Chapter One

What is Statistics?

Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

1.1

FYI Past Grades in This Statistics Course

84
73
22
64
39
62
50
43
23
52
71
58
38
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26
36
66
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41
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66
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86
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86
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74
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67
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82
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21

42
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70
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32

66
42
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80
86
70
81
37
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20
58
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100
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75
56
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20
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64
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67
79
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58
68

67
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34
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92
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35
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24
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79
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71
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56
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66
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66
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98
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32
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30
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56
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29
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40
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44
32
78
66
64
47

88
30
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84
73
34
35
86
74
99
82
72
23
44
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86
24
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33
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49
96
60
95
98
23
32
45
58
51
47
82
88
68
52
90
69
87
41
66
95
76
25
23
87
28
99
65

72
44
70
27
66
46
77
67
38
55
96
79
34
40
44
46
75
54
48
44
98
61
87
44
25
40
89
91
37
72
68
47
28
64
82
27
54
95
72
83
50
80
78
22
60
56
99
68
52
31

84
74
42
40
46
23
22
21
83
40
47
94
57
83
29
30
28
56
97
96
38
28
71
37
70
65
63
74
92
67
45
64
34
97
78
36
96
82
57
93
25
77
34
92
78
71
73
39
82
31

59
90
84
42
95
58
84
89
86
72
69
54
54
48
45
96
85
70
92
95
87
55
30
64
77
21
95
47
45
97
63
62
22
89
27
26
43
66
100
35
74
35
91
68
74
58
33
52
27
31

45
73
24
51
26
98
76
76
27
39
57
96
94
71
92
23
56
69
54
87
92
68
83
96
96
78
87
55
97
78
38
92
47
97
53
56
22
67
75
21
31
82
47
66
72
31
97
76
46
42

94
70
73
78
55
90
81
47
39
84
61
33
43
89
87
23
69
83
48
99
51
66
68
27
62
35
32
98
23
92
30
99
93
39
53
92
69
61
66
44
45
22
41
69
69
92
47
77
20
63

94
66
86
50
59
87
52
60
22
71
34
28
95
64
54
99
20
29
27
26
40
68
79
76
21
21
72
33
22
24
25
47
80
48
55
50
77
79
96
67
28
76
28
54
45
91
48
70
83
87

54
43
69
93
37
70
46
71
29
55
64
44
32
89
46
53
51
46
80
49
37
28
31
44
40
61
84
71
20
85
51
41
99
71
94
44
63
31
51
60
45
71
23
45
44
24
36
63
62
84

88
89
38
26
93
72
75
49
72
99
42
93
40
77
62
40
55
62
47
98
70
36
68
24
22
94
89
37
97
82
42
54
46
39
61
68
24
21
95
47
93
78
85
82
37
22
74
75
80
61

25
31
66
24
28
75
77
43
76
47
25
44
63
73
34
30
68
79
75
74
30
62
56
91
98
91
46
70
85
35
69
23
82
65
26
72
88
85
70
25
88
89
62
44
97
97
53
74
24
49

78
38
27
89
60
23
29
97
84
48
94
41
37
41
40
82
92
23
38
68
25
89
95
41
58
93
99
42
41
54
51
87
74
97
47
72
26
79
43
81
99
32
29
80
50
48
48
80
91
23

99
30
26
46
68
89
66
94
65
51
22
25
50
83
26
29
100
94
45
62
52
92
72
57
91
22
52
41
95
64
21
47
77
92
47
83
34
69
68
71
90
86
95
73
44
61
69
91
92
37

57
90
40
49
35
51
58
75
44
92
28
37
47
84
63
42
34
78
29
72
36
41
80
56
60
96
80
23
41
35
77
28
37
57
69
92
42
65
96
66
45
21
25
67
95
65
64
45
64
88

Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

90
26
72
30
79
50
53
39
90
39
94
87
54
68
74
70
62
87
65
22
22
56
90
72
77
53
88
58
43
25
96
66
89
78
72
59
28
90
97
40
24
96
61
20
62
83
40
40
33
77

88
52
31
33
78
72
66
47
62
72
34
88
81
43
31
69
59
79
25
98
46
48
24
43
69
84
95
58
72
34
65
85
32
44
42
80
75
35
60
93
50
64
54
37
72
62
92
30
33
53

