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Statistical Reasoning in Everyday Life

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1 Statistical Reasoning in Everyday Life
There are three kinds of lies. Lies, damn lies, and statistics. - Mark Twain

2 Module 7 7-1 Describe the three measures of central tendency, and discuss the relative usefulness of the two measures of variation. 7-2 Explain how we know whether an observed difference can be generalized to other populations.

3 Why do we need statistics?
Researchers asked 5522 Americans to estimate the percentage of wealth owned by the richest 20% The average guess was 58%. The actual number is 84%... Stats are tools that help us see & interpret what the unaided eye or unscientific guess might miss or mislead Something to remember: Doubt big, round, undocumented numbers. (10% homosexuality)

4 Descriptive Statistics
Numerical data used to measure & describe characteristics of groups. Includes measures of central tendency & measures of variation. Histogram: bar graph depicting a frequency distribution

5 Percentage Still on Road
100 90 80 70 60 50 Our Brand Brand Brand Brand X Y Z

6 Measures of Central Tendency
Mode: the most frequently occurring score(s) in a distribution Median: the middle score in a distribution, half the scores are above & half below Mean: the arithmetic average of a distribution, obtained by adding the scores & then dividing by the number of scores

7

8 Skewed Distributions

9 Measures of Variation Range: the difference between the highest & lowest scores in a distribution Standard Deviation: a computed measure of how much scores vary around the mean score Wechsler Intelligence Mean=100 SD = 15 Z Score = Number of SD variation (e.g. 145 IQ would be +3

10 Inferential Statistics
Numerical data that allow one to generalize – to infer from sample data the probability of something being true of a population Reliability Representative beats biased Less variable beats more variable (basketball scorer example) More cases beats less (college visit example) Significance Indicates the likelihood that a result will happen by chance, but does NOT say anything about importance of the result (Normally considered to be less than .05)

11 Find a graph in the popular media or advertisements
Find a graph in the popular media or advertisements. How does the source (mis)use statistics to make a point? At the beginning of college, around 100 students will have 100% yet only will graduate with perfect grades…. Why??


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