chapter 1: What is
Statistics?

4. Levels of Measurement
Interval:

Similar to the ordinal level, with the additional property that

meaningful amounts of differences between data values can be
determined.
There is no natural zero point.
Example:
Temperature on the Fahrenheit scale.

Ratio:
The interval level with an inherent zero starting point.
Differences and ratios are meaningful for this level of measurement.
Examples:
Monthly income; distance travelled by manufacturers
representatives per month.

Chapter 1: What is
Statistics?

4. Levels of Measurement
Online Animation

Nominal:
Nominal:
Ordinal:
Ordinal:
Interval:
Interval:
Ordered, Equal differences

Ratio:
Ratio:

Zero

Chapter 1: What is
Statistics?

4. Levels of Measurement

Chapter 1: What is
Statistics?

Exercises 1-a

For each of the following, determine whether the group is a

sample or a population.
The participants in a study of a new cholesterol drug.

Sample
Sample

The drivers who received a speeding ticket Kansas City last month.
Population
Population
Those on welfare in Cook County (Chicago), Illinois.
Population
Population
The 30 stocks reported as a part of the Dow Jones Industrial
Average.
Sample
Sample

P14. N.4 Ch.1

Exercises 1-b

Chapter 1: What is
Statistics?

Refer to the Real Estate data at the back of the text, which
report information on homes sold in the Denver, Colorado,
area last year. Consider the following variables: selling
price, number of bedrooms, township, and distance
from the center of the city.
Which of the variables are qualitative and which are
quantitative?
township
township

all
all the
the rest
rest

Determin the level of measurement for each of the

variables.
Township
Township == nominal
nominal level
level

All
All the
the rest=ratio
rest=ratio

P18. N.16 Ch.1

Chapter 2: Describing
data

2.1 Frequency Table

Frequency Table:

A grouping of qualitative data into mutually exclusive classes

showing the number of observations in each class.
Example: Ice cream 20 vendors
Choco 6
Vanilla 4

7 5
10 6

7
8

7
8

8
9

7
5

6
6

9
4

7
8

Chapter 2: Describing
data

2.1 Frequency Table

Relative Class Frequencies:

Show the fraction of the total number of observations in each class

Example: Ice cream 20 vendors
Choco 6
Vanilla 4

7 5
10 6

7
8

7
8

8
9

7
5

6
6

9
4

7
8

Chapter 1: What is
Statistics?

Exercises 2-a

A total of 1,000 residents in Minnesota were asked which season they preferred. The
results were 100 liked winter best, 300 liked spring, 400 liked summer, and 200 liked
fall.
If the data were summarized in a frequency table, how many classes would be used?
What would be the relative frequencies for each class?

P27. N.3 .Ch.2

Chapter 2: Describing
data

2.2 Graphic Presentation

of Qualitative Data
Bar Chart:

The classes are reported on the horizontal axis

The class frequencies on the vertical axis
The class frequencies are proportional to the heights of the bars.
Example: Ice cream 20 vendors

Chapter 2: Describing
data

2.2 Graphic Presentation

of Qualitative Data
Pie Chart:

Shows the proportion or percent that each class represents of the

total number of frequencies
Example: Ice cream 20 vendors

Chapter 2: Describing
data

2. Frequency Distribution
Frequency Distribution:
A grouping of data into
mutually exclusive
classes showing the
number of observations in
each class.

Chapter 2: Describing
data

2. Frequency Distribution
Frequency Distribution:

A grouping of data into mutually exclusive classes showing the

number of observations in each class.

Chapter 2: Describing
data

2. Frequency Distribution
Step 1: Just enough recipe 22 to
to the
the kk rule
rule

N=27 number of class=5

Step 2: Class Interval

(55-14)/5 8
Step 3: Choose nice round boundaries
Step 4: Try to avoid empty and open classes

10 -< 20
20 -< 30
30 -< 40
40 -< 50
50 -< 60

4
1
10
9
3
N=27

Practice

Chapter 2: Describing
data

Exercises 2-b

A set of data consists of 45 observations between $0 and $29. What size would you
recommend for the class interval?

25 = 32, 26 = 64, suggests 6

classes
i>

$30 - $0
6

=5

Use interval of 5
P33. N.8 .Ch.2

Chapter 2: Describing
data

Exercises 2-b

The Quick Change Oil Company has a number of outlets in the metropolitan Seattle
area. The daily number of oil changes at the Oak Street outlet in the past 20 days
are:
65
70

98 55 62 79
62 66 80 94

59 51 90 72 56
79 63 73 71 85

a. How many classes would you recommend?

a. 24 = 16, 25 = 32, suggests 5

classes

b. What class interval would you suggest?

i>

99 - 51
5

b. Use interval of
10
P34. N.12.Ch.2

Chapter 2: Describing
data

Exercises 2-b

The Quick Change Oil Company has a number of outlets in the metropolitan Seattle
area. The daily number of oil changes at the Oak Street outlet in the past 20 days
are:
65
70

98 55 62 79
62 66 80 94

59 51 90 72 56
79 63 73 71 85

c. What lower limit would you recommend for the first class?

c. 50

P34. N.12.Ch.2

Chapter 2: Describing
data

3. Graphic Presentation
Histogram

The classes are marked on the horizontal axis

The class frequencies on the vertical axis
The class frequencies are represented by the heights of the bars
and the bars are adjacent to each other.

