CHAPTER 1: INTRODUCTION TO STATISTICS AND DATA
PRESENTATION
MEANING OF STATISTICS
Statistics has been defined in several ways because statistics has developed so fast that
it covers many fields of endeavor. The study of statistics has grown enormously in such manner
that the amounts of data in the form of taxes, population, births and deaths have increased
beyond comprehension. From the data being collected, processed and disseminated, there is
an increase in the quantitative approach employed in all sciences and in businesses, which in
one way or another affects our lives.
Several textbooks have been written in business statistics, educational statistics, medical
statistics and others, but no agreement has been made as to how statistics will be defined.
Some say that statistics is a science of handling data and others say that it is an art of handling
data. However, there are some who define statistics as a body of methodology for the
collection, presentation, analysis and interpretation of quantitative data.
Statistics can also be used in making correct decisions during the time of uncertainty.
One may apply the different statistical methods so as to arrive at the correct result with
appropriate critical judgement.
USES OF STATISTICS
Statistics is very essential in education, government, business, psychology, economics,
medicine, sociology, sports, banks, market research and personnel relations.
Statistical Quality Control – the quality of a certain product must be maintained so it can
command better price as well as steady market. The manufactured products or items need to
be carefully inspected to determine the acceptability of the product to the costumer.
TWO BRANCHES OF STATISTICS
1. DESCRIPTIVE STATISTICS – is the branch that summarizes and organizes raw data into
meaningful information or the process of obtaining meaningful data from raw data
often, but not always, consisting of large sets of numbers too large to deal with directly.
2. INFERENTIAL STATISTICS – is the process of obtaining information about a larger group
from the study of a smaller group or the science of drawing statistical conclusions about
a population from specific data using probability and specific statistical data prediction
techniques.
DEFINITION OF TERMS
POPULATION – is the complete and entire collection of elements to be studied.
SAMPLE – is a subset of a population.
PARAMETER – is a numerical measurement describing some characteristics of a
population.
STATISTIC – is a numerical measurement describing some characteristics of a sample.
LEVELS OF MEASUREMENT (FOUR BASIC TYPE OF DATA)
1. NOMINAL LEVEL – This is characterized by data that consist of names, labels, or
categories only. The data cannot be arranged in an ordering scheme. There is no
criterion as to which values can be identified as greater that or less than other values.
For example, in classifying the instructors in a university as male or female, no ranking
can be placed on the data.
2. ORDINAL LEVEL – This involves data that maybe arranged in some order, but differences
between data values either cannot be determined or are meaningless. An example is
the grading system involving letter (A B C D E)
3. INTERVAL LEVEL – This is the same as the ordinal level, with an additional property to
help determine meaningful amounts of differences between data. For example,
temperature is an interval measurement. There is a meaningful difference in one degree
between each unit such as 80 and 81 degrees.
4. RATIO LEVEL – This is an interval level modified to include the inherent zero starting
point. The difference and ratios of data are meaningful. This is also the highest level of
measurement. An example would be the measure of height, weight, or area.
MAIN STEPS IN STATISTICAL STUDY
A. COLLECTION OF DATA
B. PRESENTATION OF DATA
C. ANALYSIS OF DATA
D. INTERPRETATION OF DATA
A. COLLECTION OF DATA
The first step in a statistical study is the collection of data. Data are the values that the
variables can assume. Variables whose values are determined by chance are called random
variables. These data can be used in different ways. There are two types of variables –
qualitative and quantitative. Qualitative variables are words or codes that represent a class or
category. On the other hand, quantitative variables are numbers that represent an amount or a
count.
METHODS IN THE COLLECTION OF DATA
1. DIRECT OR INTERVIEW METHOD – The direct method is an effective method of
collecting data because there is the personal presence of the interviewer and the
interviewee. The interview method gives consistent and reliable data.
2. INDIRECT OR QUESTIONNAIRE METHOD – The indirect method of collecting data is the
most widely used because it is considered the cheapest method and it can cover wider
area in a short span of time.
3. REGISTRATION METHOD – This method of collecting data is commonly enforced by
certain laws, ordinances or standard practices. This is very practical and inexpensive
method of gathering data.
