PHILIPPINE WOMEN’S UNIVERSITY

TAFT, MANILA

EXPANDED TERTIARY EDUCATION EQUIVALENCY

AND ACCREDITATION PROGRAM (ETEEAP)
SECOND TRIMESTER, SY 2020-2021
BUSINESS STATISTICS – CLUSTER 4
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TOPIC - 4
DESCRIPTIVE STATISTICS

Numerical descriptive measures

1. Measure of central tendency – mean, median, mode and weighted

mean
Mean is the sum of values divide by the number of values.

Parameter is any measurable characteristics of a population.

Median – the middle item in a set of observation are arranged in order

of magnitude,

Mode that value the occurs most frequently.

Skewed distribution represented by a curved that lacks symmetry.

Weighted mean assigns more weight to some data values than to

others.
2. Measure of variability

Range is the difference between the highest and the lowest values
in a data set.
Variance is the average of the squared differences between the
data values and the mean.

Standard deviation measures the standard amount by which the

values in a data collection differ from the mean.

Degree of freedom refers to the number of data elements that are

free to vary.
Coefficient of variation for a data collection expresses the standard
deviation as a percentage of the mean.

QUESTIONS:
1. Which measures of central tendency ( Mean, Median, Mode and
Weighted mean) should be used in each of the following
situations? Why?
a. You like to determine the average annual percentage rate of
net income to sales for the Meralco for the past seven years.
b. Determine the average amount each worker receives per
month to ensure a fair distribution in a profit-sharing plan.
c. You like to determine a representative wage value for use in
arbitration for a company that employs 200 workers, including
several highly paid specialists.
2. Vivian Mangahas is planning to start an advertising agency and is
interested in analyzing companies that operate in Cavite area.
The following data collection shows a sample of the local ads
agencies, 2019 total billings and the numbers of employees.
BILLINGS
ADS AGENCY PESOS MILLIONS EMPLOYEES
AAA 7.4 29
BBB 5.0 31
CCC 3.5 10
DDD 2.1 3
EEE 1.5 8
Fff 1.2 15
Ggg 1.0 4
HHH 1.0 5
Iii .4 1
JJJ .3 3
KKK .2 4
REQUIRED:
a. Compute the mean, median, and mode for 2019 billing
per agency.
b. Which measure of central tendency should Vivian use if
she wants the typical amount of 2019 billings?
c. Compute the mean, median, and mode for the number of
employees per agency.
d. Which measure of central tendency should Vivian use if
she wants to measure variability as well?