1 | P a g e B.

Com I Statistics
From the Desk of Sir M Asad Ali
Adamjee Coaching Center
B.com I - Statistics
List of Formulae Section B
Measure of center and dispersion
Ungrouped Data Grouped Data
Arithmetic Mean (A.M)
n
x
¿

¿
¿
f
f x

Geometric Mean (G.M) (
(
¸
(

¸

|
|
.
|

\
|
¿
n
x
Anti
) log(
log
Or ( )n
n
x x x x
1
3 2 1
... × ×
|
|
.
|

\
|
¿
¿
f
x f
Anti
) log( .
log
Harmonic Mean (H.M)
¿
x
n
1

¿
¿
x
f
f

Median
value
n
th
|
.
|

\
| +
2
1
(If n = odd)
|
|
|
|
|
.
|

\
|
|
.
|

\
| +
+
|
.
|

\
|
2
2
2
2
value
n
value
n
th th
(If
n = even)
|
|
.
|

\
|
÷ +
¿
C
f
f
h
l
2

Mode Higher times used value h
f f f
f f
l
m
m
×
|
|
.
|

\
|
÷ ÷
÷
+
2 1
1
2

Quartiles Not in Syllabus
|
|
.
|

\
|
÷ × + =
|
|
.
|

\
|
÷ × + =
|
|
.
|

\
|
÷ + =
¿
¿
¿
C
f
f
h
l Q
C
f
f
h
l Q
C
f
f
h
l Q
4
3
4
2
4
3
2
1

Deciles Not In Syllabus
|
|
.
|

\
|
÷ × + =
¿
C
f
k
f
h
l D
k
10

Percentile Not in Syllabus
|
|
.
|

\
|
÷ × + =
¿
C
f
k
f
h
l P
k
100

2 | P a g e B.Com I Statistics
From the Desk of Sir M Asad Ali
Quartile Deviation / Semi
interquartile range
Not in Syllabus
2
1 3
Q Q ÷

Mean (absolute) Deviation
(about mean)
( )
n
x x
x D M
¿
÷
= .
( )
¿
¿
÷
=
f
x x f
x D M.
Mean (absolute) Deviation
about median
( )
n
x x
x D M
¿
÷
=
~
~
.
( )
¿
¿
÷
=
f
x x f
x D M
~
~
.
Mean (absolute) Deviation
about mode
( )
n
x x
x D M
¿
÷
=
ˆ
ˆ .
( )
¿
¿
÷
=
f
x x f
x D M
ˆ
ˆ .
Variance
( )
n
x x
¿
÷
=
2
2
o
Or
2
2
|
|
.
|

\
|
÷
¿ ¿
n
x
n
x

( )
¿
¿
÷
=
f
x x f
2
2
o
Or
2
2
|
|
.
|

\
|
÷
¿
¿
¿
¿
f
fx
f
fx

Standard Deviation
Variance = o Variance = o
Percentage of frequencies
inside or outside o ± x
First make interval, then find x lying in
that interval using tally method, finally
divide the sum of x found in earlier step
by total number of values i.e
¿
x
First make interval, then find x i.e.
mid-points NOT FREQUENCIES lying in
that interval using tally method,
finally divide the sum of x found in
earlier step by total of frequencies i.e
¿
fx
- Relationship between A.M , G.M and H.M [A.M > G.M > H.M]
- When data is symmetrically distributed or frequencies have same increasing and decreasing pattern, we
always get mean = median = mode
- Emperical Relation mean – mode = 3 (mean – median)
- Mode is shown in Histogram while Median is shown in Ogive (Usually less than)
Combined mean / Overall Mean
k
k k
c
n n n n
x n x n x n x n
x
...
...
3 2 1
3 3 2 2 1 1
+ + +
+ + +
=
Co-efficients (Relative Measures)
Coefficient of Variation = 100 × =
x
V of C
o

Coefficient of Quartile Deviation=
100
1 3
1 3
×
+
÷
=
Q Q
Q Q
QD of C

Coefficient of Mean Deviation About mean
= ( )
( )
100
.
× =
x
x D M
x MD of C
Coefficient of Mean Deviation About median
= ( )
( )
100
~
~
.
~
× =
x
x D M
x MD of C
Coefficient of Mean Deviation About mode
= ( )
( )
100
ˆ
ˆ .
ˆ × =
x
x D M
x MD of C
Coefficient of Correlation
=
( ) ( ) ( ) ( )
2
2
2
2
¿ ¿ ¿ ¿
¿ ¿ ¿
÷ ÷
÷
=
y y n x x n
y x xy n
r
First Pearson’s Coefficient of Skewness
C of S.k =
o
Mode Mean÷

Second Pearson’s Coefficient of Skewness
C of S.k =
o
) ( 3 Median Mean÷


3 | P a g e B.Com I Statistics
From the Desk of Sir M Asad Ali
Quartiles Coefficient of Skewness
C of S.k =
1 3
2 1 3
2
Q Q
Q Q Q
÷
÷ +

Co-efficient of Determination = r
2



Properties of mean, variance, Standard Deviation and Co-efficient of correlation

Effect of Change in Scale ( ) ÷ ×and
Effect of Change in Direction
( ) ÷ + and
Mean Same Effect Same Effect
Variance With Square No Effect
S.D Same Effect No Effect
Co of Correlation No Effect No Effect
Regression and Correlation
Y on X
Y = a + bx
( )
2
2
¿ ¿
¿ ¿ ¿
÷
÷
=
x x n
y x xy n
b x b y a ÷ =
n
x
x
¿
=
n
y
y
¿
=
X on Y
X = c + dy
( )
2
2
¿ ¿
¿ ¿ ¿
÷
÷
=
y y n
y x xy n
d y d x c ÷ =
n
x
x
¿
=
n
y
y
¿
=
Coefficient of Correlation
Karl Pearson’s Co-efficient of Correlation (see above table)
Simple co-efficient of Correlation bd
Coefficient of Determination (See above table)
Prabable Error
|
|
.
|

\
| ÷
=
n
r
E P
2
1
6745 . 0 .
Range of Coefficient of Correlation = 1 ±

4 | P a g e B.Com I Statistics
From the Desk of Sir M Asad Ali
Index Numbers
Simple price index (fixed base) 100
,
× =
o
n
n o
p
p
P
Simple Price Index (Chain Based) link Relative = 100
1
, 1
× =
÷
÷
n
n
n n
p
p
P
Chain Index (Link relative for current year X chain index of previous year) / 100
Simple Aggregate Index 100
,
× =
¿
¿
o
n
n o
p
p
P
Weighted Aggregate Index
Laspeyre’s Index (Base year aggregate index) 100 × =
¿
¿
o o
o n
Q P
Q P
LI
Paasche’s Index (Current year aggregate index) 100 × =
¿
¿
n o
n n
Q P
Q P
PI
Fisher Index PI LI × or 100 × × =
¿
¿
¿
¿
n o
n n
o o
o n
Q P
Q P
Q P
Q P
FI
Marshal Edgeworth Index 100 ×
+
+
=
¿ ¿
¿ ¿
n o o o
n n o n
Q P Q P
Q P Q P
MI

Prepared by:
Muhammad Asad Ali
MBA (Finance), MA (Economics), (CA)

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