STATISTICAL THINGING & STATISTICAL THINGING & ANALYSISANALYSIS

Statistical thinking will one day be as Statistical thinking will one day be as necessary for efficient citizenship as necessary for efficient citizenship as

the ability to read and writethe ability to read and write … ….. H. G. Wells.. H. G. Wells

Statistical thinking can be defined as the Statistical thinking can be defined as the thought process that focuses on way thought process that focuses on way

to identify, control, and reduce to identify, control, and reduce variations present in all phenomenonvariations present in all phenomenon

ORIGIN OF STATISTICSORIGIN OF STATISTICS

The word ‘Statistics’ seems to have The word ‘Statistics’ seems to have been derived from the Latin word been derived from the Latin word ‘‘STATUSSTATUS’ or the Italian word ‘’ or the Italian word ‘statistastatista’ ’ or the German word ‘or the German word ‘statistikstatistik’ each ’ each of which means a ‘political state’.of which means a ‘political state’.

Sir Ronald A Fisher (1890-1962)Sir Ronald A Fisher (1890-1962)is Ihe father of Statisticsis Ihe father of Statistics

““The mathematics of the collection, The mathematics of the collection, organization, and interpretation of numerical organization, and interpretation of numerical data, especially the analysis of population data, especially the analysis of population characteristics by inference from sampling.”characteristics by inference from sampling.”

Statisticians collect and analyze data, then Statisticians collect and analyze data, then calculate results using a specific design. They calculate results using a specific design. They draw conclusions and make decisions in the draw conclusions and make decisions in the face of uncertainty.face of uncertainty.

What Is Statistics?What Is Statistics?

STATISTICSSTATISTICSDEFINITION AND MEANINGDEFINITION AND MEANING

Statistics may be defined as a science of Statistics may be defined as a science of collection, presentation, analysis and collection, presentation, analysis and interpretation of numerical data.interpretation of numerical data.

This definition includes four terms:This definition includes four terms:1.1. Collection of dataCollection of data2.2. Presentation of dataPresentation of data3.3. Analysis of data andAnalysis of data and4.4. Interpretation of data Interpretation of data

““The science of Statistics is the method of The science of Statistics is the method of judging collective, natural or social judging collective, natural or social phenomenon from the results obtained from phenomenon from the results obtained from the analysis or enumeration or collection of the analysis or enumeration or collection of estimates”estimates” …….. king …….. king

““Statistics is the science which deals Statistics is the science which deals with collection, classification and with collection, classification and tabulation of numerical facts as the tabulation of numerical facts as the basis for explanation, description and basis for explanation, description and comparison of phenomenon”comparison of phenomenon”

… ….. Lovitt.. Lovitt

Types of Statistical MethodsTypes of Statistical Methods

Statistical methods, fall into the following two Statistical methods, fall into the following two categories:categories:

Descriptive statisticsDescriptive statistics

Inferential statisticsInferential statistics

Descriptive statisticsDescriptive statistics

descriptive statistics deals with collecting, descriptive statistics deals with collecting, summarizing, and summarizing, and simplifying data, which are otherwise simplifying data, which are otherwise quite unwieldy and voluminous. It seeks to achieve this quite unwieldy and voluminous. It seeks to achieve this in a manner that meaningful conclusions can be readily in a manner that meaningful conclusions can be readily drawn from the data. Descriptive statistics may thus be drawn from the data. Descriptive statistics may thus be seen as comprising methods of bringing out and seen as comprising methods of bringing out and highlighting the latent characteristics present in a set of highlighting the latent characteristics present in a set of numerical data. It not only facilitates an understanding of numerical data. It not only facilitates an understanding of the data and systematic reporting thereof in a manner; the data and systematic reporting thereof in a manner; and also makes them amenable to further discussion, and also makes them amenable to further discussion, analysis, and interpretations.analysis, and interpretations.

