STATISTICS

Lectured by
Achmad Tohirin, Ph.D

Why Learning Statistics

Learning statistics will enable the
decision maker to understand how
to:
Present and describe information
Draw conclusion about the large
population based upon information
from samples
Improve processes
Obtain reliable forecasts of
statistical variables of interest

Definition of Statistics
Horace Secrist:
Aggregate of facts affected to a
marked extent by multiplicity of
causes, numerically expressed,
enumerated, or estimated
according to reasonable
standards of accuracy, collected
in a systematic manner for
predetermined purpose and
placed in relation to each other

Statistical Method
Selingman:

Statistics is the science which deals with the

methods of collecting, classifying, presenting,
comparing and interpreting numerical data collected
to throw some light on any sphere of enquiry.
Bowley:

Statistics may be called the science of counting and

the science of average
Croxton

& Cowden:

Statitistics may be defined as a science of

collection, presentation, analysis and interpretation
of numerical data.

Types of Statistical Method

Descriptive statistics
It involves the collection, presentation, and
characterization of a set of data in order to
describe the various features of that set of data.
It includes:
Graphic methods
Bar charts
Line graphs
Pie charts

Numeric measures

Central tendency
Dispersion
Skewness
Kurtosis

Inferential Statistics
It includes statistical methods which facilitate
estimating the characteristic of a population or
making decisions concerning a population on
the basis of sample results.
Important concept of inferential statistics:
A process is a set of conditions that repeatedly come
together to transform inputs into outcomes.
business process to serve customer

A population (or universe) is a group of elements or

observation relating to a phenomenon under study
for which greater knowledge and understanding is
needed
A statistical variable is an operationally defined
characteristic of a population or process and
represents the quantity to be observed or measured

 A sample is a group of some, but not

all, of the elements or observations of
a population or process.
A parameter is a descriptive or
summary measure (a numerical
quantity) that describes characteristic
of the entire population
A statistic is a numerical quantity that
describes a sample drawn from a
population
Example:

Students pocket money

Importance & Scope

Statistical

methods are applicable in all

diversified fields such as economics,
trade, industry, accountancy and
auditing, etc.
In recent past, statistics has acquired its
importance as a subject of study in the
curricula of many other disciplines. A
knowledge of statistics is like a
knowledge of foreign language or of
algebra, it may prove of use at any time
under any circumstances. (Bowley)

Limitation of Statistics
Statistic

does not study qualitative

phenomena.
Statistics does not study
individuals
Statistics can be misused.

Need for data

Statistical

data are the basic material needed

to make an effective decision in a particular
situation.
Reasons why data is needed
To provide necessary inputs to a given
phenomenon or situation under study
To measure the performance in an ongoing process
To enhance the quality of decision-making by
enumerating alternative course of action in a DMP
and selecting an appropriate one.
To satisfy the desire to understand an unknown
phenomenon
To assist in guessing the causes and probable
effects of certain characteristics in given situation

Checking reliability of data

Have

data come from an unbiased source,

that is, source should not have an interest
in supplying the data that lead to a
misleading conclusion
Do the data support other evidences
already available? Is any evidence
missing that may cause to arrive at a
different conclusion?
Are data support the logical conclusions
drawn? Hve we made conclusions which
are not supported by data?

Types of Data
Categorical

Y/N
Numerical:

Do you like sport?

Discretehow many?Number
Continuouswhat is?cm, inch
Remarks: discrete data are
numerical measurements that arise
from a process of counting, while
continuous data are numerical
measurements that arise from
process of measuring.

Sources of Data
The choice of data collection method
from a particular source depends on:
The facilities available
The extent of accuracy required in
analyses,
The expertise of the investigator
The time span of the study, and
The amount of money and other
resources required for data collection.

Sources

of data

Primary data sources

Direct personal observation
Direct or indirect oral interview
Administrating questionnaires

Secondary data sources

External secondary data sources
Govt publication
Non-Govt publication

Internal secondary data sources

Advantage vs disadvantage?