Statistics – Second Hourly Notes

 A dart game can help us understand what dispersion is.

 Important Measures of Dispersion are:
1. Range (Maximum – Minimum)
2. Variance
3. Standard Deviation
4. Mean Deviation
5. Interquartile Range
6. Coefficient of Variation (C.V.)

 x  x 
2

Variance  V ( X )  i

n
 Standard Deviation is the square root of variation: V(X)
 Coefficient of Variation is a consistency check.
 In order to check whether the variable is consistent or not, we need to compute the coefficient of
variation,

V (X ) 
C.V .  100  100
X 
 For any consistent variable C.V. < 100%
 C.V. is the unit-less measure of dispersion.
 The least the C.V., the more consistent the data is.
 Variance of Group Data is calculated using this formula:

 f x  x 
2
111.34
Variance  V ( X )  i i
  4.45
f i 25
Where fi denotes the frequency of class intervals,

And xi denotes the midpoints of class intervals.

 Moments are essential measures to describe Skewness and Kurtosis of the Data.
 There are two types of Moments:
1. Moments about Origin (r’)
2. Moments about Mean (r)
Moments About Origin Moments About Mean

Moments Based Skewness Measure:

 This will always give us a +ve or a zero value.
 For symmetric distribution, this measure will be zero as 3=0.
 For any skewed distribution, 1 will be having a +ve value and the sign of 3 will indicate the
direction of skewness i.e. for any -ve skewed distribution, 3 will be -ve and vice versa for +vely
skewed asymmetric distribution.

Moments based Kurtosis:

 For Laptokurtic state 2>3
(Less Dispersed)
 For Mesokurtic state 2=3
(Normally Dispersed)
 For Platykurtic state 2<3
(More dispersed)
Approximate Confidence Intervals:
For any Bell-shaped symmetrical
distribution:

1)    will cover approximately 68%

observations.

2)   2 will cover approximately 95%

observations.

3)   3 will cover approximately 99.98% observations.

Where  and  are the mean and standard deviation respectively.

 In a Bell-shaped distribution, extreme values come with less frequency.

 Majority falls within one standard deviation.
 It’s Nature’s Distribution. God created almost all natural measures with a bell-shaped distribution.

Statistical Process Control:

 The Concept is based on Approximate Confidence intervals.
 It’s usually use to monitor a manufacturing Process or to observe individual’s performance.
 For this purpose, we setup a graph which is called a Control Chart.
 Control Chart is bounded by two Control Limits.
 By observing any realization; we can monitor any process which can alert us on two conditions:
1. Either any observation crosses or even touch any pre-alarm control limit.
2. Or when the realization motion become rhythmic.