Statistics And Probability
Dr. Nadia Mehak Ehtasham
Introduction to Statistics
The Word Statistics: Meaning and Use
The term statistics was first introduced by
German scholar Gottfried Achenwall in the mid-18th
century.
Initially, it referred to the collection and use of
data for state governance.
Derived from Latin (Status), Italian (Statistia), German (Statistik),
and French (Statistique), it originally meant information useful to the
state, such as population and military data.
Modern Meanings of Statistics
1. Statistics as Numerical Facts
Refers to organized numerical data
in tables or charts.
Examples: Crime rates, birth statistics,
road accidents.
2. Statistics as a Discipline.
.
Encompasses techniques for collecting, analyzing,
and interpreting data.
Used for making informed decisions under
uncertainty.
3. Statistics as Calculated Values
Refers to numerical values derived from sample
data.
Example: Mean, median, standard deviation.
Statistics
Statistics is the science of conducting
studies to collect, organize, summarize,
analyze, and draw conclusions from data
Characteristics of Statics
Statistics deals with the behaviour of aggregates or large
groups of data.
Statistics deals with aggregates of observation of the same
kind rather than isolated figures.
Statistics deals with variability that obscure underlying
patterns.
Statistics deals with uncertainties.
Statistics deals with data is described numerically.
Characteristics of Statics
Statistics deals with those aggregates which are subject to
a number of random causes.
Statistics laws are valid on the average or the in the long
run.
Statistics results might be misleading and incorrect if the
sufficient care in collecting, processing, and interpreting
the data is not exercised.
Statistics and Data Analysis
Statistics is the science of collecting,
organizing, analyzing, and interpreting
data to make informed decisions.
Data Analysis involves using statistical tools
to identify patterns and draw conclusions
from data.
Population vs. Sample
Population: The population is the totality of the
observation in which we are concerned. A
population can either be finite or infinite.
Sample: A subset of the population used for
analysis.
Example:
Population: All university students in Pakistan.
Sample: 500 randomly selected students from
different universities.
Descriptive and Inferential Statistics
Descriptive Statistics:
Descriptive statistics summarize and organize data to make it
easily understandable. It includes measures such as:
Mean, Median, Mode (Central Tendency)
Range, Variance, Standard Deviation (Dispersion)
Graphs & Charts (Visualization)
Example: A teacher calculates the average (mean) test score of a
class to summarize students’ performance.
.
Inferential Statistics:
Inferential statistics use sample data to make generalizations or
predictions about a larger population. It includes:
Hypothesis Testing
Confidence Intervals
Regression Analysis
Example: A company surveys 500 customers to predict the
satisfaction level of all its customers.
Applications of Statistics in Different Fields
1. Business and Economics
Market Research: Understanding consumer
behaviour and trends.
Operations Management: Process optimization
and inventory control.
Financial Analysis: Investment evaluation and
risk management.
.
2. Healthcare
Clinical Trials: Evaluating new treatments.
Epidemiology: Studying disease patterns.
Public Health: Identifying health risks and prevention
strategies.
3. Social Sciences
Sociology: Analyzing crime rates, education, and
inequality.
Psychology: Understanding human behavior and
cognition.
Political Science: Studying elections and public opinion.
.
4. Government
Policy Development: Making data-driven decisions.
Economic Planning: Forecasting economic trends.
Public Administration: Enhancing government services.
5. Education
Educational Research: Evaluating teaching methods.
Testing and Assessment: Analyzing student performance.
Student Data Analysis: Identifying academic trends.
. and Technology
6. Science
Research: Designing experiments and analyzing data.
Data Analysis: Extracting insights from large datasets.
Machine Learning: Developing predictive algorithms.
7. Sports
Player Performance: Evaluating athlete capabilities.
Team Strategy: Optimizing game plans.
Sports Betting: Predicting game outcomes.
Probability
The probability is the measure of the likelihood
of an event to happen. It measures the certainty of
the event.
Variables and Types of Data
Variable: A variable is a characteristic or attribute
that can assume different values. For example,
social status, height, pocket money, etc.
Data: Data are the values (measurements or
observations) that the variables can assume.
Random variables: Variables whose values are
determined by chance are called random variables
Variables and Types of Data
Variables can be classified as
I. Qualitative:
II. quantitative
Variables and Types of Data
Qualitative: Qualitative variables are variables that
can be placed into distinct categories, according to
some characteristic or attribute.
