Lecture 10
Eddy Lam
Department of Statistics and Actuarial Science
What is statistics?
The term statistics is ultimately derived from the New
Latin statisticum collegium ("council of state") and
the Italian word statista ("statesman" or "politician").
The German Statistik, first introduced in 1749,
originally designated the analysis of data about
the state, signifying the "science of state" (then
called "political arithmetic" in English or Official
Statistics of the Government).
The scope of the discipline of statistics broadened in
the early 19th century to include the collection and
analysis of data in general. Today, statistics is widely
employed in government, business, and natural and
social sciences.
What is statistics?
What is statistics?
Source: http://populationpyramid.net/hong-kong-sar-china/2050/
What is statistics?
According to the Oxford Dictionary of
Statistical Terms (2003), Statistics is the study
of the collection, organization, presentation,
analysis, and interpretation of data.
There are many different kinds of surveys
going on everyday.
For example: election
Red Republican
Blue - Democratic
Source: http://en.wikipedia.org/wiki/United_States_elections,_2014
Survey
Statistics
Japanese women &
Hong Kong men
live Longest in the
world
Someone drew a
conclusion that:
In Japan, men yell
at women while in
Hong Kong, men
are yelled by
women
A. Egg puffs
E. Fish ball
Foodtank, 2006.
Pickupcafe, 2008.
Nipic, 2011.
Foodtank, 2006.
Pickupcafe, 2008.
Nipic, 2011.
31431
21434
13732
13702
11047
1st Choice
2nd Choice
3rd Choice
4th Choice
5th Choice
Foodtank, 2006.
Pickupcafe, 2008.
Nipic, 2011.
Wikipeida, 2012.
Wikipeida, 2012.
(Deduction)
Experimental
Test
Confirmation
or Falsification
Statistics is particularly useful and has been extremely successful in proving
Interpretations?
Do you know that the great majority of
people have more than the average
number of legs?
It's obvious really; amongst the 7
million people in Hong Kong there are
probably 1,000 people who have only
got one leg.
Therefore the average number of legs is
(10001) + (6,999,0002)
7,000,000
= 1.999857...
Wikipeida, 2012.
What is Statistics?
Source: http://www.cafepress.com/+funny_math_statistics_poster,573965856
Interpretations?
It is proven that the celebration of birthdays is
healthy!
Weddingcake.name, 2012.
NickRay2, 2012.
Interpretations?
The Japanese eat very little fat and suffer fewer heart
attacks than the British or the Americans.
On the other hand, the French eat a lot of fat and
also suffer fewer heart attacks than the British or the
Americans.
The Japanese drink very little red wine and suffer
fewer heart attacks than the British or the
Americans.
The Italians drink excessive amounts of red wine and
also suffer fewer heart attacks than the British or the
Americans.
Conclusion: Eat and drink whatever you like! It's
speaking English that kills you.
Englishblog, 2012.
Correlation OR Causation?!
Statistics showed that 95% of young people
have low back and neck pain
Source:https://steynian.wordpress.com/category/preachery/
Source: http://www.cospt.net/?portfolio=low-back-and-neck-pain-assessment-and-treatment
Correlation OR Causation?
Eddy has low back and neck pain!
What is the implication?
There is a 95% chance that Eddy is a young
man.
What is statistics?
The mathematical foundations of statistics were
laid in the 17th century with the development of
probability theory by Blaise Pascal and
Pierre de Fermat.
Probability theory arose from the study of
games of chance because of a gambler.
Gamblers problem
The well-known gamblers problem:
http://youtu.be/_hLbnscj8UQ
Time : Year 1654
Place : France
Person : C. de Mr
Probability
Game 1 : Mr bets even money that he would throw
at least one six in four throws of a die (i.e., Mr will win
if at least one six turns out in four throws).
Game 2 : Mr bets even money that a double-six
would appear at least once if he were given twenty-four
throws of two dice.
Mr believed that these two games are indifferent
according to the following argument :
Game 1
Game 2
No. of possible
outcomes
6
6 x 6 = 36
No. of throws
4
6 x 4 = 24
Probability
Mrs calculation
Pr "6" =
1
6
4
6
Pr "6" 4 = =
Pr "6" =
1
36
2
3
Pr 1 "6" 24 =
24
36
2
3
Probability
Mr suffered tremendous loss and posed the problem to a young
French mathematician named B. Pascal.
Pascal had discussed this problem with another mathematician, P.
de Fermat.
Through their discussions they not only came up with a convincing
and self-consistent solution to this problem
4
5
= 0.51775
Pr(Mr wins in game 1) = 1
6
35
Pr(Mr wins in game 2) = 1
36
24
= 0.4914
Probability
To most people, probability is a loosely
defined term employed in everydays
conversations to indicate the measure of ones
belief in the occurrence of a future event.
In the U.S. and many other countries, the
weather report even forecasts the
probabilities of precipitation for the next day.
Probability
Definition 1: A random experiment is a
process leading to at least two possible
outcomes with uncertainty as to which will
occur.
Examples are:
(a) Tossing a coin;
(b) Tossing a die;
(c) Asking a student on whether s/he likes this
course or not;
(d) Rise or fall of todays HSI.
Probability
Definition 2: The possible outcomes of a
random experiment are called the basic
outcomes, and the set of all basic outcomes is
called the sample space, S.
Examples:
(a) S = { H, T };
(b) S = { 1, 2, 3, 4, 5, 6 };
(c) S = { Yes, So So, No };
(d) S = { up, down }.
Probability
Definition 3: An event is a set of basic
outcomes, or a collection of some basic
outcomes from the sample space S, and it is
said to occur if the random experiment gives
rise to one of its constituent basic outcomes.
Obtaining an even number is an event in the
die tossing experiment as it consists the basic
outcomes {2, 4, 6}.
Example 1
(Tossing coins) What is the sample space for the
experiment of tossing a fair coin once, twice and
three times?
Axioms of Probability
1. If A is any event in the sample space S, then
0.0 P(A) 1.0.
2. Let A be an event in S, and let denote the
basic outcomes (basic outcomes are mutually
exclusive), then A = A ( )
Or
3. = 1.
= =1 ( ) .
Example 4
(Rolling dice) When you roll two balanced dice together,
you can get 36 equally likely outcomes, as shown below.
What is the probability of
(a) obtaining a sum of 2;
P a sum of 2 =
1
= 0.027778
36
5
P a sum of 6 =
= 0.138889
36
Figures from:
Introductory Statistics. 9th ed. Neil A. Weiss. Boston: Pearson, 2012. P147
6
1
P the same number =
= = 0.16667
36 6
Example 5
(Drawing cards) A card is selected at random from a deck of
52 cards.
Figures from:
Introductory Statistics. 9th ed. Neil A. Weiss. Boston: Pearson, 2012. p153,154
Cont. Example 5
(b) drawing an Ace;
4
1
P drawing an Ace =
=
= 0.076923
52 13
(c) drawing a face card (J/Q/K)?
Let E denotes the event of drawing a face card in a deck or
cards,
34
3
P E =
=
= 0.23077
52
13
= .
4888
10000
= 0.4888.