Recall that statistics is a process. So far, we have discussed the first three steps in that process. Namely, we can identify questions and relevant populations, collect the data, and organize and summarize the data. The final step is to use the data to make an inference, or a judgement about the population. See figure 5.1.
Figure 5.1: The process of statistics
Unit 2 consists of the study of probability, which is needed to move from descriptive statistics (step 3) to inference (step 4) in the process of statistics. We need to know when the data we collect allow us to reach firm conclusions. How certain can we be that our results reflect the truth? Can we be 99% certain in our results? How about 95%? Can we determine when the results are unreliable? How much evidence in the form of data do we need to be very confident in our conclusions? These questions will be investigated in Unit 3.
This unit begins with basic probability in chapter 5 and continues through the probability needed to study discrete quantitative variables in chapter 6 and continuous quantitative variables and sampling distributions in chapter 7. After covering probability in Unit 2 we will return to the process of statistics and study inference in Unit 3.
So, on to probability!