UNIT 3: Descriptive Statistics
2.) Variance – the square of the standard deviation
 Descriptive Statistics: numerical measures that
are used to describe certain characteristics of
the data
Common Types of Descriptive Measures
1. Measures of Central Location: mean, median,
mode
2. Measures of Variability: range, variance,
standard deviation, standard error, coefficient
of variation
3. Measures of Shape: Skewness, Kurtosis
4. Other Summary Statistics: sum, count
5. Measures of Location: Fractiles (Percentile,
Decile, Quartile)
6. Box-and-Whisker Plot (5-number summary)
1. Measures of CENTRAL LOCATION/TENDENCY
 used to identify the “center” or the typical value
in the data set, can be referred to as “average”
 TYPES:
1.) Mean: sum of all the values in the observation
divided by the number of observations in the
data set.
2.) Median: a value that divides an ordered set of
data (array) into two equal parts (usually
denoted by Md).
 Md = middle value in the array when n is odd
 Md = mean of the two middle values when n is
even
3.) Mode: the value in the data set that occurs with
the greatest frequency.
2. Measures of VARIABILITY/DISPERSION
 indicate the extent to which individual
observations in a set of data are scattered
about an average
 TYPES:
1.) Range – maximum value minus the minimum
value in the data set.
 Maximum – the highest value in the data set
 Minimum – the lowest value in the data set
 Population variance: 𝜎2 Sample variance: s2
3.) Standard deviation - a measure of dispersion
which indicates the extent of scattering of the
observations from the mean
4.) Standard Error (of the mean) - is used to
measure how well the obtained statistic will
estimate the target parameter. The smaller the
standard error, the better the statistic
 S = Standard deviation
 n = sample size
 useful when constructing confidence interval of
the mean.
5.) Coefficient of Variation % - how scattered the
data relative to the mean. It is a relative
measure of variation that is always expressed as
a percentage.
 CV = ( x́s ) 100 %
 very useful when comparing the two or more
data sets that have different means and/or
measured in different unit of measurement
3. Measures of SHAPE
1.) Measure of Skewness- refer to the degree of
asymmetry, or departure from symmetry of a
distribution.
 Simplified Guideline
a.) If │ skewness │ ≤ 2*standard error, then
symmetric.
b.) If │skewness │ > 2*standard error,
then skewed right if Sk is positive;
or skewed left if Sk is negative;
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where std. error =
√ n
(estimate)
3(mean−median)
For the alternative formula: Skew ¿
standard deviation
 SAMPLE INTERPRETATION OF DATA:
 Twice the std. error is 2x0.687 = 1.374
 The distribution is symmetric if Sk is within the
interval [-1.374, 1.374]
 Conclusion: Since sk=-0.407 is within the
interval, thus the distribution may be
considered symmetric.
2.) Measure of Kurtosis – measures the extent to
which observations cluster around a central
point
 Simplified Guideline
a.) If │ kurtosis│ ≤ 2*standard error, then
Mesokurtic.
b.) ii) If │kurtosis│ > 2*standard error,
then Leptokurtic if Ku is positive;
or Platykurtic if Ku is negative .
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where std. error =
√ n
(estimate)
 SAMPLE INTERPRETATION OF DATA:
 Twice the std. error is 2x1.549 = 3.098. The
distribution is mesokurtic if Ku is within the
interval [-3.098, 3.098]
 Conclusion: Since Ku=-1.258 is within the
interval, thus the distribution may be
considered mesokurtic.
4. Other Summary Statistics
1.) Sum – computed by adding numerical
observations
2.) Count – total number of observations
5. Box-and-Whisker Plots
 A box-and-whisker plot (sometimes called a box
plot) is often used to provide a visual summary
of a set of data.
 A box-and-whisker plot shows the median, the
first and third quartiles, and the minimum and
maximum values of a data set. See the figure
below.
 Detecting OUTLIERS o
If the distance from the box exceeds 1.5 times the
interquartile range (in either direction), the observation
may be labelled an outlier and is denoted by o .
 Interquartile Range (IQR) = Q3-Q1
Lower Fence (LF): Q1 – 1.5 x IQR
Upper Fence (UF): Q3 + 1.5 x IQR
 Whiskers:
a.) Locate the smallest value contained in the
interval [LF, Q1] and form a whisker.
b.) Locate the largest value contained in the
interval [UF, Q3] and form a whisker.
 Note: If the distance from the box exceeds 3
times the IQR (in either direction), the
observation is called a far outlier and is denoted
by x.
Lower Fence (LF): Q1 – 3 x IQR
Upper Fence (UF): Q3 + 3 x IQR
Excel Functions
= min(data)
=QUARTILE.EXC(data,1)
=median(data)
=QUARTILE.EXC(data,3)
= max(data)
x - μ
z =
σ
 For any normal curves, the computation of the
probability is based on the Standard Normal
Curve.
 Standard Normal Table: The areas in the
Standard Normal Table will be used in the
computation of the probability.