Introduction

TOPIC 1
1

LEARNING OUTCOMES

At the end of this chapter, you should be

able to:
▪ explain about statistics and basic
statistical terms.
▪ recognize two types of statistics.
▪ identify the two types of variables.
▪ identify the four scale of measurements.

1
WHAT IS STATISTICS?
❑ Statistics is the science of collecting,
organizing,
summarizing/interpreting,
presenting and analyzing data for
use in making decisions.

❑ Statistics are precious to economists,

administration, analysts, manager and
even politician for decision-making.

BASIC CONCEPTS
❑ Population
❑ consists of all subjects (human or otherwise) that are
being studied.
❑ used to designate the complete set of items that are of
interest in the research.
❑ E.g: all diploma students in UiTM.

❑ Sample
❑ group of subjects selected from population. (Subset of
population).
❑ used to designate a subset of items that are chosen from
the population.
❑ E.g: 100 diploma students in UiTM.

❑ Census
❑ Survey that carried out using the whole population.
4
❑ Normally taken if the population to be studied is small.

2
BASIC CONCEPTS
❑ Sample survey
❑ involved a subgroup (or sample) of a population being chosen
and questioned on a set of topics.
❑ necessary if the population is large.
❑ reduce cost and time and the results may be as accurate as
the census study if the sample is selected using a proper
sampling technique.

❑ Sampling frame
❑ list of members of the population that is used to select a
sample.
❑ E.g: list of colleges’ names at UiTM Tapah.

❑ Pilot study
❑ A study done before the actual fieldwork is carried out. 5
❑ Identify any problem that may arise during the actual and
also to pretest the relevancy of questionnaires.

BASIC CONCEPTS
❑ Sampling unit
❑ the elements chosen to be sampled by a sampling
design.
❑ an object (people or thing) on which measurement is
taken.

❑ Variable : characteristic or attribute of interest

in a population/sample. Variables can be divided
into qualitative and quantitative variables.
❑ Qualitative variables do not take number values.
E.g: Gender, marital status, age, weight, etc.
❑ Quantitative variables take number values.
E.g: monthly income, distance, age, etc.

❑ Data: the values that can be obtain from 6

measurements or observations

3
BASIC CONCEPTS
❑ Statistic
❑ summary measure computed from sample data.
❑ E.g: the mean age of students calculated from a
sample

❑ Parameter : summary measure for the entire

population

ASPECTS OF STATISTICS
 Statistics has Two Aspects
1) Theoretical / Mathematical Statistics
2) Applied Statistics

 Theoretical / Mathematical Statistics

Deals with the development, derivation and proof of
statistical theorems, formulas, rules and laws.

 Applied Statistics
Involves the applications of those theorems, formulas,
rules and laws to solve real world problems. 8

4
 TYPES OF STATISTICS
STATISTICS

DESCRIPTIVE INFERENTIAL
❑ Describe the ❑ make inference from
situation. sample populations.
❑ Consist collecting,
organizing, summarize ❑ Select a sample from the
and presentation data.
population, measure the
❑ Use graphical
techniques such as variables of interest, analyze
charts, graphs and tables the data, interpret the
to present data and output and draw conclusions
numerical techniques based on the data analysis.
such as averages and
percentages to ❑ uses probability. 9
summarize the data

EXAMPLE 1
A researcher wants to study on the level of
computer literacy among the residents in a city. He
then selects only 200 residents from the telephone
directory.
a) What is the population of interest?

b) What is the sample of the study?

c) What is the sampling frame used?

d) What is the variable of interest?

e) What is the type of variable used?

10

5
EXAMPLE 2
The management of a certain cellular telephone
company conducted a study to see the customers’
satisfaction towards the services they have given to
their customers throughout Malaysia. 500 customers are
selected randomly from the list of customers who have
purchased the cellular telephone.
a) Determine the population of interest.

b) State the sample for the study.

c) Decide on the sampling frame for the study.

d) State the variable of interest.

