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Statistics For Dummies®

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Introduction

You get hit with an incredible amount of statistical information on a daily basis. You know what I’m talking about: charts, graphs, tables, and headlines that talk about the results of the latest poll, survey, experiment, or other scientific study. The purpose of this book is to develop and sharpen your skills in sorting through, analyzing, and evaluating all that info, and to do so in a clear, fun, and pain-free way. You also gain the ability to decipher and make important decisions about statistical results (for example, the results of the latest medical studies), while being ever aware of the ways that people can mislead you with statistics. And you see how to do it right when it’s your turn to design the study, collect the data, crunch the numbers, and/or draw the conclusions.

This book is also designed to help those of you out there who are taking an introductory statistics class and can use some back-up. You’ll gain a working knowledge of the big ideas of statistics and gather a boatload of tools and tricks of the trade that’ll help you get ahead of the curve when you take your exams.

This book is chock-full of real examples from real sources that are relevant to your everyday life — from the latest medical breakthroughs, crime studies, and population trends to the latest U.S. government reports. I even address a survey on the worst cars of the millennium! By reading this book, you’ll understand how to collect, display, and analyze data correctly and effectively, and you’ll be ready to critically examine and make informed decisions about the latest polls, surveys, experiments, and reports that bombard you every day. You even find out how to use crickets to gauge temperature!

You also get to enjoy poking a little fun at statisticians (who take themselves too seriously at times). After all, with the right skills and knowledge, you don’t have to be a statistician to understand introductory statistics.

About This Book

This book departs from traditional statistics texts, references, supplemental books, and study guides in the following ways:

Conventions Used in This Book

You should be aware of three conventions as you make your way through this book:

Here are a few other basic conventions to help you navigate this book:

What You’re Not to Read

I like to think that you won’t skip anything in this book, but I also know you’re a busy person. So to save time, feel free to skip anything marked with the Technical Stuff icon as well as text in sidebars (the shaded gray boxes that appear throughout the book). These items feature information that’s interesting but not crucial to your basic knowledge of statistics.

Foolish Assumptions

I don’t assume that you’ve had any previous experience with statistics, other than the fact that you’re a member of the general public who gets bombarded every day with statistics in the form of numbers, percents, charts, graphs, “statistically significant” results, “scientific” studies, polls, surveys, experiments, and so on.

What I do assume is that you can do some of the basic mathematical operations and understand some of the basic notation used in algebra, such as the variables x and y, summation signs, taking the square root, squaring a number, and so on. If you need to brush up on your algebra skills, check out Algebra I For Dummies, 2nd Edition, by Mary Jane Sterling (Wiley).

I don’t want to mislead you: You do encounter formulas in this book, because statistics does involve a bit of number crunching. But don’t let that worry you. I take you slowly and carefully through each step of any calculations you need to do. I also provide examples for you to work along with this book, so that you can become familiar and comfortable with the calculations and make them your own.

How This Book Is Organized

This book is organized into five parts that explore the major areas of introductory statistics, along with a final part that offers some quick top-ten nuggets for your information and enjoyment. Each part contains chapters that break down each major area of statistics into understandable pieces.

Part 1: Vital Statistics about Statistics

This part helps you become aware of the quantity and quality of statistics you encounter in your workplace and your everyday life. You find out that a great deal of that statistical information is incorrect, either by accident or by design. You take a first step toward becoming statistically savvy by recognizing some of the tools of the trade, developing an overview of statistics as a process for getting and interpreting information, and getting up to speed on some statistical jargon.

Part 2: Number-Crunching Basics

This part helps you become more familiar and comfortable with making, interpreting, and evaluating data displays (otherwise known as charts, graphs, and so on) for different types of data. You also find out how to summarize and explore data by calculating and combining some commonly used statistics as well as some statistics you may not know about yet.

