Statistics

Statistics is the study oI the collection, organization, analysis, and interpretation oI data.
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It
deals with all aspects oI this, including the planning oI data collection in terms oI the design oI
surveys and experiments.
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A statistician is someone who is particularly well versed in the ways oI thinking necessary Ior
the successIul application oI statistical analysis. Such people have oIten gained this experience
through working in any oI a wide number oI Iields. There is also a discipline called
mathematical statistics that studies statistics mathematically.
The word statistics, when reIerring to the scientiIic discipline, is singular, as in "Statistics is an
art."
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This should not be conIused with the word statistic, reIerring to a quantity (such as mean
or median) calculated Irom a set oI data,
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whose plural is statistics ("this statistic seems wrong"
or "these statistics are misleading").
%50s of Variabl0
Dependent and Independent Variables
An independent variable, sometimes called an experimental or predictor variable, is a variable
that is being manipulated in an experiment in order to observe the eIIect on a dependent variable,
sometimes called an outcome variable.
Imagine that a tutor asks 100 students to complete a maths test. The tutor wants to know why
some students perIorm better than others. Whilst the tutor does not know the answer to this, she
thinks that it might be because oI two reasons: (1) some students spend more time revising Ior
their test; and (2) some students are naturally more intelligent than others. As such, the tutor
decides to investigate the eIIect oI revision time and intelligence on the test perIormance oI the
100 students. The dependent and independent variables Ior the study are:
Dependent Variable: %0st Mark (measured Irom 0 to 100)
Independent Variables: R0;ision tim0 (measured in hours) nt0llig0nc0 (measured using IQ
score)
The dependent variable is simply that, a variable that is dependent on an independent variable(s).
For example, in our case the test mark that a student achieves is dependent on revision time and
intelligence. Whilst revision time and intelligence (the independent variables) may (or may not)
cause a change in the test mark (the dependent variable), the reverse is implausible; in other
words, whilst the number oI hours a student spends revising and the higher a student's IQ score
may (or may not) change the test mark that a student achieves, a change in a student's test mark
has no bearing on whether a student revises more or is more intelligent (this simply doesn't make
sense).
ThereIore, the aim oI the tutor's investigation is to examine whether these independent variables
- revision time and IQ - result in a change in the dependent variable, the students' test scores.
However, it is also worth noting that whilst this is the main aim oI the experiment, the tutor may
also be interested to know iI the independent variables - revision time and IQ - are also
connected in some way.
In the section on experimental and non-experimental research that Iollows, we Iind out a little
more about the nature oI independent and dependent variables.
ategorical and ontinuous Variables
Categorical variables are also known as discrete or qualitative variables. Categorical variables
can be Iurther categorized as either nominal, ordinal or dichotomous.
O ominal variables are variables that have two or more categories but which do not have
an intrinsic order. For example, a real estate agent could classiIy their types oI property
into distinct categories such as houses, condos, co-ops or bungalows. So "type oI
property" is a nominal variable with 4 categories called houses, condos, co-ops and
bungalows. OI note, the diIIerent categories oI a nominal variable can also be reIerred to
as groups or levels oI the nominal variable. Another example oI a nominal variable would
be classiIying where people live in the USA by state. In this case there will be many more
levels oI the nominal variable (50 in Iact).
O Dichotomous variables are nominal variables which have only two categories or levels.
For example, iI we were looking at gender, we would most probably categorize
somebody as either "male" or "Iemale". This is an example oI a dichotomous variable
(and also a nominal variable). Another example might be iI we asked a person iI they
owned a mobile phone. Here, we may categorise mobile phone ownership as either "Yes"
or "o". In the real estate agent example, iI type oI property had been classiIied as either
residential or commercial then "type oI property" would be a dichotomous variable.
O Ordinal variables are variables that have two or more categories just like nominal
variables only the categories can also be ordered or ranked. So iI you asked someone iI
they liked the policies oI the Democratic Party and they could answer either "ot very
much", "They are OK" or "Yes, a lot" then you have an ordinal variable. Why? Because
you have 3 categories, namely "ot very much", "They are OK" and "Yes, a lot" and you
can rank them Irom the most positive (Yes, a lot), to the middle response (They are OK),
to the least positive (ot very much). However, whilst we can rank the levels, we cannot
place a "value" to them; we cannot say that "They are OK" is twice as positive as "ot
very much" Ior example.
Continuous variables are also known as quantitative variables. Continuous variables can be
Iurther categorized as either interval or ratio variables.
O Interval variables are variables Ior which their central characteristic is that they can be
