Module 6 Statistics

GROUP
STATISTICS
SUMMARY OF CONTENTS
Statistics Variance
- Definition
Types Of Statistics Weighted Mean

- Descriptive
- Inferential
Types Of Data Frequency Distribution

- Qualitative and Nominal
- Ordinal
- Qualitative
- Discrete
- Continuous
Standard Deviation
WHAT IS
STATISTICS?
STATISTICS
The science of collecting, analyzing,
presenting, and interpreting data.
Governmental needs for census data as well
as information about a variety of economic
activities provided much to the early impetus
for the field of statistics.
QUANTITIVE DATA:
MEASURES EITHER
01
HOW MUCH OR HOW
DATA MAY BE MANY OF SOMETHING.
CLASSIFIED
AS:
02 QUALITATIVE DATA:
PROVIDE LABELS, OR
NAMES, FOR
CATEGORIES OF LIKE
TERMS.
SAMPLE SURVEY METHODS ARE USED TO
COLLECT DATA FROM OBSERVATIONAL STUDIES,
AND EXPIREMENTAL DESIGN METHODS ARE USED
TO COLLECT DATA FROM EXPERIMENTAL STUDIES.
THE AREA OF DESCRIPTIVE STATISTICS IS
CONCERNED PRIMARILY WITH METHODS OF
PRESENTING AND INTERPRETING DATA USING
GRAPHS, TABLES, AND NUMERICAL SUMMARIES.
WHENEVER STATISTICIANS USE DATA FROM A SAMPLE. A
SUBSET OF THE POPULATION TO MAKE STATEMENTS ABOUT
A POPULATION, THEY ARE PERFORMING STATISTICAL
INTEERFENCE. ESTIMATION AND HYPHOTHESIS TESTING ARE
PROCEDURES USED TO MAKE STATISTICAL INTERFENCES.
FIELD SUCH AS HEALTH CARE, BIOLOGY, CHEMISTRY,
PHYSICS, EDUCATION, ENGINEERING, BUSINESS, AND
EONOMICS MAKE EXTENSIVE USE OF STATITICAL
INTERENCE.
TYPES OF STATISTICS
DESCRIPTIVE INFERENTIAL
is a type of research that is is a statistical method that

used to describe the deduces from a small but
characteristics of a population. representative sample the
It does not answer questions characteristics of a bigger
about why a certain population.
phenomenon occurs or what
the causes are.
PARAMETER ESTIMATION
is a branch of statistics that involves using sample data to
estimate the parameters of a distribution.
HYPOTHESIS TESTING
is a formal procedure for investigating our ideas about the
world using statistics. It is most often used by scientists to test
specific predictions, called hypotheses, that arise from
theories.
TYPES OF DATA
IN STATISTICS
QUALITATIVE NUMERICAL
CATEGORICAL DATA OR
DATA QUANTITATIVE
CONTINUOUS
NOMINAL DATA ORDINAL DATA DISCRETE DATA
DATA
A. QUALITATIVE OR
CATEGORICAL DATA:
• Describes the data that fits into the categories and
not numerical
• An information involves variables that describes the
features such as a person’s gender, hometown etc.
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That will Explain Your Tittle

1 NOMINAL DATA
• Is one a type of Qualitative information which helps to label
the variables without providing the numerical value
• Also called as nominal scale
• It cannot be ordered and measured, but sometimes data can
be qualitative & quantitative.
• Examples:
a. Letters e. surveys economics

b. Symbols f. Questionnaires finance etc.
c. Words
d. gender
2
ORDINAL DATA
• Is another type data that follows a natural order
• It is commonly represented using a “Bar Chart”
• Are investigated and interpreted through many visualization tools
 Example:
a. Socio economic status Here You can Add Some Brief Text
b. Low income
c. Middle income
d. High income. Here You can Add Some Brief Text
QUANTITATIVE VARIABLE
A quantitative variable is a variable that reflects a notion of
magnitude, that is, if the values it can take are numbers. A
quantitative variable represents thus a measure and is
numerical.
Quantitative variables are divided into two types:

1. Discrete
2. Continuous.
1 DISCRETE DATA
• Discrete data is a count that involves integers — only a
limited number of values is possible. This type of data cannot
be subdivided into different parts. It includes discrete
variables that are finite, numeric, countable, and non-negative
integers.
For example:
a. shoe sizes,
b. the number of students in a class,
c. the number of sweets in a packet.
CONTINUOUS DATA
• A numerical type of data that refers to the
2
unspecified number of possible measurements
between two realistic points.
• Continuous data is all about accuracy
For example:
a. weight of newborn babies
b. temperature of a freezer
c. daily wind speed
VARIANCE
• The term variance refers to a statistical measurement of
the spread between numbers in a data set. More
specifically, variance measures how far each number in
the set is from the mean and thus from every other
number in the set.
• Variance is often depicted by this symbol: σ2. It is used by
both analysts and traders to determine volatility and
market security.
The square root of the variance is the standard
deviation (σ), which helps determine the consistency of
an investment’s returns over a period of time.
Variance is a measurement of the spread
between numbers in a data set.
Variance is also used to compare the relative performance of

each asset in a portfolio to achieve the best asset allocation.

