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?The McGraw-Hill Companies, Inc. 2008 McGraw-Hill/Irwin What is Statistics Chapter 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. * Who Uses Statistics? Steps to Statistics Collect Data Organize Data Analyze Data Interpret Data Present Data * * Types of Statistics Descriptive Statistics - methods of organizing, summarizing, and presenting data in an informative way. 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. 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. Inferential Statistics: A decision, estimate, prediction, or generalization about a population, based on a sample. * Population versus Sample A population is a collection of all possible individuals, objects, or measurements of interest. A sample is a portion, or part, of the population of interest * Types of Variables A. Qualitative or Attribute variable - the characteristic being studied is nonnumeric. EXAMPLES: Gender, religious affiliation, type of automobile owned, state of birth, eye color are examples. B. Quantitative variable - information is reported numerically. EXAMPLES: balance in your checking account, minutes remaining in class, or number of children in a family. * Quantitative Variables - Classifications Quantitative variables can be classified as either discrete or continuous. A. 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). B. Continuous variable can assume any value
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