CHAP 1: NATURE OF Statistics & Starisnicrt Data ——n Senne SES CHAPTER i 1 —iinupunuun as NATURE OF STATISTICS AND STATISTICAL DATA 1.1 MEANING OF STATISTICS The word statistics have been derived from Latin word “Status” or the Italian word Statista. Both these words mean a political state or Government. Government has always been interested in the number of their citizen and in trade figures etc. The term statistics is now commonly used in three meanings. : lL Statistics in Plural Sense In plural sense statistics are aggregates of facts expressed in numerical form. eg. Statistics of population, statistics of roadside. accidents, statistics of births and deaths, imports and exports, male and female ete. 2, Statistics in Singular Sense In singular sense it denotes the methods adopted in the collection, presentation and analysis of numerical facts. 3. Statistics as Plural of Statistic’ The word statistics is used as the plural of the word statistic, which means a numerical quantity calculated from sample observations. ‘The Comprehensive definition of statistics is given below. tematic collection, presentation, analysis and Statistics is the science of syst g to an aggregate of facts on any type of inquiry. interpretation of the numerical data relatin, 11.1 Characteristics of Statistics () Statistics are aggregates of facts. (i) Statistics are numerically expressed. (ii) Statistics are collected for a pre-determined purpose. (iv) Statistics are estimated according to reasonable standard of accuracy. (%) Statistics are collected in a systematic manner. —$—$1.2 TYPES OF STATISTICS Descriptive Statistics 1 i That branch of statistics, which deals with collection, presentation ang nalysis of numerical data, is called descriptive statistics. a 2. Inferential Statistics ‘That branch of statistics, which deals with procedures of drawing inferences (conclusions) about the population’s parameter on the basis of sample data, is callea inferential statistics. 3. Applied Statistics . Applied statistics is a branch of statistics that make use of statistical methods and general rules in the investigation of a specific problem. It is applied in the fields of agriculture, education, administration, economics, physics, banking and health ete. 1.2.1 Limitation of Statistics (@) Statistical laws are valid or true on the average. (i) Statistics deals only with quantitative data, qualitative data e.g. beauty, honesty; poverty etc can not be studied directly. (ii) Statistics deals with the aggregate of facts. Single observation is not statistics. , (iv) Good understanding of the subject is required. Only an expert can use it properly. . 7 ‘ 1.3 SUBJECT MATTER Population Total number of objects under consideration is called population. e.g. Number of students in a college ete. Sample It is the small part of population, which represents thé whole population. Observation i In statistics, an observation means any sort. of numerically recording of information. Parameter A numerical quantity, which is calculated from the population, is called Parameter, For example population means “u”.CHAP 1: Nature oF Starisnics AND Stansmcat Data . 3 STE. AND Starisricat DATA Statistic A numerical quantity, which is calculated from the sample is called statistic. For example sample mean X, sample variance S? etc. Constant Any value, which does not change, but remains fixed, is called constant. e.g. n = 3.1415, e = 2.718 ete. Variable A characteristic that varies with an individual or an object is called variable. For example height is a variable because it varies from person to person. 1.4 TYPES OF VARIABLES Quantitative Variable A variable is called quantitative if it can assume numerical values such as weight, height and number of children. Qualitative Variable A variable which can assume non numerical values is called qualitative variable e.g. sex, beauty, hair colouretc. ~ Types of Quantitative Variable A quantitative variable may be classified as discrete and continuous. Discrete Variable A variable is called discrete if it can take values in the form of whole numbers e.g., Number of children, the number of roadside accidents etc. Continuous Variable A variable is called continuous variable if it can take any valué within a given interval. e.g., height of a person, age of the students etc. 1.5 FIELDS (FUNCTIONS) OF STATISTICS AND THE TYPE OF QUESTIONS IT CAN ANSWER () Statistics helps in simplifying the larger set of data in a form that is easily understandable. (i) Statistics helps in policy forming. (iii) Statistics is widely used in survey and research. (iv) Statistics plays an important role in Banking and Insurance. (v) It helps in prediction.‘STATISTICS FOR B.S Ciasses (vi) Statistics tests the laws of other Population census and a6) imagined. Statistics studies relationship among different facts. ricultural census without statistics cannot be (wii) (viii) (x) _ Statistics presents facts in a numerical form. Numerical facts give more accurate information than facts expressed in general terms. 