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Welcome to the playlist on statistics. Something I've been meaning to do for some time. So anyway, I just want to get right into the meat of it and I'll try to do as many examples as possible and hopefully give you the feel for what statistics is all about. And, really, just to kind of start off in case you're not familiar with it — although, I think a lot of people have an intuitive feel for what statistics is about.

And essentially — well in very general terms it's kind of getting your head around data. And it can broadly be classified. Well there are maybe three categories. You have descriptive. So say you have a lot of data and you wanted to tell someone about it without giving them all of the data. Maybe you can kind of find indicative numbers that somehow represent all of that data without having to go over all of the data. That would be escriptive statistics. There's also predictive. Well, I'll kind of group them together. There's inferential statistics.

And this is when you use data to essentially make conclusions about things. So let's say you've sampled some data from a population — and we'll talk a lot about samples versus populations but I think you have just a basic sense of what that is, right? If I survey three people who are going to vote for president, I clearly haven't surveyed the entire population. I've surveyed a sample. But what inferential statistics are all about are if we can do some math on the samples, maybe we can make inferences or conclusions about the population as a whole. Well, anyway, that's just a big picture of what statistics is all about. Let's just get into the meat of it and we'll start with the descriptive.

So the first thing that, I don't know, that I would want to do or I think most people would want to do when they are given a whole set of numbers in they're told to describe it. Well, maybe I can come up with some number that is most indicative of all of the numbers in that set. Or some number that represents, kind of, the central tendency — this is a word you'll see a lot in statistics books. The central tendency of a set of numbers.

And this is also called the average. And I'll be a little bit more exact here than I normally am with the word "average." When I talk about it in this context,it just means that the average is a number that somehow is giving us a sense of the central tendency. Or maybe a number that is most representative of a set.

And I know that sounds all very abstract but let's do a couple of examples. So there's a bunch of ways that you can actually measure the central tendency or the average of a set of numbers. And you've probably

seen these before. They are the mean. And actually, there's types of means but we'll stick with the arithmetic mean.

Later, when we talk about stock returns and things, we'll do geometric means and maybe we'll cover the harmonic mean one day. There's a mean, the median, and the mode. And in statistics speak, these all can kind of be representative of a data sets or population central tendency or a sample central tendency. And they all are collectively — they can all be forms of an average. And I think when we see examples, it'll make a little bit more sense. In every day speak, when people talk about an average, I think you've already computed averages in your life, they're usually talking about the arithmetic mean. So normally when someone says, "Let's take the average of these numbers."

And essentially — well in very general terms it's kind of getting your head around data. And it can broadly be classified. Well there are maybe three categories. You have descriptive. So say you have a lot of data and you wanted to tell someone about it without giving them all of the data. Maybe you can kind of find indicative numbers that somehow represent all of that data without having to go over all of the data. That would be escriptive statistics. There's also predictive. Well, I'll kind of group them together. There's inferential statistics.

And this is when you use data to essentially make conclusions about things. So let's say you've sampled some data from a population — and we'll talk a lot about samples versus populations but I think you have just a basic sense of what that is, right? If I survey three people who are going to vote for president, I clearly haven't surveyed the entire population. I've surveyed a sample. But what inferential statistics are all about are if we can do some math on the samples, maybe we can make inferences or conclusions about the population as a whole. Well, anyway, that's just a big picture of what statistics is all about. Let's just get into the meat of it and we'll start with the descriptive.

So the first thing that, I don't know, that I would want to do or I think most people would want to do when they are given a whole set of numbers in they're told to describe it. Well, maybe I can come up with some number that is most indicative of all of the numbers in that set. Or some number that represents, kind of, the central tendency — this is a word you'll see a lot in statistics books. The central tendency of a set of numbers.

And this is also called the average. And I'll be a little bit more exact here than I normally am with the word "average." When I talk about it in this context,it just means that the average is a number that somehow is giving us a sense of the central tendency. Or maybe a number that is most representative of a set.

And I know that sounds all very abstract but let's do a couple of examples. So there's a bunch of ways that you can actually measure the central tendency or the average of a set of numbers. And you've probably

seen these before. They are the mean. And actually, there's types of means but we'll stick with the arithmetic mean.

Later, when we talk about stock returns and things, we'll do geometric means and maybe we'll cover the harmonic mean one day. There's a mean, the median, and the mode. And in statistics speak, these all can kind of be representative of a data sets or population central tendency or a sample central tendency. And they all are collectively — they can all be forms of an average. And I think when we see examples, it'll make a little bit more sense. In every day speak, when people talk about an average, I think you've already computed averages in your life, they're usually talking about the arithmetic mean. So normally when someone says, "Let's take the average of these numbers."

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