64
34
83
81
89
90
91
58
78
63
99
38
97
64
53
57
92
65
53
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42
77
85
99
86
54
58
37
58
96
41
83
30
56
77
23
33
73
37
93
55
45
97
68
21
25
54
86
58
30

57
51
60
36
67
46
96
46
42
83
29
30
95
65
33
24
31
40
45
34
85
75
59
69
64
48
35
22
99
94
64
41
53
26
49
34
52
36
50
54
71
57
71
67
87
84
97
39
83
35

57
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97
40
32
76
87
22
92
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31
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61
95
86
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55
74
63
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28
63
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25
59
93
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46
67
20
77
71
55
90
88
95
32
87
35
24
77
94
28

51
52
62
38
87
32
82
96
30
71
34
81
44
78
61
40
36
40
81
97
27
22
83
99
41
22
25
69
20
61
63
30
56
58
80
83
78
29
92
85
28
52
30
66
49
91
93
95
43
61

90
96
41
96
89
62
59
96
24
48
57
63
80
59
86
73
97
28
75
54
74
63
82
57
73
93
24
95
28
58
24
25
66
56
88
53
96
69
67
77
73
57
76
46
80
97
75
50
61
99

85
38
52
38
57
57
49
80
50
68
71
93
51
75
49
21
84
28
83
51
75
49
28
54
39
36
43
73
40
72
41
94
77
52
20
80
66
28
87
81
69
94
92
43
52
39
74
25
53
45

79
23
46
74
56
29
80
68
44
40
38
90
74
55
36
60
64
97
96
45
85
78
27
36
26
34
89
82
48
92
97
82
25
80
100
28
96
79
67
54
53
55
29
52
66
23
22
70
93
25

76
21
92
32
36
29
88
82
69
27
94
65
42
39
22
32
47
67
45
33
99
97
57
90
72
36
96
92
52
48
62
26
61
37
86
55
24
86
20
51
77
30
72
87
71
85
75
73
59
39

56
55
78
75
95
67
51
95
52
71
69
72
47
90
82
33
88
55
60
89
33
39
30
57
88
50
69
73
73
39
41
74
92
40
91
33
67
38
81
98
24
43
27
51
46
61
29
22
22
33

30
78
46
30
79
52
95
29
55
92
32
92
39
97
81
93
24
42
42
94
94
99
89
62
65
39
44
83
83
92
27
20
43
51
77
72
48
70
98
46
89
31
60
96
42
41
48
23
89
55

29
77
60
44
85
86
59
25
87
61
44
51
64
91
28
86
83
42
89
26
97
87
84
59
84
84
56
27
76
49
37
44
71
36
81
41
88
65
91
79
21
25
23
77
28
23
61
65
87
64

30
21
90
93
36
76
81
95
67
69
45
61
24
57
74
56
61
20
34
73
82
30
100
82
49
29
33
97
56
95
58
90
97
88
78
72
84
93
93
32
30
81
74
37
88
59
84
28
38
69

72
43
29
55
78
94
20
27
66
83
31
94
56
51
30
39
40
44
44
38
49
85
51
21
33
37
92
38
33
75
98
36
80
92
21
91
65
29
89
38
62
96
68
49
55
91
99
41
39
36

47
72
63
28
88
30
91
27
28
57
20
32
69
20
78
33
75
64
48
85
82
49
63
74
97
49
50
56
65
43
64
43
92
38
72
37
29
21
66
82
37
98
31
73
29
70
72
71
97
66

35
60
84
91
59
44
62
87
30
59
29
33
59
52
22
36
80
29
64
97
81
54
96
88
71
53
49
27
86
68
41
73
21
84
61
21
53
64
34
38
92
35
81
97
69
61
44
97
40
29

53
91
24
31
86
82
91
69
74
76
89
37
95
69
58
30
89
82
59
33
38
97
40
65
83
80
35
84
78
96
49
67
45
32
34
21
78
54
36
79
92
24
33
50
62
63
99
20
41
70

55
29
76
52
92
80
25
89
44
38
61
93
44
98
79
48
92
67
82
29
66
43
96
30
31
96
66
72
29
95
32
50
91
50
40
23
47
28
27
77
34
48
64
79
89
92
22
40
38
97