Inferential statisticsInferential statistics

Inferential statistics, also known as inductive Inferential statistics, also known as inductive statistics, goes beyond describing a statistics, goes beyond describing a given problem given problem situation by means of collecting, summarizing, and situation by means of collecting, summarizing, and meaningfully presenting the related data. Instead, it meaningfully presenting the related data. Instead, it consists of methods that are used for drawing inferences, consists of methods that are used for drawing inferences, or making broad generalizations, about a totality of or making broad generalizations, about a totality of observations on the basis of knowledge about a part of observations on the basis of knowledge about a part of that totality. The totality of observations about which an that totality. The totality of observations about which an inference may be drawn, or a generalization made, is inference may be drawn, or a generalization made, is called a population or a universe. The part of totality, called a population or a universe. The part of totality, which is observed for data collection and analysis to gain which is observed for data collection and analysis to gain knowledge about the population, is called a sample.knowledge about the population, is called a sample.

STATISTICS IN BUSINESS AND STATISTICS IN BUSINESS AND MANAGEMENTMANAGEMENT

With the growing size and ever-increasing With the growing size and ever-increasing competition, the problems of business competition, the problems of business enterprise are becoming complex. And it enterprise are becoming complex. And it has become necessary for the executives has become necessary for the executives to rely more and more on elaborate to rely more and more on elaborate information system instead of their information system instead of their intuition. And it is here that statistical data intuition. And it is here that statistical data and statistical methods play a very and statistical methods play a very significant role.significant role.

Some of the major areas of Business Some of the major areas of Business Operations where Statistics have been Operations where Statistics have been extensively and affectively used are as extensively and affectively used are as follows:follows:

ProductionProduction MarketingMarketing PurchasingPurchasing InvestmentInvestment BankingBanking Quality controlQuality control

EnvironmentAgriculture,

Ecology, Forestry,Animal Populations

GovernmentCensus, Law,

National Defense

PhysicalSciences

Astronomy,Chemistry, Physics

Areas where STATISTICS

are used

Health & Medicine

Genetics, Clinical Trials,Epidemiology,Pharmacology

BusinessEconomics, Engineering,

Marketing,Computer Science

Collecting data on subsets of the population Collecting data on subsets of the population (samples) can give valid information about the (samples) can give valid information about the whole population.whole population.

Knowing what has happened in the past can Knowing what has happened in the past can help answer questions about the present and help answer questions about the present and future. future.

Knowledge helps plan future tests, determines Knowledge helps plan future tests, determines resource allocation, and improves quality.resource allocation, and improves quality.

Why Study Statistics?Why Study Statistics?

Study the safety of Study the safety of nuclear powernuclear power plants plants

Evaluate the environmental impact of Evaluate the environmental impact of pollutionpollution

Determine the effectiveness of new Determine the effectiveness of new drugsdrugs

Estimate the India’s Estimate the India’s unemploymentunemployment rate rate

Analyze Analyze consumer demandconsumer demand for products for products

Plan and analyze Plan and analyze agriculturalagricultural experiments experiments

What We can do with the What We can do with the help of Statistics? help of Statistics?

ManufacturingManufacturing Build products and deliver Build products and deliver

services that satisfy services that satisfy consumers and increase the consumers and increase the corporation’s profit margincorporation’s profit margin

Business and IndustryBusiness and Industry

MarketingMarketing Design experiments for new Design experiments for new

products, conduct focus products, conduct focus groups and sample surveys, groups and sample surveys, and perform field experiments and perform field experiments in test markets to determine in test markets to determine product viabilityproduct viability

Business and IndustryBusiness and Industry

EngineeringEngineering Make a consistent product, Make a consistent product,

detect problems, minimize detect problems, minimize waste, and predict product life waste, and predict product life in electronics, chemicals, in electronics, chemicals, aerospace, pollution control, aerospace, pollution control, construction, and other construction, and other industriesindustries

Business and IndustryBusiness and Industry

Statistical ComputingStatistical Computing Work in software design and Work in software design and

development, testing, quality development, testing, quality assurance, technical support, assurance, technical support, education, marketing, and sales to education, marketing, and sales to develop code that is both user-develop code that is both user-friendly and sufficiently complexfriendly and sufficiently complex

