4.
1: INTRODUCTION TO DATA relative frequencies (percentage) of the data belonging to
MANAGEMENT
ESSENTIAL TERMS IN UNDERSTANDING THE
NATURE OF DATA:
1.Raw data- data collected in original form. 2.Range- the
difference of the highest value and the lowest value in a
distribution 3.Frequency Distribution- the organization of
data in a tabular form, using mutually exclusive classes
showing the number of observations in each 4.Class limits/
Apparent limits- the highest and lowest values describing a
class 5.Class Boundaries/ Real limits- the upper and lower
values of a class for group frequency distribution whose
values has additional decimal place more than the class
limits and end with the digit 56.Interval/ width- the distance
between the class lower boundary and the class upper
boundary and its denoted by the symbol I 7.Frequency- the
number of values in a specific class of a frequency
distribution 8.Percentage- obtained by multiplying the
relative frequency by 100% 9.Cumulative frequency- is the
sum of the frequencies accumulated up to the upper
boundary of a class in a frequency distribution
10.Midpoint- is the halfway between the class limits of
each class and is representative of the data within that class.
GRAPHING STATISTICAL DATA
1.histogram- is graph in which the classes are marked on
the horizontal axis
9. (x- axis) and the class frequencies on the vertical axis (y-
axis). 2.Frequency polygon- Is a graph that displays the
data using points which are connected by lines. The
frequencies are represented by the height of the points at
the midpoints of the classes. 3.Cumulative frequency
polygon- or ogive (read as oh'-jive) is a graph that displays
the cumulative frequencies for the classes in a frequency
distribution. 4.Pareto chart - Is a graph used to represent a
frequency distribution for a categorical data (nominal-level)
and frequencies are displayed by the heights of vertical
bars, which are arranged in order from the highest to
lowest. 5. Bar graph or bar chart- Is similar to bar
histogram. The bases of the rectangles are arbitrary
intervals whose centers are the codes. 6.pie graph or pie
chart- Is a circle divided into portions that represents the
Bar chart
different categories. 7. Time series graph- Represents data step1: Draw and label the x- axis
that occur over specific period of time under observation. 8. step2: Make a bar with the same width and draw the hieght
Pictograph- Immediately suggest the nature of the data corresponding to the frequencies.
being shown. Scatter plot- Is used to examine possible Pie chart
relationships between two numerical variables. The two step1: Since there are 360⁰ in a circle, the frequency of each
variables are plot in x- axis and y-axis. class must be converted into a proportional part of the
GUIDELINES IN MAKING GRAPH/ CHARTS circle. This conversion is done by applying a formula;
 The graph/ chart should include a title degrees=(f/n)(360⁰)
 The scales for all axis should be included where f= frequency of each class
 The scale on the y- axis should start at zero n= sum of fequencies
 The x- axis and y- axis should be properly labeled Pictograph
 The graph/ chart should not contain unnecessary step1: Draw and label the x-axis and y- axis
decorations step2: label the x-axis for years and y-axis for number of
 The simplest possible graph/ chart should be used for houses
any data set step3: Draw a house to represent the number of houses
DEFINITION OF STATISTICS formulas
 Statistics can be define in two ways. *Percentage= (f/n) (100%) where f = frequency n = sum of
Constructing a histogram frequencies
step 1: Find the midpoint of each class step2: Draw the Rule 1. *Suggested class interval = ___range =
label the x- axis and y- axis.step3: Represent the frequency HV-LV
on the y-axis and the midpoints of the x- axis step4: Use the Number of
frequency to represent the height and draw the vertical bars. Classes k
Constructing a cumulative frequency polygon (ogive)
step1: Find the cumulative distribution of the data set. Where: HV = Highest valve in a data set
step2: Draw and label the x- axis and y- axis step3: LV = Lowest value in a data set
Represent the frequency on the y- axis and the upper class k = number of classes
boundaries on the x- axis step4: Connect the adjacent I = suggested class interval
points with the line segments Rule 2.
