Introduction

Statistics
Statistics may be defined as the science of collecting, organizing, analyzing, summarizing,
interpreting numerical data and making valid inferences or conclusion on the base of the data.
Basically there are three steps involved in statistics:
1) Specification of the information required to achieve the objectives of the study;
2) Analysis of the information;
3) Interpretation of the results
Collection of data
i) Primary data
The data which are collected from sampling units and sorted without any systematic fashion.
ii) Secondary data
The primary data which are presented in a systematic fashion in rows or columns or even in
ordered ways and used for the further studies.

Types of statistics:
There are two types of statistics
1. Descriptive statistics
2. Inferential statistics.
1. Descriptive Statistics: Descriptive statistics involve graphical and numerical procedures that
are used to summarize and process data and to transform data into information.
Example:
A Gallup poll found that 49% of the people in a survey knew the name of the first book of the
Bible. The statistic 49 describes the number out of every 100 persons who knew the answer.
2. Inferential Statistics: inferential statistics are used to make inferences about a population
from a sample in order to generalize (make assumptions about this wider population) and/or
make predictions about the future. Inferential statistics provide the bases for prediction, forecasts
and estimates that are used to transform information into knowledge.
Example:
TV networks constantly monitor the popularity of their programs by hiring Nielsen and other
organizations to sample the preferences of TV viewer

Some important definitions:

Population: A Population is a Collection of all possible individuals, objects, or measurements of
interest. Example- All students from EEE department has taken to estimate mean height.
Sample: A sample is a representative part of the population. Example- Some students from EEE
department has taken to estimate mean height.
Census: Collection from every member of a population.
Parameter: A Parameter is a measurable characteristic of a population. Example- The mean
height of all students from EEE department.
Statistic: A statistic is a measurable characteristic of a sample. Example- The mean height has
estimated from a representative part of all students from EEE department.
Variable: That changes its characteristics with respect to different aspects. Such as height,
weight etc.
Types of variable:
Qualitative or Attribute Variable the characteristic being studied is nonnumeric. Example:
Gender, Eye color, types of Car etc.
In a Quantitative Variable information is reported numerically. Example: Balance in your
account, No of children in a family.

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).

A Continuous Variable can assume any value within a specified range. Example: the weight of a
chop, the height of students in a class.
1-12

Variable

Qualitative or attribute
Quantitative or numeric
(performance of a student)

Discrete Continu ou s
(number of children) (time taken for an exam)

Data: Data Any characteristic that can differ from one individual to the next is called a
variable. We call variables that are measured, or somehow determined, and collected on a
number of individual’s data
Example- A sample on weight (kg) characteristic on 10 people is given below-
65, 92, 55.7, 78, 76, 82, 43, 63, 69, 71

Population size: The total no. of units collected in a population is called population size. It’s
indicated by N.
Sample size: The total no. of units collected in a sample is called sample size. It’s indicated by
n.

Some differences
Population Sample
A Population is a Collection of all possible A sample is a representative part of the
individuals, objects, or measurements of population.
interest.
Here we get accurate result We get approximate result
We don’t need to test the result We have a need to test the result
 Parameter Statistics
A Parameter is a measurable A statistic is a measurable
characteristic of a population. characteristic of a sample.
It gives accurate result It gives approximate result

Primary data Secondary data

Data collected by researcher Data collected by other persons
himself
More reliable Less reliable
Costly to collect Less costly to collect
More time consuming Less time consuming

There are four levels of measurements: Nominal, Ordinal, Interval, and Ratio.
(i) Nominal level: Data that is classified into categories and cannot be arranged in any
particular order. Example: Gender, Eye Color etc.
(ii) Ordinal level: involves data arranged in some order, but the differences between data values
cannot be determined or are meaningless.
During a taste test of 4 soft drinks, Coca Cola was ranked number 1, Dr. Pepper number 2, Pepsi
number 3, and Root Beer number 4.
(iii) Interval level: Similar to the ordinal level, with the additional property that meaningful
amount of differences between data values can be determined. There is no natural zero point.
Example: temperature in Fahrenheit scale.
(iv) Ratio level: The intervals level with an inherent zero starting point. Differences and ratios
are meaningful for this level of measurement. Ex: Monthly income of a family.

Fields Where You Can Apply Statistical Methods

It mainly helps in determining the existing position of per capita income, unemployment,
population growth rates, housing, schooling medical facilities, etc., in a country. Now statistics
leverage a central position in almost every field, including industry, commerce, trade, physics,
chemistry, economics, mathematics, biology, botany, psychology, astronomy, etc., thus the
application of statistics is very necessary to use. It mostly helps in classification, organization
and summarization of the facts and drawing conclusions.

