INTRO TO STATISTICS

김규현 (KYUHYUN KIM)

개요

Chapter 1. Introduction

1. What is statistics?

2. Basis of statistics
1. WHAT IS STATISTICS?

1. DATA 출처 & 개요
Definition of Statistics
¡ The practice or science of collecting and analyzing numerical data in large quantities, especially for the
purpose of inferring proportions in a whole from those in a representative sample.
¡ Information of samples ---- Inference --à Information of population
¡ Example
¡ Average height of college students
¡ (Population : Whole college students, Sample : 100 college students who is selected as survey sample)
¡ Proportion of survived start-up company for 1 year
¡ (Population : Whole start-up company, Sample : 50 companies that is selected as survey sample)
¡ Statistics are always inaccurate, because we try to know whole data’s (population) characteristics
based on part of data (sample)

¡ Thus, we have to find how to minimize error when transform sample information to population information,
and also provide error’s possibility to client
1. WHAT IS STATISTICS?

Application of statistics

1) Government

¡ Statistics is used for making policies and confirming outcome of policies

2) Investment bank and financial company

¡ Stock index and currency exchange rate is also representative statistics, and these are recorded time by time

3) Every company (Customer service department)

¡ For customer relation, company collects customer information and statistics of purchase pattern, and uses for
marketing
1. WHAT IS STATISTICS?

Producing and saving statistics

¡ Producing statistics

¡ Automatically produced statistics (Purchase history, stock price history etc.)

¡ Saving statistics

¡ Saving produced statistics as computer files

¡ Big data (size of saved statistics is getting larger)

¡ How to deal with big data?

2. BASIS OF STATISTICS

Subject of survey

¡ Population

¡ All objects of interest

¡ 예) All college students in Korea

¡ Sample

¡ Part of population

¡ 예) 100 randomly chosen college student in Korea

¡ Inference

¡ Using information from the sample, infer information of population

¡ Mean, variance, error etc.

2. BASIS OF STATISTICS

Examples of population and sample

Population Sample

Tendency of voter Ever y voters Sampled voters (1500)

Bankruptcy rate of Sampled star t-up

Ever y star t-up companies
companies (100)
Star t-up companies

Preventive effect of Vaccinated sampled citizens

Ever y citizen
vaccine (1000)

Average height of college Ever y college students Sampled college students

students in Korea In Korea In Korea
2. BASIS OF STATISTICS

Categories of data

1) Categorical Data

¡ Non-metric, qualitative data

¡ Impossible to apply four fundamental arithmetic operations (+, - , X, /)

¡ Ex) Job, ethnics, gender, religion etc.

2) Numerical Data

¡ Metric, quantitative data

¡ possible to apply four fundamental arithmetic operations (+, - , X, /)

¡ Ex) Height, weight, cost etc.

2. BASIS OF STATISTICS

Categories of data

3) Interval Data & Ratio Data

¡ Interval Data : data that cannot apply proportion

¡ Ex) temperature, intelligence quotient, score of tests etc.

¡ 0 Celsius degree -> freezing point of water, 100 Celsius degree -> boiling point of water

¡ 100 Celsius degree is not 100 times hotter than 0 Celsius degree

¡ Ratio Data : data that can apply proportion

¡ Ex) height, weight, balance of account etc.

¡ Why categorizing data is important?

¡ Methods of applying statistics are different

2. BASIS OF STATISTICS

Categories of data Inconvertible

Blood type
Nominal Category A,B,O,AB
Categorical
Data
Letter grade
Ordinal Category Order A, A-,B…F

Temperature
Same
Interval Category Order 25 Celsius
interval degree
Numerical
Data
Same Absolute Height
Ratio Category Order 171.2cm
interval zero
Convertible
2. BASIS OF STATISTICS

Miscellaneous data

1) Time series data

¡ Cumulative data depending on time flow

¡ Ex) History of apartment rent price for 10 years

log of height (children)

2) Cross-sectional Data

¡ Data at fixed time

¡ 예) Price of Big mac in 10 countries, job distribution