Part 3: Distributions and the Central Limit Theorem

In this part, you get into all the details of the three most common statistical distributions: the binomial distribution, the normal (and standard normal, also known as Z-distribution), and the t-distribution. You discover the characteristics of each distribution and how to find and interpret probabilities, percentiles, means, and standard deviations. You also find measures of relative standing (like percentiles).

Finally, you discover how statisticians measure variability from sample to sample and why a measure of precision in your sample results is so important. And you get the lowdown on what some statisticians describe as the “Crowning Jewel of all Statistics”: the Central Limit Theorem (CLT). I don’t use quite this level of flourishing language to describe the CLT; I just tell my students it’s an MDR (“Mighty Deep Result”; coined by my PhD adviser). As for how my students describe their feelings about the CLT, I’ll leave that to your imagination.

Part 4: Guesstimating and Hypothesizing with Confidence

This part focuses on the two methods for taking the results from a sample and generalizing them to make conclusions about an entire population. (Statisticians call this process statistical inference.) These two methods are confidence intervals and hypothesis tests.

In this part, you use confidence intervals to come up with good estimates for one or two population means or proportions, or for the difference between them (for example, the average number of hours teenagers spend watching TV per week or the percentage of men versus women in the United States who take arthritis medicine every day). You get the nitty-gritty on how confidence intervals are formed, interpreted, and evaluated for correctness and credibility. You explore the factors that influence the width of a confidence interval (such as sample size) and work through formulas, step-by-step calculations, and examples for the most commonly used confidence intervals.

The hypothesis tests in this part show you how to use your data to test someone’s claim about one or two population means or proportions, or the difference between them. (For example, a company claims their packages are delivered in two days on average — is this true?) You discover how researchers (should) go about forming and testing hypotheses and how you can evaluate their results for accuracy and credibility. You also get detailed step-by-step directions and examples for carrying out and interpreting the results of the most commonly used hypothesis tests.

Part 5: Statistical Studies and the Hunt for a Meaningful Relationship

This part gives an overview of surveys, experiments, and observational studies. You find out what these studies do, how they are conducted, what their limitations are, and how to evaluate them to determine whether you should believe the results.

You also get all the details on how to examine pairs of numerical variables and categorical variables to look for relationships; this is the object of a great number of studies. For pairs of categorical variables, you create two-way tables and find joint, conditional, and marginal probabilities and distributions. You check for independence, and if a dependent relationship is found, you describe the nature of the relationship using probabilities. For numerical variables you create scatterplots, find and interpret correlation, perform regression analyses, study the fit of the regression line and the impact of outliers, describe the relationship using the slope, and use the line to make predictions. All in a day’s work!

Part 6: The Part of Tens

This quick and easy part shares ten ways to be a statistically savvy sleuth and root out suspicious studies and results, as well as ten surefire ways to boost your statistics exam score.

Some statistical calculations involve the use of statistical tables, and I provide quick and easy access to all the tables you need for this book in the appendix. These tables are the Z-table (for the standard normal, also called the Z-distribution), the t-table (for the t-distribution), and the binomial table (for — you guessed it — the binomial distribution). Instructions and examples for using these three tables are provided in their corresponding sections of this book.

Icons Used in This Book

Icons are used in this book to draw your attention to certain features that occur on a regular basis. Here’s what they mean:

tip This icon refers to helpful hints, ideas, or shortcuts that you can use to save time. It also highlights alternative ways to think about a particular concept.

remember This icon is reserved for particular ideas that I hope you’ll remember long after you read this book.

warning This icon refers to specific ways that researchers or the media can mislead you with statistics and tells you what you can do about it. It also points out potential problems and cautions to keep an eye out for on exams.

technicalstuff This icon is a sure bet if you have a special interest in understanding the more technical aspects of statistical issues. You can skip this icon if you don’t want to get into the gory details.

Where to Go from Here

This book is written in such a way that you can start anywhere and still be able to understand what’s going on. So you can take a peek at the table of contents or the index, look up the information that interests you, and flip to the page listed. However if you have a specific topic in mind and are eager to dive into it, here are some directions:

Or if you aren’t sure where you want to start, you may just go with Chapter 1 for the big picture and then plow your way through the rest of the book. Happy reading!

