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You use statistics daily without even realizing it!!!
Examples ??????
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Statistics is used to help determine
Which product I should sale (Demand stats)
and where they are located (Big Bazzar & Snacks Shop are right next
to each otherwhat a concept!!!)
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Statistics..Defn
Many people think of statistics as large amounts of numerical data, e.g.
share prices, GDP statistics, runs scored by Sachin etc etc
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Characteristics of Statistics
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Why Study Statistics
It presents the facts in a definite & clear terms.
It gives the concise shape to the mass of figures and develops meaning from
the data
It helps to compare between two sets of figures
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Limitations of Statistics
Statistics does not study individual observations. It is only concerned with
groups of observations
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Decision Making - Businesses
Accounting
Economics
Economists use statistical information
in making forecasts about the future of
the economy or some aspect of it.
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Decision Making - Businesses
Marketing
Production
A variety of statistical quality
control charts are used to monitor
the output of a production process.
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Decision Making - Businesses
Finance
Financial advisors use price-earnings ratios and
dividend yields to guide their investment
recommendations.
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Uses & Abuses of Statistics
Most of the time, samples are used to infer something (draw conclusions)
about the population. However, occasionally the conclusions are inaccurate
or inaccurately portrayed for the following reasons:
Sample is too small. Even a large sample may not represent the population.
Unauthorized personnel are giving wrong information that the public will
take as truth. A possibility is a company sponsoring a statistics research
to prove that their company is better.
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Misleading Statistical Presentation
14000 13500
12000 13000
10000 12500
8000 12000
6000 11500
4000 11000
2000 10500
0 10000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31
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Pictures can be misleading also
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0.9
0.8
0.7
0.6
0.5
R
0.4
0.3
R
0.2
0.1
0
1 2
e.g.
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Branches of Statistics
The academic discipline of statistics can be divided into
two major branches:
Descriptive statistics
Inferential statistics.
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Descriptive Statistics
Deals with summarizing and presenting data in a readable, easily understood
form.
Techniques:
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Inferential Statistics
Drawing conclusions about a population based on information from a sample.
Using these estimates we can then make Predictions and Forecast the Future
Gathering of
Data
Classification,
Summarization, and
Processing of data
Presentation and
Communication of
Summarized information
Yes
Use sample information
Is Information from a
to make inferences about
sample?
Yes the population Statistical
Inference
No
Descripti
ve No Draw conclusions about
Statistics Use cencus data to
the population
analyze the population
characteristic (parameter)
characteristic under study
under study
STOP
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Population & Sample
Population
Sample
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Population & Sample
Population: The complete set of data elements is termed the population. It is a
set of all items in a particular study
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Why Sample Why Sample?
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Data
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Data Types
Data
Numerical Categorical
(Quantitative) (Qualitative)
Discrete Continuous
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Primary Data
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Data Sources
Primary Secondary
Data Collection Data Compilation
Print or Electronic
Observation Survey
Experimentation
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Descriptive Statistics
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Data Processing Techniques
Raw Data
Data Array
Discrete Frequency Distribution
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Raw Data & Data Array
Raw Data:
Information before it is arranged & analysed is raw data. It is
called raw, as it is unprocessed by any statistical methods
Example
Data Array:
It involves arranging the values in either ascending or descending
order
Example
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Numerical 1 Data Array
Raw Data
14 26 2 34 8 13 27 37 9 12
39 42 45 30 32 24 24 30 20 23
14 18 30 33 24 34 30 10 22 14
2 8 9 10 12 13 14 14 14 18
20 22 23 24 24 24 26 27 30 30
30 30 32 33 34 34 37 39 42 45
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Discrete Distribution
In the discrete frequency distribution, after arranging the values
in ascending order, we count the frequency i.e. number of times
each value has appeared in the data set by using tally marks
Numerical
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Numerical 2 - Discrete FD
Marks Tally Frequency Marks Tally Fequency
Marks Marks
2 1 24 3
8 1 26 1
9 1 27 1
10 1 30 4
12 1 32 1
13 1 33 1
14 3 34 2
18 1 37 1
20 1 39 1
22 1 42 1
23 1 45 1
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Continuous Frequency Distribution
Continuous Frequency Distribution
In this, all the values are classified in groups or classes, hence
this type of distribution is known as grouped or continuous
frequency distribution
Class Limits
Class Interval
Class Frequency
Class Mid Point or Class Mark
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Class Limits
Class Limits
The two boundaries of the class are known as Class Limits. The
Class Limits are the lowest and the highest value that can be
included in the class.
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Class Interval
Class Interval
The difference between the upper limit and lower limkt of the
class is known as class interval or class width of that class.
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Class Interval
Formula for the Class Interval:
Class Interval (i) = (Next unit value after the largest value in
the data Smallest value in the data)/No of Classes
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Cell Nomenclature
Cell interval (i)
CELL
Midpoint
UPPER BOUNDARY
CELL NOMENCLATURE
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Exclusive / Inclusive Method
There are 2 methods of classifying the data according to class
intervals.
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Correction Factor
In case of inclusive type, for getting the correct CI, we need
to add the correction factor to upper limit of the classes
and subtract the same from the lower limit of the classes.
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Inclusive to exclusive
Inclusive Type Exclusive type
10-14 9.5-14.5
15-19 14.5-19.5
20-24 19.5-24.5
25-29 24.5-19.5
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Constructing FD
Step 2: Sort the data into different classes and count the
frequency
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Numerical 3 Continuous FD
Step 1: Calculate the No of Classes (Sturges formula)
No of Classes (K) = 1 + 3.322 log N
= 1 + 3.322 log 30
= 1 + 3.322 (1.477)
= 5.9
=6
Step 2: Sort the data points into classes and count the no of
points in each class.
We have K = 6
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Numerical 4 Home Assignment
40.5, 39.7, 40.6, 39.9, 40.9, 38.9, 41.4, 40.5, 41.0, 38.8, 39.6,
40.4, 39.9, 40.2, 40.8, 40.7, 40.6, 41.7, 40.8, 39.1, 40.1, 40.7,
40.1, 40.7, 40.7, 39.8, 39.3, 39.6, 40.5, 41.3, 41.0, 39.9, 40.4,
40.9, 40.1, 41.2, 40.2, 40.0, 39.4, 40.6.
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Numerical 4 Home Assignment
Classes Tally Marks Frequency
38.5-39.0 2
39.0-39.5 3
39.5-40.0 7
40.0-40.5 8
40.5-41.0 14
41.0-41.5 5
41.5-42.0 1
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