Mindanao State University

SE 201 – Graduate School

General Santos City

Prepared by:
Mr. Carlito Daarol
Faculty
November 29, 2020

Descriptive Statistics vs Inferential Statistics

Descriptive Statistics Inferential Statistics

Organizing and summarizing data using numbers
and graphs
Data summary:
bar graphs, histograms, dotplots, boxplots, etc …
Use sample data to make an inference or draw a
conclusion of the population.
Uses probability to determine how confident we
can be that the conclusions we make are correct.

Degree of confidence can be measured by finding

the confidence intervals and margins of errors.

Measures of Central Value:
Mean usually called the average
Median – the midpoint value
Mode – the value that occurs most frequently
Basic Terms:
Sample – subset or portion of a larger group
Population – entire set of individuals or objects
(larger group)

Measure of variability: To avoid bias in your inference, the samples must

Range – the maximum value – minimum value
Interquartile range = Q3 – Q1
Variance – how far the values are spread out
standard deviation – how much variation exists
from the mean value.
be selected using probability sampling methods
like simple random sampling, systematic random
sampling, stratified random sampling.
Non-probability sampling methods like quota
sampling, purposive sampling and snowball
sampling are subjective and will never give you
of a quality inference because of built-in bias.

Non-probability sampling methods are

applicable only if you are still developing your
survey instrument and you just want to test run
your instrument using your close friends to get
some immediate assessment. When you are in
the final stage of data collection, do not use any
of these methods.
 Measures of Non-Central Locations
Quartiles, Deciles, Percentiles
Measures of Shape:
Skewness – measures the symmetry of the
distribution
Kurtosis – measures the peakness or flatness of
the distribution
Descriptive statistics are values that describe the
characteristics of a sample or population
In general there are two basic types of inferential
statistics methods:
1. Confidence Interval Estimation
2. Hypothesis Testing Procedures
Inferential statistics are values that infer results
of a sample to the population from which the
sample was drawn.

Confidence Interval Estimation is used when the issue under investigation involves learning the value of
an unknown population parameter.

Example: Estimate the body mass index of students in MSU high school.

The body mass index is between 16.5 to 21.23. The interval (16.5, 21.23) is called the interval estimate.
It consists of a lower bound and an upper bound.

Hypothesis testing procedures are used when the issue under investigation involves assessing the
validity of an assumed value of a particular population parameter .

If the average bmi of students in MSU high school is 19.10 then assess the validity of this figure.

Remarks: Estimation of population parameter using census (100% enumeration)

1. The only way to estimate the value of a population parameter is to conduct a census by
collecting data from each and every member of the population. This means 100% enumeration
of all members.
2. It is only when 100% of the data is considered when a a value of a particular population
parameter can be determined with a 100% accuracy which is very costly and time consuming
and is either impractical or impossible to achieve.

Remarks: Estimation of population parameter using random sampling (the preferred method – iwas
gastos)

1. Collect unbiased, representative random samples from the population, the results obtain from
the sample statistics are used to infer what the results in the population might actually be (by
using probability).
2. In CI estimation, the resulting sample statistics are used to determine the lower and upper limit
of an interval that accurately estimates the actual value of the unknown parameter (1- α)100%
of the time where α is a probability value that is usually 0.05 or smaller. This α value is called
the significance level and the quantity (1- α) 100% represents the confidence level.

Confidence Interval Estimation

(1-alpha)*100% = area of the yellow region

this is the percentage of time where ur estimate is correct.

Interpretation:
Given a set of random samples from an unknown population, we are 95% confident that the
interval (L,U) contains the true parameter value. The remaining 5% gives us the probability that
this unknown parameter lies outside of the interval.

Since random samples results are used to calculate the confidence interval, the resulting limits L
and U produce varying results determined by chance due to random sampling.

Remarks:
In this imperfect world, the occurrence of a normal distribution is only a myth. The distribution
of random samples are usually skewed. To normalize the dataset we are going to use the most
important theorem of statistics. This theorem is called the Central Limit Theorem (CLT) which
utilized the distribution of sampling means to attain normality. (End of CI Estimation)

3. To perform a hypothesis testing procedures: a random sample is collected from the population.

a. If the resulting sample statistics are consistent with the assumed value of the
population parameter, the validity of the assumed (hypothesized) value is confirmed.
 b. If the resulting sample statistics contradict the assumed value of the population
parameter, the assumed value is considered to be invalid.

