1 Chapter Introduction to Statistics Copyright 2019, 2015, 2012, Pearson Education, Inc. 1 Chapter Outline • 1.1 An Overview of Statistics • 1.2 Data Classification • 1.3 Data Collection and Experimental Design Copyright 2019, 2015, 2012, Pearson Education, Inc. 2 Section 1.1 An Overview of Statistics Copyright 2019, 2015, 2012, Pearson Education, Inc. 3 Section 1.1 Objectives • A definition of statistics • How to distinguish between a population and a sample and between a parameter and a statistic • How to distinguish between descriptive statistics and inferential statistics Copyright 2019, 2015, 2012, Pearson Education, Inc. 4 What is Data? Data Consist of information coming from observations, counts, measurements, or responses. • According to a survey, more than 7 in 10 Americans say a nursing career is a prestigious occupation. (Source: The Harris Poll) • “Social media consumes kids today as well, as more score their first social media accounts at an average age of 11.4 years old. ” (Source: Influence Central’s 2016 Digital Copyright 2019, 2015, 2012, Pearson Education, Inc. 5 What is Statistics? Statistics The science of collecting, organizing, analyzing, and interpreting data in order to make decisions. Copyright 2019, 2015, 2012, Pearson Education, Inc. 6 Data Sets Population The collection of all outcomes, responses, measurements, or counts that are of interest. Sample A subset, or part, of the population. Copyright 2019, 2015, 2012, Pearson Education, Inc. 7 Example: Identifying Data Sets In a recent survey, 834 employees in the United States were asked if they thought there jobs were highly stressful. Of the 834 respondents, 517 said yes. Identify the population and the sample. Describe the sample data set. (Source: CareerCast Job Stress Report) Copyright 2019, 2015, 2012, Pearson Education, Inc. 8 Solution: Identifying Data Sets • The population consists of the responses of all employees in the U.S. • The sample consists of the responses of the 834 employees in the survey. • The sample is a subset of the responses of all employees in the U.S. • The data set consists of 517 yes’s and 317 no’s. Copyright 2019, 2015, 2012, Pearson Education, Inc. 9 Parameter and Statistic Parameter A numerical description of a population characteristic. Average age of all people in the United States Statistic A numerical description of a sample characteristic. Average age of people from a sample of three states Copyright 2019, 2015, 2012, Pearson Education, Inc. 10 Example: Distinguish Parameter and Statistic Decide whether each number describes a population parameter or a sample statistic. 1. A survey of several hundred collegiate student-athletes in the United States found that, during the season of their sport, the average time spent on athletics by student-athletes is 50 hours per week. (Source: Penn Schoen Berland) Solution: 1. Because the average of 50 hours per week is based on a subset of the population, it is a sample statistic. Copyright 2019, 2015, 2012, Pearson Education, Inc. 11 Example: Distinguish Parameter and Statistic Decide whether the numerical value describes a population parameter or a sample statistic. 2. The freshman class at a university has an average SAT math score of 514. Solution: 2. Because the average SAT math score of 514 is based on the entire freshman class, it is a population parameter. Copyright 2019, 2015, 2012, Pearson Education, Inc. 12 Example: Distinguish Parameter and Statistic Decide whether the numerical value describes a population parameter or a sample statistic. 3. In a random check of several hundred retail stores, the Food and Drug Administration found that 34% of the stores were not storing fish at the proper Solution: temperature. 3. Because 34% is based on a subset of the population, it is a sample statistic. Copyright 2019, 2015, 2012, Pearson Education, Inc. 13 Branches of Statistics Descriptive Statistics Involves organizing, summarizing, and displaying data. Inferential Statistics Involves using sample data to draw conclusions about a population. e.g. Tables, charts, averages Copyright 2019, 2015, 2012, Pearson Education, Inc. 14 Example: Descriptive and Inferential Statistics For each study, identify the population and the sample. Then determine which part of the study represents the descriptive branch of statistics. What conclusions might be drawn from the study using inferential statistics? 1. A study of 2560 U.S. adults found that of adults not using the Internet, 23% are from households earning less than $30,000 annually, as shown in the figure. (Source: Pew Research Center) Copyright 2019, 2015, 2012, Pearson Education, Inc. 15 Solution: Descriptive and Inferential Statistics Solution: 1. The population consists of the responses of all U.S. adults, and the sample consists of the responses of the 2560 U.S. adults in the study. The descriptive branch of statistics involves the statement “23% [of U.S. adults not using the Internet] are from households earning less than $30,000 annually.” A possible inference drawn from the study is that lower-income households cannot afford access to the Internet. 16 Copyright 2019, 2015, 2012, Pearson Education, Inc. Example: Descriptive and Inferential Statistics For each study, identify the population and the sample. Then determine which part of the study represents the descriptive branch of statistics. What conclusions might be drawn from the study using inferential statistics? 2. A study of 300 Wall Street analysts found that the percentage who incorrectly forecasted high-tech earnings in a recent year was 44%. (Adapted from Bloomberg News) Copyright 2019, 2015, 2012, Pearson Education, Inc. 17 Solution: Descriptive and Inferential Statistics Solution: 2. The population consists of the high-tech earnings forecasts of all Wall Street analysts, and the sample consists of the forecasts of the 300 Wall Street analysts in the study. The part of this study that represents the descriptive branch of statistics involves the statement “the percentage [of Wall Street analysts] who incorrectly forecasted hightech earnings in a recent year was 44%.” A possible inference drawn from the study is that the stock market is difficult to forecast, 18 Copyright 2019, 2015, 2012, Pearson Education, Inc.