1.6 IMPORTANCE OF STATISTICS IN DIFFERENT FIELDS Statistics plays an important role in almost every field of life. Births and deaths are called vital events in statistics. These events are recorded as statistical events in all over the world. Following are the important uses of statistics in different fields. Statistics and Economics and Business Statistical methods are widely used in economics and business. The relationship between supply and demand is studied with the help of statistics. The imports and exports and inflation rate are the problems, which require good knowledge of statistics. Tthelps the businessman about the prices of different items in future. Statistics and Insurance The whole structure of insurance is based on statistics. The amount of premium for the insurance policies is based on life expectancy and accident rates. Statistics and Banks ' All types of banks make use of statistics for a number of purposes. The banks do the business with the help of deposits of the people. The bankers apply the statistical approach based on probability to estimate the number of depositors and demands of with drawls for different periods of time. Statistics and Research Statistics is the back bone of research. Most of the advancement has taken place due to experiments conducted with the help of statistical methods. Statistics and Population Census ~ Population Census is impossible without statistics, because the whole structure of census is based on data. In population census the researcher covers each and every element concerning with the understudy population. Statistics and other Sciences : Statistics methods are widely used in physics, chemistry, biology, astronomy, mathematics and medical sciences. Statistics and Meteorology sorecact tistics Plays a significant role in the field of meteorology for weather recasting, bhCHAP 1: Nature OF STATISTICS AND STATISTICAL DATA S Statistics and Agriculture Statistics is the back bone for agriculture. Experiments on different types of soil, various varieties of seeds and fertilizes are performed with the help of experimental designs. Experimental design is an important branch of statistics. Due to its importance a paper on statistics had been made compulsory for all the students in the agricultural university, Faisalabad. Our country is an agricultural country, its economy depends very much on agricultural products. This object cannot be achieved without complete and accurate knowledge of agricultural statistics. Statistics and Psychology and Education Statistics plays an important role in-psychology and education. Statistical methods are applied for measurement of intelligence quotients and to determine the aptitude ofastudent. 1.7. STATISTICAL DATA The set of observations relating to the experiment is called statistical data. - ‘The first step in any investigation is the collection of data. The data may be collected for the whole population or for a sample only. It is mostly collected on sample basis. Statistical data may be classified as primary and secondary. Primary Data . Primary data are those which are collected for the first time and are original in character. : ‘ ¢ Secondary Data Data that have undergone any sort of statistical treatment at least once i.e. the data have been collected, classified or tabulated are called secondary data. 1.7.1 Collection of Primary Data Following methods are used to collect primary data. (i) _ Direct Personal Investigation In this method, an investigator collects the information personally form the individual concerned. Information obtained by this method is quite accurate and reliable, but this method is expensive and time consuming. (ii) Indirect Personal Investigation Some times the informants hesitate to give the correct information e.g. true income or production etc. In such a case information is collected from the third party. For example, businessman is reluctant to disclose their income to income tax department. In this case official can get desired information by interviewing those people who are not directly involved that business.6 STATISTICS FOR B.S Classes Collection Through Questionnaires Questionnaire is a list of questions relating to the field of inquiry. This lst of estions is sent by mail to the informants with a request that they send it back anestnewering the questions. This method is cheap. But the difficulty is that the majority of respondent does not care to fill the questionnaires. It is important to note that the questionnaire should be simple and concise. iii) (iv) Collection Through Enumerators fn this method information is collected through trained enumerators. The enumerators approach the people, ask them the relevant questions and note their answers in the questionnaire. This method gives the reliable information, but this is very costly and can be carried out by the government only. (vy) Collection Through Local Sources In this method there is no’ formal collection of data. Local agents co: correspondents are directed to collect and send the required information using their own judgment. This method is widely used in crop estimation. 1.7.2 Collection of Secondary Data The secondary data may be obtained from the following sources. “@) ~~ Official All the government departments maintein their de.» and publish it annually as official statistics. e.g, Federal Bureaus of statistics, provincial Bureaus of statistics, Economic Survey of Pakistan, Ministries of Finance, Commerce, Food and Agriculture, Education, Health etc. . (ii) Semi-Official For example, State Bank of Pakistai, Radway, _Wapda, Pakistan International Air Lines (PIA), Distri.t Councils ete. (iii) Private Sources r For example, Publications of trade associations, Chambers of Commerce, Stock markets etc. (iv) Research Organizations _ For example, Publications of universities, medical colleges, Pakistan Agriculture Research Council eté. 1.8 MEASUREMENT SCALES By measurement we usually mean the assiging of numbers to observations and scaling is a process of measuring. The four types of s¢ales are numin-l