FUNDAMENTALS OF STATISTICS

Department of Business Management-EPU

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 Fundamentals of Statistics

Chapter 1

Introduction to the Statistical Basics

 Contents

1.1. General introduction of Statistics

1.2. Statistical terms
1.3. Collecting Datas
1.4. Statistical Grouping
1.5. Statistical Illustration

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1.1. GENERAL INTRODUCTION OF STATISTICS

 Definition

Statistics is the scientifical subject researching the methods

of collecting, arranging, treating and illustrating statistical datas
from; calculating particular statistical parameters relating to the
study subjects of socio-economic phenomena, due to the
representative (sample) rule restricted in certain time and
environmental conditions, for serving works including analysis,
assessment, forecasting and decision-making.
 Subjects

Of quantitative aspect in essential relation with qualitative

ones of the socio-economic phenomena, due to the representative
(sample) rule in certain time and environmental conditions

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 Làm Thống kê là gì?

 Standard Statistic-conducting procedure

[note] http://www.eqavet.eu/qa/gns/glossary/s/statistical-indicator.aspx
http://www.esa.doc.gov/content/indicators
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 1.2. Statistical terms

 Statistical Population
SP is the set of particular and distinct units making up the
phenomena based on the certain common characteristic(s)
that group(s) them as constituting units within the
phenomena and in need of to be observed, quantitatively
analysed . These units are professionally called observation.
Categorising Statisical Population: (manifest - hidden),
(“pure”– mixed)

 Sample
Sample is a part of SP, required to ensure the
representativeness and taken out to be observed and inferred
from for the whole of SP.

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 1.2. Statistical terms

Sample
Units, prof aka 2
Observations,
(within the Sample
Population) 3

Phenomanon
/Phenomena
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 1.2. Statistical terms

 Statistical Standard
Qualitative SS: reflecting the aspect of quality of the units, used to
collecting the qualitative information.
ex: sex, sectors & fields, occupations,…
Quantitative SS: measuring the “number” respect of the units,
employed to gather the quantitative information.
ex: salaries, marks, a plant productivity, number of worker
+ Discrete Q SS: scaled by integer (ex: number of worker)
+ Continuous Q SS: both measured by integer and decimal (ex:
heights, weights of students)

Time SS – Environmental SS (already attached to the 2 above)

Binary SS (ex: sex restriced within male and female) 1–8
 1.2. Statistical terms

 Measurement Scales
Def: are instruments itself of “point giving” scale to
assess the qualities, traits, scopes, degrees, leves…etc of the
units, essentially connecting to the quantitative approach.

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 1.2. Statistical terms

 Sorting of Measurement Scales

Nominal Ordinal Interval Ratio
Usage Qualitative SS Qualitative SS Quantitative SS Quantitative SS
- Counting - Counting - Being - Possessing all
qualities, traits qualities, traits quantitatively the functions of
and being comparable the 3’s
qualitatively - Having scale - Having the
Function
comparable unit “zero” point as
the starting base
to compare
quantitatively
- Uncomparable - Quantitatively - No starting base n/a (yet not
- Undetermined uncomparable to compare relevantly
distance among - Undetermined quantitatively applicable for all
Shortcoming(s) rates in scale quantitative cases)
- No scale unit distance among
rates in scale
- No scale unit 1–10
 1.2. Statistical terms
 Note when to use measurement scales
- “Numberisating” information gathered from qualitative SS to make it
calculatable
Ex: sex, occupations, whether or not are student….

- “Detailing” Statistical Standards explaining the general characteristics of

phenomena into the more-and-more precise illustration
Ex: quality of X, quality of X1, quality of X2….

