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Basic Statistics - Quant
Basic Statistics - Quant
Frequency Distribution
A frequency distribution is defined when the following
two information are specified:
(i)
(ii)
.. 1 ..
Marks
above 90
above 80
above 70
above 60
above 50
above 40
above 30
above 20
above 10
above 0
Cumulative frequency
'more than'
Number of students
2
13
18
20
28
30
34
44
48
50
Cumulative frequency
'less than'
Marks
under 20
under 30
under 40
under 50
under 60
under 70
under 80
under 90
under 100
Number of students
6
16
20
22
30
32
37
48
50
X 1 + X 2 + X 3 + . . . . . . . .+ X n X
=
n
n
Weighted Arithmetic Mean
In the calculation of simple average, each item of
the series is considered equally important but there
may be cases where all items may not have equal
importance and some of them may be comparatively
more important than others. In such cases, proper
weightage is to be given to various items the
weights
attached to each item being
proportional to the importance of the item in the
distribution. Let
W , W , W , ..., W be the weights attached to
X=
by X
is given by X W =
Wi Xi
i=1
n
Wi
i=1
Sometimes, to calculate AM, we employ a welldefined short-cut method which is explained in the
example below. In this method, we assume any value
of the variable as assumed mean and then find the
1
actual mean using X = A + h
N
.. 2 ..
fi ui where A:
xi A
h
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
X = 7
Y = 5
XY = 26
X2 = 109
Y2 = 209
(X)(Y) = 35 (using (1) and (2))
XY2 = 190
(X + Y)(X Y) = (X2 Y2) = 109 209 =
100, (using (4) and (e))
Ex. 2 Find the mean wage from the data given below.
Wage (Amount in Rs.)
800
820
860
900
920
980
1000
Number of workers
7 14 19
25
20
10
5
Sol.
xi
800
fi
7
xi - A ui = ( x1 A) /h
100
5
fiui
35
820
860
14
19
80
40
4
2
56
38
900
920
980
1000
25
20
10
5
0
20
80
100
0
1
4
5
0
20
40
25
fi = 100
Here A = 900, h = 20.
1 n
Mean = X = A + h fi ui
N
i=1
44
= 900 + 20
= 891.2
100
Hence, mean wage = Rs. 891.2.
With the help of this method, calculation of multiplying
two inconvenient numbers is avoided.
Median
The median is that value of the variable which divides
the group in to two equal parts. One part comprises
all the values greater than and the other part
comprises all the values less than the median.
Calculation of Median
For individual observations
Step 1: Arrange the observations x1, x2, ..., xn in
ascending or descending order of magnitude.
Step 2: Determine the total number of observations,
say, n
Step 3: If n is odd, then median is the value of
th
n + 1
th
n
and + 1
2
th
N
, where N =
2
fi
i =1
N
and determine the corresponding
2
value of the variable, which is the median.
greater than
fi ui = 44
.. 3 ..
N
.
2
N
and determine the corresponding class.
2
This class is known as the median class.
Step 4: Use the formula: Median
than
N
F
24.5 11
Median = l + 2
h = 15 +
5
f
15
N/ 2 F
=L+
h , where, L = lower limit of the
f
Class
10 15
11
15 20
15
26
20 25
10
36
25 30
41
30 35
45
35 40
47
49
Examples
The set 2, 2, 5, 7, 9, 9, 9, 10, 10, 11, 12, 18
has mode 9.
The set 3, 5, 8, 10, 12, 15, 16 has no mode.
The set 2, 3, 4, 4, 4, 5, 5, 7, 7, 7, 9 has two
modes, 4 and 7, and is called bimodal.
Ex. 4
Find the mean, median, and mode for the sets
(1) 3, 5, 2, 6, 5, 9, 5, 2, 8, 6 and
(2) 51.6, 48.7, 50.3, 49.5, 48.9
Sol.
1
(5 + 5) = 5;
2
Mode = Number most frequently occurring
= 5.
(2) Arranged in an array, the numbers are
48.7, 48.9, 49.5, 50.3 and 51.6.