A hypothesis is a statement that asserts something. It could be an idiot’s wish or an educated guess.

We have two forms of a hypothesis.

The first is called the null hypothesis which is denoted by Ho.

The second is called the alternative hypothesis which is denoted by H1 or Ha.

The objective of hypothesis testing is to prove H1 by rejecting the null hypothesis Ho.
This method of logic is called indirect method. The focus of hypothesis testing is on the null hypothesis.

Decision making
If the null hypothesis is rejected, you can conclude that H1 is true.
If the null hypothesis is not rejected, you cannot conclude that H1 is true.

Hence, you must be careful in stating your null and alternative hypothesis.

Example:

Mr. XX claimed that his intelligence level is comparable or higher than that of Einsteins IQ = 169.

In effect, Mr XX is saying that his IQ = 169 or his IQ > 169.

Evaluation of some evidence (indicators) using personal records of Mr. XX:

Education: College level
General point average: 2.79
Math 17 (College Algebra) : take 4
English Comprehension: Very poor
Writing Ability: Very poor

Assessment:
Without conducting formal hypothesis testing procedure, we know that there is something wrong with
claim of Mr. XX.
His personal record is a contradiction to what he claimed to be.

Formulation of Ho and H1: To disprove the claim of Mr. XX

Ho: Mr. XX IQ level = Einsteins IQ (169)
H1: Mr. XX IQ level < 169 ( cannot use > 169. There is contradiction if we conclude his IQ > 169 when it
does not even match Einsteins level.

Formal test procedure

1. Determine the assumed value of the population parameter.
2. State the null hypothesis
If µ is the population parameter and µo is the assumed value then the null hypothesis
 has the form HO: µ = µo .

3. State the alternative hypothesis H1

There are three (3) choices or symbols to choose (Select only one)
(Left sided alternative) H1: µ < µo .
(Right sided alternative) H1: µ > µo .
(Two sided alternative) H1: µ ≠ µo .

4. State the level of significance α. Customary value is 0.05

5. Gather your evidence by collecting the random samples associated with the parameter.
Evaluate the test statistic ( t test, z test, F test …)

6. Sketch the probability density function ( this depends on the kind of test performed) and
determine the critical value at the given value of α. An alternative method is to get the
p-value.

7. Compare the value of the test statistic and the critical value.
(Left sided test) : Check if test statistics is smaller than the critical value. If yes, reject Ho.
(right sided test) : Check if test statistics is bigger than the critical value. If yes, reject Ho.
(two sided test) : Check if abs(test statistics) is bigger than the critical value. If yes, reject
Ho.

8. Alternative to step 7. Compare the p-value and the level of significance α.

(Left sided test) : Check if p-value is smaller than α. If yes, reject Ho.
(right sided test) : Check if p-value is smaller α. If yes, reject Ho.
(two sided test) : Check if p-value is smaller than α/2 . If yes, reject Ho.

9. State the decision:

If Ho is rejected you can conclude that H1 is true.

If Ho is not rejected, do not conclude that H1 is true. State only that you have no scientific ev

idence to reject Ho and because of the failure of rejecting Ho, you were not able to prove H1.
 Left sided Test

test statistic value

Critical Value

α = Area of the blue region

α = significance level

Right sided Test

test statistic value

Critical Value

α = Area of the blue region

α = significance level
 Two sided Test

test stat value Critical Values test stat value

α/2 = Area of the blue region α/2 = Area of the blue region
α/2 = significance level α/2 = significance level

Question 1: Do you know that Santa Claus is a statistician.

Answer: Yes. When he laughs Ho Ho Ho Ho.

Give me an example of a critical value in your academic profession

That value serves as a boundary point where success and failure are separated.

Answer: Board Exam passing score. Below 75% Above or equal 75%

Question 1: Do you know that Santa Claus is a statistician.

Answer: Yes. When he laughs

Ho Ho Ho Ho.

Question 2: Give me an example of a critical value in your academic profession

That value serves as a boundary point where success and failure are separated.

Board Exam passing score.

Below 75% Above or equal 75%

Question: What about healthy blood sugar levels

Safe level is between 90 to 130

Less than 90 blood sugar level – unstable

Above 130 blood sugar level – diabetic candidate

Mindanao State University

SE 201 – Graduate School
General Santos City

Prepared by:
Mr. Carlito Daarol
Faculty
November 29, 2020