Part 1

Vital Statistics about Statistics

IN THIS PART …

When you turn on the TV or open a newspaper, you’re bombarded with numbers, charts, graphs, and statistical results. From today’s poll to the latest major medical breakthroughs, the numbers just keep coming. Yet much of the statistical information you’re asked to consume is actually wrong — by accident or even by design. How is a person to know what to believe? By doing a lot of good detective work.

This part helps awaken the statistical sleuth that lies within you by exploring how statistics affect your everyday life and your job, how bad much of the information out there really is, and what you can do about it. This part also helps you get up to speed with some useful statistical jargon.

Chapter 1

Statistics in a Nutshell

IN THIS CHAPTER

Finding out what the process of statistics is all about

Gaining success with statistics in your everyday life, your career, and in the classroom

The world today is overflowing with data to the point where anyone (even me!) can be overwhelmed. I wouldn’t blame you if you were cynical right now about statistics you read about in the media — I am too at times. The good news is that while a great deal of misleading and incorrect information is lying out there waiting for you, a lot of great stuff is also being produced; for example, many studies and techniques involving data are helping improve the quality of our lives. Your job is to be able to sort out the good from the bad and be confident in your ability to do that. Through a strong understanding of statistics and statistical procedures, you gain power and confidence with numbers in your everyday life, in your job, and in the classroom. That’s what this book is all about.

In this chapter, I give you an overview of the role statistics plays in today’s data-packed society and what you can do to not only survive but thrive. You get a much broader view of statistics as a partner in the scientific method — designing effective studies, collecting good data, organizing and analyzing the information, interpreting the results, and making appropriate conclusions. (And you thought statistics was just number-crunching!)

Thriving in a Statistical World

It’s hard to get a handle on the flood of statistics that affect your daily life in large and small ways. It begins the moment you wake up in the morning and check the news and listen to the meteorologist give you her predictions for the weather based on her statistical analyses of past data and present weather conditions. You pore over nutritional information on the side of your cereal box while you eat breakfast. At work you pull numbers from charts and tables, enter data into spreadsheets, run diagnostics, take measurements, perform calculations, estimate expenses, make decisions using statistical baselines, and order inventory based on past sales data.

At lunch you go to the No. 1 restaurant based on a survey of 500 people. You eat food that was priced based on marketing data. You go to your doctor’s appointment where they take your blood pressure, temperature, weight, and do a blood test; after all the information is collected, you get a report showing your numbers and how you compare to the statistical norms.

You head home in your car that’s been serviced by a computer running statistical diagnostics. When you get home, you turn on the news and hear the latest crime statistics, see how the stock market performed, and discover how many people visited the zoo last week.

At night, you brush your teeth with toothpaste that’s been statistically proven to fight cavities, read a few pages of your New York Times Best-Seller (based on statistical sales estimates), and go to sleep — only to start it all over again the next morning. But how can you be sure that all those statistics you encounter and depend on each day are correct? In Chapter 2, I discuss in more depth a few examples of how statistics is involved in our lives and workplaces, what its impact is, and how you can raise your awareness of it.

warning Some statistics are vague, inappropriate, or just plain wrong. You need to become more aware of the statistics you encounter each day and train your mind to stop and say “wait a minute!”, sift through the information, ask questions, and raise red flags when something’s not quite right. In Chapter 3, you see ways in which you can be misled by bad statistics and develop skills to think critically and identify problems before automatically believing results.

Like any other field, statistics has its own set of jargon, and I outline and explain some of the most commonly used statistical terms in Chapter 4. Knowing the language increases your ability to understand and communicate statistics at a higher level without being intimidated. It raises your credibility when you use precise terms to describe what’s wrong with a statistical result (and why). And your presentations involving statistical tables, graphs, charts, and analyses will be informational and effective. (Heck, if nothing else, you need the jargon because I use it throughout this book; don’t worry though, I always review it.)