- Be clearly aware of using measurement scales and the outcomes received:

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 1.2. Statistical terms

Sample
Units, prof aka 2
Observations,
(within the Sample
Population) 3

Phenomanon
Statistical /Phenomena
Standard 1–12
 1.2. Statistical terms

 Statistical Indicator (sometimes technically called

“variable”)
Def: is a statiscal term of quantitative explanation in close
association with the very essential quality of the socio-economic
phenomena, due to the representative (sample) rule restricted in
certain time and environmental conditions,

Appearance/Forms: are values directly earned from

surveying the units thanks to and entiled with statiscal
standards and certain time and environmental conditions; and,
to go deeper to analyse these already collected values in various
perspectives, are numerical values calculated, from those very
original collected values, mathematical-backgroundedly on
certain types of statistical parameters.
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1.2. Statistical terms

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 1.2. Statistical terms

 Statistical Indicator
Gồm 2 thành phần cơ bản:

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 1.2. Statistical terms

Sample
Units, prof aka 2
Observations,
(within the Sample
Population) 3

Statistical
Indicators,
Phenomanon Statistical
Statistical /Phenomena Parameters
Standard 1–16
 1.3. Collecting Datas

 Requirement in collection
–Relevantly
–Timingly
–Sufficiently
–Precisely
–Objectively & Honestly

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 Collecting Data as component of Procedure

Analysing the
phenomena, unit and Deciding statistical
population standards

Determining the
time and
environment Conducting the
Study subjects data collection

Planning the
resources Gathering, arranging
& treating, illustrating
data
Planning the
data-collecting
performance
Applying Statistical
Assessing, exploring the essence of Indicator, Statistical
the phenomena parameters
 Sort of datas

Data sources

Primary datas Secondary datas

Comprehensive Sample
survey survey
 Note 1 (survey scope)!

Comprehensive survey: collecting datas from all

of the units of whole population
Sample survey: to estimatingly know the
population’s data, select certain number of the units of
the representative sample(s) to study and then to infer
for whole population
=> Plus and Minus points of each’s ?

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 Note 2 (types of collecting method)!

Observation
Interview
Enquiryworksheet
Technology supports

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 1.4. Statistical Grouping

Notion

Rules

Grouping table
Qualitative SS Grouping
Quantitative SS Grouping
Grouping types

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 Notion
Statistical Grouping is the practice based on one or
certain amount of statistical standard to classify the
unit datas in terms of certain characteristics, degrees… in
order to study properly. Each classified group contains
the typical degrees and the frequency counting the units
having those degrees.
Monthly income Number of family
Group(mil VND) (families) - Frequency(fi)
5-7 350
7-10 250
10-15 150
15-25 100
25-40 70
40-60 60
60-100 20
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 Rules

- A unit must be classified in only and one certain group

- A unit of a certain group must be of the population

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 Grouping Table

– Unit degrees (Lượng biến) can be a certain number, or a range

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 Qualitative SS grouping

Case 1: “few qualities” classify out in each

corresponding QSS
ex: sex, student year….
Case 2: qualities themselves including sub
component qualities, make group these sub ones in a
group of common typical characteristic
ex: processing industry: food and beverage, tobacco,
textile,…

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 Quatitative SS grouping

QSS with several degrees: each degree equals to each

group
ex1.1: Grouping the fraction of the number of machine
to a worker being in charged with
Machines/worker Number of workers (people)
(machines/people)
10 3
11 7
12 20
13 50
14 35
15 15
Total 130 1–27
  QSS with various degrees: grouping by intervals accompanying with
groups according to study
- Upper limit: the maximum of the unit degree within group
- Lower limit: the minimum of the unit degree within group
 Number of Group:

NoG = (2.n)1/3 n: number of units

 Intervals (k):

xmax  xmin
k
Xmax: NoG datas
the max unit degree of whole
Xmin: the min unit degree of whole datas
 Attaching the frequency (f): counting the unit degrees fall under the
group with the covering interval

Note: in practice, intervals are often inequal among groups

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 ex 1.2. Height (cm) of student in a class, 2007:

154 160 162 164 169 155 161 162 171

168 160 161 163 173 172 173 172 161

163 165 170 165 162 175 164 170 166

163 177 164 175 166 167 176 164 178

174 166 164 176 158 162 167 170 168

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– Number of Group:
n = 45  NoG= (2x45)1/3 = 4,48 ≈ 5
– Group interval:

Xmax = 178; Xmin = 154

k = (178 – 154)/5 = 4,8
– Take k = 5, we work out the groups and the frequencies as follows