Constructing a cumulative frequency polygon (ogive)
step1: Find the cumulative distribution of the data set. Suggested Class Interval =
step2: Draw and label the x- axis and y- axis __________Range_________________
step3: Represent the frequency on the y- axis and the upper 1+3.322
class boundaries on the x- axis (logarithm of
step4: Connect the adjacent points with the line segments total
Pareto chart frequencies)
step1: Arrange the data from highest to lowest.
step2: Draw and label the x- axis(products) y- axis (sales) Degrees = (f/n)(360֯)
step3: Construct the chart by arranging the frequency fom Where f = frequency of each class, and n = sum of
highest to lowest and from the left to right. make the bar frequencies.
with the the same width and draw the hieght corresponding Hence, the following conversations are obtained. The
to the frequencies degrees should total to 360֯

4.2 Measure by Central Tendency, Mean,
Median,Mode
A measure of central tendency is a summary
statistic that represents the center point or typical
value of a dataset. These measures indicate where
most values in a distribution fall and are also referred
to as the central location of a distribution. You can
think of it as the tendency of data to cluster around a
middle value. In statistics, the three most common
measures of central tendency are the mean, median,
and mode. Each of these measures calculates the
location of the central point using a different method.
 Locating the Center of Your Data
The three distributions below represent different
data conditions. In each distribution, look for the
region where the most common values fall. Even
though the shapes and type of data are different,
you can find that central location. That’s the area
in the distribution where the most common values
are located. Histogram that shows a continuous,
symmetric distribution. The area of central
tendency is circled.Histogram that shows a
continuous, skewed distribution. The area of
central tendency is circled.Bar chart of ice cream
preference to illustrate the central tendency for
categorical data.
The central tendency of a distribution represents one
characteristic of a distribution. Another aspect is the
variability around that central value. While measures
of variability is the topic of a different article (link
below), this property describes how far away the data
points tend to fall from the center. The graph below
shows how distributions with the same central
tendency (mean = 100) can actually be quite different.
The panel on the left displays a distribution that is
tightly clustered around the mean, while the
distribution on the right is more spread out. It is
crucial to understand that the central tendency
summarizes only one aspect of a distribution and that
it provides an incomplete picture by itself.
Mean
The mean is the arithmetic average, and it is probably
the measure of central tendency that you are most
familiar. Calculating the mean is very simple. You just
add up all of the values and divide by the number of
observations in your dataset.
Median
The median is the middle value. It is the value that
splits the dataset in half. To find the median, order
your data from smallest to largest, and then find the
data point that has an equal amount of values above it
and below it. The method for locating the median
varies slightly depending on whether your dataset has
an even or odd number of values.
Mode
The mode is the value that occurs the most frequently
in your data set. On a bar chart, the mode is the
highest bar. If the data have multiple values that are
tied for occurring the most frequently, you have a
multimodal distribution. If no value repeats, the data
do not have a mode.
4.3 Measure of Desperation
Example 2:
Suppose there are two factories producing the
batteries. From each factory, 10 batteries are drawn to
test for the lifetime (in hours). These lifetimes are:
Factory 1: 10.1, 9.9, 10.1, 9.9, 9.9, 10.1,
9.9, 10.1, 9.9, 10.1
Factory 2: 16, 5, 7, 14, 6, 15, 3, 13, 9, 12.
The mean lifetimes of the two factories are both 10.
However, by looking at the data, it is obvious that the
batteries produced by factory 1 are much more reliable
than the ones by factory 2. This implies other
measures for measuring the “dispersion” or
“variation” of the data are required.
(I) Range:
range＝(largest value of the data)－(smallest
value of the data).
Example 2 (continue): Range of lifetime data for
factory 1＝10.1－9.9＝0.2 Range of lifetime data for
factory 2＝16－3＝13
The range of battery lifetimes for factory 1 is
much smaller than the one for factor 2.
Note: the range is seldom used as the only measure of
dispersion. The range is highly influenced by an
extremely large or an extremely small data value.