77
41
59
69
48
27
29
77
73
74
24
43
80
89
73
100
56
74
21
67
77
98
85
68
34
27
59
27
90
75
61
61
97
80
76
83
78
68
78
55
66
34
77
85
38
44
21
60
23
34

33
88
56
44
59
42
74
21
27
44
92
32
31
91
63
80
86
55
33
70
23
29
60
55
78
75
31
51
90
26
85
64
28
53
40
82
88
89
83
45
43
97
58
95
82
72
92
86
91
90

44
26
63
86
56
70
97
37
26
80
85
90
24
51
27
82
92
70
99
31
73
96
82
40
83
70
87
53
42
35
83
98
88
21
78
59
47
29
76
24
24
96
34
76
53
58
73
98
76
34

88
70
31
34
56
21
43
83
51
99
64
55
78
71
28
31
75
70
79
39
31
65
31
99
78
88
83
84
69
40
69
22
95
25
26
60
76
88
27
67
57
92
51
96
70
42
71
88
37
51

59
24
96
65
51
60
21
73
22
39
87
37
36
67
28
54
90
68
50
36
73
42
32
46
58
80
29
87
37
77
47
55
75
97
80
27
64
21
76
78
55
89
70
28
37
93
88
76
45
99

78
86
68
29
74
71
49
35
75
98
40
23
57
46
55
23
47
29
58
73
82
31
35
87
61
88
32
92
53
30
81
45
82
77
97
87
57
46
70
57
61
43
56
91
55
92
74
74
30
47

32
31
95
97
43
38
46
75
61
87
27
97
54
94
50
56
54
58
72
39
33
86
41
75
97
23
95
54
69
63
66
59
98
76
99
61
22
77
96
32
82
59
36
59
55
73
75
80
78
90

33
63
99
62
22
47
53
24
56
27
90
98
54
46
47
84
68
67
81
87
26
66
76
78
90
80
68
49
99
87
69
72
26
73
34
78
84
87
26
90
77
94
39
29
92
46
28
44
27
80

68
34
49
37
70
42
85
86
58
29
68
31
97
92
94
48
67
54
72
75
23
79
55
35
94
23
97
67
65
65
45
51
88
78
56
91
52
43
87
67
73
78
33
58
36
71
37
68
36
50

49
67
100
59
56
68
47
32
33
40
92
66
73
55
87
45
43
62
49
91
84
28
59
64
52
64
38
63
46
34
62
26
28
94
88
91
47
84
41
53
36
88
43
72
65
81
41
62
76
36

24
37
43
77
41
91
84
91
61
41
99
43
42
90
42
97
47
77
58
66
76
62
80
47
75
53
83
22
29
46
28
32
74
89
47
45
48
32
91
67
23
83
60
25
34
98
22
64
75
81

88
87
83
37
86
73
20
23
78
47
86
42
86
37
43
79
81
56
62
66
64
92
70
57
54
77
39
58
36
55
81
62
40
87
33
61
33
43
52
99
99
85
60
65
28
81
41
86
78
26

84
81
88
74
94
66
94
57
54
24
57
20
23
44
36
82
34
70
47
94
65
84
79
68
98
53
39
53
27
54
25
23
59
85
48
89
81
45
91
92
80
48
88
74
92
24
81
49
82
47

1.2

FYI Past Grades in This Statistics Course

Grades
0-10
10-20
20-30
30-40
40-50
50-60
60-70
70-80
80-90
90-100
Total =

Frequency Relative Freq

0
0.000
0
0.000
323
0.129
286
0.114
316
0.126
297
0.119
304
0.122
324
0.130
319
0.128
331
0.132
2500

Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

Percent
0.0%
0.0%
12.9%
11.4%
12.6%
11.9%
12.2%
13.0%
12.8%
13.2%

Cum Percent
0.0%
0.0%
12.9%
24.4%
37.0%
48.9%
61.0%
74.0%
86.8%
100.0%

1.3

FYI Past Grades in This Statistics Course

400
200
0

010
10
-2
0
20
-3
0
30
-4
0
40
-5
0
50
-6
0
60
-7
0
70
-8
0
80
-9
90 0
-1
00

Frequency

Histogram

Final Grade

Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

1.4

In todays world
we are constantly being bombarded with statistics and
statistical information. For example:
Customer Surveys Medical News
Political Polls Economic Predictions
Marketing Information Scanner Data
How can we make sense out of all this data?
How do we differentiate valid from flawed claims?
Three types of liars!
Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

1.5

What is Statistics? Where does this Data come from?

