econ 214 elements of statistics for economists · 2017-02-22 · •“statistical thinking will...
TRANSCRIPT
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College of Education
School of Continuing and Distance Education 2014/2015 – 2016/2017
ECON 214
Elements of Statistics for
Economists
Session 1 – Introduction to Statistics
Lecturer: Dr. Bernardin Senadza, Dept. of Economics Contact Information: [email protected]
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Session Overview
• Statistics is a subject which can be (and is) applied to every aspect of human endeavour, including business and economics.
• This session seeks to introduce students to the definition, importance, and types of statistics.
• At the end of the session, the student will
– Define what is meant by statistics
– Explain what is meant by descriptive statistics and inferential statistics
– Distinguish between a qualitative variable and a quantitative variable
– Distinguish between a discrete variable and a continuous variable
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Session Outline
The key topics to be covered in the session are as follows: • What is statistics?
• Why study statistics?
• Types of statistics
• Data and variables
• Sources of data
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Reading List
• Michael Barrow, “Statistics for Economics, Accounting and Business Studies”, 4th Edition, Pearson
• R.D. Mason , D.A. Lind, and W.G. Marchal, “Statistical Techniques in Business and Economics”, 10th Edition, McGraw-Hill
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WHAT IS STATISTICS? Topic One
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WHAT IS STATISTICS?
• There are two definitions of statistics – The first refers to numbers or data
– The second refers to a method of study or an art
• This course is concerned with the second definition even though we shall be making use of data or numbers (the first definition).
• Statistics is the science of collecting, organizing, presenting, analyzing and interpreting data to assist in more effective decisions.
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WHY STUDY STATISTICS? Topic Two
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WHY STUDY STATISTICS?
• “Statistical thinking will one day be as necessary for efficient citizenship as the ability to read and write.” – H.G. Wells.
• Statistical principles can be used to address important issues in science, business, economics as well as questions from daily life.
• Some of the questions statistics can answer are – Do mobile phones cause cancer? – Is the economy growing? – Should I invest my money in stocks or in mutual finds? – Which political party is likely to win the next election?
• Indeed it is impossible for one to function today as a manager without a good foundation in statistics.
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TYPES OF STATISTICS Topic Three
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TYPES OF STATISTICS
• There are two types of statistics – 1) Descriptive statistics; and 2) Inferential statistics.
• Descriptive statistics refers to methods used to summarize information, which would otherwise be too complex to take in, by means of techniques such as averages and graphs.
• Inferential statistics or statistical inference concerns the relationship between a sample data and the population – That is, drawing conclusions (inference) about a population
based on a sample taken from that population.
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TYPES OF STATISTICS
• Population refers to a collection of all the elements (individuals, objects, etc.) that are of interest or belong to a defined group.
• The process of collecting information on all the elements in a defined population is called a census.
• A sample is a subset or a part of the population. • Samples are usually taken to obtain the required
information because it could be very expensive and time consuming to try to obtain complete data concerning the population.
• Sample data is usually obtained through surveys.
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TYPES OF STATISTICS CONT’D
• A summary measure for population data is called a (population) parameter.
• A summary measure for sample data is called a (sample) statistic.
• For instance, if we take Ghana as a population, then the average income of Ghanaians is a parameter (population average)
• In the same way, following from the above illustration, if we take Eastern region, then the average income of the region is a statistic (sample average)
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DATA AND VARIABLES Topic Four
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DATA AND VARIABLES
• Data is a set of measurements or observations taken on a group of objects – For example, we might be interested in taking information on the
age, height, weight and gender of all ECON 214 students enrolled in the Distance programme.
• A variable is a characteristic of an object – Example, height. Note that if we take information on a variable
(such as height), we obtain data
• Data collected on only one variable is called univariate data
• Data collected on more than one variable is called multivariate data Slide 14
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DATA AND VARIABLES
• Data can be quantitative or qualitative.
• Quantitative data is numeric (i.e. numbers) in nature. – Example, weight, family income, number of bottles of beer
consumed in a day.
• Qualitative data is non-numeric and describes an attribute of the variable. – Example, gender, religion, marital status.
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DATA AND VARIABLES
• Quantitative variables are either discrete or continuous – Discrete variables take on a limited set of distinct values, such
as whole numbers. Example, • Number of children in a family
• Years of school completed
• Number of rooms in a building
– Discrete variables result from counting
– Continuous variables can take on any number/value within a defined range. Example, • Height
• Income
– Typically, continuous variables result from measurement.
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DATA AND VARIABLES CONT’D
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Qualitative or attribute
(type of car owned)
discrete
(number of children)
continuous
(time taken for an exam)
Quantitative or numerical
DATA
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SOURCES OF DATA
• Topic Five
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SOURCES OF DATA
• Data can come from various sources; – From records of the firm/organisation (internal) – From sources outside the firm/organisation (external) – These days a lot of data in obtained from the internet
• Often relevant data is not available in the internal records of an organisation or in external published sources and may have to obtained through a survey, especially using a questionnaire.
• A survey may be carried out with respect to an entire population or just a sample.
• Typically, surveys are carried out using a sample for which reason they are usually called sample surveys.
• When a survey is carried out with respect with an entire population it is called a census.
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References
• Michael Barrow, “Statistics for Economics, Accounting and Business Studies”, 4th Edition, Pearson
• R.D. Mason , D.A. Lind, and W.G. Marchal, “Statistical Techniques in Business and Economics”, 10th Edition, McGraw-Hill
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