In the next sections, you see how statistics is involved in each phase of the scientific method.

Designing Appropriate Studies

Everyone’s asking questions, from drug companies to biologists; from marketing analysts to the U.S. government. And ultimately, everyone will use statistics to help them answer their questions. In particular, many medical and psychological studies are done because someone wants to know the answer to a question. For example,

  • Will this vaccine be effective in preventing the flu?
  • What do Americans think about the state of the economy?
  • Does an increase in the use of social networking Web sites cause depression in teenagers?

The first step after a research question has been formed is to design an effective study to collect data that will help answer that question. This step amounts to figuring out what process you’ll use to get the data you need. In this section, I give an overview of the two major types of studies — surveys and experiments — and explore why it’s so important to evaluate how a study was designed before you believe the results.

Surveys

An observational study is one in which data is collected on individuals in a way that doesn’t affect them. The most common observational study is the survey. Surveys are questionnaires that are presented to individuals who have been selected from a population of interest. Surveys take many different forms: paper surveys sent through the mail, questionnaires on Web sites, call-in polls conducted by TV networks, phone surveys, and so on.

warning If conducted properly, surveys can be very useful tools for getting information. However, if not conducted properly, surveys can result in bogus information. Some problems include improper wording of questions, which can be misleading, lack of response by people who were selected to participate, or failure to include an entire group of the population. These potential problems mean a survey has to be well thought out before it’s given.

remember Many researchers spend a great deal of time and money to do good surveys, and you’ll know (by the criteria I discuss in Chapter 16) that you can trust them. However, as you are besieged with so many different types of surveys found in the media, in the workplace, and in many of your classes, you need to be able to quickly examine and critique how a survey was designed and conducted and be able to point out specific problems in a well-informed way. The tools you need for sorting through surveys are found in Chapter 16.

Experiments

An experiment imposes one or more treatments on the participants in such a way that clear comparisons can be made. After the treatments are applied, the responses are recorded. For example, to study the effect of drug dosage on blood pressure, one group may take 10 mg of the drug, and another group may take 20 mg. Typically, a control group is also involved, in which subjects each receive a fake treatment (a sugar pill, for example), or a standard, nonexperimental treatment (like the existing drugs given to AIDS patients.)

remember Good and credible experiments are designed to minimize bias, collect lots of good data, and make appropriate comparisons (treatment group versus control group). Some potential problems that occur with experiments include researchers and/or subjects who know which treatment they got, factors not controlled for in the study that affect the outcome (such as weight of the subject when studying drug dosage), or lack of a control group (leaving no baseline to compare the results with).

But when designed correctly, an experiment can help a researcher establish a cause-and-effect relationship if the difference in responses between the treatment group and the control group is statistically significant (unlikely to have occurred just by chance).

warning Experiments are credited with helping to create and test drugs, determining best practices for making and preparing foods, and evaluating whether a new treatment can cure a disease, or at least reduce its impact. Our quality of life has certainly been improved through the use of well-designed experiments. However, not all experiments are well-designed, and your ability to determine which results are credible and which results are incredible (pun intended) is critical, especially when the findings are very important to you. All the info you need to know about experiments and how to evaluate them is found in Chapter 17.

Collecting Quality Data

After a study has been designed, be it a survey or an experiment, the individuals who will participate have to be selected, and a process must be in place to collect the data. This phase of the process is critical to producing credible data in the end, and this section hits the highlights.

Selecting a good sample

remember Statisticians have a saying, “Garbage in equals garbage out.” If you select your subjects (the individuals who will participate in your study) in a way that is biased — that is, favoring certain individuals or groups of individuals — then your results will also be biased. It’s that simple.

Suppose Bob wants to know the opinions of people in your city regarding a proposed casino. Bob goes to the mall with his clipboard and asks people who walk by to give their opinions. What’s wrong with that? Well, Bob is only going to get the opinions of a) people who shop at that mall; b) on that particular day; c) at that particular time; d) and who take the time to respond.

