Name Rizwan Iqbal

Class BBA

Semester 5th

Roll No BBHM-F17-048

Subject Quantitative Techniques in Business

Submitted to Sir Umar Bashir

Mean

The mean is the average of the numbers. It is easy to calculate add up all

the numbers, then divide by how many numbers there are. In other words it is

the sum divided by the count.

Mean is an essential concept in mathematics and statistics. In general, the mean

is referred to the average or the most common value in a collection of numbers.

Arithmetic Mean

Arithmetic mean (or, simply, “mean”) is nothing but the average. It is computed

by adding all the values in the data set divided by the number of observations in

it. If we have the raw data, mean is given by the formula.

Formula

There are many methods to find mean which are given below.

Direct Method

Marks obtained by students in text

8,6,4,6,5,9,1,0,8,9,7,7,6,7,8,8,7,6,5,7,

X Frequency (f) ( f )(x)

0 1 0

1 1 1

4 1 4

5 2 10

6 4 24

7 5 35

8 4 32

9 2 18

Total 20 124

∑ fx 124
M= ∑f M= 20 M=6.2 ans

Short-cut/ Deviation Method

Variants (X) 140 145 148 150 151 155

frequency 5 2 3 7 6 2

X D=X-A Frequency (f) (f)(x)

140 -10 5 -50
145 -5 2 -10
148 -2 3 -6
150=A 0 7 0
151 1 6 6
 155 5 2 10
Total 25 -50

A=Assumed mean

∑ fd
Mean= A+ ∑f

M= 150 + [-50/25]

M= 150-2

M=148

Geometric Mean

There are two type of geometric mean group and ungroup. In group frequency is

mentioned where as in ungroup frequency is not mentioned.

Ungroup
Group

Harmonic Mean

Harmonic mean is a type of average that is calculated by dividing the number of

values in the data series by the sum of reciprocals of each value in the data

series. A harmonic mean is one of the three Pythagorean means. The harmonic

mean always shows the lowest value among the Pythagorean means. The

harmonic mean is often used to calculate the average of the ratios or rates. It is
the most appropriate measure for ratios and rates because it equalizes the

weights of each data point. For instance, the arithmetic mean places a high

weight to large data points, while geometric mean gives a lower weight to the

smaller data points. IN finance, the harmonic mean is used to determine the

average for financial multiples such as price to earnings (P/E) ratio. The

financial multiples should not be averaged using the arithmetic mean because it

is biased toward larger values. One of the most common problems in finance

that uses the harmonic mean is the calculation of the ratio of a portfolio that

consists of several securities.

A field of applied statistics of human research surveys, survey methodology

studies the sampling of individual units from a population and associated
techniques of survey data collection, such as questionnaire construction and
methods for improving the number and accuracy of responses to surveys.
 Determine who will participate in the survey.
 Decide the type of survey (mail, online, or in-person)
 Design the survey questions and layout.
 Distribute the survey.
 Analyze the responses

Describe the types of test used in inferential statistics?

Inferential statistics is generally used when the user needs to make a
conclusion about the whole population at hand, and this is done using the
various types of tests available. It is a technique which is used to understand
trends and draw the required conclusions about a large population by taking and
analyzing a sample from it. Descriptive statistics, on the other hand, is only
about the smaller sized data set at hand – it usually does not involve large
populations. Using variables and the relationships between them from the
sample, we will be able to make generalizations and predict other relationships
within the whole population, regardless of how large it is.
Types of Inferential Statistics Tests
There are many tests in this field, of which some of the most important are
mentioned below.

Linear Regression Analysis

In this test, a linear algorithm is used to understand the relationship between two
variables from the data set. One of those variables is the dependent variable,
while there can be one or more independent variables used. In simpler terms, we
try to predict the value of the dependent variable based on the available values
of the independent variables. This is usually represented by using a scatter plot,
although we can also use other types of graphs too.

Analysis of Variance

This is another statistical method which is extremely popular in data science. It

is used to test and analyses the differences between two or more means from the
data set. The significant differences between the means are obtained, using this
test.

Analysis of Co-variance
This is only a development on the Analysis of Variance method and involves

the inclusion of a continuous co-variance in the calculations. A co-variant is an

independent variable which is continuous, and are used as regression variables.

This method is used extensively in statistical modelling, in order to study the

differences, present between the average values of dependent variables