measured along a continuum and they have a numerical value (Ior example, temperature
measured in degrees Celsius or Fahrenheit). So the diIIerence between 20C and 30C is
the same as 30C to 40C. However, temperature measured in degrees Celsius or
Fahrenheit is OT a ratio variable.
O #atio variables are interval variables but with the added condition that 0 (zero) oI the
measurement indicates that there is none oI that variable. So, temperature measured in
degrees Celsius or Fahrenheit is not a ratio variable because 0C does not mean there is no
temperature. However, temperature measured in Kelvin is a ratio variable as 0 Kelvin
(oIten called absolute zero) indicates that there is no temperature whatsoever. Other
examples oI ratio variables include height, mass, distance and many more. The name
"ratio" reIlects the Iact that you can use the ratio oI measurements. So, Ior example, a
distance oI ten metres is twice the distance oI 5 metres.
iff0r0nt %50s of ata
rimary Data
Primary data means original data that has been coll0ct0/ specially Ior the purpose in mind. It
means when an authorized organization or an investigator or an enumerator or some guy with a
clipboard collects the data Ior the Iirst time Irom the original source. Data collected this way is
called primary data.
econdary Data
Seconuaiy uata is uata that has been collecteu foi anothei puipose. When we use
Statistical Nethou with Piimaiy Bata fiom anothei puipose foi oui puipose we
iefei to it as Seconuaiy Bata. It means that one puiposes Piimaiy Bata is anothei
puiposes Seconuaiy Bata. Seconuaiy uata is uata that is being ieuseu. 0sually in a
uiffeient context.
Qualitative data
Qualitative data is a categorical measurement expressed not in terms oI numbers, but rather by
means oI a natural language description. In statistics, it is oIten used interchangeably with
"categorical" data.
Although we may have categories, the categories may have a structure to them. When there is
not a natural ordering oI the categories, we call these nominal categories. Examples might be
gender, race, religion, or sport.
When the categories may be ordered, these are called or/inal variables. Cat0gorical ;ariabl0s
that judge size (small, medium, large, etc.) are ordinal variables. Attitudes (strongly disagree,
disagree, neutral, agree, strongly agree) are also ordinal variables, however we may not know
which value is the best or worst oI these issues. ote that the distance between these categories is
not something we can measure.
Quantitative data
Quantitative data is a numerical measurement expressed not by means oI a natural language
description, but rather in terms oI numbers. However, not all numbers are continuous and
measurable. For example, the social security number is a number, but not something that one can
add or subtract.
Quantitative data always are associated with a scale measure.
Probably the most common scale type is the ratio-scale. Observations oI this type are on a scale
that has a meaningIul zero value but also have an equidistant measure (i.e., the diIIerence
between 10 and 20 is the same as the diIIerence between 100 and 110). For example, a 10 year-
old girl is twice as old as a 5 year-old girl. Since you can measure zero years, time is a ratio-scale
variable. Money is another common ratio-scale quantitative measure. Observations that you
count are usually ratio-scale (e.g., number oI widgets).
A more general quantitative measure is the interval scale. Interval scales also have a equidistant
measure. However, the doubling principle breaks down in this scale. A temperature oI 50
degrees Celsius is not "halI as hot" as a temperature oI 100, but a diIIerence oI 10 degrees
indicates the same diIIerence in temperature anywhere along the scale. The Kelvin temperature
scale, however, constitutes a ratio scale because on the Kelvin scale zero indicates absolute zero
in temperature, the complete absence oI heat. So one can say, Ior example, that 200 degrees
Kelvin is twice as hot as 100 degrees Kelvin.
0scribing ata - Fr06:0nc istrib:tion
Frequency distributions summarize and compress data by grouping it into
#eturn to Table oI Contents classes and recording how many data points Iall into each class. That is, they
show how many observations on a given variable have a particular attribute. For
example, a survey is taken oI 50 people's Iavorite color. The Irequency
distribution might indicate 15 people selected green, 12 blue, 6 red, 7 yellow,
and 10 purple. Converting these raw numbers into percentages would then
provide an even more useIul description oI the data.
The Irequency distribution is the Ioundation oI descriptive statistics. It is a
prerequisite Ior both the various graphs used to display data and the basic
statistics used to describe a data set -- mean, median, mode, variance, standard
deviation, and so Iorth. ote that Irequency distributions are generally used to
describe both nominal and interval data, though they can describe ordinal data.
WHEN % USE % A Irequency distribution should be constructed Ior virtually all data sets. They
are especially useIul whenever a broad, easily understood description oI data
concentration and spread is needed. Most data provided by third parties are
grouped into a Irequency distribution.
HW % PREPARE % #egardless oI whether manual or automated methods are used to prepare a
Irequency distribution, it is usually necessary to code data numerically to
Iacilitate Iurther data analysis. This makes creating a data dictionary which
deIines the numeric codes used to identiIy data categories necessary. For
example, assume that an auditor/evaluator wants to classiIy both demographic
data and inIormation on the opinion oI entity staII on a particular policy. A data
dictionary Ior use with computer soItware might resemble the Iollowing:

Pr0s0ntation of ata
The main portion oI Statistics is the display oI summarized data. Data is initially collected Irom a
given source, whether they are experiments, surveys, or observation, and is presented in one oI
Iour methods:
Textular Method
The reader acquires inIormation through reading the gathered data.
Tabular Method
Provides a more precise, systematic and orderly presentation oI data in rows or columns.
Semi-tabular Method
Uses both textual and tabular methods.
Graphical Method
The utilization oI graphs is most eIIective method oI visually presenting statistical results
or Iindings.

Mark0ting
Mark0ting is the process used to determine what products or services may be oI interest to
customers, and the strategy to use in sales, communications and business development.
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It
generates the strategy that underlies sales techniques, business communication, and business
developments.
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It is an integrated process through which companies build strong customer
relationships and create value Ior their customers and Ior themselves.
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Marketing is used to identiIy the customer, satisIy the customer, and keep the customer. With the
customer as the Iocus oI its activities, marketing management is one oI the major components oI
business management. Marketing evolved to meet the stasis in developing new markets caused
by mature markets and overcapacities in the last 2-3 centuries.
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The adoption oI
marketing strategies requires businesses to shiIt their Iocus Irom production to the perceived
needs and wants oI their customers as the means oI staying proIitable.
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The term marketing concept holds that achieving organizational goals depends on knowing the
needs and wants oI target markets and delivering the desired satisIactions.
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It proposes that in
order to satisIy its organizational objectives, an organization should anticipate the needs and
wants oI consumers and satisIy these more eIIectively than competitors.
asic Mark0ting %0rms
A/;0rtising :/g0t

Money set aside by the advertiser to pay Ior advertising. There are a variety oI methods Ior
determining the most desirable size oI an advertising budget.

A/;0rtising Plan

An outline oI what goals an advertising campaign should achieve, how to accomplish those
goals, and how to determine whether or not the campaign was successIul in obtaining those
goals.

A/;0rtising S50cialt

A product imprinted with, or otherwise carrying, a logo or promotional message. Also called a
promotional product.

ann0r A/

A graphical web advertising unit, typically a large headline or title extending across the Iull page
width oIten measuring 468 pixels wide and 60 pixels tall.

ran/

A name, term, design, symbol, or any other Ieature that identiIies one seller's good or service as
distinct Irom those oI other sellers. The legal term Ior brand is trademark. A brand may identiIy
one item, a Iamily oI items, or all items oI that seller.
Chann0l istrib:tion

An organized network oI agencies and institutions which in combination perIorm all the
Iunctions required to link producers with end customers to accomplish the marketing task.

Circ:lation

OI a print publication, the average number oI copies distributed. For outdoor advertising this
reIers to the total number oI people who have an opportunity to observe a billboard or poster.

Coo50rati;0 A/;0rtising

A system by which ad costs are divided between two or more parties. Usually, such programs are
oIIered by manuIacturers to their wholesalers or retailers, as a means oI encouraging those
parties to advertise the product.
Also Known As: Co-op Advertising, Co-op Program

Cost P0r %ho:san/ (CPM)

The cost, per 1000 people reached, oI buying advertising space in a given media vehicle.

Cr0ati;0s

A general marketing term used Ior the material used to generate leads and sell advertising
developed and designed by art directors and/or copywriters in an ad agency.

0mogra5hics

Basic objective descriptive classiIications oI consumers, such as their age, sex, income,
education, size oI household, ownership oI home, etc. This does not include classiIication by
subjective attitudes or opinions oI consumers

ir0ct Mail

Marketing communications delivered directly to a prospective purchaser via the U.S. Postal
Service or a private delivery company.

ir0ct Mark0ting

Sending a promotional message directly to consumers, rather than via a mass medium. Includes
methods such as Direct Mail and Telemarketing.

Eight-%0nt R:l0

A rule-oI-thumb that, Ior the typical product category, eighty percent oI the products sold will be
consumed by twenty percent oI the customers.

En/-Us0r

The person who actually uses a product, whether or not they are the one who purchased the
product.