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Descriptive Statistics Vs Inferential Statistics
Descriptive Statistics Vs Inferential Statistics
Descriptive Statistics Vs Inferential Statistics
Prepared by:
Mr. Carlito Daarol
Faculty
November 29, 2020
Basic Terms:
Measures of Central Value: Sample – subset or portion of a larger group
Mean usually called the average Population – entire set of individuals or objects
Median – the midpoint value (larger group)
Mode – the value that occurs most frequently
Confidence Interval Estimation is used when the issue under investigation involves learning the value of
an unknown population parameter.
Example: Estimate the body mass index of students in MSU high school.
The body mass index is between 16.5 to 21.23. The interval (16.5, 21.23) is called the interval estimate.
It consists of a lower bound and an upper bound.
Hypothesis testing procedures are used when the issue under investigation involves assessing the
validity of an assumed value of a particular population parameter .
If the average bmi of students in MSU high school is 19.10 then assess the validity of this figure.
1. The only way to estimate the value of a population parameter is to conduct a census by
collecting data from each and every member of the population. This means 100% enumeration
of all members.
2. It is only when 100% of the data is considered when a a value of a particular population
parameter can be determined with a 100% accuracy which is very costly and time consuming
and is either impractical or impossible to achieve.
Remarks: Estimation of population parameter using random sampling (the preferred method – iwas
gastos)
1. Collect unbiased, representative random samples from the population, the results obtain from
the sample statistics are used to infer what the results in the population might actually be (by
using probability).
2. In CI estimation, the resulting sample statistics are used to determine the lower and upper limit
of an interval that accurately estimates the actual value of the unknown parameter (1- α)100%
of the time where α is a probability value that is usually 0.05 or smaller. This α value is called
the significance level and the quantity (1- α) 100% represents the confidence level.
Interpretation:
Given a set of random samples from an unknown population, we are 95% confident that the
interval (L,U) contains the true parameter value. The remaining 5% gives us the probability that
this unknown parameter lies outside of the interval.
Since random samples results are used to calculate the confidence interval, the resulting limits L
and U produce varying results determined by chance due to random sampling.
Remarks:
In this imperfect world, the occurrence of a normal distribution is only a myth. The distribution
of random samples are usually skewed. To normalize the dataset we are going to use the most
important theorem of statistics. This theorem is called the Central Limit Theorem (CLT) which
utilized the distribution of sampling means to attain normality. (End of CI Estimation)
3. To perform a hypothesis testing procedures: a random sample is collected from the population.
a. If the resulting sample statistics are consistent with the assumed value of the
population parameter, the validity of the assumed (hypothesized) value is confirmed.
b. If the resulting sample statistics contradict the assumed value of the population
parameter, the assumed value is considered to be invalid.
A hypothesis is a statement that asserts something. It could be an idiot’s wish or an educated guess.
The objective of hypothesis testing is to prove H1 by rejecting the null hypothesis Ho.
This method of logic is called indirect method. The focus of hypothesis testing is on the null hypothesis.
Decision making
If the null hypothesis is rejected, you can conclude that H1 is true.
If the null hypothesis is not rejected, you cannot conclude that H1 is true.
Hence, you must be careful in stating your null and alternative hypothesis.
Example:
Mr. XX claimed that his intelligence level is comparable or higher than that of Einsteins IQ = 169.
Assessment:
Without conducting formal hypothesis testing procedure, we know that there is something wrong with
claim of Mr. XX.
His personal record is a contradiction to what he claimed to be.
5. Gather your evidence by collecting the random samples associated with the parameter.
Evaluate the test statistic ( t test, z test, F test …)
6. Sketch the probability density function ( this depends on the kind of test performed) and
determine the critical value at the given value of α. An alternative method is to get the
p-value.
7. Compare the value of the test statistic and the critical value.
(Left sided test) : Check if test statistics is smaller than the critical value. If yes, reject Ho.
(right sided test) : Check if test statistics is bigger than the critical value. If yes, reject Ho.
(two sided test) : Check if abs(test statistics) is bigger than the critical value. If yes, reject
Ho.
If Ho is not rejected, do not conclude that H1 is true. State only that you have no scientific ev
idence to reject Ho and because of the failure of rejecting Ho, you were not able to prove H1.
Left sided Test
Answer: Board Exam passing score. Below 75% Above or equal 75%
That value serves as a boundary point where success and failure are separated.
Prepared by:
Mr. Carlito Daarol
Faculty
November 29, 2020