MATH03

Statistics and Probability

Course Outcome 1
Lesson 1: INTRODUCTION TO STATISTICS AND
PROBABILITY

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Objectives
At the end of the discussion, students must be able to:
• apply the basic concepts of Statistics to real world problems,
• compute appropriate sample size,
• differentiate parameter and sample,
• classify variables,
• illustrate a random variable (discrete and continuous), and
• distinguish between a discrete and a continuous random variable.

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Definition
Statistics is the science of collecting, analysing, presenting, and
interpreting data, as well as of making decisions based on such
analyses.

Prem Mann, Introductory Statistics, 9/E

Copyright © 2015 John Wiley & Sons. All rights reserved.

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 DEFINITION
Statistics is a science that helps us
make decisions and draw
conclusions in the presence of
variability.

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Two Aspects of Statistics
STATISTICS
Theoretical/ Applied
Mathematical Statistics Statistics

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Two Aspects of Statistics
THEORETICAL MATHEMATICAL
STATISTICS
It deals with the development, derivation and
proof of statistical theorems, formulas, rules and
laws.

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Two Aspects of Statistics
APPLIED
STATISTICS
It involves the applications of these theorems,
formulas, rules and laws to solve real world
problems

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TWO NATURE OF APLIED STATISTICS

STATISTICS
Theoretical/ Applied
Mathematical Statistics Statistics

Descriptive Inferential

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Definition
Descriptive Statistics consists of methods for
organizing, displaying, and describing data by using
tables, graphs, and summary measures.

Prem Mann, Introductory Statistics, 9/E

Copyright © 2015 John Wiley & Sons. All rights reserved.

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DESCRIPTIVE STATISTICS
For example, suppose a pet shop sells cats,
dogs, birds and fish. If 100 pets are sold, and
40 out of the 100 were dogs, then one
description of the data on the pets sold
would be that 40% were dogs.

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DESCRIPTIVE STATISTICS
Some other measurements in descriptive
statistics answer questions such as 'How widely
dispersed is this data?', 'Are there a lot of
different values?' or 'Are many of the values the
same?', 'What value is in the middle of this data?',
'Where does a particular data value stand with
respect with the other values in the data set?'
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EXAMPLE
S:• A new supervisor in charge of 40 clerks would like to know their
average salary.

• The market researcher of a manufacturing company constructs a

graph showing the fluctuation in sales for a major product line
during the last 3 years.

• As a result of a recent school survey, many students are not in favor

of charter change.
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PHILIPPINE POPULATION BY REGION
(2015)

Data Source: Philippine Statistics Authority Official website (psa.gov.ph) Retrieved,

June 11, 2021
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Definition
Inferential Statistics consists of methods that use
sample results to help make decisions or predictions
about a population.

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INFERENTIAL STATISTICS

Instead of using the entire population to

gather the data, the statistician will collect a
sample or samples from the millions of
residents and make inferences about the
entire population using the sample.

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EXAMPLE
S:
• A tire dealer wishes to estimate the average life of a particular
brand of tire.

• A company projects a 50% growth in the next five years after

analyzing its revenue for the past five years.

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POPULATION AND SAMPLE
To collect data for any statistical study, a population
must first be defined. Population indicates a group that
has been designated for gathering data from. The data
is information collected from the population.
The sample is a set of data taken from the population
to represent the population.

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POPULATION

It consists of a complete set of individuals, objects,

places, items, events or measurement of interest
whose characteristics are being studied.

The population that is being

studied is called the target
population.
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tm#page=1&query=population&position=2
, Sept. 7, 2021
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A population is not necessarily referring to
people. A population could be a group of
people, measurements of rainfall in a
particular area or a batch of batteries.

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 POPULATION

Finite Infinite

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EXAMPLES of FINITE POPULATION

• The children attending school in Butuan City.

• The prices of all mathematics books published in the

Philippines during the past three years.

• Cards in a deck

• The percentage of all females who earns less than Php100,

000 a year.

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EXAMPLES of INFINITE POPULATION

• The possible rolls of a die

• The possible observations in any specific experiments.

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 SAMPLE
- is a portion, or part of the population selected for
study drawn by some appropriate methods from the
population.

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 PARAMETER
-value or measurement obtained from a population

STATISTIC
- value or measurement from a sample.
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 SURVEY
Collection of information from the elements of a
population or a sample.

Census Sample survey

survey that includes technique of collecting
every element of the information from a
target population portion of the population.
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Why do you take sample instead of studying
every member of the population?

It is not practical or feasible to use the entire

population considering some factors.

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Determining the Sample Size
Slovin’s Formula
𝑁
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 ( 𝑛 )= 2
1+ 𝑁 𝑒
Where,

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 The problem that is commonly encountered is
determining the sample size. It is not advisable to set
a certain percentage; instead, the margin of error
which is from 1% to 10% in social science researches
should be considered.

The margin of error is the error we expect to commit

in getting the sample since it is an estimate of
parameter.
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EXAMPL
E:
A group of researcher was tasked by the House of
Representative to survey whether student in Metro
Manila favor the moving of the start of classes from
June to September. If there are 1, 000, 000 students
and 10% margin of error are expected, compute the
sample size.

