MATH-2207

Numerical Analysis and Statistics

Chapter-1
Introduction to Statistics
Mehnuma Tabassum
Lecturer
Dept. of MPE, AUST
 Outline
▪ What is Statistics?
▪ Why Study Statistics?
▪ Application of Statistical Tools
▪ Classification of Statistics
▪ Important Terminologies
▪ Classification of Variables
▪ Levels of Measurement
 What is Statistics?
• A typical automobile in the US travels
11,099 miles per year
• The mean waiting time for getting
technical service in a repair store is 17
minutes
• Mean amount of calorie consumed per day
is 2,223
 What is Statistics?
The science of collecting, organizing, presenting, analyzing and
interpreting data to assist in making more effective decisions
 Why Study Statistics?
1. Data are everywhere

2. Statistical techniques are used to make many

decisions that affect our lives

3. No matter what your career, you will make

professional decisions that involve data. An
understanding of statistical methods will help you
make these decisions effectively
 Applications of Statistical Tools
• Finance – Correlation and regression, index numbers, time series
analysis
• Marketing – Hypothesis testing, chi-square tests, nonparametric
statistics
• Personal – Hypothesis testing, chi-square tests, nonparametric tests
• Operations Management – Hypothesis testing, estimation, analysis of
variance, time series analysis
 Classification of Statistics
Descriptive Statistics Inferential Statistics
Methods of organizing, Methods used to determine
summarizing and presenting something about a population
data in an informative way on the basis of a sample
 Classification of Statistics
Descriptive Statistics Describing a phenomena
• Frequencies How many? How much?
• Basic measurements BP, BMI, IQ, etc.

Inferential Statistics Inferences about a phenomena

• Hypothesis Testing Proving or disproving theories
• Correlation Associations between phenomena
• Confidence Intervals If sample relates to the larger
• Significance Testing population
• Prediction E.g., Diet and health
 Important Terminologies
1. Population The entire set of individuals or objects of interest
2. Sample A part/ portion of the population of interest
3. Variable A characteristic or condition that can change or take
on different values
 Classification of Variables
Variables
Can you express it
through numbers?

Qualitative/ Quantitative/
How many Categorical Numerical Is it countable
values can it
or measurable?
have?

Dichotomous Polychotomous Discrete Continuous

 Classification of Variables
1. Qualitative Variable 2. Quantitative Variable
A broad category for any variable A broad category that includes any
that can’t be counted variable that can be counted

a. Dichotomous: Variables having a. Discrete: a variable that can only

only two values take on a certain number of values
b. Polychotomous: Variables b. Continuous: a variable with
having more than two values infinite number of values
 Levels of Measurement
1. Nominal Level Data

2. Ordinal Level Data

3. Interval Level Data

4. Ratio Level Data

 Levels of Measurement
1. Nominal Level Data
– Only applicable for a qualitative variable
– Data categories are mutually exclusive and collectively exhaustive
– Data categories have no logical order
 Levels of Measurement
2. Ordinal Level Data
– Data categories are mutually exclusive and exhaustive
– Data classifications are ranked or ordered according to the particular
trait they possess
– Amount of differences between two levels is not necessarily the same
 Levels of Measurement
3. Interval Level Data
– Data categories are mutually exclusive and exhaustive
– Data classifications are ordered according to the amount of the
characteristic they possess
– Equal differences in the characteristic are represented by equal
differences in the measurements
– “0” is not an important factor
 Levels of Measurement
4. Ratio Level Data
– Data categories are mutually exclusive and exhaustive
– Data classifications are ordered according to the amount of the
characteristic they possess
– Equal differences in the characteristic are represented by equal
differences in the numbers assigned to the classifications
– “0” point & ratio of two numbers is of significance
Class Work
 Task
1. Classify the following observations as qualitative or quantitative:
a) There were four dogs in the
group.
b) The rock sample consisted of 25
grams of quartz
c) The sample contained 3 different
types of bacteria.
d) The first plant had several brown
leave, the second plant had only
green leaves
e) The sample with the baking
soda appeared bubbly
f) The patient had a temperature
102 degrees.
g) The parrots range from bright
green to dark red.
h) The first plant specimen had 3
more leaves than the second
specimen.
 Task
2. Divide these observations into their corresponding levels of
measurement:
– Eye color
– Grades in an exam
– Dog breeds
– Military title (Lieutenant, major, general)
– City of birth
– Distance from your home to your varsity
– IQ of a person
Thank You!