Statistical Inferences

Instructed
by: Sir Tahal Kumar

STATISTICAL INFERENCES
Definitions of Statistics:
Statistics is numerical facts in the field of study.
Statistics deals with techniques or methods for collecting, analysis
and drawing conclusion from study.
Parts of Statistics
1) Descriptive Statistics: deals with collection, classification,
summarization and presentation of data.
2) Inferential Statistics: deals with conclusion drawn about a
population using the data of a sample taken from same population.
(Population: it is well defined group of individual.
Sample: part of population)
Measurement of Scales
1) Nominal Scale: Scale comprised of number used to categorize
objects. E.g. Roll number of students.
2) Ordinal Scale: Represent number used to rank items. E.g. giving
priority on quality good, better, best.
3) Internal Scale: Used to rank the magnitude of difference between
items. E.g. Temperature.
4) Ratio Scale: can compare any two individuals in terms of precise
ratio. E.g. comparing two years financial data of any company.
Central Tendency
As a single value of data which truly represent the whole data.
o Arithmetic Mean: is defined as a value obtained by dividing the

sum of all the observation by their number. Mean= sum of all the
observation/No. of the observation.

o Geometric Mean: is defined as positive nth root of their product.

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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

o Harmonic Mean: is defined as the reciprocal of the arithmetic

mean of the reciprocal of the values.
o Median: is defined as a value at or below which 50% of the
ordered data lie.
o Mode: is defined as value which occurs most frequently in a set of
data, that indicates the most common result.
Measure of Dispersion
o Dispersion: It is scatter or spread of values from one another.
o Variance: It is define as positive square root of quantity called
Variance.
o Range: It is the difference between maximum and minimum value.
Q 3Q1

o Quartile: It is Half of data of the inter quartile range.( Q . D

2

o Mean: it is sum of absolute deviation from mean divided by

number of values.
o Standard Deviation: it is the square root of the arithmetic
average of square of the deviation measured from mean.
Problem 1: (Standard Deviation & Variance)
n.
1
2
3
4
5
6
7
8
9
10
11
12
Total
2k13/BBA/44
Semester)

x
23
17
14
62
18
26
32
20
47
30
22
32
348

X2
529
289
196
3844
324
676
1024
400
2209
900
729
1024
12144

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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

Variance=

x 2

n x 2

348 2

12 ( 12144 )

145728121104 24624
=
=
132
12(11)

186.55

S= 186.55 = 13.66 Units Answer.

Problem 2:
n.
1
2
3
4
5
Total

Variance =

X
10
20
30
40
50
150
x 2

150 2

5 ( 5500 )
n x 2

X2
100
400
900
1600
2500
5500

2750022500 5000
=
=
20
20

250

S= 250 = 15.811
Problem 3:
n.
1
2
3
2k13/BBA/44
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X
5
10
15

X2
25
100
225

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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

4
5
Total

Variance:

20
25
75

400
625
1375

x 2

75 2

=62.5
5 ( 1375 )
2
n x

S= 62.5 = 7.9056 Answer.

Probability Space
A set of all possible outcomes of an experiment is called a probability
space. Probability: A chance of occurrences is called probability.
Event: A subset of probability space is called an event.

Problem 1: A card is drawn from Deck, what is the probability the

card is king?
Solution: Each number contain 4 Cards( A,2,3,4,5,6,7,8,9,10,J,Q,K =
13x4=52)

K (4) 4
1
= =
D(52) 52 13 =0.076 Answer.

Problem 2: In BBA-II, one researcher randomly select one students

name from the list, what is the probability will be the student is a girl
or boy?
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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

Solution: 20 Girls and 30 Boys are studying. Total are 50.Then

G
20
= =0.4
Total 50
B
30
= =0.6
Total 50

More probability is of Boys.

Problem 3: A bag contains 6 Green balls, 4 Red balls and a ball

randomly drawn from the bag, what is the probability of Red?
Solution: Total balls are 10, Then
6
G= 10 =0.6

More probability is of Green.

