STA101: Lesson Note 1

Statistics:
Statistics is learning from data or Statistics is a way to get information from data.

Let’s see the following types of statements

 In 2019, approximately 861.5 million gallons of regular ice cream were produced in the
U.S. (www.statista.com)

 Apple brand ranking second the most valuable companies worldwide in 2019 with a brand
value of 309.53 billion U.S. dollars. (www.statista.com)

 In the first quarter of 2020, Netflix revealed that it had 69.97 million paying streaming
subscribers in the United States and Canada. (www.statista.com)

 The current world population is around 7.8 billion (www.worldometers.info)

The numerical facts in the preceding statements (861.5 million gallons; $309.53 billion; 69.97
million people; 7.8 billion people) are called statistics.

In a broad sense we can say, Statistics refers to the scientific methods for collecting,
organizing, summarizing, presenting, and analyzing data, and drawing a valid conclusion.

Example: Child malnutrition status, Monthly expenditure of citizens of a city, Relationship of

crime with space and time, Number of active users in a day of a website, average lifetime of the
people of a country etc.

STA101 (Introduction to Statistics) _Lesson Note 1_Fall 2022

 Five stages of statistical procedure

Interpretation/
Collection Data Organization Presenation Analysis
Valid conclusion

Example:
Evan wants to know something about a group of people by surveying. The first thing Evan
has to do collect data (what he gets is random raw data which is not organized). So, Evan has to
organize the data (may be using tables which have various rows and columns) and after that he
may even use graphs (Bar diagram, pie chart, histogram, line diagram etc.) to notice a particular
trend and getting a bird eye view about the data. That means he is presenting a data in an organized
way. He did it so that he could analyze the data better. He may have found out many things like
the maximum value, minimum value, average value, difference value and so on. Based on that he
makes a valid conclusion or interpret the results about the data he collected from the group of
people. That’s how five stages work simply.

If you have a question about something you need the answer just following these five statistical
stages you will get your desired answers.

Types of Statistics
 Descriptive Statistics

Methods for organizing, summarizing and presenting data in an informative way.

Example:

Suppose you want to find the average age of a BRAC University student. So, you ask all
the students or a portion of students their age and then present it in an organized way. After that
you add all the ages and divide by the total no of students from whom you took the data. Basically,

STA101 (Introduction to Statistics) _Lesson Note 1_Fall 2022

 you are calculating their average age. Let’s say you found the value is 22.5 years. This all stages
are a part of descriptive statistics.

 Inferential Statistics

Methods for making a valid conclusion of a population on the basis of a sample data.

Example:

Based on a sample of 100 students, the administrations estimate the average age of all the
students in the college to be 23.5. That means after estimating a value (applying descriptive
statistics methods) the authority makes a valid conclusion or interpretation about the ages of
students.

Characteristics of Statistics:

 Statistics deals with aggregate of individuals rather than with individual alone
 Statistics varied by multiplicity of causes
 Statistics deals with uncertainty
 Statistics should be expressed as numerical figures
 Statistical laws are valid on average
 Statistics collected should be of reasonable standard of accuracy
 Statistics are collected for a pre-determined purpose.

Scopes of Statistics

 State and administration

 Medical science
 Social Sciences

STA101 (Introduction to Statistics) _Lesson Note 1_Fall 2022

  Economics
 Artificial Intelligence
 Demography
 Agriculture
 Business and management
 Research etc.

Stock Market

Stocks in plural is a store of goods in a shop, warehouse etc. Buy while stocks last, the tools you
require are in / out of stock (= available / not available). But in stock market:

 Stocks are fractional pieces of publicly traded companies or A piece of ownership in a

company.

 If you own a company's stock, you own a piece of that company. That represents a claim
on company’s earnings.

The Stock Market as it is often known as Equity Market is the market for buying and
selling share in public companies.

Shares represent an ownership claim on the company, and consequently a claim on future
earnings.

 There is no difference. It all depends on the phrasing which is used. For example:
o Terry own share of Coca-Cola company- A specific Company
o Sam owns stocks- referring to any company

STA101 (Introduction to Statistics) _Lesson Note 1_Fall 2022

Statistics in stock market:

In today’s global business and economic environment, anyone can access vast amounts of
statistical information. The most successful managers and decision makers understand the
information and know how to use it effectively.

 Now In stock market we can use

 statistical concepts to get an idea about stock market

 descriptive statistics to analyze the stock market data of the companies

 inferential statistics could help to select the companies for investment

 when to buy or sell the shares

 Financial analysts use a variety of statistical information to guide their investment

recommendations.
 In the case of stocks, the analysts review a variety of financial data.
 By comparing the information for an individual stock with information about the stock market
averages, a financial analyst can begin to draw a conclusion as to whether an individual stock
is over- or underpriced.

STA101 (Introduction to Statistics) _Lesson Note 1_Fall 2022