You can click the link Section 1.1 to access the online version of this section of the textbook. Below is an edited version of section 1.1.
Definitions of Statistics
The science of statistics deals with the collection, analysis, interpretation, and presentation of data. We see and use data in our everyday lives.
COLLABORATIVE EXERCISEIn your classroom, try this exercise. Have class members write down the average time (in hours, to the nearest halfhour) they sleep per night. Your instructor will record the data. Then create a simple graph (called a dot plot) of the data. A dot plot consists of a number line and dots (or points) positioned above the number line.
The questions above ask you to analyze and interpret your data. With this example, you have begun your study of statistics. 
In this course, you will learn how to organize and summarize data. Organizing and summarizing data is called descriptive statistics. Two ways to summarize data are by graphing and by using numbers (for example, finding an average). After you have studied probability and probability distributions, you will use formal methods for drawing conclusions from “good” data. The formal methods are called inferential statistics. Statistical inference uses probability to determine how confident we can be that our conclusions are correct.
Effective interpretation of data (inference) is based on good procedures for producing data and thoughtful examination of the data. You will encounter what will seem to be too many mathematical formulas for interpreting data. The goal of statistics is not to perform numerous calculations using the formulas, but to gain an understanding of your data. The calculations can be done using a calculator or a computer. The understanding must come from you. If you can thoroughly grasp the basics of statistics, you can be more confident in the decisions you make in life.
Key Terms
In statistics, we generally want to study a population. You can think of a population as a collection of persons, things, or objects under study. To study the population, we select a sample. The idea of sampling is to select a portion (or subset) of the larger population and study that portion (the sample) to gain information about the population. Data are the result of sampling from a population.
Because it takes a lot of time and money to examine an entire population, sampling is a very practical technique. If you wished to compute the overall grade point average at your school, it would make sense to select a sample of students who attend the school. The data collected from the sample would be the students’ grade point averages. In presidential elections, opinion poll samples of 1,000–2,000 people are taken. The opinion poll is supposed to represent the views of the people in the entire country. Manufacturers of canned carbonated drinks take samples to determine if a 16 ounce can contains 16 ounces of carbonated drink.
From the sample data, we can calculate a statistic. A statistic is a number that represents a property of the sample. For example, if we consider one math class to be a sample of the population of all math classes, then the average number of points earned by students in that one math class at the end of the term is an example of a statistic. The statistic is an estimate of a population parameter. A parameter is a numerical characteristic of the whole population that can be estimated by a statistic. Since we considered all math classes to be the population, then the average number of points earned per student over all the math classes is an example of a parameter.
One of the main concerns in the field of statistics is how accurately a statistic estimates a parameter. The accuracy really depends on how well the sample represents the population. The sample must contain the characteristics of the population in order to be a representative sample. We are interested in both the sample statistic and the population parameter in inferential statistics. In a later chapter, we will use the sample statistic to test the validity of the established population parameter.
A variable is a characteristic or measurement that can be determined for each member of a population. Variables may be quantitative or qualitative. Quantitative variables take on values with equal units such as weight in pounds and time in hours. Qualitative variables place the person or thing into a category. If we let X equal the number of points earned by one math student at the end of a term, then X is a quantitative variable. If we let Y be a person’s party affiliation, then some examples of Y include Republican, Democrat, and Independent. Y is a qualitative variable. We could do some math with values of X (calculate the average number of points earned, for example), but it makes no sense to do math with values of Y (calculating an average party affiliation makes no sense).
Data are the actual values of the variable. They may be numbers or they may be words. Two words that come up often in statistics are mean and proportion. If you were to take three exams in your math classes and obtain scores of 86, 75, and 92, you would calculate your mean score by adding the three exam scores and dividing by three (your mean score would be 84.3 to one decimal place). If, in your math class, there are 40 students and 22 are men and 18 are women, then the proportion of men students is 18/40 and the proportion of women students is 22/40. Mean and proportion are discussed in more detail in later chapters.
Example 1.1 Determine what the key terms refer to in the following study. “We want to know the average (mean) amount of money first year college students spend at Guttman on school supplies that do not include books. We randomly surveyed 100 first year students at the college. Three of those students spent $50, $200, and $225, respectively.”

Solution 1.1
The population is all first year students attending ABC College this term. The sample could be all students enrolled in one section of a beginning statistics course at ABC College (although this sample may not represent the entire population). The parameter is the average (mean) amount of money spent (excluding books) by first year college students at ABC College this term. The statistic is the average (mean) amount of money spent (excluding books) by first year college students in the sample. The variable could be the amount of money spent (excluding books) by one first year student. Let X = the amount of money spent (excluding books) by one first year student attending ABC College. The data are the dollar amounts spent by the first year students. Examples of the data are $150, $200, and $225. 
Try It 1.1
Determine what the key terms refer to in the following study. “We want to know the average (mean) amount of money spent on school uniforms each year by families with children at Knoll Academy. We randomly survey 100 families with children in the school. Three of the families spent $65, $75, and $95, respectively.”

Example 1.2Determine what the key terms refer to in the following study. “A study was conducted at a local college to analyze the average cumulative GPA’s of students who graduated last year.” Fill in the letter of the phrase that best describes each of the items below. 1. Population_____ 2. Statistic _____ 3. Parameter _____ 4. Sample _____ 5. Variable _____ 6. Data _____

1. f; 2. g; 3. e; 4. d; 5. b; 6. c
Example 1.3Determine what the key terms refer to in the following study. “As part of a study designed to test the safety of automobiles, the National Transportation Safety Board collected and reviewed data about the effects of an automobile crash on test dummies. Here is the criterion they used:
Cars with dummies in the front seats were crashed into a wall at a speed of 35 miles per hour. We want to know the proportion of dummies in the driver’s seat that would have had head injuries, if they had been actual drivers. We start with a simple random sample of 75 cars.” 
The population is all cars containing dummies in the front seat.
The sample is the 75 cars, selected by a simple random sample.
The parameter is the proportion of driver dummies (if they had been real people) who would have suffered head injuries in the population.
The statistic is proportion of driver dummies (if they had been real people) who would have suffered head injuries in the sample.
The variable X = the number of driver dummies (if they had been real people) who would have suffered head injuries.
The data are either: yes, had head injury, or no, did not.
Example 1.4 Determine what the key terms refer to in the following study. “An insurance company would like to determine the proportion of all medical doctors who have been involved in one or more malpractice lawsuits. The company selects 500 doctors at random from a professional directory and determines the number in the sample who have been involved in a malpractice lawsuit.” 
The population is all medical doctors listed in the professional directory.
The parameter is the proportion of medical doctors who have been involved in one or more malpractice suits in the population.
The sample is the 500 doctors selected at random from the professional directory.
The statistic is the proportion of medical doctors who have been involved in one or more malpractice suits in the sample.
The variable X = the number of medical doctors who have been involved in one or more malpractice suits.
The data are either: yes, was involved in one or more malpractice lawsuits, or no, was not.
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