Those circumstances are too restrictive — those folks don’t represent a cross section of the city. Similarly, Bob could put up a Web site survey and ask people to use it to vote. However, only people who know about the site, have Internet access, and want to respond will give him data, and typically only those with strong opinions will go to such trouble. In the end, all Bob has is a bunch of biased data on individuals that don’t represent the city at all.

remember To minimize bias in a survey, the key word is random. You need to select your sample of individuals randomly — that is, with some type of “draw names out of a hat” process. Scientists use a variety of methods to select individuals at random, and you see how they do it in Chapter 16.

Note that in designing an experiment, collecting a random sample of people and asking them to participate often isn’t ethical because experiments impose a treatment on the subjects. What you do is send out requests for volunteers to come to you. Then you make sure the volunteers you select from the group represent the population of interest and that the data is well collected on those individuals so the results can be projected to a larger group. You see how that’s done in Chapter 17.

After going through Chapters 16 and 17, you’ll know how to dig down and analyze others’ methods for selecting samples and even be able to design a plan you can use to select a sample. In the end, you’ll know when to say “Garbage in equals garbage out.”

Avoiding bias in your data

Bias is the systematic favoritism of certain individuals or certain responses. Bias is the nemesis of statisticians, and they do everything they can to minimize it. Want an example of bias? Say you’re conducting a phone survey on job satisfaction of Americans; if you call people at home during the day between 9 a.m. and 5 p.m., you miss out on everyone who works during the day. Maybe day workers are more satisfied than night workers.

You have to watch for bias when collecting survey data. For instance: Some surveys are too long — what if someone stops answering questions halfway through? Or what if they give you misinformation and tell you they make $100,000 a year instead of $45,000? What if they give you answers that aren’t on your list of possible answers? A host of problems can occur when collecting survey data, and you need to be able to pinpoint those problems.

warning Experiments are sometimes even more challenging when it comes to bias and collecting data. Suppose you want to test blood pressure; what if the instrument you’re using breaks during the experiment? What if someone quits the experiment halfway through? What if something happens during the experiment to distract the subjects or the researchers? Or they can’t find a vein when they have to do a blood test exactly one hour after a dose of a drug is given? These problems are just some examples of what can go wrong in data collection for experiments, and you have to be ready to look for and find these problems.

After you go through Chapter 16 (on samples and surveys) and Chapter 17 (on experiments), you’ll be able to select samples and collect data in an unbiased way, being sensitive to little things that can really influence the results. And you’ll have the ability to evaluate the credibility of statistical results and to be heard, because you’ll know what you’re talking about.

Creating Effective Summaries

After good data have been collected, the next step is to summarize them to get a handle on the big picture. Statisticians describe data in two major ways: with numbers (called descriptive statistics) and with pictures (that is, charts and graphs).

Descriptive statistics

remember Descriptive statistics are numbers that describe a data set in terms of its important features:

  • If the data are categorical (where individuals are placed into groups, such as gender or political affiliation), they are typically summarized using the number of individuals in each group (called the frequency) or the percentage of individuals in each group (called the relative frequency).
  • Numerical data represent measurements or counts, where the actual numbers have meaning (such as height and weight). With numerical data, more features can be summarized besides the number or percentage in each group. Some of these features include
    • Measures of center (in other words, where is the “middle” of the data?)
    • Measures of spread (how diverse or how concentrated are the data around the center?)
    • If appropriate, numbers that measure the relationship between two variables (such as height and weight)

warning Some descriptive statistics are more appropriate than others in certain situations; for example, the average isn’t always the best measure of the center of a data set; the median is often a better choice. And the standard deviation isn’t the only measure of variability on the block; the interquartile range has excellent qualities too. You need to be able to discern, interpret, and evaluate the types of descriptive statistics being presented to you on a daily basis and to know when a more appropriate statistic is in order.