(II) Interquartile Range:
Interquartile is the difference between the third and the
first quartiles. That is,
Example 2 (continue):
The first quartile and the third quartile for the data
from factory 1 are 9.9 and 10.1, respectively, and 6
and 14 for the data from factory 2. Therefore,
IQR (factory 1)＝10.1－9.9＝0.2
IQR (factory 2)＝14－6＝8.
The interquartile of battery lifetimes for
factory 1 is much smaller than the one for factor 2.
(III) Variance and Standard Deviation:
population deviation about the mean: sample
deviation about the mean: Intuitively, the population
deviation and the sample deviation can measure how
far the data is from the “center“ of the data. Then,
population variance and sample variance are the sum
of square of the population deviation and sample
deviation.
(IV) Coefficient of Variation:
The coefficient of variation is another useful statistic
for measuring the dispersion of
the data. The coefficient of variation is
The coefficient of variation is invariant with respect to given value. continues that described data that cluster around the
the scale of the data. On the other hand, the standard Formula: Where l = location of the data value mean.The graph of the data associated probability
deviation is not scale-invariant. p = percentile as a whole number density function is a bell shaped.With a peak of the
n = sample size mean and its known as Gaussian function or bell
4.4 MEASURES OF RELATIVE POSITION: Z- Z-SCORES/STANDARD SCORE curved.
SCORES, PERCENTILES, A standard score or z-score is used when direct Normal Curve
QUARTILES AND BOX - comparison of raw scores is imposible. Value is -was developed mathematically in 1973 by Abraham
AND- WHISKERS PLOTS obtained by subtracting the mean from the value and de Moivre (1667-1754) as an approximation to the
PERCENTILES dividing the result by the binomial distribution.
A percentiles is a measure used in standard deviation. A.Standard Normal Distribution
statistics indicating the value below The symbol for the standard -can be converted into a standard normal distribution
which a given score is z by obtaining the z value.A z value is a signed distance
percentage of \ between a selected value,designed x, and the mean
observations in a divided by the standard deviation.
group of Characteristics of Normal Distribution
observations fall Find the Standard Score: The four characteristics of a normal distribution are
Suppose that the mean on test 1 was 80.1 with a symmetric, and asymptotic ,the mean ,median and the
The formula of percentiles is standard deviation of 6.3 points. If a student made a mode are all equal.
92.5, what is the student’s standard score? Symmetric
The 25th percentile is also called the first -characterized by or exhibiting,well proportioned as a
body or whole,regular in form on arrangement of
quartile. Quartiles corresponding pats.
The 50th percentile is generally the A values that divide a list of numbers into quarters: Asymptotic
median (if your using the third definition see below.  Put the list of numbers in order -of or relating to an asymptote
The 75th percentile is also called the third quartile.  Then cut the list into four equal parts -approaching a given value as an expression
The difference between the third and first quartiles is
 The quartiles are at the “cuts” containing a variable tendto infinity.
the interquartile range.
Mean,Median,Mode
Example: the scores of student are 40, 45, 49, 53, 61, Example: 5,7,4,4,6,2,8 -is equal ,three kinds of average
65, 71, 79, 85, 91. What is the percentile for score 71?.  Put them in order- 2,4,4,5,6,7,8 Mean is the average ,the Median is the middle ,the
Solution:  Cut the list into quarters Mode is the value that occurs more often.
No. of scores below 71 =6 And the result is: 4. 6 HYPOTHESIS TESTING
Total no. of scores =10
Is an act in statistics whereby an analyst tests an
Percentile of 71 Q1= 4
assumption regarding population parameter. The
=6/10 x 100
Q2, which is also the median, =5 methodology employed by the analyst depends on the
=0.6x100
nature of the data used and the reason for the analysis.
=60 Q3= 7 Hypothesis testing is used to infer the result of a
Percentiles divide the data
hypothesis performed on sample data from a larger
into 100 equal parts. 4.5 Probabilities and Normal Distribution population.Statistical analyst test a hypothesis by
At the nth percentile, n% of the data lies at or below a The normal distribution or Gaussion Distribution is a measuring and examining a random sample of the
population being analyzed. All analysts use a random
population sample to test two different hypotheses: the
null hypothesis and the alternative hypothesis
Differences and similarity of null and alternative
hypothesis:
 Null hypothesis
Is the hypothesis the analysts believe to be true.