The application of statistics is extensive, so let us discuss the fields where the subject methods
are commonly implemented:

1. Mathematics
The formulas used in math are reliable, but to get more precision and exactness, statistics
methods are important. In fact, it is called the branch of applied math. There are common
techniques that both the fields have adopted from each other such as statistical methods, namely
probability, dispersion, etc., used in math and mathematical concepts like integration and algebra
are used in former.
2. Business
Business students must be aware of the importance of statistics in the field. There are times when
a businessman has to make quick decisions, and this can be done by using its concepts which
make the decision-making easy. He strategizes the marketing, finance, production, resource
through it. What are the tastes and preferences of consumers? What should be the quality? What
should be the target market? All these questions are answered using statistical tools.

3. Economics
There are so many concepts of economics that are completely dependent on statistics. All the
data collected to find out the national income, employment, inflation, etc., are interpreted
through it. In fact, theory of demand and supply, relationship between exports and imports are
studied through this subject. The perfect example of this is census; the bureau uses its formulas
for calculating a country’s population.

4. Country’s Administration
Many national policies are decided using statistical methods, and administrative decisions are
taken based on its data. Statistics provides most accurate data which helps government to make
budgets and estimate expenditures and revenues. It is also used to revise the pay scale of
employees in case cost of living is rising.

5. Astronomy
When scientists measured the distance between sun and earth, or moon and earth, they did not
use any measurement scale or ruler for that. It was these statistical methods that helped them to
find out the best answers and estimates that are possible. It is difficult to measure the mass, size,
distance, density of objects in the universe without any error, but statistics formulas do this with
the best probability.

6. Banking
When someone deposits his money in banks, the idea is that he will not withdraw the amount in
the near future. So, banks lend this money to other customers to earn profit in the form of
interest. They use statistical approach for this service. They compare the number of people
making deposits against the number of people requesting loans and at the same time ascertaining
the estimated day for the claim.

7. Accounting and Auditing

Although accounting needs exactness in calculating the profit and loss of the business, certain
decisions can be taken according to approximation which is done through statistics. For example,
sampling may be used to find out the current trends in the market as it does not require any
precision.

8. Natural and Social Science

Almost all fields of science such as biology, chemistry, physics, etc., use statistical methods for
experimenting and analyzing their results. In biology, it is used in biostatistics, biometrics, which
includes investigating about medicines, pharmacy, agriculture, fishery, etc.
Same way, probability theory is used in physics while estimating large population, results of
thermodynamics use statistical tools. Sociology is also based on the subject to analyze and
interpret data and test hypothesis.
Statistics is a varied subject, and there are many other uses of it in different fields related to daily
human activities. Few other examples are weather forecasting, communicate information, data
analysis, etc. If you are a statistics student, then you can decide your field you want to opt for
according to your interest.

Limitations of statistics
1. It cannot deal with qualitative variable
2. Statistics laws are true on average. Statistical results are not accurately correct.
3. Statistics are aggregates of facts, so a single observation is not a statistic. Statistics deal
with groups and aggregates only.
4. Statistics cannot be applied to heterogeneous data.
5. If sufficient care is not exercised in collecting, analyzing and interpreting the data,
statistical results might be misleading.
6. Only a person who has an expert knowledge of statistics can handle statistical data
efficiently.
7. Some errors are possible in statistical decisions. In particular, inferential statistics
involves certain errors. We do not know whether an error has been committed or not.
8. Adequate sample size is necessary to make proper decision.
9. Statistical laws are not exact.

 Relationship between research and statistics

Re- means again and again, and Search- means trying to find out. It is a process by which a
person observes a topic again and again and collects data. So Research is a scientific and
systematic search for pertinent information on a specific topic.
On the other hand, statistics are the characteristics of sample which comes from population and
then after observing sample we estimate any estimator and for sample that estimator is called
statistic.
So the relationship between research and statistics is observed again and again but in a scientific
and systematic way and then give some output.
Sample questions
1. Define sample, parameter.
2. Distinguish between parameter and statistics.
3. Identify the level of measurement with variable type for the given variable: age, income,
temperature, jersey no. , rank of super shops.
4. Fill the following box:

Name of Type of For quantitative variable identify is it discrete Level of

variables variable or continuous? measurement
i. Transport cost
ii. Height
iii. Temperature
iv. Gravity
v. Merit
position
vi. ID of student
vii. Income