The descriptive statistics you see most often are calculated, interpreted, compared, and evaluated in Chapter 5. These commonly used descriptive statistics include frequencies and relative frequencies (counts and percents) for categorical data; and the mean, median, standard deviation, percentiles, and their combinations for numerical data.

Charts and graphs

Data is summarized in a visual way using charts and/or graphs. These are displays that are organized to give you a big picture of the data in a flash and/or to zoom in on a particular result that was found. In this world of quick information and mini-sound bites, graphs and charts are commonplace. Most graphs and charts make their points clearly, effectively, and fairly; however, they can leave room for too much poetic license, and as a result, can expose you to a high number of misleading and incorrect graphs and charts.

remember In Chapters 6 and 7, I cover the major types of graphs and charts used to summarize both categorical and numerical data (see the preceding section for more about these types of data). You see how to make them, what their purposes are, and how to interpret the results. I also show you lots of ways that graphs and charts can be made to be misleading and how you can quickly spot the problems. It’s a matter of being able to say “Wait a minute here! That’s not right!” and knowing why not. Here are some highlights:

  • Some of the basic graphs used for categorical data include pie charts and bar graphs, which break down variables, such as gender or which applications are used on teens’ cellphones. A bar graph, for example, may display opinions on an issue using five bars labeled in order from “Strongly Disagree” up through “Strongly Agree.” Chapter 6 gives you all the important info on making, interpreting, and, most importantly, evaluating these charts and graphs for fairness. You may be surprised to see how much can go wrong with a simple bar chart.
  • For numerical data such as height, weight, time, or amount, a different type of graph is needed. Graphs called histograms and boxplots are used to summarize numerical data, and they can be very informative, providing excellent on-the-spot information about a data set. But of course they also can be misleading, either by chance or even by design. (See Chapter 7 for the scoop.)

warning You’re going to run across charts and graphs every day — you can open a newspaper and probably find several graphs without even looking hard. Having a statistician’s magnifying glass to help you interpret the information is critical so that you can spot misleading graphs before you draw the wrong conclusions and possibly act on them. All the tools you need are ready for you in Chapter 6 (for categorical data) and Chapter 7 (for numerical data).

Determining Distributions

A variable is a characteristic that’s being counted, measured, or categorized. Examples include gender, age, height, weight, or number of pets you own. A distribution is a listing of the possible values of a variable (or intervals of values), and how often (or at what density) they occur. For example, the distribution of gender at birth in the United States has been estimated at 52.4% male and 47.6% female.

remember Different types of distributions exist for different variables. The following three distributions are the most commonly occurring distributions in an introductory statistics course, and they have many applications in the real world:

  • If a variable is counting the number of successes in a certain number of trials (such as the number of people who got well by taking a certain drug), it has a binomial distribution.
  • If the variable takes on values that occur according to a “bell-shaped curve,” such as national achievement test scores, then that variable has a normal distribution.
  • If the variable is based on sample averages and you have limited data, such as in a test of only ten subjects to see if a weight-loss program works, the t-distribution may be in order.

When it comes to distributions, you need to know how to decide which distribution a particular variable has, how to find probabilities for it, and how to figure out what the long-term average and standard deviation of the outcomes would be. To get you squared away on these issues, I’ve got three chapters for you, one dedicated to each distribution: Chapter 8 is all about the binomial, Chapter 9 handles the normal, and Chapter 10 focuses on the t-distribution.

tip For those of you taking an introductory statistics course (or any statistics course, for that matter), you know that one of the most difficult topics to understand is sampling distributions and the Central Limit Theorem (these two things go hand in hand). Chapter 11 walks you through these topics step by step so you understand what a sampling distribution is, what it’s used for, and how it provides the foundation for data analyses like hypothesis tests and confidence intervals (see the next section for more about analyzing data). When you understand the Central Limit Theorem, it actually helps you solve difficult problems more easily, and all the keys to this information are there for you in Chapter 11.