Business and IndustryBusiness and Industry

EpidemiologyEpidemiology Work on calculating cancer Work on calculating cancer

incidence rates, monitor incidence rates, monitor disease outbreaks, and disease outbreaks, and monitor changes in health-monitor changes in health-related behaviors such as related behaviors such as smoking and physical activitysmoking and physical activity

Health and MedicineHealth and Medicine

Public HealthPublic Health Prevent disease, prolong life, Prevent disease, prolong life,

and promote health through and promote health through organized community efforts, organized community efforts, including sanitation, hygiene including sanitation, hygiene education, diagnoses, and education, diagnoses, and preventative treatmentpreventative treatment

Health and MedicineHealth and Medicine

PharmacologyPharmacology Work in drug discovery, Work in drug discovery,

development, approval, and development, approval, and marketing, to ensure the validity marketing, to ensure the validity and accuracy of findings at all and accuracy of findings at all stages of the processstages of the process

Health and MedicineHealth and Medicine

GeneticsGenetics Label possible indicators of Label possible indicators of

genetic abnormalities, such genetic abnormalities, such as birth defects and early as birth defects and early aging, or breed desirable aging, or breed desirable characteristics in plant characteristics in plant offspringoffspring

Health and MedicineHealth and Medicine

EducationEducation Teach K-12 through post-Teach K-12 through post-

graduate students, assess graduate students, assess teacher effectiveness, or teacher effectiveness, or develop statistical models to develop statistical models to represent student learningrepresent student learning

LearningLearning

Science Writing & Science Writing &

JournalismJournalism Work with mass media, Work with mass media,

universities, and corporations to universities, and corporations to produce news briefs, articles, produce news briefs, articles, news releases, and other reportsnews releases, and other reports

LearningLearning

GovernmentGovernment Work in regulations for stock Work in regulations for stock

trading, pollution, and drug trading, pollution, and drug approvals, or testify in court approvals, or testify in court proceedings, congressional proceedings, congressional hearings, and lobbying hearings, and lobbying argumentsarguments

ResearchResearch

Survey MethodsSurvey Methods Collect data in the social Collect data in the social

sciences, education, law, sciences, education, law, forestry, agriculture, forestry, agriculture, biology, medicine, biology, medicine, business, and business, and e-commerce, and for the e-commerce, and for the governmentgovernment

ResearchResearch

LawLaw Analyze data in court cases, Analyze data in court cases,

including DNA evidence, including DNA evidence, salary discrepancies, salary discrepancies, discrimination law suits, and discrimination law suits, and disease clustersdisease clusters

Social StatisticsSocial Statistics

ConsultingConsulting Work on a temporary basis Work on a temporary basis

on a variety of projects on a variety of projects including quality including quality improvement, improvement, pharmaceuticals, ecology, pharmaceuticals, ecology, and engineeringand engineering

Social StatisticsSocial Statistics

AgricultureAgriculture Study chemical pesticides, Study chemical pesticides,

hydrogeology, veterinary hydrogeology, veterinary sciences, genetics, and crop sciences, genetics, and crop management in order to management in order to ensure optimal yieldensure optimal yield

Natural ResourcesNatural Resources

EcologyEcology Address questions about Address questions about

the earth’s natural the earth’s natural environment, including environment, including animal populations, animal populations, agricultural protections, agricultural protections, and fertilizer and pesticide and fertilizer and pesticide safetysafety

Natural ResourcesNatural Resources

SkillsSkills

Quantitative SkillsQuantitative Skills

Statistics, Mathematics, ScienceStatistics, Mathematics, Science Problem Solving SkillsProblem Solving Skills

Analysis, TeamworkAnalysis, Teamwork Communication SkillsCommunication Skills

Verbal, WrittenVerbal, Written Computer Programming LanguagesComputer Programming Languages

Foundation in Field of ApplicationFoundation in Field of Application

OpportunitiesOpportunities

DiversityDiversity

Pure ResearchPure Research

Interdisciplinary TeamsInterdisciplinary Teams

AdvancementAdvancement

Experience, education, and communication skills Experience, education, and communication skills

lead to professional advancementlead to professional advancement

VersatilityVersatility

Challenging and Exciting Fields of ApplicationChallenging and Exciting Fields of Application