SAMPLING TECHNIQUES
It is not necessary for the researcher to examine every member of the population to get
the necessary information and data needed in the study. Cost as well as time constraints will
prevent the researcher from studying the whole population. Al the researcher needs is to draw
sample units systematically or at random.
The techniques can be grouped into how selections of items are made such as
probability sampling and non-probability sampling.
1. PROBABILITY SAMPLING. In probability sampling, the sample is a proportion of the
population and such sample is selected from the population by means of systematic way
in which every element of the population has a chance of being included in the sample.
TYPES OF PROBABILITY SAMPLING
a. PURE RANDOM SAMPLING. This type of sampling is one in which every one in the
population of the study has an equal chance of being selected to be included in the
sample. This is also called lottery sampling, which may be used if the population has no
differentiated levels, sections or classes.
b. SYSTEMATIC SAMPLING. This is a technique of sampling in which every nth name in the
list may be selected to be included in the sample. Respondents are arranged in some
systematic manner such as alphabetical arrangement, residential or house arrays and
geographical placement.
c. STRATIFIED SAMPLING. It is more efficient sampling procedure wherein the population
is grouped into a more or less homogeneous classes or strata in order to avoid the
possibility of drawing samples whose members come from one stratum.
d. CLUSTER SAMPLING. It is sometimes called area sampling because it is applied on
geographical basis. On this basis, districts or blocks of a municipality or city are selected.
2. NON-PROBABILITY SAMPLING. In a non-probability sampling, the sample is not a
proportion of the population and there is no system in selecting the sample.
TYPES OF NON-PROBABILITY SAMPLING
a. ACCIDENTAL SAMPLING. In this type of sampling, there is no system of selection but
only those whom the researcher or interviewer meets by chance are included in the
sample.
b. QUOTA SAMPLING. In this type of sampling, specified number of persons of certain
types is included in the sample.
c. CONVENIENCE SAMPLING. It is a process of picking out people in the most convenient
and fastest way to get reactions immediately.
d. PURPOSIVE SAMPLING. It is based on certain criteria laid down by the researcher.
People who satisfy the criteria are interviewed.
B. PRESENTATION OF DATA
Collected data must be accurate but most often, they are not as accurate as they
appear. Statistical data result in either counting or measuring. Data can be presented in the
form of textual, tabular and graphical.
1. TEXTUAL PRESENTATION. Combines text and figures in a statistical report. This is
usually news items in business, finance, economics or industries which are published
in the business trade or finance sections of local periodicals.
2. TABULAR PRESENTATION. Statistical tables present numerical data in a systematic
way. Tabulation is the process of condensing classified data and arranging them in a
table.
However, data have to be classified before they can be tabulated and interpreted.
CLASSIFICATION – is the process of putting together similar items.
CODING – is the process of presenting the observations or information with
symbols which are entered in the schedule so as to facilitate tabulation.
THE MAJOR FUNCTIONAL PARTS OF A STATISTICAL TABLE
TABLE NUMBER
TITLE
(Headnote)
Sub Head Master Caption
Column Caption Column Caption Column Caption Column Caption
Row Label Entry Entry Entry Entry
Total
Footnote:
Source Note:
1. TABLE NUMBER. Each table should be numbered according to their order of
appearance. Arabic numerals are used in numbering the tables. The tables are
numbered consequently throughout the report.
2. TITLE. The title should tell what the subject matter the table deals with, where it is
situated or from whom and when it is gathered. It should be clear and brief and should
indicate the content of the table.
3. HEADNOTE OR PREFATORY NOTE. The headnote is usually written below the title in
smaller prints.
4. STUB. The stub contains the stub head and row labels.
5. BOX HEAD. The box head contains the master caption, and column caption. Column
caption explains the data presented in each column.
6. MAIN BODY, TEXT OR FIELD. The field, body or text contains all the statistical
information presented in the table. Each numerical datum is entered in each cell.
7. FOOTNOTE. If there are any words in the title or items in the body that are not readily
understood, then theses are explained in the footnote which appears immediately
below the bottom line of the table. Missing or unusual data in the table are explained in
the footnote.