12

SOURCES OF DATA

❑PRIMARY
DATA
❑SECONDARY DATA

14

6
PRIMARY DATA
❑ Data collected from primary source or from sample.
❑ Example : interviews the respondents and records
their responses, distribute questionnaire.
ADVANTAGES DISADVANTAGES
• More accurate and consistent with • Requires more time, effort,
the objectives of the research. manpower and money. to collect the
data.
• The researchers will be able to • Most of primary data are expensive
explain how the data are collected. to collect.

• No reproduction errors since data

are gathered for the first time.

15

SECONDARY DATA
❑ Published data collected by other parties
❑ Example : Central Bank, Department of
Statistics
ADVANTAGES DISADVANTAGES
• More convenient (required less time, • Leads to reproduction error since data
effort, and money) are gathered for the second time.
• Some secondary data are very difficult
• Data help you decide what further to be obtained since some of them are
research needs to be done. confidential and not to be disclosed.
• May not meet our specific needs and
objectives of current research.

• Not all is readily available or expensive.

• Accuracy is questionable (lack of 16

accuracy)

7
TYPES OF DATA
❑Categorical
(qualitative) data
❑Measurement (quantitative) data

17

TYPES OF VARIABLES

DATA

QUANTITATIVE
QUALITATIVE
(MEASUREMENT)
(CATEGORICAL)

DISCRETE CONTINUOUS
NOMINAL ORDINAL
18

8
CATEGORICAL
(QUALITATIVE) DATA
❑ Theobjects being studied are grouped into
categories based on some qualitative trait.

❑ The resulting data are merely labels or categories.

❑ Variable
that can categorize according to some
characteristic or attribute.
19

EXAMPLES:

❑ Gender
❑ male or female
❑ Hair color
❑ brown, red, black, etc.
❑ Smoking status
❑ smoker, non-smoker

20

9
CATEGORICAL (QUALITATIVE) DATA CLASSIFIED
AS NOMINAL OR ORDINAL

Categorical data

Nominal Ordinal
data data

Binary Not binary Binary Not binary

21

NOMINAL DATA
A type of categorical data in which objects fall into
unordered categories.

Example:
❑ Hair color
❑ brown, red, black, etc.
❑ Race
❑ Malay, Chinese, Indian, etc.
❑ Smoking status
❑ smoker, non-smoker
22

10
ORDINAL DATA
A type of categorical data in which order is important.

Example:
❑ Class
❑ junior, senior, super senior
❑ Education
❑ SPM, STPM, Diploma, Degree, …

23

BINARY DATA
❑ Atype of categorical data in which
there are only two categories.
❑ Binary data can either be nominal or
ordinal.

Example:
❑ Smoking status
❑ smoker, non-smoker
❑ Attendance
❑ present, absent 24

11
MEASUREMENT DATA
(QUANTITATIVE)
❑ The objects being studied are “measured” based on
some quantitative trait.
❑ The resulting data are set of numbers.
❑ Numerical and can be order or rank.

Example:
❑ Cholesterol level
❑ Height
❑ Age
❑ Test score
❑ Number of students late for class
❑ Time to complete a homework assignment
❑ Body temperature 25

MEASUREMENT (QUANTITATIVE) DATA

CLASSIFIED AS DISCRETE OR CONTINUOUS

Measurement
data

Discrete Continuous

26

12
DISCRETE MEASUREMENT
(QUANTITATIVE) DATA

➢Obtained by counting exactly such as number of cars

sold.
➢Only certain values are possible (there are gaps between
the possible values).
➢assume value that can be counted. 0, 1, 2, 3, …

Discrete data -- Gaps between possible values

27
0 1 2 3 4 5 6 7

Discrete Measurement
(Quantitative) Data

Example
❑ Number of students late for class
❑ Number of crimes reported to police

❑ Number of times the word number is used

❑ Number of children in a family

❑ Number of student in a classroom.

Generally, discrete data are counts.

28

13
 Continuous Measurement
(Quantitative) Data
➢Theoretically, any value within an interval is possible
with a fine enough measuring device.
➢Assume an infinite number of values between any two
specific values.
➢Usually obtained by measuring. Include fractions and
decimals.
Continuous data -- Theoretically,
no gaps between possible values

0 1000 29

Continuous Measurement
(Quantitative) Data
Example
❑ Cholesterol level
❑ Height

❑ Age

❑ Weight

❑ Mass

❑ Time to complete a homework assignment

Generally, continuous data come

from measurements. 30

14
EXAMPLE 3
For the following data determine whether each of the
following variables is qualitative, discrete quantitative
or continuous quantitative.
a) Number of cars per household.

b) Type of car.

c) Number of long distance journey

travelled per year.

d) Colour of car.

e) Distance travelled (in kilometers) per month.

f) Monthly spending (in RM) on fuel.

