Probability and Statistics

(STAT2015)
 What is Probability?
• Probability theory is the study of the mathematical
rules that govern random events.

• But what is randomness? a random event is an event in

which we do not know the outcome without observing
it.

• Probability tells us what we can say about such events,

given our assumptions about the possible outcomes.
What is Statistics?
• Statistics is the application of probability to
the collection, analysis, and description of
random data.
• Statistics is used to:
• Design experiments
• Summarize data
• Make conclusions about the world
• Explore complex data
Generally:
 Classifications of Statistics

• There are two basic forms:

• Descriptive statistics and Inferential statistics.
• Descriptive Statistics is primarily about summarizing a given data
set through numerical summaries and graphs.

• It can be used for exploratory analysis to visualize the

information contained in the data.
 Cont.….
• Inferential Statistics is concerned with methods for making
conclusions about a population using information from a sample.
(by examining samples)

• This allows us to make judgements in the presence of uncertainty

and variability, which is extremely important in underpinning
evidence-based decision making in science, government, business
etc.
STAGES IN STATISTICAL INVESTIGATION

Collection of data
Organization of data
Presentation of the data .
Analysis of data
Interpretation of data
DEFINITION OF SOME TERMS IN STATISTICS

• A population is the collection of all individuals or items

under consideration in the study. For a given population
there will typically be one or more variables in which we are
interested.
• Sample :- is any subset of population selected to draw some
valuable conclusions about the entire population on its basis.
• Parameter:- is numerical measurement, which describes
some characteristics of a population.
• Sample statistic:- is a numerical measurement , which
describes some characteristics of a sample.
 Cont.…

• In general, the variables of interest may be either

qualitative or quantitative.
• A) Qualitative data (categorical data)

• B) Quantitative data

• Quantitative variables are again divided in two groups: -

discrete and continuous
 Cont.……
• Discrete data:-are described by integers only and their
values are obtained by counting.

• Continuous data:-are those quantitative figures which can

take any numbers, including fractions. Their values are
obtained by measurement
SCALES OF MEASUREMENT

• Measurement scale refers to the property of value assigned

to the data based on the properties of order, distance and
fixed zero.

• The scales of measurement also show what mathematical

operations and what statistical analyses are permissible to
be done on the values of the variable.
 Cont.……..
a) Nominal scale variables
• These are those qualitative variables that consist of name
label or categories of individuals.

b) Ordinal scale
• This refers to the variables whose values can be ordered or
ranked but the difference between data values either can’t
be determined or is meaningless.

• ><Both are Discrete type of data

 Cont.….
• c) Interval scale
• These variables have the properties of the ordinal scale plus the
difference between two values is constant. There is no true zero
origin; that is, zero doesn’t show absence in this case.

• d) Ratio scale
• Ratio scale variables have the properties of the interval scale but
in this case there is true zero origin. That is, zero shows absence
of something in this case.
• All mathematical operations are allowed to be operated on the
values of such variables.
• ><Both are continuous type of data