8. SOURCE NOTE. The source note indicates the origin or the source of the data presented
in the table.
TYPES OF TABLES
Statistical tables are classified according to the purpose they serve.
1. GENERAL-PURPOSE TABLES. It is a full presentation of the collected facts in the original
units that is published for general use.
2. SPECIAL-PURPOSE TABLES. Used to analyze data shown in business reports.
3. GRAPHICAL PRESENTATION. Graph is the most effective way to present results in a
study since it shows the statistical values and relationship in a pictorial or diagrammatic
form.
TYPES OF GRAPH
Graphs are designed to meet the needs for which they are constructed.
1. BAR GRAPH. The bar graph is the most commonly used graphic presentation. It is used
for comparing magnitudes. Each bar is drawn to a height (length) proportional to the
quantity it represents.
a. Single Bar Graph
b. Grouped (Multiple Bar Graph)
c. Duo-Directional Bar Graph
d. Subdivided Bar Graph
e. Histogram
A BAR CHART graphs the frequency distribution of the data on an x-y coordinate
system.
Bar Chart
30
ag
25 e
20
Frequency
15
10
0 Class Boundary40
10 20 30 50 60
A HISTOGRAM is similar to a bar chart but the base of the rectangle has a length exactly
equal to the class width of the corresponding interval.
2. LINEAR GRAPH. The linear graph is a practical and effective device to show changes in
values over successive period of time. The linear graph shows data as a continuous line
thus its effect is continuous. At a glance, the reader can tell the trend as shown in the
linear graph. It is easier to prepare thus it requires less time and skill.
a. Time Series chart
b. Frequency polygon
c. Composite line chart
C. Ogive
A FREQUENCY POLYGON plots (x, y) pairs on the x-y coordinate system, where x is the
average of the lower and upper class limits of the interval and y is the absolute (or relative)
frequency associated with class intervals. These (x, y) points are connected by straight lines; the
polygon is then formed by plotting points corresponding to two additional class intervals, with
frequency 0, at each end of the frequency distribution. As these two additional points will be
plotted on the x-axis, they will form a polygon with the continuous set of the line segments
joining the (x, y) pairs.
A FREQUENCY OGIVE is a frequency polygon that uses the cumulative frequencies of the
frequency distribution as the values plotted on the y-axis. Since the cumulative frequency is a
non-decreasing function, ie., the value of the cumulative frequency increases as the upper class
limit of the interval increases, the graph of the frequency ogive will also be non-decreasing as
the value of the x-coordinate increases.
3. HUNDRED PERCENT CHARTS. One hundred percent charts are used to show the relative
sizes of the component parts to make up the whole. This is useful when the component
parts are compared among themselves.
a. Subdivided Bar or Rectangular Chart
b. Pie Chart
A PIE CHART displays the absolute frequencies of the class intervals as sectors of a circle.
Each sector in a pie chart corresponds to a class interval; the ratio of the area of the sector to
the area of the circle is equal to the relative frequency of the class interval.
The pie chart is used to show percent distribution of a whole into its component parts. This is
effective in presenting financial data.
Pie Graph
31% 11% 16% 26% 13% 3%
4. STATISTICAL MAPS. Statistical maps are used to show geographical distribution of
magnitude in which shades, bars or dots may be used to indicate variation in magnitude
in different areas. Shading or cross-hatching indicates the varying relative magnitude in
different areas. The darkest shade indicates the highest magnitude while the shade
becomes lighter and lighter as the magnitude decreases.
5. PICTOGRAMS. Pictograms are usually called pictograph. These are effective device in
showing data by pictures or symbols. Pictogram does not attempt to show details but it
facilitates comparison of approximate quantities. It can easily attract the reader’s
attention and show important relationship better and faster than any type of graph.
6. RATIO CHARTS. Ratio charts are widely used in the analysis of data. It is also used in
comparing relative changes. If the study deals in the absolute magnitude of changes, an
arithmetic-scaled graph should be used. Ratio charts cannot show zero or negative
value.
