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introductory statistics for economists lecture 3

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Intro to statistics

Lecture 3

Statistical terminology

- Parameter – a characteristic, feature or measurable factor that can help in defining a particular system. A
numerical summary about the population
- Statistics – rarely know true parameters so use statistics; a numerical summary of sample data

Statistical notation

- Σ - sigma – meaning to sum
- Π - pi – meaning to multiply




Descriptive statistics/ summary statistics

- Describe or summarise data and used to measure;
- Central tendency – mean, median and mode. } two most commonly used measures in descriptive
- Dispersion – range, standard deviation and variance } stats. Tell how clustered around centre data is and
how spread out
- Shape of distribution – skewness

Central tendency

- Tells what typical or average observation in sample looks like
- Gives idea where observations are clustered
- Allows comparison between groups
- Provides broad picture of whats normal or most likely

The Mode

- Used for categorical or count variables
- Simply most frequent or commonly occurring value

The mean

- Most common – average
- For interval or continuous level data
- Mean = ΣXi / n
- Can be influenced by extremes so important to look at frequency distribution

The median

- Middle value after we have ordered the data
- Order data from smallest to largest
- Consider whther n (no. Of observations) is odd or even
- If odd – median is centre observation

Document information

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Unknown
Uploaded on
March 27, 2023
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Written in
2022/2023
Type
Lecture notes
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Diego ruiz
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Lecture 3
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