STTN 111

Introductory Statistics

Study Unit 1:
Statistics - Introductory Concepts
Learning Outcomes

Describe the role of statistics

in the research process

Differentiate between
different types of data

Describe the role of the

computer in Statistics
1.1. Introduction
• What is statistics?

• Statistics is the science of extracting information from data. i.e.,

statistics makes sense of data.

• “Statistics is the science of learning from data.”

• What is the role of statistics in the

research process?
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From Data to Information
 Statistical Research Process
What info
Purpose of is
Sampling
investigati required
method
on

Planning

Collect data
Writing
report
Conclusion Remove
Presentatio outliers
n Clean the
Treat open
data
questions
Data Code
analysis responses

Graph
s
Descriptiv
Statistical
Tables e
Probability theory inference
methods
Draw conclusion about
Summary the population from the
parameters sample
Application of Statistics

Actuarial Science
• discipline that applies mathematical and statistical methods to
assess risk in the insurance and finance industries.

Business Analytics
• business process that applies statistical methods to data sets
for development of new insights and understanding of
business performance & opportunities.

Official Statistics
• statistics published by government agencies or other public
bodies such as international organizations. E.g. Stats SA
1.2. Aspects of Statistics
Collection of data Values or Measurements
• It can be numbers, words, measurements, observations or even just descriptions of things.

Descriptive Statistics Order, graph, tables that summarize data

• analysis of data that helps describe, show or summarize data in a meaningful way such that, for example, patterns
might emerge from the data.

Statistical Inference Draw conclusion about the population from the sample
• techniques that allow us to use samples to make generalizations about the populations from which the samples were
drawn.

consists of rules for assigning numbers to objects so as to represent

Measurement attributes numerically

Variable
characteristic or condition that can change or take on different values.
Variable Examples:

Height of a Person

Weight of a banana

Marks obtained

Gender

Etc.
Types of Variables
Variables can be classified as Discrete or Continuous.

Discrete variables Continuous variables

• A variable is said to be • A variable is said to be

discrete if the possible continuous if the possible
values that it can take on values that it can take on
are distinguishable and are not distinguishable. i.e.,
disconnected from one for any two possible values
another. of the variable it is possible
to find another that lies
between them.

• Gender • Weight of a banana

Types of data
• Data can be qualitative or quantitative.
• Qualitative data is descriptive information (it describes something)
• Quantitative data, is numerical information (numbers).

• Discrete data can only take certain values (like whole numbers)
• Continuous data can take any value (within a range)
• Simply: Discrete data is counted, Continuous data is measured
Example: What do we know about Apollo

Qualitative Features • He is brown and black

• He has long hair
• He has lots of energy

Apollo • Discrete:
• He has 4 legs
• He has 2 brothers

• Continuous:
Quantitative Features • He weighs 25.5 kg
• He is 565 mm tall
Discrete v/s. Continuous Data

Discrete data: obtained

from discrete variables.
100% accurate
measurements are
possible.

Continuous data: obtained

from continuous variables.
Values have been rounded
and therefore not 100%
accurate.
 Types of Measurement Scales
Scale Description Example
Nominal scale The values of the variable only RELIGIOUS PREFERENCE:
indicate classes or categories 1 = Buddhist, 2 = Muslim,
3 = Christian,4 = Jewish, 5 = Other

Ordinal scale Is the same as the nominal scale but Employee’s job satisfaction:
has also an order associated with the Poor=, reasonable=1, good=2,
categories. very good=3 and excellent=4

Interval scale The same as ordinal scale, but Time of day:

meaning has now been attached to 14:00-15:30 is the same as the
the differences between the values. interval between 8:00-9:30
The ratio has no meaning because the They don’t have a “true zero.”
starting point is arbitrarily chosen.

Ratio scale The same as interval scale, but ratios Mass and height:
have meaning. The starting point is Starting point of zero
fixed and influences the
interpretation.

Source and more info:

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The Role of Computers in Statistics

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The Role of Computers in Statistics
• Examples:
• Stat 1.2

• SPSS (Statistical Package for Social Sciences)

• Statistica

•R

• SAS (Statistical Analysis Systems)

• MS Excel
Homework

• Exercises 1 and 2, Page 11

Your accomplishment
will start with a
decision to execute
the Task. ~ MS
Exercises

For each of the following random variables, state the data

type, scale of measurement and give two illustrative data
values for each random variable:

1. The floor area of Pick 'n Pay stores

2. The highest qualification of employees in an organisation.

3. The type of car you prefer.

4. The grades used to classify red meat.

[Prime, Super, First Grade, Standard]

5. The weight (in kg) of bags of potatoes.

Solution

1. Quantitative Var, Ratio Scale; (3,545m-sqr and 635m-sqr)

2. Qualitative Var; Ordinal Scale; (Matric and BSc.)

3. Qualitative. Var; Nominal Scale; (Toyota and VW)

4. Qualitative. Var; Ordinal Scale; (Super and First Grade)

5. Quantitative. Var, Ratio Scale; (9kg and 5.5kg)