Mean = 49.8; Median = middle number
= 49.5; Mode = non existent.
of two middle numbers =
N = 49
Here N = 49
13.5
5 = 19.5
15
Mode
Mode is the value which occurs most frequently in a
set of observations.
The mode may or may not exist, and even if it does
exist, it may not be unique. A distribution having a
unique mode is called unimodal and one having
more than one is called multimodal.
5 10
40 45
= 15 +
N
49
=
= 24.5. The
2
2
N
is
2
26 and the corresponding class is 15-20.
cumulative frequency just greater than
.. 4 ..
Calculation of Mode
In case of frequency distribution, mode is the value
of the variable corresponding to the maximum
frequency. In case of continuous frequency
distribution, the class corresponding to the maximum
frequency is called the modal class and the value of
mode is obtained as, Mode = I +
h( f1 f0 )
,
( f1 f0 ) ( f2 f1 )
where
l = Lower limit of modal class
h = Magnitude of the modal class, f1= frequency of
the modal class
f0= Frequency of class preceding the modal class
f2= Frequency of class succeeding the modal class
The above formula can be rephrased as Mode
D1
= L + D + D c ,
1
2
1
where L1 = Lower class boundary of the modal class
(i.e. the class containing the mode)
D1 = Excess of modal frequency over frequency of
next lower class
D2 = Excess of modal frequency over frequency of
next higher class
c = Size of the model class interval.
Ex. 5
Sol.
(M0 ) = l +
Sol.
f f1
i
2f f1 f1
= 21 +
72 36
7
144 36 51
= 21 +
252
= 21 + 4.42 = 25.42 .
57
.. 5 ..
1
1
| Xi A | = | di | , where d = X A.
i
i
n
n
Modulus removes the effects of negative deviations
and therefore gives us the absolute value of the
deviation.
In case of frequency distribution, mean deviation
about A is given by
MD =
1
1
fi | Xi A | = fi | di | = | X X | .
n
n
Ex. 7
Determine the percentage of the students
heights in the following table of mean deviation
of the heights of 100 male students, that fall
within the ranges
(1) X MD
(2) X 2 MD
(3) X 3 MD
Height
(inches)
60 - 62
63 - 65
66 - 68
69 - 71
72 - 74
Number of
students
- 62
- 65
- 68
- 71
- 74
1
(69.71 68.5) of the students in the fourth
3
class (since the class-interval size is 3
inches, the upper class boundary of the
second class is 65.5 inches, and the lower
class boundary of the fourth class is 68.5
inches). The number of students in the range
0.31
1.21
(18) +
(27) 55,
3
3
which is 55% of total.
(2) The range from 62.93 to 71.97 inches is
X MD is 42 +
62.93 62.5
18 + 42 + 27 +
18
3
5
18
42
27
8
71.97 71.5
the total.
(3) The number of students in the range
X 3 MD is
60.67 59.5
5 + 18 + 42 + 27 +
5
3
Sol.
60
63
66
69
72
1
(65.5
3
65.19) of the students in the second class
X 2 MD is
Total = 100
Height (in)
Class
|X X| = Frequency f|X X|
M ark (X) |X 76.45| (f)
32.25
61
5
6.45
62.1
64
18
3.45
18.9
67
42
0.45
68.85
70
27
2.55
44.4
73
8
5.55
N = f
= 100
f |X X|
= 226.50
.. 6 ..
74.5 74.23
the total.
Standard Deviation
If X1, X2, ... XN is the set of N observations, then its
standard deviation is given by
1
=
( Xi X)2 where X is the AM alternative
N
formula for standard deviations is
=
2
fi X i
f X
i i
N
N
Variance
It is the square of the standard deviation. Therefore,
1
( Xi X)2 .Generally, s 2
N
represents sample variance and 2 represents
population variance. Sample variance means
variance of a sample drawn out from a population.
2
variance = =
X2 X2
defined as S =
(X
i =1
a)2
, where a is the
1
x i2 .
N
Also note that is independent of origin but not of
scale. This means that if each of the observations
are increased by a constant k, does not change.
But, if multiplied by k, changes to k. Therefore, if
S=
ax i + b
,
c
a
.
X
.. 7 ..