 Alternative hypothesis
Is the hypothesis the analysts believe to be untrue and
the opposite of the null hypothesis.
Thus they are mutually exclusive and only one can be
true. However one of the two hypotheses will always
be true.
4 steps of Hypothesis Testing
All hypotheses are tested using four-step process:
1. The first step is for the analyst is to state the
two hypotheses so that only one can be right.
2. The next step is to formulate an analysis plan,
which outlines how the data will be evaluated.
3. The third step is to carry out the plan and
physically analyze the sample data.
4. The fourth and the final step is to analyze the
results and either accept or reject the null
hypothesis.
HYPOTHESIS STATEMENT
-If you are going to propose a hypothesis, its
customary to write a statement. You’re statement will
look like this:
“if I ( do this to an independent variable)… then ( this
will happen to the dependent variable)”.
For example:
1. If I ( decrease the amount of water given to
herbs) then ( the herbs will increase in size).
2. If I give ( patients counseling in addition to
medication) then ( their overall depression
scale will decrease).
3. If I ( give exam at noon instead of 7) then
( student test score will improve).
4.7 LINEAR REGRESSION AND
CORRELATION
Correlation
Is a statistical method used to determine whether a
relationship between variables exists.
A variable here is characteristic of the population
being observed or measured.
The sample then consists of random Observations
of the variable describing a given population.
REGRESSION ANALYSIS
Is a statistical method used to describe the nature
of the relationship between variables, that is, either
positive or negative, linear or non linear.
There are two types of relationships: simple and
multiple.
In a SIMPLE RELATIONSHIP, there are two
variables- an independent variable (or explanatory
variable or predictor variable) and a Dependent
Variable (or responsive variable.
Simple linear relationship can be positive or
negative.
A positive relationship exists when either
variables increase at the same time or both
decrease at the same time.
On contrary, in a negative relationship, as one
variable increases, the other variable decrease or
vice versa.
Scatter Diagram is useful tool for checking the
assumptions in a regression analysis.
PEARSON PRODUCT-MOMENT
CORRELATION
 Is the most widely used in statistics to measure
the degree of the relationship between the
linear related variables.
 Formula used to calculate the Pearson r

 The Pearson r correlation would require both
variables to be normally distributed.
 Correlation refers to the departure of two
random variables from independence.
 Correlation Coefficient is defined as the
covariance divided by the standard deviation of
the variables.
 Pearson`s product-moment correlation of
simply correlation coefficient (or Pearson`s
r) is a measure of the linear strength of the
association between two variables.
 It is founded by Karl Pearson
 A test of significance for the coefficient of
correlation may be used to find out if the
computed Pearson`s r could have occurred in a
population in which the two variables are
related or not.
 The formula of t-test
 Where t= t-test for correlation coefficient

 SIMPLE LINEAR REGRESSION ANALYSIS
 Regression analysis is a simple statistical tool
used to model the dependence of a variable on
one (or more) explanatory variables.
 Simple linear regression is the least estimator
of a linear regression model with single
predictor (or one independent variable).
 Least square model determines a regression
equation by minimizing the sum of squares of
the vertical distances between the actual y
values and the predicted values of y.
 The difference between an observed and
predicted value is called residual.
 The mean of the residual is always zero.
 The points that fall outside the overall pattern
of the other points are known as outliers.
 The scores whose removal greatly changes the
regression line are called influential scores.
4.8 CHI SQUARE / USES
A chi- squared test , also written as 𝑥 2 test ,is
any hypothesis statistical test where the
sampling distribution of test statistic is chi-
squared distribution when the null hypothesis
is true .Without other qualification , ‘chi-
squared ‘ test often is used as short for
Pearson’s chi squared .The Chi -squared test is
used to determine whether there is a significant
difference between the expected frequencies
and observed frequencies in one or more
categories
Chi-squared test for variance in a normal population if
a sample.
