02 STAT descriptive stats 1-LONG SLIDES(1)

02 STAT descriptive stats 1-LONG SLIDES(1) - DESCRIPTIVE...

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1 DESCRIPTIVE STATISTICS Dr. V.R. Bencivenga Economic Statistics Economics 329 DESCRIPTIVE STATISTICS PART 1 Outline Introduction Distribution of a variable Measures of central tendency Measures of dispersion Linear transformations Objectives: Measures describing how values of a variable are distributed, in a set of data When to use different measures Impact of a linear transformation (stretching and/or shifting the distribution) on these measures
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2 DESCRIPTIVE STATISTICS Introduction We are barraged with numerical information! Stock prices. Interest rates. Unemployment. Inflation. Trade deficit. Government budget deficit. Oil prices. Gold prices. Wheat prices. Home prices. Growth of wages. Growth of income. Average income. Income inequality. FICO scores. Average c redit card debt. Percentage of mortgages “under water.” Percentage of students passing standardized tests. Percentage going to college. Percentage graduating from college. Drug trials. Crash results for cars. Safety of food. Polls on support for political candidates.
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3 DESCRIPTIVE STATISTICS How can we make sense of large quantities of numerical information? Objectives: o convey a clear and accurate picture of the data o identify and describe important features The units on descriptive statistics and frequency distributions and histograms survey methods for summarizing numerical information.
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4 DESCRIPTIVE STATISTICS Distribution of a variable A univariate statistic describes the distribution of one variable. A bivariate statistic describes how the distributions of two variables are related. What do we mean by the distribution of a variable? Example Voter turnout
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5 DESCRIPTIVE STATISTICS VOTER TURNOUT Maine 64.6 North Carolina 43.5 New Hampshire 57.2 South Carolina 40.6 Vermont 57.8 Georgia 41.3 Massachusetts 59.0 Florida 48.6 Rhode Island 58.6 Kentucky 50.0 Connecticut 61.0 Tennessee 48.8 New York 47.9 Alabama 48.8 New Jersey 54.9 Mississippi 52.0 Pennsylvania 51.9 Arkansas 51.4 Ohio 55.4 Louisiana 53.1 Indiana 57.7 Oklahoma 52.3 Illinois 57.8 Texas 44.9 Michigan 59.9 Montana 65.1 Wisconsin 67.2 Idaho 68.0 Minnesota 70.1 Wyoming 53.2 Iowa 63.0 Colorado 56.0 Missouri 58.7 New Mexico 51.0 North Dakota 64.8 Arizona 44.7 South Dakota 67.6 Utah 64.6 Nebraska 56.8 Nevada 41.2 Kansas 56.8 Washington 57.5 Delaware 54.6 Oregon 61.5 Maryland 50.0 California 49.0 District of Columbia 35.5 Alaska 57.8 Virginia 47.6 Hawaii 43.6 West Virginia 52.9 Source: Statistical Abstract of the United States, 1980
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6 DESCRIPTIVE STATISTICS Example Voter turnout Raw data are 51 observations on the variable “voter turnout” Frequency distribution The interval of values in the data set is divided into class intervals . Here, we use intervals of five percentage points. The class frequencies are tabulated (number of observations falling in each class interval). The relative frequency distribution is similar it reports the proportion (or percentage) of observations falling in each class interval.
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This note was uploaded on 02/26/2012 for the course ECONOMICS 329 taught by Professor Bencivenga during the Spring '12 term at University of Texas.

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02 STAT descriptive stats 1-LONG SLIDES(1) - DESCRIPTIVE...

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