Statistics

Statistic
– the science of conducting studies to collect, organize, summarize,
analyze, and draw conclusions from data.

TWO MAIN AREAS OF STATISTIC

1. DESCRIPTIVE STATISTIC
- Consists of the collection, organization, summarization, and presentation of
data.
- In descriptive statistics, statistician tries to describe a situation
2. Inferential Statistics
- Consists of generalizing from samples to populations, performing estimations
and hypothesis tests, determining relationships among variables, and making
predictions.
- Here, statistician tries to make inderences from samples to populations.
STATISTICAL TOOLS UNDER DESCRIPTIVE STATISTICS
1. Measures of Central Tendency
2. Measures of Variation
- Helps us determine the variability (consistency) of a data set.
3. Percentile
HOW DO WE DESCRIBE A DATA USING THE MEASURES OF CENTRAL
TENDENCY?
MEAN (Arithmeetic Average)
- The sum of the values, divided by the total number of values.
- The average by adding all the values divided by the number of observations
and is greatly affected by outliers.
MEDIAN (Positional Average)
- The halfway point in a data set.
- Is the middle most observation.
MODE (Positional Average)
- The mode is the value that occurs the most often in the data set. It is
sometimes said to be the most typical case.
- Is the frequently observed value in a data set.
 - Mode can be used when the data are nominal or categorical, such as gender.
TYPES OF MODE:
Unimodal – A data set has only one value that occurs with the greatest
frequency.
Example: 1, 2, 3, 4, 4, 4, = Unimodal. Mode if 4 since 4 occurred 3 times.
BIMODAL – When a data set has two values that occur with the same frequency,
each value is used as the mode.
Example: 1, 2, 2, 3, 3, = Bimodal. Modes are 2 and 3 since both occurred twice in
the data set.
MULTIMODAL – When a data set has more than two values that occur with the
same greatest frequency each value is used as the mode.
Example: 1, 1, 2, 2, 3, 3, - Multimodal. Modes are 1, 2, and 3 since all three
occurred twice in the data set.
HOW DO WE DESRIBE A DATA USING THE MEASURES OF VARIATION?
RANGE
- The simplest of the three measures.
- Highest Value – Lowest Value = Range
- The symbol R is used for the range.
Variance
- is the average of the squares of the distance each value is from the
mean.
Standard deviation
- is the square root of the variance.
POPULATION VARIANCE
- The avegrae of the squares of the distance each value is from the mean.
- Denoted by σ 2 (σ is the Greek lowercase letter sigma).
- Population Variance Formula:
POPULATION STANDARD DEVIATION
- The square root of the Variance.
- Denoted by σ .
- Population Standard Deviation Formula:

SAMPLE VARIANCE
- The average of the squares of the distance each value is from the mean.
- Denoted by s2.
- Sample Variance Formula:

SAMPLE STANDARD DEVIATION

- The square root of the variance.
- Denoted by s.
- Sample Standard Deviation Formula:

HYPOTHESIS TESTING

- It is a decision-making process for evaluating claims about a population.

- In hypothesis testing, the researcher must:
o Define the population under study.
o State the particular hypotheses that will be investigated.
o Give the significance level.
o Select a sample from the population.
o Collect the data.
o Perform the calculations required for the statistical test, and
 o Reach a conclusion.
- The three methods used to test hypotheses are:
A. The traditional method.
B. The P-value method
C. The confidence interval method

STATISTICAL HYPOTHESIS

- A conjecture (statement) about a population parameter. This conjecture may or may

not be true. There are two types of statistical hypotheses for each situation, the null
hypothesis and alternative hypothesis.

NULL HYPOTHESIS

- A statistical hypothesis that states that there is no difference between a parameter

and a specific valuem or that there is no difference between two parameters.
- It is denoted by H 0.

ALTERNATIVE HYPOTHESIS

- A statistical hypothesis that states that there is no difference between a parameter

and a specific value, or that there is no difference two parameters.
- It is denoted by H 1 or H a .

HOW SHOULD HYPOTHESES BE STATED?

Two-tailed Test Right-tailed Test Left-tailed Test

H 0: µ = k H 0: µ = k H 0: µ= k
H 1: µ ≠ k H 1: µ > k H 1: µ < k

EXAMPLE:
SITUATION A
A medical researcher is interested in finding out whether a new medication will have any
undesirable side effects. The researcher particularly concerned with the pulse rate of the patients
who take the medicine. Will the pulse rate increase, decrease, or remain the same after a patient
SITUATION
takes B
the medication?
A chemist
Since invents an knows
the researcher additive to increase
that the meanthe life rate
pulse of anfor
automobile battery.
the population If the
under mean
study is 82
lifetime
beats perofminute,
the automobile battery for
the hypotheses without the additive
this situation is 36μ months,
are H0: = 82 andthen
H1: μthe hypotheses are
≠ 82
- and
H0: μ = 36 TheH1:
nullμ hypothesis
> 36 specifies that the mean will remain unchanged (=).
- The alternative hypothesis states that it will be different (≠).
- The null hypothesis specifies that even with the addition of the additive, the lifetime of
This testbattery
is calledwill
a two-tailed
remain thetest (non-directional),
same as the researchers do not know whether the side
at 36 months (=).
effects
- In this situation, the chemist is interested onlydecrease,
on the pulse rate of the patients will increase, or remain
in increasing unchanged.
the lifetimes of batteries, so the
alternative hypothesis is that the mean is greater than 36 months (>).

This is called a right-tailed test (one-tailed test) (directional), since the interest is in an increase
only.
 SITUATION C

A contractor wishes to lower heating bills by using a special type of insulation in houses. If
the average of the monthly bill is $78, the hypotheses about the heating costs with the use of
insulation are H0: μ = $78 and H1: μ < $78

- The null hypothesis specifies that with the addition of the insulation, heating costs will
remain the same at $78 (=).
- The contractor wants to lower the heating costs, so the alternative hypothesis is that the
heating cost is lower than $78 (<).

This is called a left-tailed test (one-tailed test) (directional), since the interest is in a lowering the
heating cost only.

STATISTICAL TEST

- Used the data obtained from a sample to make a decision about whether the null
hypothesis should be rejected.
- The numerical value obtained from a statistical test is called the test value.

FOUR POSSIBLE OUTCOMES IN HYPOTHESIS-TESTING

H 0 True H 0 False
Reject ERROR Correct
H0 Type I Decision

Accept Correct ERROR

H0 Decision Type II

LEVEL OF SIGNIFICANCE

- The maximum probability of committing a type 1 error. Denoted by α (Greek letter

alpha). That is P (Type I error) = α.
- The probability of a type II error is symbolized by β, the Greek letter beta. That is P
(Type II error) = β. Note that in most hypothesis-testing situations, β cannot be easily
computed; However, α and β are related in that decreasing one increases the other.

ARBITARY LEVELS OF SIGNIFICANCE

- Statistician generally agree on using three arbitrary