Economics Statistics notes

INSTITUTE FOR OPEN LEARNING

KENYATTA UNIVERSITY




ECON 232: ECONOMIC STATSTICS I

, TABLE OF CONTENTS


LESSON ONE .................................................................................................................. 1
STATISTICS-I .............................................................................................................. 1
LESSON TWO ................................................................................................................. 7
STATISTICS - II ........................................................................................................... 7
LESSON THREE ........................................................................................................... 13
CLASSIFICATION AND PRESENTATION OF DATA-I ....................................... 13
LESSON FOUR ............................................................................................................. 20
CLASSIFICATION AND PRESENTATION OF DATA -II ..................................... 20
LESSON FIVE ............................................................................................................... 24
CLASSIFICATION AND PRESENTATION OF DATA-III .................................... 24
LESSON SEVEN ........................................................................................................... 33
CLASSIFICATION AND PRESENTATION OF DATA -IV ................................... 33
LESSON EIGHT ............................................................................................................ 39
MEASURES OF CENTRAL TENDENCY-I ............................................................. 39
LESSON NINE .............................................................................................................. 50
MEASURES OF CENTRAL TENDENCY-II ........................................................... 50
LESSON TEN ................................................................................................................ 56
MEASURES OF CENTRAL TENDENCY-III .......................................................... 56
LESSON ELEVEN ........................................................................................................ 63
MEASURES OF CENTRAL TENDENCY-IV .......................................................... 63
LESSON TWELVE ........................................................................................................ 68
MEASURES OF DISPERSION-I ............................................................................... 68
LESSON THIRTEEN .................................................................................................... 73
MEASURES OF DISPERSION-II ............................................................................. 73
LESSON FOURTEEN ................................................................................................... 85
SHAPE OF FREQUENCY DISTRIBUTIONS .......................................................... 85
LESSON FIFTEEN ........................................................................................................ 94
PROBABILITY - I ...................................................................................................... 94
LESSON SIXTEEN ....................................................................................................... 99
PROBABILITY - II .................................................................................................... 99
LESSON SEVENTEEN ............................................................................................... 106

, PROBABILITY - III ................................................................................................. 106
LESSON EIGHTEEN .................................................................................................. 112
PROBABILITY - IV ................................................................................................. 112
LESSON NINETEEN .................................................................................................. 117
DISCRETE PROBABILITY DISTRIBUTIONS ..................................................... 117
LESSON TWENTY ..................................................................................................... 129
CONTINUOUS PROBABILITY DISTRIBUTIONS: THE NORMAL
DISTRIBUTION ....................................................................................................... 129
REFERENCES .......................................................................................................... 136

, 1


LESSON ONE
STATISTICS-I


OBJECTIVES

At the end of this lesson, the student should be able to understand

• The meaning of statistics

• Steps in a statistical enquiry

• Types of statistics



STATISTICS


Statistics has two distinct meanings:

➢ Facts which can be put into a numerical form, e.g. Unemployment statistics,

population statistics

➢ Statistical Methods

Bowley describes statistical methods as devices for abbreviating and classifying

numeral statements of facts in any department of enquiry and making clear the

relations existing between them.

The meaning of statistics is derived from its being taken as a plural or singular noun. In

singular, statistics is taken to mean methods and theories that are applied in the analysis

of numerical data for the purpose of making rational decisions. In plural, statistics are

aggregate of facts, affected to a marked extent by multiplicity of causes, numerically

expressed, estimated or remunerated to a reasonable degree of accuracy, systematically

collected for a predetermined purpose and placed in relation to each other.