Investors use variance to see how much risk an
investment carries and whether it will be profitable.
xi = Data point
VARIANCE FORMULA
σ2 = xˉ = Mean of all
data points
= Number of
xi.xˉ. . data points
xi = Data point
VARIANCE FORMULA
σ2 = xˉ = Mean of all
data points
= Number of
xi = Data point
VARIANCE FORMULA
xˉ = Mean of all
σ2 =
data points
= Number of
Advantage Disadvantage
The squared
it treats all deviations cannot
deviations from the sum to zero and give
mean as the same the appearance of no
regardless of their variability at all in
direction the data.
EXAMPLE OF VARIANCE
Here’s a hypothetical example to demonstrate how variance

works. Let’s say returns for stock in Company ABC are 10% in
Year 1, 20% in Year 2, and −15% in Year 3. The average of
these three returns is 5%. The differences between each return
and the average are 5%, 15%, and −20% for each consecutive
year.
WEIGHTED MEAN
WEIGHTED MEAN
WEIGHTED MEAN
WEIGHTED MEAN
The weighted mean is a type of mean that is
calculated by multiplying the weight (or
probability) associated with a particular event or
outcome with its associated quantitative outcome
and then summing all the products together. It is
very useful when calculating a theoretically
expected outcome where each outcome has a
different probability of occurring, which is the key
feature that distinguishes the weighted mean from
the arithmetic mean.

WEIGHTED MEAN
WEIGHTED MEAN
WEIGHTED MEAN
Weighted Mean is a mean where some of the
values contribute more than others. It represents
the average of a given data. The Weighted mean
is similar to the arithmetic mean or sample
mean. Sometimes it is also known as the
weighted average.

F REQUENCY
DISTRIBUTION
DEFINITION
Representation of data, either in graphical
or tabular format to display the number of
observation within a given integral
Table that displays the numbers of

outcome in a sample
APPLICATION AND
USES Sociological
Sales and marketing trend
research experiments
Customer, employee or
Medical research student satisfaction
STATISTIC
AL Weather research and
Behavioral studies predictions
ANALYSIS

EXAMPLE
• Suppose the runs scored by the 11 players of the Indian cricket team
in a match are given as follows: 25, 65, 03, 12, 35, 46, 67, 56, 00, 31,
17
• This type of data is in raw form and is known as raw data. The
difference between the measure of highest and lowest value in a
collection of data is known as the range. Here, the range is- \(|67 –
00|, i.e. 67\)
• When the number of observations increases, this type of
representation is quite hectic, and the calculations could be quite
complex. As statistics is about the presentation of data in an
organized form, the data representation in tabular form is more
convenient.
Marks obtained in quiz Number of students(Frequency)
12 1
15 4
16 1
17 1
19 1
20 2
21 3
23 2
24 1
29 1
30 3
TOTAL: 20
Steps in Constructing a Frequency
Distribution Table
1 Arrange data from lowest to highest
Determine the range by getting the difference

2 between the highest and lowest value in the set of
data.
Determine the number of class intervals or categories

3 desired (the ideal number of class intervals is
somewhere between 5 and 15).
4 Determine the approximate size of class interval
by dividing the
range by the desired number of class intervals.
Construct the frequency distribution table.

5
STANDARD
DEVIATION
The standard deviation is a statistic that measures the
dispersion of a dataset relative to its mean and is calculated
as the square root of the variance. The standard deviation is
calculated as the square root of variance by determining
each data point's deviation relative to the mean. If the data
points are further from the mean, there is a higher deviation
within the data set; thus, the more spread out the data, the
higher the standard deviation.
X= sample mean
n = number of
scores in sample.
The Population Standard Deviation formula is:
01
Example:
Population
Standard
Deviation 02
01
Example:
Population
Standard
Deviation 02
01
Example:
Sample
Standard
Deviation 02
01
Example:
Sample
Standard
Deviation 02
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GROUP

Types Of Statistics Weighted Mean

Types Of Data Frequency Distribution

is a type of research that is is a statistical method that

Here You can Add Some Brief Text

a. Letters e. surveys economics

Quantitative variables are divided into two types:

Variance is also used to compare the relative performance of

Here’s a hypothetical example to demonstrate how variance

Table that displays the numbers of

Here You can Add Some Brief Text

Determine the range by getting the difference

Determine the number of class intervals or categories

Construct the frequency distribution table.

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