If a sample of size n is taken from a population
having a normal distribution, then there is a
result (see distribution of the sample variance)
which allows a test to be made of whether the
variance of the population has a pre-
determined value. For example,
manufacturing process might have been in
stable condition for long period, allowing a
value for the variance to be determined
essentially without error.
Chi-square test explained with Example:
We will cover following important steps in our
journey of chi-square test for independence of two
variables.
1.State the hypothesis
2.Formulate Data Analysis plan
3.Analayzed The Sample Data
4.Interpret The outcome
Step 1: State the Hypothesis:
Here we need to start by establishing a null
hypothesis and counter hypothesis
(alternative hypothesis) as given below.
Null hypothesis:
Ho: Gender and voting preferences are independent.
Step2: let’s Build Our Data Analysis Plan
Here we will try to find out p value and match it
with the significance level
Let’s take the standard and accepted level of
significance to be 0.05.
Given the sample data in the table above, let’s try
to employ Chi-square test for independence and
deduce the probability value.
Step3: Let’s Do Sample Analysis Plan:
Here we will analyze the given sample data to
compute
 Degree of freedom
 Expected Frequency Count of sample
variable
 Calculate Chi -Square test static value,
All the above values will help us find the P-value.
Degree of Freedom Calculation: let’s calculate df (r---
1) * (c---1), so in the given table, we have r (rows)=2
and c(column)=3
a df = (2-1) *(3-1) = 1*2=2
CALCULATION:
LET Eij, represent expected values of the two
variables are independent of one another.
Eij=ith (rows total X jth column total) /grand total.
5.1 SIMPLE AND COMPOUND
INTEREST
Interest is the cost of borrowing money, where the borrower
and the interest that accumulates on it in every period.
Since simple interest is calculated only on the
principal amount of a loan or deposit, it's easier to
determine than compound interest
Simple Interest Simple interest is calculated
using the following formula:
Simple interest= P × r × n
Where:
P= Principal amount
r= Annual interest rate
n= term of loan in years
Real-Life Simple Interest Loans
Two good examples of simple interest loans are auto
loans and the interest owed on lines of credit such as
credit cards. A person could take out a simple interest
car loan, for example. If the car cost a total of $100,
to finance it the buyer would need to take out a loan
with a $100 principal, and the stipulation could be that
the loan has an annual interest rate of 5% and must be
paid back in one year.
Compound Interest
Compound interest accrues and is added to the
accumulated interest of previous periods; it includes
interest on interest, in other words. The formula for
compound interest is: Then, finance charge is being computed based on the Given: m = 6 r = 7% = 0.07
Compound Interest=P × (1+r) t – P average daily balance times the interest rate per month
where: Lastly, the current balance will be computed, Step 1: Determine the finance charge.
P=Principal amount Computation for each advances also include in this Finance Charge = Amount Finance x Finance
r=Annual interest rate section; Rate
t=Number of years interest is applied Finance Charge = 66,000.00 x 0.07 =
It is calculated by multiplying the principal amount by Average Daily Balance = P4,620.00
one plus the annual interest rate raised to the number 𝑆𝑢𝑚 𝑜𝑓 𝑡ℎ𝑒 𝐴𝑚𝑜𝑢𝑛𝑡
( ) +
of compound periods, and then minus the reduction in 𝐸𝑎𝑐ℎ 𝐷𝑎𝑦 𝑜𝑓 𝑡ℎ𝑒 𝐴𝑚𝑜𝑢𝑛𝑡 Step 2: Estimate the Annual Percentage Rate.
the principal for that year. 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐷𝑎𝑦𝑠
( ) 2𝑚𝑟
Examples of Simple and Compound Interest 𝑖𝑛 𝑡ℎ𝑒 𝐵𝑖𝑙𝑙𝑖𝑛𝑔 𝑃𝑒𝑟𝑖𝑜𝑑 APR ≈
Below are some examples of simple and compound 𝑚+1
Finance Charge= ADB x Periodic Rate
interest. 2(6)(0.07)
Example 1: Suppose you plunk $5,000 into a one-year APR ≈ ≈ 0.12 or 12%
Cash Advance Fee = Amount of Cash Advance x Rate 6+1
certificate of deposit (CD) that pays simple interest at
3% per annum. The interest you earn after one year 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 The finance charge is P4,620.00 and the APR
Current balance = ( ) − (𝑃𝑎𝑦𝑚𝑒𝑛𝑡𝑠) is 12%.