scale, ordinal scale, interval scale and ratio scale. aanCHAP 1: Nature oF Stanisncs AND StanismicaL Data 2 Nominal Seale The classification or grouping of observations into mutually exclusive qualitative categories is called nominal scale. For example gender can be classified into two groups; male and female, this scale can also be used to represent yes/no, like/dislike ete. Ordinal or Ranking Scale It is known as ranking scale which posses the property of order. It includes the characteristics of a nominal scale. For example performance of students is rated as excellent, goods or poor or grades like A, B, C, D and F. Interval Scale This scale has the properties of order and distance. It has arbitrary zero point and constant unit of measurement. The number on the scale are placed at equidistance. The centigrade thermometer and Fahrenheit thermometers are some examples of interval scale. In centigrade thermometer, the minimum number is OC? and maximum number is 100C*. Between these two numbers the numbers are placed at equal distance. In Fahrenheit thermometer, the minimum number is 32F° and the maximum number is 212F’. The relationship between these the systems of scales is shown below 5 = 9 F - 32) It can not be said that a temperature of 50 degrees is twice ae hot as a temperature of 25 degrees i.e 50/25 ratio has no meanings. Ratio Scale It is a special kind of an interval scale where the scale of measurement has a true zero point as its origin. Such scales are used in physical sciences to measure length, breadth, weight, volume etc. A person who is 40 years old is twice as old as one who is 20 years old.11 1.2 13 14 15 L7 18 19 1.10 STATISTICS FOR B.S Cinsses a eee eee Ea 3 xplain the different meanings of statistics. Lone statistics and discuss the type of question it can answer. tics in different fields. Explain the importance of statis! Define data. What are the main types of statistical data? Differentiate between primary data and secondary data. Which are the main sources of these data? Define statistics. Discuss its importance in detail. What are the different methods of collection of primary data? Define statistics. Distinguish between primary and secondary data. Explain the difference between the following. (i) Discrete and continuous variable. (ii) Population and Sample. (iii) Qualitative and Quantitative variable. (iv) Parameter and Statistic. (v) Descriptive and Inferential statistics. ' (vi) Variable and Constant. Explain the importance of statistics in the following fields. . (i) Education and psychology ii) Agriculture Gii) Banks (iv) Economics and Business. Classify the following variables as Qualitative or Quantitative. Gi) Number of children in a family. (i) Colour of roses in a garden. (iii) Martial status of the persons working in an office. (iv) Height of the students. (v) _ Liking or disliking of 20 people. (vi) The distance traveled between Lahore and Islamabad. (vii) The average number of eggs lay by hen in a year. (viii) The occupations of the persons in a locality. (ix) Income of a government servant in a city.CHAP 1: Nature oF Statistics AND STATISTICAL DATA (x) Religion of people of a country. (xi) Wages of workers in a factory. (xii) The beauty of different persons. 1.11 Classify the following variables as discrete or continuous. @ Weight of a student. Gi The number of students in a class. Gii) The number of deaths in an accident. (iv) Temperature of a place. (v) The amount of milk produced by a cow. (vi) The number of children in-a family. (vii) The lifetime of electric tube light. (viii) The number of passengers in a train. (ix) | Number of books in a library. (x) The distance between Faisalabad and Lahore. (xi) Monthly income of an officer. (xii) The age of a business man. (xiii) The number of dots, when a single die is rolled. (xiv) Number of districts in Pakistan. (xv) Amount of water in a jug. (xvi) Number of mistakes on a page. (xvii) Number of petals on a flower. 112 SELECT THE CORRECT ANSWER (i) The word Statistics has (a) two meanings (b) three meanings © four meanings (d) five meanings (ii) Sample is a representative part of (a) Statistic (b) Proportion (©) ‘Parameter (@) Population : (ii) A numerical quantity computed from a population is called (a) Statistic (b) Parameter (©) Experiment (@) Observation _ (iv) Statistics are (a) -aggregate of facts (b) always true (©) always continuous (ad) always qualitativeio w) (vi) (vii) (viii) (ix) (&) (xi) (xii) (xiii) (xiv) STATISTICS FOR B.S Classes teristic that varie is called Acharac' (a) Constant (b) Sample (Variable (4) Population Avariable which can assume numerical values is called (a) qualitative variable (b) quantitative variable (©) discrete variable (d) continuous variable Date which is collected for the first time and are original jn character is called (a) Primary data (b) Secondary data (©) Qualitative data (a) Quantitative data Census returns are . (a) Primary data (b) Secondary data (c) Published data (d) Qualitative data Data published by Government sources are (a) Primary data (b) Secondary data (©) First hand data (d@) ~—- Raw data The group data is also called (a) ‘Raw data (ot) Primary data (©) Secondary data (a) Qualitative data Any value which does not change but remains fixed is called (a) Parameter (b) Constant (c) Variable (a) Statistic Total number of objects under consideration is called (a) Sample (b) — Siatistic (c) Population (d) Parameter A variable which éan assume non numerical values is called (a) Variable (b) Quantitative variable (&) Qualitative