3 - Measures of Central Tendency - Dispersion and Skewness PDF

LLearnStat
St t
Learning Statistics the Easy Way
Session on
MEASURES OF CENTRAL TENDENCY,
DISPERSION AND SKEWNESS
BUREAU OF LABOR AND

EMPLOYMENT STATISTICS
MEASURES OF CENTRAL TENDENCY, DISPERSION AND SKEWNESS
OBJECTIVES
At the end of the session, the participants should be able to:
1 Describe data using the common measures of

1.
central tendency;
2. Describe data in terms of their variability
and skewness; and
3. Determine the most applicable
pp measure of
central tendency given different types of
distribution.
2011 LearnStat Sessions BUREAU OF LABOR AND

2 EMPLOYMENT STATISTICS
OUTLINE
1. Measures of Central Tendency

٠Mean
Median
٠Median
٠Mode
2 Measures of Dispersion
2.
3. Skewness
4 Types of Distribution
4.

Measures
M u f Central Tendency
of n n y
A. MEAN
- commonly referred to as the average or arithmetic

mean.
- most widely used measure of central location.
Sum of all values in the data set

X =
Total number of observations

Measures of Central Tendency Ages of 13 Job Applicants
Applicant Age
Number
1 30
Example of mean
2 28
computation
3 25
4 35
Mean Age
g
5 25
6 34
X = 30+28+…+25 7 20
13 8 19
9 26
= 318/13 10 18
= 24.5
24 5 11 17
12 16
13 25
Total 318
Measures
M a ur off Central
n ra Tendency
n n y
B. MEDIAN
- the value of the middle item in a set of

observations which has been arranged in an
ascending or descending order of magnitude.
- is the
th centermost
t st value
l ini a distribution.
dist ib ti

Measures of Central Tendency
Ages of 13 Job Applicants
Applicant Age
Example of finding the Number
median (Number of The median value is the
12 16 middle most value in the data
observations is odd)
11 17 set.
10 18
8 19
7 20
Median age = 25
13 25
5 25
3 25
9 26
2 28
1 30
6 34
2011 LearnStat Sessions 4 35 BUREAU OF LABOR AND
Ages of 14 Job Applicants
Applicant Age
Number
Example of finding the 12 16
The median value is the
median (Number of 11 17 sum of the two middle
observations is even) 10 18 most values in
n the data
8 19 set divided by 2.
7 20
13 25 Median age = 25 + 26
5 25 2
3 26
9 26
6 = 25.5
2 28
1 30
6 34
4 35
8 14 35 EMPLOYMENT STATISTICS
Measures
M a ur off Central
n ra Tendency
n n y
C. MODE Ages of 13 Job Applicants
- is the Applicant Age
N b
Number
value in the 12 16
data set that 11 17
occurs most 10 18
frequently. 8 19
7 20
13 25
Mode = 25 is the
Example of finding 5 25
value that
the mode 3 25
occurs most
9 26 frequently
2 28
1 30
6 34
2011 LearnStat Sessions 4 35 BUREAU OF LABOR AND
Measures
M a ur off Central
n ra Tendency
n n y
Advantages of the MEAN:
takes into account all observations.
observations
can be used for further statistical calculations and
mathematical manipulations.
Disadvantages of the MEAN:
easily affected by extreme values.

cannot be computed
p if there are missing
g values due to
omission or non-response.
in grouped data with open-ended class intervals, the
mean cannott b
be computed.
t d
y
Advantages of the MEDIAN:
not affected by extreme values.

can be computed even for grouped data w
with
th open
open-
ended class intervals.
Disadvantages of the MEDIAN:
Observations
b f
from d ff
different d
data sets have
h to be
b
merged to obtain a new median, whether group or
g p data are involved.
ungrouped
Advantage of the MODE:
can be easily identified through ocular inspection.
Disadvantages of the MODE:
d
does nott possess the
th desired
d i d algebraic
l b i property
t of
f th
the
mean that allows further manipulations.
like the median,
median observations from different data sets
have to be merged to obtain a new mode, whether group
or ungrouped data are involved.

MEASURES OF DISPERSION
Let us take 5 sets of observations
Set 1: 45 45 47 48 50
Set 2: 45 46 46 48 50
Set 3: 44 45 46 49 51
x = 47
Set 4: 41 43 48 48 55
Set 5: 44 45 48 49 49
Questions remain unanswered even after getting the mean:
How variable are the data sets?
How do the values in each data set differ from each other?
How are the values in each data set clustered or dispersed
from each other?
Measures of Dispersion
- group of analytical tools that describes the spread
or variability of a data set.
set

Importance of the measures of dispersion
• supplements an average or a measure of
central tendency
• compares one group off data
d with
h another
h
• indicates how representative the average
is.
is

A measure of dispersion
p can be expressed
p in several ways:
y
Range Based on the
position of an
Quartile observation
b ti iin a
Deviation distribution
Measures Mean Absolute Measures the
of Deviation dispersion
Dispersion around an
Variance/ average
Standard Deviation
Coefficient Expressed in a
of variation relative value
SKEWNESS
¾ describes the degree to which the data deviates from

symmetry.
¾ when the distribution of the data is not symmetrical, it
is said to be asymmetrical or skewed.

