Program: MSc of Data Science

Module: Applied Statistics and Data Visualization

Week One - Part One:

Statistical Data Types

Part of the slides are from:

“Statistics for Business and Economics, 9th Edition, Global Edition” if it has been mentioned “Copyright © 2020 Pearson Education Ltd. All Rights Reserved”
 Lecture Goals
After completing this Lecture, you should be able to:
1. Explain difference between Population and
sample, statistics and parameter
2. Explain differences between various statistical
data types

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Ch. 1-2
 1.1
Decision Making in an
Uncertain Environment

Everyday decisions are based on incomplete

information

Examples:
 Will the job market be strong when I graduate?
 Will the price of Yahoo stock be higher in six months
than it is now?
 Will interest rates remain low for the rest of the year if
the federal budget deficit is as high as predicted?

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Ch. 1-3
 Decision Making in an
Uncertain Environment
(continued)

Data are used to assist decision making

 Statistics is a tool to help process, summarize, analyze,

and interpret data

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Ch. 1-4
 Key Definitions

 A population is the collection of all items of interest or

under investigation
 N represents the population size
 A sample is an observed subset of the population
 n represents the sample size

 A parameter is a specific characteristic of a population

 A statistic is a specific characteristic of a sample

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Ch. 1-5
 Population vs. Sample

Population Sample

Values calculated using Values computed from

population data are called sample data are called
parameters statistics
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Ch. 1-6
 Examples of Populations

 Names of all registered voters in the United

Kingdom
 Incomes of all families living in Salford
 Annual returns of all stocks traded on the
London Stock Exchange
 Grade point averages of all the students in The
University of Salford

Ch. 1-7
 Examples of Sample

 10% of registered voters in the United Kingdom

 Incomes of random15% families living in Salford
 Annual returns of selected stocks traded on the
London Stock Exchange
 Grade averages of the SEE students as a
sample of the students in The University of
Salford

Ch. 1-8
 Descriptive and Inferential Statistics

Two branches of statistics:

 Descriptive statistics
 Graphical and numerical procedures to summarize
and process data
 Inferential statistics
 Using data to make predictions, forecasts, and
estimates to assist decision making

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Ch. 1-9
 Descriptive Statistics

 Collect data
 e.g., Survey
 Present data
 e.g., Tables and graphs
 Summarize data
 e.g., Sample mean = X i

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Ch. 1-10
 Inferential Statistics
 Estimation
 e.g., Estimate the UK

population mean weight using

the sample mean weight
 Hypothesis testing
 e.g., Test the claim that the UK

population mean weight is 70

KG.

Inference is the process of drawing conclusions or

making decisions about a population based on
sample results
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Ch. 1-11
1.2
Types of Statistical Variables

Variable

Categorical Numerical

Examples: Examples:
Defined categories or groups Counted items
 Marital Status  Number of Children
 Are you registered to  Defects per hour
vote?
 Eye Color Measured characteristics
 Weight
 Voltage

Ch. 1-12
 Types of variables

Numerical: Takes numerical value

Continuous: Takes values that can be any number in some interval of numbers.
Discreate: Takes finite numbers of possible values (values can be listed)
Categorical: Takes non-numerical value

Continuous
Numerical =
Numerical Quantitative

Categorical =
Discreate
Variable Qualitative
So, In 2018 he set up

Slide 13 of 41
Mumbli To do just this
Categorical
 Measurement Scales (NOIR)

Differences between
measurements, true Ratio
zero exists Numerical
Variable
(Quantitative)
Differences between
measurements but no Interval
true zero

Ordered Categories
(rankings, order, or Ordinal
scaling)
Categorical
Variable
(Qualitative)
Categories (no
ordering or direction) Nominal
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Ch. 1-14
 Nominal Scale

Nominal: Nominal scales are used for labelling variables,

without any quantitative value. “Nominal” scales could simply
be called “labels.” Here are some examples, below. A good
way to remember all of this is that “nominal” sounds a lot like
“name”.

https://www.mymarketresearchmethods.com/types-of-data-nominal-ordinal-interval-ratio/
 Ordinal Scale

Ordinal: With ordinal scales, the order of the values is what’s

important and significant, but the differences between each
one is not really known. d cannot quantify–how much better it
is. For example, is the difference between “OK” and
“Unhappy” the same as the difference between “Very Happy”
and “Happy?”, etc.
“Ordinal” is easy to remember because is sounds like “order”.

https://www.mymarketresearchmethods.com/types-of-data-nominal-ordinal-interval-ratio/
 Interval Scale

Interval: Interval scales are numeric scales in which we know both the order and the exact
differences between the values. We can remember the key points of an “interval scale” easily.
“Interval” itself means “space in between”.

The classic example of an interval scale is Celsius temperature because the difference
between its values is measurable. For example, the difference between 60 and 50 degrees is
a measurable 10 degrees, as is the difference between 80 and 70 degrees.

Interval scales don’t have a “true zero.” For example, there is no such thing as “no
temperature,” at least not with Celsius. In the case of interval scales, zero doesn’t mean the
absence of value, but is another number used on the scale, like 0 degrees Celsius.

With interval data, we can add and subtract, but cannot multiply or divide.

20 degrees C is not twice as hot as 10 degrees C, because there is no such thing as “no
temperature” (20/10 2). When converted to Fahrenheit, it’s clear: 10C=50F and 20C=68F,
which is clearly not twice as hot.

https://www.mymarketresearchmethods.com/types-of-data-nominal-ordinal-interval-ratio/
 Ratio Scale

Ratio: Ratio scales are the ultimate nirvana when it comes to data measurement
scales because they tell us about the order, exact value between units, and they
have an absolute zero.

Good examples of ratio variables include height, weight, and duration.

Ratio variables can be meaningfully added, subtracted, multiplied, divided (ratios).

Central tendency can be measured by mode, median, or mean; measures of
dispersion, such as variance and coefficient of variation can also be calculated from
ratio scales.

https://www.mymarketresearchmethods.com/types-of-data-nominal-ordinal-interval-ratio/
 Variables & Scales

Ratio

Continuous
Interval
Numerical
Ratio
Discreate
Variable Interval

Ordinal
Categorical
Nominal
Group Discussion 1 (10 mins)
 Put a value in the correct cell

Numerical
Variable Categorical
Continuous Discreate

Blood pressure

Hight

Cholesterol level

Gender

Place of a football team at the Premier So, In 2018 he set up

Slide 21 of 41
League Table
Mumbli To do just this

Fail or pass an exam

 Select a proper scale for each variable

Variable (Or Data) Nominal Ordinal Interval Ratio

IQ Scale
Satisfaction of a Hotel service
Age
Number of Team GB medals at
Tokyo 2020
University Degree classification
Your favourite colour
Blood pressure of alive person
Hight
Number of a household’s
children
Gender
End of the Group Discussion