Vision of AIUB:

To promote professional and excellent

leadership catering to the technological
progress and development needs of the
country

Meaning of Statistics
Statistics is as old as human civilization
The word statistics have been derived
from the Latin word Status
Or the Latin word Statist
Or the German word Statistik
Or the French word Statistique

Meaning of Statistics
The word Statistics has three different
meanings:
First: Statistics is the quantitative information
of any inquiry.
For Example: the statistics of birth and death,
the statistics of export and import, the
statistics of input and output of any industry,
the statistics of manpower, the statistics of
loss and profit of different organizations,
prices of commodities etc

Meaning of Statistics
Second: It is the scientific technique of collection,
analysis, and interpretation of quantitative data.

For example: the method of collection of data

related to birth and family planning adoption and
then interpretation regarding population growth.
Collection of data on cost and benefit of an industry
and interpretation for future development after
analyzing the collected data

Meaning of Statistics
Third: It is also used in singular sense to
explain
the
population
unknown
characteristic by a function of sample
observations. Such function is known as
Statistic.

What is Statistics?
Statistics - a set of concepts, rules, and
procedures that help us to:
organize

numerical information in the

form of tables, graphs, and charts;
understand

statistical
techniques
underlying decisions that affect our lives
and well-being; and
make

informed decisions.

What is Statistics?
Statistics may be defined as the science
which helps in evaluating the reliability
of observed phenomena. It thus
contains:
Mathematics
Logic

and
Common sense

Statistical Methods
The numerical data have some characteristics. The
method which is used to express these
characteristics is known as statistical methods or
simply statistics.
Statistical methods reduce complex data to a simple
representative number easily adaptable to human
mind and following are the major aspects of
statistical methods:

Statistical Methods
(i)

(ii)
(iii)

(iv)
(v)

Statistics enables realization of magnitudes

Statistics enlarges individual experiences
Statistics compares the simplified data and
measures their relationship
Statistics guides in the formation of policies
Statistics tests the laws of other sciences

Types of Statistics
Statistics deals with both statistical data
and statistical methods.

Statistical methods are again divided into

two sub-fields, such as:
Descriptive Statistics and
Inferential Statistics

Types of Statistics
Descriptive Statistics:
Deals with collection, tabulation, presentation
and analysis of data.
The study of frequency distribution is an aspect
of tabulation.
The analytical aspects deal with the measures of
central tendency, measures of dispersion.
All the above measures are used for uni-variate;
bi-variate and multi-variate data. The study of
correlation, regression and association of
attributes are included in the bi-variate
descriptive statistics.

Descriptive Statistics: Methods of

organizing,
summarizing, and presenting data in an informative
way.
EXAMPLE 1: A
Gallup poll found that
49% of the people in a
survey knew the name
of the first book of
the Bible. The statistic
49 describes the
number out of every
100 persons who knew
the answer.

EXAMPLE 2: According
to Consumer Reports,
General Electric washing
machine owners reported
9 problems per 100
machines during 2001. The
statistic 9 describes the
number of problems out
of every 100 machines.

Types of Statistics
Inferential Statistics:
The descriptive statistics are used for making
predictions
or
decisions
relating
to
unobserved characteristics. These decisions
involve statistical inference and the method of
taking decision is known as statistical
inference.
The inference is made by sampling, sampling
distribution, estimation of parameter and test
regarding any hypothesis on parameter.

Inferential
Statistics:
A
decision,
estimate, prediction, or generalization
about a population, based on a sample

A Population
is a
Collection of
all possible
individuals,
objects, or
measurement
s of interest.

A Sample is
a portion, or
part, of the
population
of interest.

Example 1: TV
Example 2: Wine tasters
networks constantly
sip a few drops of wine
monitor the
to make a decision with
popularity of their
respect to all the wine
programs by hiring
waiting to be released
Nielsen and other
for sale.
organizations to
sample the
Example 3: The accounting
preferences of TV
department of a large firm
viewers.
will select a sample of the
invoices to check for
#1
accuracy for all the invoices
of the company.
Types of Statistics

DATA

Qualitative or attribute
(type of car owned)

Quantitative or numerical

discrete
(number of children)

continuous
(time taken for an exam)

Summary of Types of Variables

Data?
A series of observation, measurement or facts.
So to obtain data we have to measure or observe
something. This something is known as variable.
For example, shoe size, weight and nationality
are all variables as we can obtain a series of
observations or measurement for each of them:
Variable
Measurement of observation
Shoe size
6, 6 , 7, 7
Weight
8.21 kg, 7.9 kg, 0.5 kg
Nationality
British, Canadian, Bangladeshi

Variable Types
Two types:
Qualitative
and
Quantitative

For a Qualitative or Attribute Variable the

characteristic being studied is nonnumeric.

