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Statistics is the science

of collecting, organizing,
presenting, analyzing,
and interpreting
numerical data to assist
in making more
effective decisions.

What is Meant by Statistics?

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Statistical techniques are

used extensively by
marketing, accounting,
quality control,
consumers, professional
sports people, hospital
administrators,
educators, politicians,
physicians, and many
others.
Who Uses Statistics?

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Descriptive Statistics: Methods of organizing,

summarizing, and presenting data in an informative way.

EXAMPLE 1: A
EXAMPLE 2: According
Gallup poll found that
to Consumer Reports,
49% of the people in a
General Electric washing
survey knew the name
machine owners reported
of the first book
9 problems per 100
published in
machines during 2001.
Bangladesh. The
The statistic 9 describes
statistic 49 describes
the number of problems
the number out of
out of every 100 machines.
every 100 persons who
knew the answer.
Types of Statistics

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Inferential Statistics: A decision, estimate,

prediction, or generalization about a population,
based on a sample.
A Population
is a Collection
of all possible
individuals,
objects, or
measurements of
interest.

A Sample is a
portion, or part,
of the population
of interest

Types of Statistics

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Example 1: TV
networks constantly
monitor the
popularity of their
programs by hiring
Nielsen and other
organizations to
sample the
preferences of TV
viewers.

Example 2: Frutika
tasters sip a few drops
of juice to make a
decision with respect
to all the juice waiting
to be released for sale.
Example 3: The accounting
department of a large firm will
select a sample of the invoices to
check for accuracy for all the
invoices of the company.
Types of Statistics
(examples of inferential statistics)

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For a Qualitative or Attribute Variable the

characteristic being studied is nonnumeric.

G en d er

T yp e of ca r

E ye
C o lo r
S tate of
B irth

Types of Variables

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In a Quantitative Variable information is

reported numerically.
Balance in your checking account

Minutes remaining in class

Number of children in a family
Types of Variables

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Quantitative variables can be classified as either

Discrete or Continuous.

Discrete Variables: can only assume

certain values and there are usually gaps
between values.
Example: the number of
bedrooms in a house, or
the number of hammers
sold at the local Home
Depot (1,2,3,,etc).
Types of Variables

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A Continuous Variable can assume any

value within a specified range.

The pressure in a tire

The weight of a beef chop

The height of students in a class.

Types of Variables

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D ATA
Q u a li t a t iv e o r a t t r i b u t e
(ty p e o f c a r o w n e d )

Q u a n t it a t iv e o r n u m e r ic a l

d is c r e t e
( n u m b e r o f c h ild r e n )

c o n t in u o u s
( t im e t a k e n fo r a n e x a m )

Summary of Types of Variables