Statistics is a way to get information from data

Statistics
Data
Data: Facts, especially
numerical facts, collected
together for reference or
information.

Information
Information: Knowledge
communicated concerning
some particular fact.

Statistics is a tool for creating new understanding from a set of numbers.

Definitions: Oxford English Dictionary
Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

1.6

Key Statistical Concepts

Population
a population is the group of all items of interest to
a statistics practitioner.
frequently very large; sometimes infinite.
E.g. All 5 million Florida voters who voted in todays election.

Sample
A sample is a set of data drawn from the
population. [Part of a population]
Potentially very large, but less than the population.
E.g. a sample of 1000 voters exit polled on election day.
Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

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Key Statistical Concepts

Parameter
A descriptive measure of a population.
- the true percent of Florida Voters who will vote for
Mary Poppins

Statistic
A descriptive measure of a sample.
- Of the 1000 exit voters polled, 550 indicated that
they voted for Mary Poppins or 550/1000 = 0.55 or
55%

Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

1.8

Key Statistical Concepts

Population

Sample

Subset

Parameter

Statistic

Populations have Parameters,

Samples have Statistics.
Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

1.9

Descriptive Statistics
are methods of organizing, summarizing, and presenting data in a
convenient and informative way. These methods include:
Graphical Techniques (Chapter 2), and
Numerical Techniques (Chapter 4).
The actual method used depends on what information we would like
to extract. Are we interested in
Your weight each Monday when you are on a 6 month diet.
The amount of medication in blood pressure pills.
The starting salaries for business students from TCU, SMU,
and UTA.
Others

Descriptive Statistics helps to answer these questions

Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

1.10

Inferential Statistics
Descriptive Statistics describe the data set thats being
analyzed, but doesnt allow us to draw any conclusions or
make any interferences about the data, other than visual It
looks like .. type statements. Hence we need another
branch of statistics: inferential statistics.
Inferential statistics is also a set of methods, but it is used to
draw conclusions or inferences about characteristics of
populations based on data from a sample.

Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

1.11

Statistical Inference
Statistical inference is the process of making an estimate,
prediction, or decision about a population based on a sample.
Population
Sample
Inference

Statistic

Parameter

What can we infer about a Populations Parameters

based on a Samples Statistics?
Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

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Statistical Inference
Rationale:
Large populations make investigating each member impractical
and expensive + its been shown that observing 100% of a
population is not perfect.
Easier and cheaper to take a sample and make inferences about
the population from the sample.

However:
Such conclusions and estimates are not always going to be correct.
For this reason, we build into the statistical inference measures of
reliability, namely confidence level and significance level.

Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

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Confidence & Significance Levels

The confidence level is the proportion of times that an interval estimate
for a population parameter will be correct.
E.g. a confidence level of 95% means that, interval estimates based on this form
of statistical inference will be correct 95% of the time.
I am 95% confident that the TRUE mean IQ of female business students at
UTA is between 120 and 122.

When the purpose of the statistical inference is to test a claim about a

population parameter, the significance level measures how frequently a
true claim is accidently rejected.
E.g. a 5% significance level means that, in the long run, a true claim will be
rejected 5% of the time.
Coin flips should result in 50% heads, on average. A 5% significance level
implies that we run a 5% risk of concluding that heads do not occur 50% of the
time, on average [even though everyone in this room most likely believes that
heads do occur 50% of the time].
Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

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Confidence & Significance Levels

We use (Greek letter alpha) to represent the significance
level when testing a claim about a population parameter ,
and
1 to represent the confidence level when we wish to
estimate a population parameter.

Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

1.15

Statistical Applications in Business

Statistical analysis plays an important role in virtually all
aspects of business and economics.
Throughout this course, we will see applications of statistics
in accounting, economics, finance, human resources
management, marketing, operations management, and my
favorite, Quality Issues,associated with manufacturing and
service processes.

Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

1.16