R= 10 =0.4
Problem 4: Two Dice are rolled, what is the probability that sum of
the dots on the face of face dice becomes Nine?
Solution: (1.1),(1.2),(1,3),(1,4),(1,5),(1,6)
(2,1),(2,2),(2,3),(2,4),(2,5),(2,6)
(3,1),(3,2),(3,3),(3,4),(3,5),(3,6)
(4,1),(4,2),(4,3),(4,4),(4,5),(4,6)
(5,1),(5,2),(5,3),(5,4),(5,5),(5,6)
(6,1),(6,2),(6,3),(6,4),(6,5),
(6,6)
4 1
=
36 9

= 0.111 Answer

Problem 5: Two Dice are rolled together, what is the probability that
the sum of the dots on the face of dice becomes seven?
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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

Solution: (1.1),(1.2),(1,3),(1,4),(1,5),(1,6)
(2,1),(2,2),(2,3),(2,4),(2,5),(2,6)
(3,1),(3,2),(3,3),(3,4),(3,5),(3,6)
(4,1),(4,2),(4,3),(4,4),(4,5),(4,6)
(5,1),(5,2),(5,3),(5,4),(5,5),(5,6)
(6,1),(6,2),(6,3),(6,4),(6,5),
(6,6)
6
36 =0.16 Answer.

Problem 6: A dice has been rolled 240 times. Estimate the

probability of occurring a Six, when a dice is rolled once again, 32.
o Solution: Relative frequency Approach
Experiment repeated =240 Times
Event occur = 32
m
n

P (E) =

32

= 240

= 0.133 Answer

o Classical (actual) probability

S= (1, 2, 3, 4, 5, 6)
n(E)

P (E) = n( S)

= 6

= 0.166 Answer

Problem 7: Pakistan has 7 series of match with Srilanka, out of first 6

matches, 5 won by Pakistan, lost 1 match. Find out the Relative
frequency approach and classical (actual) probability.
Solution: Pak. V/S Srilanka , 6 Matches ,5 Won by Pakistan, 1 lost.
o Relative Frequency Approach
P (E) =

m
n

5
= 6

= 0.83 Answer

o Classical (actual) probability

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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

n( E)
P (E) = n( S)

1
2

= 0.5 Answer

Subjective Approach Probability:

Probability assigned to an event by an individual based on whatever
evidence is available; evidence may in the form of relative frequency
of past occurrence or it may be just an educated guess.
Problem 1: There are 272 employees in an organization, 95 of them
are female, if an employee selected randomly, find out the probability
that he is male.
Solution: Employees ( 272)
Female
(-95)
Male
(177), Randomly selected 1.Suppose
A = Male and = Female.
P ( ) =

95
=
272

, P(A)=1- P ( ) = 1-

95
272

, P(A)=177/272 = 0.65

Answer.
Problem 2: There are 500 employees in an organization, 322 from
them are female, if 1 is selected randomly. Find the probability that he
is male.
Solution: Employees ( 500)
Female
(-322)
Male
P ( ) =

322
=0.644
500
, P(A)=1- P (

(178), as same as above.

) = 1-

322
500

, P(A)=178/500 =0.356

Answer
Classical Approach Probability
2k13/BBA/44
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P( A)
178
=0.356 Anwer .
=
500
P(S)

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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

Problem 3: From a group of 3 Statistician, 4 Economist and 4

Physicist, a committee of 3 persons is to be selected. Find the
probability that the selected committee will base on 2 Economist.
Solution: 3 selected from 11.
C3=

11

11 !
11 10 9 8 7 6 5 4 3 2 1 11 10 9 990
=
=
=
=165
3 2 1 8 7 6 5 4 3 2 1
3 21
6
3 ! ( 113 ) !
3! ( 8 ) !

Event A = 2 are from Economist and 1 from 7.

(i) 4C2 =

(ii) 7C1=

4!
4 3 21
=
=6
2
1 ! 2 1!
2 ! ( 42 ) !
2! ( 2 ) !
7!
7 6 5 4 3 2 1
=
=7
1 ! ( 71 ) ! 16 5 4 3 2 1
1 ! ( 6) !

C . 7C1=6
2

(PTO)

7=42

n( A)

42

P (A) = n( S) = 165 =0.2545 Answer

Regression: Helps to determine probable form of relationship

between two variables.
Simple Regression: used to estimate the value of one variable from
a given value of another.
Correlation: is the statistical tool that we can use to describe the
degree to which one variable is linearly related to another.
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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

Coefficient of Determination
i
r2
a y +b xy n y 2
ii
r2=
y 2n y 2

Coefficient of Correlation
r

ii
i
i
v

May be +ve or -ve

r 2 is always +ve

r=

r2

Describe what % of dispensable r tells in what direction does the

variable is associated &
relationship of x & y go (+ve or
described by independent
ve)
variable.
For perfect Correlation r 2 = 1
For perfect correlation ship r
can exhibit in +ve or ve
direction simultaneously.