would be $150: 𝑏𝑎𝑙𝑎𝑛𝑐𝑒
$5,000×3%×1 𝑁𝑒𝑤 𝐹𝑖𝑛𝑎𝑛𝑐𝑒
+( )+( )
𝐶ℎ𝑎𝑟𝑔𝑒𝑠 𝐶ℎ𝑎𝑟𝑔𝑒 C. Consumer Loans
5.2 Credit Cards and Consumer Loans B. Annual Percentage Rate Most consumer loans apply the APR interest
The Annual Percentage Rate (APR) is the rate, such as a car loan, housing loan, furniture loan,
effective annual interest rate which is the basis of appliance loan, and other types of loan with regular
A. Credit Card credit payments. The principle behind the APR is that
The credit card transaction is one of the most payment schedule. The payment amount for these
only the unlaid balance will earn interest. The Annual loans is given by the following formula.
widely used by individuals to pay purchase without
Percentage Rate (APR) of a simple interest rate loan
bringing cash on hand. The government requires credit 𝐴𝑖
can be estimated by the formula;
card companies to fully disclose to the costumer in R=
writing, the cost of the credit. The finance charge is 1−(1+𝑖 ) −𝑛
2𝑚𝑟
the peso amount that is paid for the credit, while the APR ≈ 𝑚+1 Where
annual percentage rate (APR) is the amount effective
interest rate being charged. R = regular payment m = number of
This section provides some insights on how to Where m is the number of payments and r is the payments per year
compute finance charges wherever we used our credit simple interest rate.
card and its monthly balance computation. A = loan amount n = tm
Credit card provides; Example 1: Redentor borrows P66,000 from the bank
r = Annual interest rate i= r÷m
First, compute the advance daily balance of a credit that advertises a 7% simple interest rate and repays the
card which is enough to the quotient between the sum loan in six equal monthly payments. Find the finance
of the amounts owned each day of the given month charge and estimate the annual percentage rate.
and the number of days in the billing period. Solution:
Example 1: RFS Electronics is offering costumers
who purchase the latest model of smartphones an
annual interest rate of 9% for 3 years. If Mirasol
purchases an Iphone 8 for P46,700 from RFS
Electronics, determine her quarterly payment.
Solution:
Given: A = 46,700 m = 4 (quarterly
payment) i = r ÷ m = 0.09 ÷ 4 = 0.0225
r = 9% = 0.09 t = 3 years
n = tm = 3(4) =12
𝐴𝑖
R=
1−(1±𝑖) −𝑛
(46,700)(.0225)
R ≈ 4,484.01
1−(1+0.0225) −12
The quarterly payment for the smartphones is
P4,484.01.
5.3 STOCKS, BONDS, and MUTUAL
FUNDS
One of the key roles of a financial planner is to
provide advice to clients on how to invest their money
for the long term, such as saving for retirement. One
of the best ways to save for the long term is through
growth investment products.
There are two main categories of investments: growth
investments and income investments. Growth
investments have the greatest potential for growth
over the long term, while income investments have
lower risk and are excellent for short-term investments
or if regular income is needed from the investment.
The three most common types of growth investment
products are stocks, some bonds, and some mutual
funds. The three are very different, but they share the
common characteristic of being investment tools that
are often good for long-term saving.
For example, while the return on many income
investments is under 5%, it is not uncommon for the
returns on growth investments to be 10% or higher.
While the volatility on growth investments makes it
risky to anticipate any positive return in the short term,
most growth investments have shown steady growth
over the decades, another reason they are good long-
term investments.
Stocks are considered a volatile investment because
their value depends on how well the company is
doing—and many different factors, often unexpected,
can affect how a company is faring. Natural disasters,
economic downturns, increased competition, new
inventions, and many other factors can affect a
company either negatively or positively.
