Statistics Notes (Unique & Concise)
1. Introduction to Statistics
Definition: Statistics is the science of collecting, organizing, analyzing, and
interpreting data to support decision-making.
Types:
o Descriptive Statistics → Summarizes data (tables, graphs, averages).
o Inferential Statistics → Draws conclusions from samples about populations.
2. Data & Its Types
Qualitative (Categorical): Non-numerical (e.g., gender, color).
Quantitative (Numerical): Numerical values.
o Discrete → Countable (no decimals) → e.g., number of students.
o Continuous → Measurable (can take decimals) → e.g., height, weight.
3. Scales of Measurement
1. Nominal → Labels only (e.g., blood group).
2. Ordinal → Order but no equal spacing (e.g., ranks).
3. Interval → Order + equal spacing, but no true zero (e.g., temperature in °C).
4. Ratio → Order + equal spacing + true zero (e.g., weight, income).
4. Data Presentation
Tabular → Frequency tables.
Graphical → Bar chart, histogram, pie chart, ogive, scatter plot.
5. Measures of Central Tendency
Mean (Average):
Xˉ=ΣXN\bar{X} = \frac{\Sigma X}{N}Xˉ=NΣX
Median: Middle value when data is arranged.
Mode: Most frequent value.
6. Measures of Dispersion
Range = Max − Min.
Variance:
σ2=Σ(X−Xˉ)2N\sigma^2 = \frac{\Sigma (X - \bar{X})^2}{N}σ2=NΣ(X−Xˉ)2
Standard Deviation (SD) = √Variance.
Coefficient of Variation (CV) = (SD / Mean) × 100%.
7. Probability Basics
Probability (P) = (Favorable outcomes ÷ Total outcomes).
Rules:
o P(A∪B)=P(A)+P(B)−P(A∩B)P(A ∪ B) = P(A) + P(B) - P(A ∩
o 0≤P(A)≤10 ≤ P(A) ≤ 10≤P(A)≤1
B)P(A∪B)=P(A)+P(B)−P(A∩B)
o If independent → P(A∩B)=P(A)×P(B)P(A ∩ B) = P(A) ×
P(B)P(A∩B)=P(A)×P(B).
8. Probability Distributions
Discrete: Binomial, Poisson.
Continuous: Normal distribution (bell-shaped).
👉 Normal Distribution Formula:
f(x)=1σ2πe−(x−μ)22σ2f(x) = \frac{1}{\sigma \sqrt{2\pi}} e^{-\frac{(x - \mu)^2}{2\
sigma^2}}f(x)=σ2π1e−2σ2(x−μ)2
9. Correlation & Regression
Correlation: Measures strength of relationship between two variables.
o r (Pearson’s coefficient): −1 ≤ r ≤ +1.
Regression: Predicts value of dependent variable (Y) using independent (X).
o Equation: Y=a+bXY = a + bXY=a+bX.
10. Hypothesis Testing
1. Formulate H₀ (null) and H₁ (alternative).
2. Select significance level (α), usually 0.05.
3. Choose test statistic (Z, t, χ², F).
4. Decision rule → Reject or accept H₀.
11. Sampling Techniques
Probability Sampling: Simple random, stratified, systematic, cluster.
Non-Probability Sampling: Convenience, judgment, quota, snowball.
12. Index Numbers
Measures change in prices/quantities over time.
Formula (Laspeyres Price Index):
PL=Σ(p1q0)Σ(p0q0)×100P_L = \frac{\Sigma (p_1 q_0)}{\Sigma (p_0 q_0)} \times
100PL=Σ(p0q0)Σ(p1q0)×100