Problem 1: (a) Draw a Scatter diagram. (b) Find the least square.(c)
Estimate the Y for x= 1,2,3, & 4.

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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

Solution: a)
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
1x

b) y=a+bx=?
x 2

10 2

(
4 30 )
=0.5 Answer.
2
n x
n xy( x ) ( y )

b=

a=

y =

:- (

y
n ,

x
= n )

y
x
9 1 10 9 5 95 4
a= n b n = 4 2 4 = 4 4 = 4 = 4 =1 Answer.
1

c) y=a+bx=1+ 2 ( x )

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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

x=1, y=1+ 2 ( 1 )=1+0.5=1.5 Answer

1

x=2, y=1+ 2 (2)=1+1=2 Answer.

1
x=3, y=1+ 2 ( 3 )=2.5

Answer.

x=4, y=1+ 2 ( 4 )=3 Answer.

Problem 2: a) Estimate the Regression and b) How much 50 years
old worker did remain absent in a year?
Solution:
n

Age of
worker(x)
1
42
2
27
3
36
4
25
5
22
6
39
7
47
8
19
9
33
10
30
Total 320

Days absent in
year(y)
5
10
8
12
13
7
7
11
9
8
90

x 2

2702028800
2
n

a) b=
= 109780102400
n xy( x ) ( y )

2k13/BBA/44
Semester)

x2
1764
729
1296
625
484
1521
2209
361
1089
900
10978

1780

= 7380

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xy
210
270
288
300
286
273
329
209
297
240
2702

= 0.24 Answer.

BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

a= y b x
y
x
a= n b n

90
320
(0.24 )
=9+0.24 ( 32 )=16.68
Answer.
10
10

b) y = a + bx
y = 16.68+(-0.24)(50)
y = 16.68-12.00 = 4.68 = 5 days. Answer

Correlation: is a measure of closeness of linear relationship between

the two variables.
r = -1 perfect negative correlation-ship
r = +1 perfect positive correlation-ship
r = 0 indicating no relationship between x and y.
Formula for Correlation-ship given below;

r=

x 2

y 2

n y 2
n x 2

n xy x . y

Problem 1: Find the Correlation-ship from the given value.

Solution:
n
1
2

x
8
9

2k13/BBA/44
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y
13
14

xy
104
126

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x
84
81

y2
169
196

BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

3
4
5
6
7
8
Total

10
7
6
8
6
6
60

r=

x 2

y 2

60 2

2
101

8 (1303 )
8 ( 466 )

n y 2
n x 2

n xy x . y

r=

156
11.31 14.933

2k13/BBA/44
Semester)

16
11
11
14
12
10
101

166
77
66
112
72
60
777

156
=0.9234
168.9370

100
49
36
64
36
36
466

256
121
121
196
144
100
130

Answer.

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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

Standard Deviation: it is the square root of the arithmetic average

of square of the deviation measured from mean.
Problem 1: find out the standard deviation from given data.
Solution:
n
1
2
3
4
5
6
7
8
9
Total

x
3
4
0
4
1
3
6
1
5
27

2
S=
n x 2

x2
9
16
0
16
1
9
36
1
25
113

27 2

9 ( 113 )

1017729
9(8)

288
= 4
72

= 2 Answer.

Variable: anything that varies or changes in value is called variable.

It is the central idea in Research.
Types of Variable
1) Continuous Variable: variable can be divided into fraction.
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BBA(Hons.) Part-II (2 nd

Statistical Inferences

Instructed
by: Sir Tahal Kumar

2) Discontinuous Variable: variable which cannot be divided into

fraction.
3) Dependent Variable: variable that is effect of another variable
.E.g. .y is dependent.
4) Independent Variable: the cause of variable or the one that
identifies forces. E.g. x is independent.

Hypothesis: locally conjecture relationship between two or more

variables expressed in testable statement.
Descriptive Hypothesis: contain one variable is called univariate
hypothesis.
Relational Hypothesis: describe a relationship between two
variables.

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BBA(Hons.) Part-II (2 nd