Introduction to Statistics

U Zaw Myo Lwin

Assistant Lecturer
Department of Economics
Yangon University of Distance Education
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Opening Example
If you are a women, are you thriving? Or
are you struggling? Or, even worse, are
you suffering?

A global poll of women conducted by

Gallup found that while 24% of women
in the world are thriving, 63% are
struggling and 13% are suffering.
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Opening Example
How many cup of coffee do you drink a
day?

36% of these adults said that they drink

no coffee (represented by zero cups in
the chart), 26% said that they drink one
cup of coffee per day, and so on. The
last class is open-ended class that
indicates that 10% of these adults drink
four or more cups of coffee a day.
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“Numerical Fact”

In 2017, 16.7 children

were born for every
1000 people in the About 50% of U.S.
United States. adults shopped online
IBM spent $5083 million Total compensation of
on Cyber Monday 2011 .
on R&D in 2009. Viacom’s CEO Philippe
They spent a total of
$1.2 billion. P. Dauman was $84.5
million in 2010.

In these example, the word statistics refer to number.

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Overview of Statistics
▫ Why Learn Statistics?
▫ What is Statistics?
▫ Statistics in Business
▫ Type of Statistics
▫ Basic Vocabulary of Statistics
▫ Type of Variables
▫ Type of Data
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Learning Objectives

▫ How businesses use statistics

▫ The basic vocabulary of statistics
▫ The types of data used in business
Why Learn Statistics?
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“Statistics is transforms numbers into

useful information for decision maker.”
Why learn statistics?

1. Data are everywhere

2. Statistical techniques are used to make
many decisions that affect our lives
3. No matter what your career, you will make
professional decisions that involve data. An
understanding of statistical methods will
help you make these decisions efectively
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1. Statistics helps you make better sense of

the world.
2. Statistics helps you make better business
decisions.
What is Statistics?
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“Statistics is the group of methods

that are used to collect, analyze,
present and interpret data and to
make decision.”
Statistics in Business
Applications of statistical concepts in the business world

▫ To summarize business data

▫ To draw conclusions from those data
▫ To make reliable forecasts about business activities
▫ To improve business processes
Type of Statistics
 Overview of Statistics
Statistics

Describing Making Inferences

Data from Samples

Visual Numerical Estimating Testing

Displays Summaries Parameters Hypotheses
TYPES OF STATISTICS (Descriptive Statistics)

Descriptive Statistics are the methods that help collect,

summarize, present, and analyse and set of data.
Case Study 1-1 How Much Did Companies Spend on Ads in 2011?
 INFERENTIAL STATISTICS

Inferential Statistics are the methods

that use the data collected from a
small group to draw conclusions about
a larger group.
 POPULATION VERSUS SAMPLE

A population consists of all elements –

individuals, items, or objects – whose
characteristics are being studied. The population
that is being studied is also called the target
population.

A portion of the population selected for study is

referred to as a sample.
Population and Sample
CENSUS VERSUS SAMPLE SURVEY

A survey that includes every member of

the population is called a census.

The technique of collecting information

from a portion of the population is called
a sample survey.
 REPRESENTATIVE SAMPLE

A sample that represents the

characteristics of the population
as closely as possible is called a
representative sample.
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Brain Storming
Let’s Start
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BIG
CONCEPT
 BASIC TERMS

Element
An element or member of a sample or population is a specific
subject or object (for example, a person, firm, item, state, or
country) about which the information is collected.

a person a firm a item a state, a country

 BASIC TERMS

Variable
A variable is a characteristic under study that
assumes different values for different elements.
In short, variable is a characteristic of an item or
individual.
In contrast to a variable, the value of a constant
is fixed.
Table 1.1 Total Revenues for 2010 of Six Companies
BASIC TERMS

Observation Versus Data Set

The value of a variable for an element is called an observation or

measurement.

A data set is a collection of observations on one or more variables.

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Observation

Data Set
Describe the meaning of a member, a variable, a measurement, and a data set with
reference to this table.
Types of
Variables
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We can also split variables by two group

Qualitative Variables Quantitative Variable
A variable that cannot assume a A variable that can be measured
numerical value but can be numerically is called a
classified into two or more quantitative variable.
nonnumeric categories is called a
qualitative or categorical variable.
The data collected on a
The data collected on such a
quantitative variable are called
variable are called qualitative data.
quantitative data.
Also called categorial variable.
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We can also divided Quantitative variables

Discrete Variable
A variable whose values are
countable is called a discrete
variable. In other words, a
discrete variable can assume
only certain values with no
intermediate values.
Continuous Variable
A variable that can assume any
numerical value over a certain
interval or intervals is called a
continuous variable.
Example
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Figure 1.2 Types of Variables
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Brain Storming
Let’s Start
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Determine whether the following statement is about

qualitative or quantitative data
▫ The baby weighs 20 pounds.
▫ My friend is very happy.
▫ The sky is greyish-blue.
▫ Joe is 6 foot 2.
▫ Diana has $100.
▫ Luisa's hair is reddish-blonde.
▫ Mr. Lee ran 63 km last week.
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Determine if the following set of data is discrete or
continuous:

▫ The heights of your classmates.

▫ The number of books on your shelves.
▫ The weights of watermelons.
▫ The age of a person.
▫ The number of words in a book.