Gender

Type of car

Eye
Color
State of
Birth

Types of Variables

In a Quantitative Variable information is

reported numerically.

Balance in your checking account

Minutes remaining in class

Number of children in a family

Types of Variables

A Continuous Variable can assume any value

within a specified range.

The pressure in a tire

The weight of a pork chop

The height of students in a class.

Types of Variables

There are four levels of data

Nominal
Ordinal
Interval
Ratio

Levels of Measurement

Nominal level
Data that is
classified into
categories and
cannot be arranged
in any particular
order.

Gender

Eye
Color

Nominal data

Nominal level variables must be:

Mutually exclusive
An individual, object, or
measurement is included in
only one category.
Exhaustive
Each individual, object, or
measurement must appear in
one of the categories.
Levels of Measurement

Ordinal level:

involves data arranged in some

order, but the differences between data values
cannot be determined or are meaningless.

During a taste
test of 4 soft
drinks, Coca
Cola was
ranked number
1, Dr. Pepper
number 2,
Pepsi number
3, and Root
Beer number 4.

2
1

Levels of Measurement

Interval level
Similar to the ordinal level, with the
additional property that meaningful amounts
of differences between data values can be
determined. There is no natural zero point.

Temperature on the
Fahrenheit scale.

Ratio level: the interval level with an inherent

zero starting point. Differences and ratios are
meaningful for this level of measurement.

Miles traveled by sales

representative in a month

Monthly income
of surgeons

Importance of Statistics
The explanation of statistical methods gives
us an idea that statistics is indispensable for
a clearer appreciation of any problem
affecting the welfare of mankind.
Problem relating to national development,
education, health care, law and order
situation,
industrial
development,
development in economics and business,
unemployment, poverty, food shortages,
communication cannot solved without proper
statistical investigation.

Importance of Statistics
The importance of statistics:
The statistics of wealth and manpower are
important for development planning.
Statistics are invaluable in business and
commerce.
An economist can study the phenomena of
changes the value of currency to prices, the
influence of wages on efficiency of labor.
Statistics helps the planner to estimate the
revenue income and expenditure of the
country for the ensuring year

Importance of Statistics
Statistics

helps
the
planners
and
administrators for formulate rules and
regulations to rule the country peacefully.
Statistical studies of price and harvest time
of agricultural products help the famer and
buyer to plan for future action.
Statistical studies help the industrialist to
enlarge the establishment efficiently and
economically.
The phenomena related to physical, medical,
geological, zoological, meteorological may
not estimated and predicated with reliable
accuracy depending on probability theory

Importance of Statistics
The

entire insurance business resets on the

compilation of life tables and computation of
expectation of life from time to time.
Export and import business rests on the
study of supply and demand of commodities.
A stock exchange broker or an investor in
securities needs knowledge of interest rates,
the fluctuation of investment market and other
related information to succeed in his ir her
business.

Scope of Statistics

To plan for a welfare state, it is of primary

importance to collect information on different
aspects of human life and to analyze the collected
information for the purpose of framing suitable
policies.
The information on population aspects may be
obtained from the registration of vital statistics
and from the population census data.
Statistical data relating to prices, production,
consumption, income and expenditure, investment
and profits are extensively used for the
development and planning of industry

Scope of Statistics
Data on index number, time series analysis,
demand analysis, cost analysis, forecasting etc are
used for economic polices.

Agricultural

census data provide information for

formulating scientific plan on agriculture.
Sound

population policy depends on statistics of

births, deaths, the distribution of population by age,
sex and area, family planning activities, marriage
and divorces etc.
Mortality

statistics, incidence of diseases, number

of death by age are of paramount interest to health
authorities

Scope of Statistics

Statistical survey on livestock provides

information for formulating policy on
livestock population. It will also help in
planning to get increased animal protein.

National policy on import and export of

agricultural crops needs data on production,
consumption of different types of crops for
a certain period of time.

Limitation of Statistics
Statistics

does not deal with qualitative

phenomena. However, qualitative phenomena
can be analyzed if it is expressed numerically
or if it is scored after assigning appropriate
number.
Statistics

deal with population and statistical

methods deals with mass of data and not with
a single figure.
Statistical

laws are not exact and all are

inferences are drawn with a certain level of
accuracy based on probability

Limitation of Statistics

Statistics can be misused. The data placed

in the hands of an inexpert may lead to be
compiled inaccurately, manipulated
deliberately and interpreted unscientifically,
the effect of which produce a false
statistical argument.

Statistics cannot prove anything. It plays an

auxiliary role to summaries a fact.