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Given 𝑁
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 ( 𝑛 )= 2
1+ 𝑁 𝑒
1 ,000 , 000
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 ( 𝑛 )= 2
1+ ( 1 , 000 , 000 ) ( 0. 10 )

1 ,000 , 000
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 ( 𝑛 )=
10 , 001
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 ( 𝑛 )=99. 9
𝑺𝒂𝒎𝒑𝒍𝒆 𝑺𝒊𝒛𝒆 ( 𝒏 )=𝟏𝟎𝟎
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EXAMPL
E:
Suppose that you have a group of 1,000 city
government employees and you want to serve them
to find out which tools are best suited in their jobs.
You decide that you will use 0. 05 as a margin of error.
Using Slovin’s formula, what is the required sample
size?

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Given 𝑁
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 ( 𝑛 )= 2
1+ 𝑁 𝑒

1 , 000
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 ( 𝑛 )= 2
1+ ( 1 , 000 ) ( 0. 05 )

1 ,000
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 ( 𝑛 )=
3.5
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 ( 𝑛 )=285. 714
𝑺𝒂𝒎𝒑𝒍𝒆 𝑺𝒊𝒛𝒆 ( 𝒏 )=𝟐𝟖𝟔
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WHAT IS VARIABLE?

• It
is an observable characteristics or attribute associated
with the population or sample being studied which
makes one different from the other.

QUANTITATIVE OR QUALITATIVE

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QUANTITATIVE VARIABLE

- Variables that are classified according to

numerical value.

EXAMPLE
S: age annual income
weight market sales
Price of cars test scores
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 QUANTITATIVE VARIABLE

Discrete Continuous

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 Discrete Variable
It can assume values only at specific points on a
scale of values with gaps between them.

A variable whose values are a result of counting.

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EXAMPLE
S:
• Number of days in a week

• Number of children in the family

• Number of students in the classroom

• Number of house and lots sold on a particular day

• Number of people visiting a bank

• Number of teachers in school

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 Continuous Variable
A variable that can assume any numerical value
over a certain continuous interval or it is a result
of measurement.

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EXAMPLE
S:
• weight • area
• height • density
• volume • temperature
The time spent to serve a customer by a department store
cashier.
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 QUALITATIVE VARIABLE
- can be classified into two or more non-numeric categories
according to its characteristics or attributes

EXAMPLE
S:
Civil status Color
Nationality Zip Code
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 QUALITATIVE VARIABLE

Dichotomous Multinomial

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 Dichotomous Variable
It can be made only in two categories.

EXAMPLE
S: Defective or Non-Defective
Present or Absent
Yes or No
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 Multinomial Variable
Variable can be made in more than two
categories
EXAMPLE
S: Educational Attainment
Nationality
Brand of Soft drinks
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Types of Variables

Variables

Quantitative Qualitative

Discrete Continuous Dichotomous Multinomial

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Sample Exercise
Identify the following variables whether they are qualitative or
quantitative. If it is quantitative, identify further if it is discrete or
continuous. If it is qualitative, identify further if it is dichotomous or
multinomial.
1. Highest Educational Attainment
2. Result of Tossing a Coin
3. No. of Students in a section
4. Civil Status
5. Amount Spent on Rice Last Week by the Household

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Sample Exercise: Answers
Identify the following variables whether they are qualitative or
quantitative. If it is quantitative, identify further if it is discrete or
continuous. If it is qualitative, identify further if it is dichotomous or
multinomial.
1. Highest Educational Attainment – Qualitative: Multinomial
2. Result of Tossing a Coin - Qualitative: Dichotomous
3. No. of Students in a section - Quantitative: Discrete
4. Civil Status - Qualitative: Multinomial
5. Amount Spent on Rice Last Week by the Household - Quantitative:
Continuous

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Variables according to Levels of
Measurement
LEVELS OF MEASUREMENT
Ratio
Interval
Ordinal
Nominal

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NOMINAL
It is a measurement scale that involves the process of naming or
labeling the items by placing cases into categories and counting their
frequency of occurrences.
EXAMPLE
S: Gender Nationality
Political Affiliation Car Dealers
Civil Status Religion
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ORDINAL
It is a measurement scale that yields information
about the ordering of categories.
EXAMPLE
S: Honor Roll Levels of Job performance
Ranking of Faculty Members
Evaluation of a product
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 INTERVAL
It is a measurement scale that shows order of cases into
categories considering and indicating the exact differences
between and among the cases.
EXAMPLE
S:
Military Time
Examinations Temperature
Longitude & Latitude Retrieved from https://gfycat.com/heftysparsehalcyon,
Sept. 7, 2021

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RATIO
It is a measurement that possesses all the characteristics of
interval scale and for which the interval size and the ratio of
two values have meanings.

EXAMPLE
S: Measurements of weights, heights, lengths and
ages

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Levels of Measurement

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2021
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LEVELS OF MEASUREMENT
Level Property Basic Empirical Operation
Nominal No order, distance and origin Determination of equivalence
Ordinal Has order, but no distance or unique Determination of greater or
origin lesser values

Interval Both with order and distance but no Determination of equality of

unique origin intervals or difference

Ratio Has order, distance and unique origin Determination of equality of

ratios or means

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Sample Exercise
Identify the following variables according to their levels of
measurement.

1. Highest Educational Attainment

2. Result of Tossing a Coin
3. No. of Students in a section
4. Civil Status
5. Amount Spent on Rice Last Week by the Household

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Sample Exercise: Answers
Identify the following variables according to their levels of
measurement.

1. Highest Educational Attainment – Ordinal

2. Hair Color – Nominal
3. Temperature – Interval
4. Civil Status – Nominal
5. Amount Spent on Rice Last Week by the Household – Ratio

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