Polygon:
The shape of a distribution
Similar to a histogram

Chapter 2: Describing
data

3. Graphic Presentation
Histogram
Histogram
Example:

Chapter 2: Describing
data

3. Graphic Presentation
Polygon
Polygon
Example:
No
t fl
oa
tin
gi
nt

he

air

Chapter 2: Describing
data

3. Graphic Presentation
Cumulative frequency distribution:

used to determine how many or what proportion of

the data values are below or above a certain value.

No
t fl
oa
tin
gi
nt

he
air

Chapter 2: Describing
data

3. Graphic Presentation

Summary

Chapter 1: What is
Statistics?

Chapter 1: What is statistics?

Understand why we study statistics
Explain what is meant by descriptive and
inferential statistics
Distinguish between a qualitative and
quantitative variable
Describe how a discrete variable is different
from a continous variable
Distinguish among the nominal, ordinal,
interval and ratio levels of measurement

Chapter 2: Describing data

Organize qualitative data into a frequency
table
Present a frequency table as a bar chart or a
pie chart

Chapter 1: What is
Statistics?

Exercises 1-a

What is the level of measurement for each of

the following variables?
Interval
Interval
A. student IQ ratings
Ratio
B. distance students travel to class
Ratio
Interval
C. student scores on the first statistics
test
Interval
D. a classification of students by state ofNominal
birth
Nominal
E. a ranking of students as freshmen, sophomore,
junior, and
senior
Ordinal
Ordinal
F. Number of hours students study perRatio
week
Ratio

Chapter 1: What is
Statistics?

Exercises 1-b

Place these variables in the following classificatio

a.
b.
c.
d.
e.
f.
g.
h.
i.

Salary
Gender
Sales
volumen of
MP3 players
Soft drink
preference
Temperature
SAT scores
Student rank
in class
Rating of a
finance
professor
Number of
home
computers

Discrete
Qualitative

Quantitative

b.
b. Gender
Gender

Continuous

d.
d. Soft
Soft drink
drink preference
preference

f.f. SAT
SATscores
scores

a.
a. Salary
Salary

g.
g. Student
Student rank
rank in
in class
class

c.
c. Sales
Sales volume
volume of
of MP3
MP3 players
players

h.
h. Rating
Rating of
of aa finance
finance
professor
professor

e.
e. Temperature
Temperature
i.i. Number
Number of
of home
home computers
computers

P16. N.9 Ch.1

Chapter 1: What is
Statistics?

Exercises 1-c

Place these variables in the following classificatio

a.
b.
c.
d.
e.
f.
g.
h.
i.

Salary
Gender
Sales
volumen of
MP3 players
Soft drink
preference
Temperature
SAT scores
Student rank
in class
Rating of a
finance
professor
Number of
home
computers

Discrete
Nominal
Ordinal

b.
b. Gender
Gender
d.
d. Soft
Soft drink
drink preference
preference
g.
g. Student
Student rank
rank in
in class
class

Interval

Continuous

f.f. SAT
SATscores
scores

h.
h. Rating
Rating of
of aa finance
finance
professor
professor
e.
e. Temperature
Temperature
a.
a. Salary
Salary

Ratio

c.
c. Sales
Sales volume
volume of
of MP3
MP3 players
players
i.i. Number
Number of
of home
home computers
computers

Chapter 1: What is
Statistics?

Exercises 1-d

The table below reports the number of

cars and light trucks sold by the Big
Three automobile manufacturers for
June 2004 and June 2005.

1. Compare the total sales in the two months. What do you conclude? Has
there been an increase in sales?

P17. N.13 Ch.1

Chapter 1: What is
Statistics?

Exercises 1-d

The table below reports the number of

cars and light trucks sold by the Big
Three automobile manufacturers for
June 2004 and June 2005.

1. Compare the total sales in the two months. What do you conclude? Has
there been an increase in sales?
(1,056,144-866,243)
866,243
Total sales increased 189,901 units or 21.9%.

Chapter 1: What is
Statistics?

Exercises 1-d

The table below reports the number of

cars and light trucks sold by the Big
Three automobile manufacturers for
June 2004 and June 2005.

2. Compare the percent of the Big Three market for each company. Did the
market increase or did GM steal sales from the other companies? Cite
evidence.

Chapter 1: What is
Statistics?

Exercises 1-d

The table below reports the number of

cars and light trucks sold by the Big
Three automobile manufacturers for
June 2004 and June 2005.

2. Compare the percent of the Big Three market for each company. Did the
market increase or did GM steal sales from the other companies? Cite
evidence.
GM increased the market share by 9 percentage points from 43% to 52
Crysler lost 3% and Ford lost 6%.
All three companies increased the nubmer of units sold.