Types of Distribution
(i Relation
(in R l ti to
t Mean,
M M
Median
di and
d M
Mode)
d )
Symmetrical/Normal
Distribution
• Bell shaped distribution

• The mean, median and mode are
all located at one point.
Mean = Median = Mode

Positively Skewed Distribution
• Observations are mostly
No. of obserrvations
concentrated towards the smaller
values
l and
d there
th are some
extremely high values.
• Also called skewed to the right Income

distribution Mode
Median
Mean
Mode < Median < Mean

Negatively
g y Skewed Distribution
• Observations are mostly
No. of obserrvations
concentrated towards the larger
values and there are some
extremely low values.
Age
g of BLES staff
• Al
Also called
ll d skewed
k d tto th
the left
l ft M
Mean
distribution. Median
Mode
Mean < Median < Mode

Considerations to be made when using the three most
common
mm measures
m of y:
f central tendency
Distribution Level of Measure to Other Considerations
Measurement Use
Normal Interval or Mean When further statistical
Ratio calculations or
mathematical
manipulations are needed
When all observations are
considered in the
computation
Skewed Ordinal Median When distribution has
open ended intervals
open-ended
Skewed Nominal Mode When interested in the
most frequently occurring
observation

Speciall Topic on Rounding
R d Off
ff
Rules for Rounding off Numbers:
• If the
th first
fi t di
digit
it tto b
be d
dropped
d iis lless th
than 5
5,
round down.
• If the first digit to be dropped is greater

than or equal to 5
5, round up
up.
E
Examples:
l
• Round off 185.5
185 5 into a whole number: 186
• Round off 185.468 into a whole number: 185
• Round off 184.51
184 51 into a whole number: 185
• Round off 2.0547 into one decimal place: 2.1
• R
Round
d off
ff 2.073
2 073 iinto
t ttwo d
decimal
im l places:
l s: 2
2.07
07
More Examples:
1 Manual
1. M l Computation
• 2010 labor productivity (at constant 2000 prices)
= (GDP/Employed)
5,701,539M
= = 158,222.26
158 222 26 = 158,222
158 222
36.035M *
• Region
g VI-Employment
p y growth
g ):
rate (2009-2010)
(
⎛ 2,974 ∗ ⎞
Growth Rate = ⎜ − 1 ⎟ × 100 = (1 .03156 − 1) × 100
⎝ 2,883
2 883 * ⎠
= 0.03156 x 100 = 3.156% = 3 .2%
*I LFS
*In LFS, figures
fi s are expressed
x ss d in
i th
thousands.
s ds
2. Electronic Computation
In Microsoft Excel, you can use the following syntax:
=round(value to be rounded off, number of decimal place
to be retained)
The value to be rounded off can be a single number or a
formula to obtain a single number.
number
Example:
• Round off 275.689
275 689 into two decimal places:
=round(275.689, 2) = 275.69
• 2010 labor p
productivity
y at constant 2000 prices:
p
⎛ ⎛ ⎛ 5,701,539 ⎞ ⎞ ⎞
= round ⎜ ⎜ ⎜ ⎟ ×1,000 ⎟ ,0 ⎟ = 158,222
⎝ ⎝ ⎝ 36,035
36 035 ⎠ ⎠ ⎠
Labor Productivity Worksheet
Growth Rate Worksheet

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LLearnStat

BUREAU OF LABOR AND

1 Describe data using the common measures of

2011 LearnStat Sessions BUREAU OF LABOR AND

1. Measures of Central Tendency

2011 LearnStat Sessions BUREAU OF LABOR AND

- commonly referred to as the average or arithmetic

Sum of all values in the data set

2011 LearnStat Sessions BUREAU OF LABOR AND

- the value of the middle item in a set of

2011 LearnStat Sessions BUREAU OF LABOR AND

Disadvantages of the MEAN:

 easily affected by extreme values.

Advantages of the MEDIAN:

 not affected by extreme values.

Disadvantages of the MEDIAN:

Advantage of the MODE:

 can be easily identified through ocular inspection.

Disadvantages of the MODE:

2011 LearnStat Sessions BUREAU OF LABOR AND

2011 LearnStat Sessions BUREAU OF LABOR AND

2011 LearnStat Sessions BUREAU OF LABOR AND

¾ describes the degree to which the data deviates from

2011 LearnStat Sessions BUREAU OF LABOR AND

• Bell shaped distribution

Mean = Median = Mode

2011 LearnStat Sessions BUREAU OF LABOR AND

• Observations are mostly

• Also called skewed to the right Income

Mode < Median < Mean

2011 LearnStat Sessions BUREAU OF LABOR AND

• Observations are mostly

Mean < Median < Mode

2011 LearnStat Sessions BUREAU OF LABOR AND

2011 LearnStat Sessions BUREAU OF LABOR AND

Rules for Rounding off Numbers:

• If the first digit to be dropped is greater

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easily affected by extreme values.

not affected by extreme values.

can be easily identified through ocular inspection.