STA 103: PRINCIPLES OF STATISTICS

TOPIC ONE
NATURE AND SCOPE OF STATISTICS
Objectives

By the end of this topic the learner should be able to

i. Discus the nature and scope of statistics

ii. Explain the importance of statistics
iii. Explain the relationship between statistics and the following disciplines
(a) Mathematics
(b) Economics
(c) Management
(d) Physical sciences.

1.1 Introduction

Statistics refers to variety of methods and techniques that are used for organizing summarizing,
analyzing and interpreting data. Statistics is a very useful tool which helps one to describe and
make sense of the data collected.
Statistics is broadly categorized into two branches.
(i) Descriptive statistics – This is a group of methods and techniques that attempts to
summarize and describe the data that have been collected e.g calculating the mean,
standards deviation producing a histogram or frequency polygon to describe the
distribution. The aim of descriptive statistics is to describe the data one has collected
from the field so as to make it understood by anybody reading the work. Some examples
of descriptive statistics are measures of central tendency (ie mode, median and mean),
measures of dispersion or variability (ie. Range, mean deviation, variance and standard
deviation), Table (e.g frequency distribution tables, table of raw scores, tables of

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summary scores and tables of ranked scores) Bar graphs, Pie charts and diagrams such as
Histogram, Frequency Polygons and Scatter diagrams etc.
(ii) Inferential statistics – These refers to group of methods or techniques that allows one to
infer characteristics of a larger group (population) from the data collected from a smaller
group (sample).
They help a researcher to make inferences about the data collected in a study.
Inferential statistics are broadly categorized into two: -
(a) Parametric techniques – These are based on the following assumptions.
(1) The data is either at interval or ratio level
(2) There is homogeneity of variance. That is to say the spread of variability of scores
need to be approximately similar.
(3) That the distribution of the population is approximately normal

(b) Non Parametric Techniques – There are no assumptions that are made about the
population.
NB. Parametric techniques are more powerful than non parametric techniques when
making inferences.

1.2 Nature of statistical methods

(1) Gives model of statistical enquiry which contributes to learning from data and comprises of
the following elements.
(a) Problem identification / defining the problem / Helps to define a problem
(b) Planning of measurement system sampling design, data management, piloting and
analysis
(c) Data collection, data management and data cleaning
(d) Data analysis – this involves data exploration, planned analysis unplanned analysis and
hypothesis generation.
(e) Conclusions – This involves interpretation of findings, developing new ideas and
communicating the research finding.
(2) Focuses on the use of probabilistic models in the analysis and conclusion stages and to a
lesser extent on the sampling designs and experimental designs in the planning stage.

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(3) Provides conceptual frameworks (structured ways of thinking) and practical skills to better
equip the learners and managers of organizations to future lives in the fast changing world
(i.e helps them to focus more on looking forward and looking backward so as to plunder on
history’s storehouse of wisdom to better chart pathways into the future (making
recommendations for future).
(4) Defines the ends it pursues rather than the means statisticians have often used in the past.
(5) Helps human beings to learn more about the world they operate using data and all the
while acknowledging sources and levels of uncertainty.
(6) Facilitates development of new methodologies in the context of substantive problem buy
looking backwards and integrating what has been learnt into a more general framework using
statistical principles and thinking.
(7) Statistics is a meta discipline in that it thinks about how to think about turning data into real
world insights. It therefore advances when methodological lessons and principles from
particular piece of work are abstracted and incorporated into theoretical scaffold that enable
them to be used on many other problems in many other place.
(8) Statistics is multidisciplinary which integrates methodologies from many disciplines such as
mathematics, economics, engineering, management psychology among others.
(9) Focuses on taking actions to either reduce the problem facing the same by such as
unemployment or eradicating the problem completely for instance eradicating the current
global health crisis of COVID 19
(10) Uses various systematic scientific methods of collecting editing, classifying, tabulating
and presenting facts using graphs and diagrams.
(11) Statistics is an art because it applies scientific methods by taking group of actions which
can solve the identified problem and in this it offers better understanding and solutions to real
life situations.

1.3 Scope of statistics

Statistics has an extremely wide scope. There is hardly any sphere of human activity where
statistics do not show. Be it social science or management, all disciplines uses statistics in some
form. Broadly speaking, statistics can be classified into the following three categories:-
(a) Descriptive statics

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(b) Applied statistics

(c) Inferential statistics

(1) Descriptive statistics

Descriptive statistics is all about numerical data. This data represents the observations which
are obtained either through counting or some other measurement process.
The data can define an entire population or universe. Also, a sampling procedure helps in
deriving the data. In some cases, the data represents the raw material of any subsequent
statistical processing and have the potential to answer specific questions or solve a specific
problem itself.
Descriptive statistic also includes techniques like the collection and tabulation of data,
measures of the central tendency, measures of dispersion, index number, skewness, etc.
These techniques help in the summarization and description of the primary features of the
data. Further, it pays a lot of attention to the characteristics of data which a user might
otherwise overlook due to its sheer size.

(2) Applied Statistics

Applied Statistics concerns itself with the application of statistical methods and techniques to
specific problems in real life. Some such techniques are sample surveys, quantitative analysis
for business decisions, quality control etc. for example if a business wants to forecast the
demand of a particular product in the market, then the statistician uses methods like
extrapolation or least square.

(3) Inferential Statistics

Statistics has some methods and techniques for drawing conclusions and statistical inferences
about certain parameters of the population based on the estimates from the sample. Similarly,
the hypothesis regarding the characteristics of the sample is tested based on the population’s
parameters. There are numerous tests for this purpose which lay down the possibility of
being true in individual cases. Further, the conclusions or statistical inferences are not just
guesses. Logical thought and fundamental theories of science and mathematics back these
conclusions.

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Self-Test

i. Discuss the nature, scope and importance of statistics

ii. Explain the relation between statistics and the following disciplines
(a) Mathematics
(b) Economics
(c) Engineering
(d) Management
(e) Physical sciences

References

1. Freund, R.J, Wilson W.J. Mohr, D.L (2010). Statistical methods 3rd edition.
2. Filed, A.P (2009) Discovering Statistics using SPSS 2nd Edition, London Sage
3. Agarwal, B.L (2013) Basic Statistic 6th edition, New age international publishers.
4. Cooper, D.R & Schindler P.S (2011) Business Research Methods 9th Ed. Tata M.C Graw
Hill New Dechi.
5. Cohen, J. West S.G & Aiken, L.S (2003) Applied Multiple Regression and Correlation
Analysis for Behavioural Science 3rd Edition.
6. Chritensen, B.L. and Stoup, C.M. Introduction to statistics for Social Sciences. Belmont:
Brooks Cole 1991.