31

 Raw data: Data recorded in the sequence in which there are

collected and before they are processed or ranked.
 Array data: Raw data that is arranged in ascending or
descending order.
Quantitative raw data
Example:

33

15
 Qualitative raw data
Example: F= freshman, SO= Sophomore,
J=Junior and S=Senior

34

LEVEL/SCALE OF MEASUREMENT
 There are four scale of measurements; nominal,
ordinal, interval and ratio.

 Nominal
 Lowest scale of measurements
 Categorical data.
 Data are classified into categories and the frequency of
each category is counted.
 Examples of variable that measured at a nominal level are
gender, marital status, race.

16
SCALE OF MEASUREMENTS
 Ordinal
 Data of ordinal scale can be arranged in ranking order.
 The ordinal scale is a level higher than the nominal scale.
 Examples of ordinal scale are level of education (SPM,
diploma, degree, master), level of satisfaction (not satisfied,
satisfied, very satisfied).

SCALE OF MEASUREMENTS
 Interval
 Data at this level do not have a natural zero starting point.
 Zero has no meaning.
 Example is temperature. 0˚F doesn’t mean “no
temperature”. Conversion; Fahrenheit=9/5 Celcius +32
 Interval scale can interpret meaningfully the distance
between values of data.
 The difference temperature between 200 Celsius and 100
Celsius is 100 Celsius. However, we cannot say that 200
Celsius is twice as hot as 100 Celsius. The reason for this is
that there is no true zero point.
 Another example, we cannot say no date for the day.

17
 SCALE OF MEASUREMENTS

 Ratio
 Is the strongest scale of measurements.
 Ratio contains a meaningful zero.
 The zero has meaning and represents the absence of
the phenomenon being measured.
 Examples monthly expenditure, number of cigarettes taken
per day, time taken to study.
 We can say that there are no sales, no salaries or no
customers.
 We can also say that q worker’s salary is twice as much as
the other worker’s salary.

SCALES OF MEASUREMENT
RATIO
➢The interval measurement Example:Height; Weight;
4. with an inherent zero setting. Time; Speed; Monthly income
➢Differences between two (2)
values.

INTERVAL
3. If the differences between Example:Temperature
data values are meaningful but
cannot be manipulated with
multiplication and division.

ORDINAL Example: Opinion; Academic level;

2. income level; degree of liking
Classifies and arranged in
ranks order

NOMINAL
1. Classifies objects Taste; Gender 39
into categories Ethnicity; Color

18
EXAMPLE 4
Classify each of the following responses by type of data (qualitative,
discrete quantitative or continuous quantitative) and type of
measurement scale (nominal, ordinal, interval or ratio)
a) Type of house purchased: Double storey terrace.
b) Built-up area: 3,231 square feet.
c) Down payment paid for the house: RM20,000.
d) Monthly payment paid for the house: RM880.
e) Annual interest rate charged: 4 ½ %.
f) Marital status: Married.
g) Occupation: Lecturer.
h) Monthly salary: RM2,500.
i) Term of payment: 25 years.
j) Date of purchase: 25 August 2003.
k) Temperature: 1000 C (boiling point).
l) Army ranks: Colonel; Major; Captain; Lieutenat.
m) Salary group: A; B; C; D.
40

42

19
43

44

20
45

46

21
 REFERENCES
1. Allan G. Bluman, Elementary Statistics: A Step by
Step, 5th edition, The McGraw-Hill Companies,
Inc., 2004.

2. Lau, Phang and Zainudin, 2009. Statistics for

UiTM, Second edition. Oxford Fajar Sdn. Bhd.

3. Prem S. Mann and Ken Black, 2007. Introductory

Statistics, 6th edition. John Wiley & Sons.

47

22