A market index (indices is the plural) is a grouping of
a number of stocks whose performance is tracked
together. For example, when you hear that the Dow
Jones fell 12 points, it means that taken together, the
average decline of stocks in the Dow Jones Industrial
Average was 12 points but that the actual performance
of individual stocks in the index may have been higher
or lower.
In addition to tracking indices, sometimes it is helpful
to track the performance of a sector of the economy,
such as high technology or the automobile industry, or
a certain category of stocks, such as large cap or small
cap stocks.
Bonds can be purchased in a variety of ways, the most
common being from a full-service or discount broker.
A bond broker can also purchase bonds but usually
requires a minimum purchase of $5,000.
If you are purchasing bonds, it is a good idea to check
the credit rating of the companies whose bonds you
are purchasing.
One common way to reduce risk when purchasing
bonds is to invest in a mutual fund that includes a
diverse portfolio of bonds. Investing in many bonds at
once reduces the impact on the investment if one
company or government entity is unable to pay.
5.4 HOME OWNERSHIP

5.8 Weighted Graph
A weighted graph refers to one where weights are
assigned to each edge. Weighted graphs can be
represented in two ways: Directed graphs where the
edges have arrows that show path direction.
Undirected graphs where edges are bi-directional and
have no arrows.
These weighted edges
can be used to compute
shortest path. It consists
of:
A set of vertices V.
A set of edges E.
A number w (weight) that is assigned to each edge.
Weights might represent things such as costs, lengths
or capacities.
In a simple graph, the assumption is that the sum of all
the weights is equal to 1.
Graph Types
In addition to simple and weighted descriptions, there
two types of graphs:
Directed Graph: In a directed graph, edges have
direction (edges with arrows connect one vertex to
another).
Undirected Graph: In an undirected graph, edges
have no direction (arrowless connections). It is
basically the same as a directed graph but has bi-
directional connections between nodes.
Figure 1 outlines an example of directed and
undirected weighted graphs.
Figure 1: Examples of directed and undirected graphs.
Why Use Graphs?
Using graphs, we can clearly and precisely model a
wide range of problems. For example, we can use
graphs for:
Coloring maps (modeling cities and roads)
Social Relations (sociology)
Protein interactions (biology)
Social networking (e.g. Facebook and Twitter)
Graph Representation
Graphs can be represented in two specific ways: 1) by
using an adjacency matrix and 2) by using an
adjacency list.
Adjacency Matrix
An adjacency matrix is a two dimensional array of
size V times V, where V is the number of vertices in a
graph. For example, if we have an array (M), M{i,j} =
1 indicates that there is an edge from vertex i to vertex
j. An adjacency matrix for an undirected graph is
always symmetric. An adjacency matrix can also be
used to represent weighted graphs. For example, if
M{i,j} = w, then there is an edge from vertex i to
vertex j with weight w.
Adjacency List
An adjacency list uses an array of linked lists. The size
of the array is equal to the number of vertices. For
example, if we have an array (V), V{i} represents the
linked list of vertices adjacent to the i-th vertex. This
representation can also be applied to a weighted graph.
The weights of the edges can be stored in nodes of
linked lists.
6.0 Graph Coloring
What is graph coloring?
* graph coloring is an assignment of colors (or
any distinct marks) to the verticles of a graph. Strictly
speaking , a coloring is a proper coloring if no two
adjacent vertices have the same color.
Why graph coloring?
*many problems can be formulated as a graph
coloring problem including Time Tabling, Channel
Assignment etc.
* a lot of research has been done in this area.
Channel Assignment
* Find a channel assignment to R radio stations such
that no station has a conflict (there is a conflict if they
are vicinity)
* Vertices- radio stations, edges- conflict,colors-
available channels.
