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

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.

organizing, summarizing, and presenting data in an informative way. 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 networks constantly tasters sip a few drops monitor the of wine to make a popularity of their decision with respect programs by hiring to all the wine waiting Nielsen and other to be released for sale. organizations to Example 3: The accounting sample the department of a large firm will preferences of TV select a sample of the invoices to viewers. check for accuracy for all the invoices of the company.

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Types of Statistics (examples of inferential statistics)

For a Qualitative or Attribute being studied is nonnumeric.

Variable the characteristic

Gender

Eye Color
State of Birth

Type of car

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

Quantitative variables can be classified as either

Discrete or Continuous.

Discrete Variables: can only assume certain values and there are usually gaps between values. Example: the number of bedrooms in a house, or the number of hammers sold at the local Home Depot (1,2,3,,etc).
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

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

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

4 3

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 is thus be pointed out as follows: 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 labour. 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.