For example, if subjects are classified according to
gender (male or female), then the variable gender is
qualitative. Other examples of qualitative variables
are religious preference and geographic locations.
Variables and Types of Data
Quantitative: Quantitative variables are numerical
and can be ordered or ranked. For example, the
variable age is numerical, and people can be ranked
in order according to the value of their ages.
Quantitative variables can be further classified into
two groups:
I. Discrete and
II. Continuous.
Variables and Types of Data
I. Discrete: Discrete variables assume
values that can be counted.
II. Continuous: Continuous variables can
assume an infinite number of values
between any two specific values. They
are obtained by measuring. They often
include fractions and decimals
Variables and Types of Data
Level of Measurement
In research, we measure the variable according to
its category, magnitude and limits. There are four
different scales of measurement:
Nominal Scale
Ordinal Scale
Interval Scale
Ratio Scale
Level of Measurement
Level of Measurement: Nominal Scale:
A nominal scale is the 1st level of measurement
scale in which the numbers serve as “tags” or
“labels” to classify or identify the objects. A
nominal scale usually deals with the non-
numeric variables or the numbers that do not
have any value.
Characteristics of Nominal Scale
A nominal scale variable is classified into
two or more categories. In this measurement
mechanism, the answer should fall into either
of the classes.
It is qualitative. The numbers are used here
to identify the objects.
Characteristics of Nominal Scale
The numbers don’t define the object
characteristics. The only permissible aspect
of numbers in the nominal scale is
“counting.”
Example: What is your gender?
Male or Female.
Here, the variables are used as tags, and the
answer to this question should be either M or F.
Ordinal Scale
The ordinal scale is the 2nd level of
measurement that reports the ordering and
ranking of data without establishing the degree
of variation between them. Ordinal represents
the “order.” Ordinal data is known as
qualitative data or categorical data. It can be
grouped, named and also ranked.
Characteristics of the Ordinal Scale
The ordinal scale shows the relative ranking of the
variables.It identifies and describes the magnitude
of a variable
Along with the information provided by the
nominal scale, ordinal scales give the rankings of
those variables
The interval properties are not known
The surveyors can quickly analyse the degree of
agreement concerning the identified order of
variables
Examples
Ranking of school students – 1st, 2nd, 3rd,
etc.
Ratings in restaurants
Evaluating the frequency of occurrences
Very often, Often, Not often, Not at all
Assessing the degree of agreement
Totally agree, Agree, Neutral, Disagree,
Totally disagree
Interval Scale
The interval scale is the 3rd level of
measurement scale. It is defined as a
quantitative measurement scale in which the
difference between the two variables is
meaningful. In other words, the variables are
measured in an exact manner, not as in a
relative way in which the presence of zero is
arbitrary.
Characteristics of Interval Scale:
The interval scale is quantitative as it can quantify the
difference between the values
It allows calculating the mean and median of the variables
To understand the difference between the variables, you
can subtract the values between the variables
The interval scale is the preferred scale in Statistics as it
helps to assign any numerical values to arbitrary
assessment such as feelings, calendar types, etc.
Ratio Scale
The ratio scale is the 4th level of measurement
scale, which is quantitative. It is a type of
variable measurement scale. It allows
researchers to compare the differences or
intervals. The ratio scale has a unique feature.
It possesses the character of the origin or zero
points.
Characteristics of Ratio Scale:
Ratio scale has a feature of absolute zero
It doesn’t have negative numbers, because of its zero-point feature
It affords unique opportunities for statistical analysis. The variables
can be orderly added, subtracted, multiplied, divided. Mean, median,
and mode can be calculated using the ratio scale.
Ratio scale has unique and useful properties. One such feature is that
it allows unit conversions like kilogram – calories, gram – calories,
etc.
Example:
An example of a ratio scale is:
What is your weight in Kgs?
Less than 55 kgs
55 – 75 kgs
76 – 85 kgs
86 – 95 kgs
More than 95 kgs
Books
Reference Materials: 1. Probability and Statistics for Engineers and
Scientists by Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers
and Keying E. Ye, Pearson; 9th Edition (January 6, 2011). ISBN-10:
0321629116 2. Probability and Statistics for Engineers and Scientists
by Anthony J. Hayter, Duxbury Press; 3rd Edition (February 3, 2006),
ISBN-10:0495107573 3. Schaum's Outline of Probability and Statistics,
by John Schiller, R. Alu Srinivasan and Murray Spiegel, McGraw-Hill;
3rd Edition (2008). ISBN-10:007154425
THANK YOU