Terminology
*k-coloring
= a k-coloring of a graph G Is a mapping of V(G)
onto integers 1..k such that adjacent vertices map into v, assign a new color to it. Proof of 1.
different integers. Let (a mod n)= Ra and ( b mod n)= Rb. Then, we
= a k-coloring partitions V(G) into k disjoint 6.1 Modular Arithmetic can write
subsets such that vertices from different subsets have DEFINITION: a= Ra + jn for some integer j and b = Rb + kn for
different colors.  Let a,b and n are integers and n>O. some integer k
*k-colorable ( a+b) mod n = (Ra + jn +Rb + kn) mod n
we write a = b mod n if and only if n divides
= a graph G Is k-colorable if it has a k-coloting =[Ra + Rb+ (k + j) n ] mod n
a-b.
*Chromatic Number =(Ra + Rb) mod n
n is called the modulos.
= The smallest integer k for which G Is k- =[(a mod n) + (b mod n) mod n
b is called the remainder.
colorable is called the chromatic number G.
Example:
Example Problem: Property Expression
29=15 mood 7 because 7/(29-15)
A state legislature had a number of committees Commutative (W+x) mod n =
12=3 mod 9;3 is a valid remainder since 9
that meet each week for an hour.How can we schedule laws (x+w) mod n
21=21 mod 9; 21 is a valid remainder since 9 divides
the committee meetings times such that the least Associative laws [(W + x) + y/
-6-3
amount of time is used but such that two committees mod n = ( w
12=-6 mod 9;-6 is a valid remainder since 9 divides -
with overlapping membership do not meet at the same +(x+y) mod n
6-3
time. [( w x x ) ] mod
1. a=b (mod n) if n/ (n- b)
n = ( w x y) mod
* Graph Colouring Algorithm 2. a=b (mod n) implies b = a (mod n) n
=there is no efficient algorithm available for a 3. a= (mod n) and b=c (mod n) imply a=c (mod n) Distributarive [ wx( x+y) mod n
graph with minimum number of colors. law = [(w x x )+ ( w
= graph coloring problem is a known NP Complete x y )] mod n
problem. Identifies (o + w) mod n =
Proof of 1.
w mod n
*NP Complete Problem If n/( a-b), then (a-b) = in for some k. Thus , we can
(1 x w) mod n =
=The interesting part is,if any one of the NP write a=b + kn. Therefore,
w mon
complete problems can be solved in polynomial (a mod n) = (remainder when b + kn is divided by
Add the Inverse (-w) For each w
time,then all of them can be solved. n)= (remainder when b is divided by n) (b mod n)
Zn, there exists a
=Although graph coloring problem is NP 23=8 (8 mod 5) because 23-8 = 15= 5x3
z such that w + z
Complete problem there ara some approximate -11=5 (mod 8) because -11-5= 16=8x(-2)
a 0 mod n.
algorithms to solve the graph coloring problem. 81=0(mod 27) because 81-0=81=27x3
Karl Friedrich Gauss,1801.
Basic Greedy Algorithm Types of Modular Arithmetic
 Modular Arithmetic = "wrap - around"
1. colors first vertex with first color >we can add subtract congruent elements without
losing congruence: computations
2. Do following for remaining V-1 vertices.
a) Consider currently picked vertex and color it (a mod n)+ (b mod n) mod n = (a+ b) mod n
[(a mod n) = ( b mod n ) mod n= ( a-b) mod n Example: Start at 12 o'clock .5 hours plus 8 hours
with the lowest numbered color that has not been used equals 1 o'clock.
on any previously colored vertices adjacent to it.If all >Multiplication also works:
[(a mod n) x (b mod n) mod n= (a x b) mod n 5 + 8 = 1 ( mod 12)
previously used colors appear on vertices adjacenf to
Anyone can encrypt, because n and e are public.
 To encrypt, convert your message into a set of
plaintext numbers P, each less than n.
 For each P, compute C=P (mod n)
 The numbers C are your ciphartext.

Ronald Divest, Adi Shamir, Leonard Adleman, 1977.

 Pick two primes p and q.
 Compute n= pq.
 Pick encrypt exponent e such that e and ( p - 1)
(q - 1) don't have any common prime
 Make n and e public. Keep p and q private.

6.2 Applications of Modular

Arithmetic
Hashing, pseudo-random numbers, ciphers.