Chapter 1 Description and History of Statistical Science
Chapter 1 Description and History of Statistical Science
Chapter 1
DESCRIPTION AND HISTORY OF STATISTICAL SCIENCE
Classifications:
Depending on how data can be used statistics is some times divided in to two main areas or
branches.
1. Descriptive Statistics: is concerned with summary calculations, graphs, charts
and tables.
2. Inferential Statistics: is a method used to generalize from a sample to a
population. For example, the average income of all families (the population) in Ethiopia
can be estimated from figures obtained from a few hundred (the sample) families.
• It is important because statistical data usually arises from sample.
• Statistical techniques based on probability theory are required.
2. Census: a complete enumeration of the population. But in most real problems it cannot be realized,
hence we take sample.
3. Sample: A sample from a population is the set of measurements that are actually collected in the
course of an investigation. It should be selected using some pre-defined sampling technique in such
a way that they represent the population very well.
Examples:
• Monthly production data of a certain factory in the past 10 years.
• Small portion of a finite population.
•
In practice, we don’t conduct census, instead we conduct sample survey
4. Parameter: Characteristic or measure obtained from a population.
5. Statistic: Characteristic or measure obtained from a sample.
6. Sampling: The process or method of sample selection from the population.
7. Sample size: The number of elements or observation to be included in the sample.
8. Variable: It is an item of interest that can take on many different numerical values.
Note that quantitative variables are either discrete (which can assume only certain values,
and there are usually "gaps" between the values, such as the number of bedrooms in your house) or
continuous (which can assume any value within a specific range, such as the air pressure in a tire.)
Uses of statistics:
The main function of statistics is to enlarge our knowledge of complex phenomena. The following are
some uses of statistics:
1. It presents facts in a definite and precise form.
2. Data reduction.
3. Measuring the magnitude of variations in data.
4. Furnishes a technique of comparison
5. Estimating unknown population characteristics.
6. Testing and formulating of hypothesis.
7. Studying the relationship between two or more variable.
8. Forecasting future events.
Limitations of statistics
As a science statistic has its own limitations. The following are some of the limitations:
• Deals with only quantitative information.
• Deals with only aggregate of facts and not with individual data items.
• Statistical data are only approximately and not mathematical correct.
• Statistics can be easily misused and therefore should be used be experts.