Group No Height(cm) Group Mean(cm) Frequency

1 154-159 156,5 3
2 159-164 161,5 12
3 164-169 166,5 14
4 169-174 171,5 9
5 Trên 174 176,5 7
Total 45
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 Norms to forming grouping table
Grouping the discrete quantitative SS: the previous group
upper limit of the should not be the same as the next group
lower limit
ex 1.3. grouping number of factories by worker amount in
the X province

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 Norms to forming grouping table
Grouping the continuous quantitative SS:
+ the previous group upper limit of the is the same as the next
group lower limit
+ the very unit degree at the “transitional point” the 2 groups
above are placed in the latter one (or called “next group”)
ex 1.4. Grouping number of business by revenue

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 Grouping types

Segmentation grouping
ex 1.5. GDP by Sectors in a country X

GDP 2003 2004 2005 2006 2007

Agriculture 24,53 23,24 23,03 22,54 21,76
Industry 36,73 38,13 38,49 39,47 40,09
Service 38,74 38,63 38,48 37,99 38,15
Total 100 100 100 100 100

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 Correlating grouping
ex 1.6. Correlation between productivity and technical qualification của doanh nghiệp X năm
2007

Technical Working year Number of Annual Average

qualification (year) worker (people) production production
(metric ton) (metric ton/people)
 Phân tổ liên hệ
Qualified Dưới 5 15 1.125 75
5 – 10 40 3.750 94
10 – 15 40 4.200 105
15 – 20 15 1.725 115
Trên 20 10 1.200 120
Sub-group - 120 12.000 100
Unqualified Dưới 5 10 510 51
5 – 10 30 2.140 71
10 – 15 20 1.540 79
15 – 20 10 860 86
Trên 20 10 910 91

Sub-group - 80 6.000 75
Total group - 200 18.000 90
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 Outcomes

Outcomes to study (analyzing, assessing,

forecasting)
– using Descriptive statistics
– resorting to Inferential statistics

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 1.5. Statistical illustration

 Table
 Chart

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 Table

 Appearance: including rows, columns, titles and number

 Contents: SS (Phần chủ đề) and SI, SP (phần giải thích)

 Về hình thức: Bao gồm các hàng, các cột, các tiêu đề, tiêu
mục và các con số
 Về nội dung: Phần chủ đề và phần giải thích

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 Table forming requirement

 Information load illustrated in table

 No. Table
 Name
 Unit
 Number display
 Note (if needed)

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 Chart

 Column chart
 Pie chart
 Figure chart
 Line chart
 Radar chart

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 Column chart

 Used when in need of illustrating the development over

time, the change over time and/or comparision by certain
title of compositions, link between phenomana

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 Eg 1.7:

 Representing the amount of scientist by both sex of an

organisation for 4 years: 2004, 2005, 2006, 2007 out of
these figures as follows:

Năm 2004 2005 2006 2007

Nam 120 140 150 160
Nữ 40 60 70 100

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 Pie chart

 Effectively when resorted to to present the share, segment…

 How to draw:
- Determine the share of each part’s (%)
- Equaling the share degrees to the geometrically
corresponding areas in sync

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–VD 1.8. display these data of education levels of an area
X from 2005 to 2007 in share

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Figure chart

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 Line chart

ex 1.9. cafe yield for export of a nation X throughout the period

of 2000 - 2007 (ths metric ton) computed below:

Năm 2000 2001 2002 2003 2004 2005 2006 2007

Sản lượng (ngàn tấn) 283,3 391,6 382,0 482,0 733,9 931,0 722,0 749,0

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 Radar chart
 Used to show the datas that are recurrent over certain amount of time coming
round periodically
 How to draw:

- Draw a circle with R greater than the max data values

- Divide the circle, by line travelling through the central point of the circle,
into the equal part matching the count of periods. Thus, creating sets of radius
- Clockwise add the periods at the Points of intersection between radius and
curve line
- Link the points of intersection between radius and curve line, making a
regular polygon that is inscribed in the circle
- Measure the length from the central point to the points of intersection, decide
the proper length within range representing the degree of each data of certain
period, then make dots onto.
- Draw lines linking these dots, completing the radar chart.

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–Eg 1.10. demonstrating by chart these figures of seafood
export value of the province X in 2006, 2007:

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