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Chapter 01 Exercises Answers a. Interval b. Ratio c. Interval d. Nominal e. Ordinal f. Ratio a. Ratio b. Nominal c. Ratio d. Ratio * * * * * * * * * * * * ?The McGraw-Hill Companies, Inc. 2008 McGraw-Hill/Irwin What is Statistics? Chapter 1 1-* GOALS Understand why we study statistics. Explain what is meant by descriptive statistics and inferential statistics. Distinguish between a qualitative variable and a quantitative variable. Describe how a discrete variable is different from a continuous variable. Distinguish among the nominal, ordinal, interval, and ratio levels of measurement. 1-* Why Study Statistics? Numerical information is everywhere Statistical techniques are used to make decisions that affect our daily lives No matter what your career, you will make professional decisions that involve data 1-* What is Meant by Statistics? Statistics is the science of collecting, organizing, presenting, analyzing, and interpreting numerical data to assist in making more effective decisions. 1-* Who Uses Statistics? Statistical techniques are used extensively by marketing, accounting, quality control, consumers, professional sports people, hospital administrators, educators, politicians, physicians, etc... 1-* Types of Statistics – Descriptive Statistics and Inferential Statistics Descriptive Statistics - Methods of organizing, summarizing, and presenting data in an informative way. EXAMPLE 1: There are a total of 42,796 miles of interstate highways in the United States. The interstate system represents only 1 percent of the nation’s total roads but carries more than 20 percent of the traffic. EXAMPLE 2: According to the Bureau of Labor Statistics, the average hourly earnings of construction workers were $20.60 for February 2007. Inferential Statistics: The methods used to estimate a property of a population on the basis of a sample. 1-* Population versus Sample A population is the entire set of individuals or objects of interest or the measurements obtained