variable (d) Discrete variable Data which have undergone any sort of statistical treatment is known as (a) Discrete data (b) Primary data () Continuous data (d) Secondary dataCHAP I: NATURE OF STATISTICS AND STATISTICAL DATA ae (xv) . The lifetime of T.V tube is: : (a) Discrete data (6) Continuous data (©) Constant (None of these (xvi) The sources of primary data are primary: (a) Surveys () Areas (©) Units (@ Factors (xvii) Data classified by attributes is called: (a) Qualitative (b) Quantitative © . Discrete (4) - Continuous (xviii) A variable which can take all possible values in an interval is called: (a) Discrete variable (b) _ Continuous variable (© Qualitative variable @ — -Finite variable (xix) A discrete data has: (a) Noclass boundaries (b) Class boundaries (© Fractions (@) None of these (xx) The sum of random error is equal to: @ 1 i 2 © 3 (@) Zero (xxi) Questionnaire method is used in collection of: (a) Secondary data (b) Grouped data: (© ~ Primary data (d) None of these (xxii) Any data given in your book for you is: i. (a) Primary -- () Raw (©). Secondary ° », @)——s False ANSWERS: 1.12: @® | ® | @ | © ) (iv) (a) (v) () (vi) @) | wii) | @ (a) (ix) o) @&) © (xi) b)_ | Gii) © © | Giv) | @ | &Y) | © | @xviy | @)_| Gxvii) | @ | vii) | © [| in | @ | & | @ (xxi) (c) (xxii) |" ©STATISTICS FOR B.S Cursses tedis STION AND ANSWERS WRITE THE SHORT ANSWERS TO THE FOLLOWING QUESTIONS, 1. Ans. Ans. Define Statistics. Statistics is the science of.systematic collection, presentation, analysis ang interpretation of the numerical data. Write down the different meaning of Statistics. (a) Statistics in Plural Sense In plural sense statistics are aggregates of facts expressed in numerical form, e.g: statistics of accidents, births and deaths etc. (b) _ Statistics in Singular Sense In singular sense it denotes the methods. adopted in the collection, presentation and analysis of numerical facts. (c) Statistics as Plural of Statistic The word Statistics is used as the plural of word statistic which means a numerical quantity calculated from sample observations. What are the characteristics of Statistics? (a) Statistics are aggregates of facts. (b) Statistics are collected for a pre-determined purpose. (c) Statistics are numerically expressed. (d) ‘Statistics are collected in a systematic manner. What is inferential Statistics? ‘That branch of Statistics, which deals.with procedures of drawing inferences (conclusions) about the population’s parameter on the basis of sample data. Define descriptive statistics That branch of statistics which deals with the collection, presentation and analysis of numerical data is called descriptive statistics. Define applied statistics. Applied statistics is a branch of statistics that make use of statistical methods and general rules in the investigation of a specific problem. Define Population. ‘Total number of objects under consideration is called population. e.g: No. of students in q college eteIATURE OF STATISTICS AND STATISTICAL DATA 13 ma ep ores DATA 10. Ans. 11. Ans. 12, Ans, 13, Ans, Define Sample. It is the small part of population, which represents the whole population. For example, if we select 10 students from a class of 100 students, 10 selected students constitute a sample. What is the difference between constant and variable? Constant Any value, which does not change, but remains fixed, is called constant. e.g. ™ =3.14,e = 2.718 etc. Variable A characteristic that varies with an object is called variable. For example height, weight etc. Define Statistic and Parameter. Statistic A numerical quantity which is calculated from the sample is called Statistic e.g. sample mean (X). Parameter A numerical quantity which is calculated from the population is called parameter e.g. population mean (1). What is quantitative variable? A variable which can assume numerical values is called quantitative variable e.g. weight, height etc. i What is the difference between discrete and continuous variable? Discrete Variable A variable is said to be discrete if it can take only discrete values (whole numbers). e.g. number of children, family size, books in a library etc. Continuous Variable A variable is called continuous if it can take any value within a given interval e.g., height, weight, age etc. What is the importance of Statistics in different fields? Give at least three lines. 1. Statistical methods are widely used in economies and business. 2. The whole structure of insurance is based on Statistics.” 3. Statistics is the back bone for agriculture and research. 4, Statistical methods are widely used in physics, mathematics, biology and social sciences.14, Ans. 15. Ans. 16. Ans. 17. Ans. StarisTics FOR B.S Classes Define statistical data. ‘The set of observations relating to the experiment is called data. Distinguish’ between Primary and Secondary data. Primary Data Data which is collected for the first time and are original in character is called primary data. Secondary Data Data that have under gone any sort of statistical treatment at least once is called secondary data. Write the names of different methods for collection of Primary data. 1. Direct personal investigation. 2, Indirect Personal investigation. 3. Collection through questionnaire. 4. Collection through enumerators. 5. Collection through local sources. Write down the names of different methods for the collection of Secondary data. The secondary datia may be obtained from the following sources. (i) Official (ii) Semi official (iii) Private sources (iv) Research organizations @ 36 3 @