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    Chapter 3 Statistics

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    Arshad Bashir

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    © All Rights Reserved
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    Measures of Central Tendency 3 and Dispersion in Frequency Distributions ANOS aan reoding this chapter, you can understand: cs to describe © To examine computer-based exploratory data analysis to see other useful ways to summarize n, median, and mode to describe data range, variance, and standard tion to describe how date “spread out” ————_—E—EO—OO———E— aE CHAPTER CONTENTS Summary Statistics 74 3.10 Relative Dispersion: The Coefficient A Measure of Central Tendency of Variation 132 ” au Descriptive Stauatcs Using Msexcel & The Arithmetic Mean A Second Measure of Central Tendency The Weighted Mean §7 A Third Measure of Central Tendency: The Geometric Mean 92 A Fourth Measure of Central Tendency: The Median 96 A Final Measure of Central Tendency: The Mode 104 Dispersion: Why It is important 111 Ranges: Useful Measures of Dispersion 113 Duspernon. Average Devianon Measures 119 Measures of Central Tendency and Dispersio’ ir we compute & mean time for the first six members, however, ‘and exclude the 9.0 value, fhe answer is about 4.7 minutes. The ont tm ome value of 90 distort the value w curing mean It would be more representative for Srulate the mean without including such an extreme value. weFecond problem with the mean is the palane intess, of ive thied disadvantage is that we are unable ro compute the mean for a data set that has open- ended classes at cither the high or low end of the ene Suppose the data in Table 3-6 had been ringed in the frequency distribution shown in fable 3-7. We could not compute « mean value for these data because of the ‘open-ended class of’s.4 and above.” We have no way of knowing (u wphether the value is 5.4, near ETE ~~ The mean (or average) can be an excell around the middle point of @ data from which it was comput are very high or very low values in th not representative. Fortunately there are thes shortcoming. A helpful hint in choosing dats points, EXERCISES 3.2 Self-Check Exercises Class 100-109 NO-9 120-129 13.0439 140-149 same one we encountered WI ee. It is tedious to compute the mean becw csene, we take the short-cut methiod of using grouped dats 10 lent measure of ¢ distribution). But unless the m ted, we are violating an importat ¢ data that don’t look lil measures that can SC3:1 The frequency distribution below represents the weights in carried last month by a small airfreight company. nin Frequency Distributions me TABLE 3-6 TIMES FOR TRACK-TEAM MEMBERS IN A 1-MILE RACE weMbeR FO? rs ag 4a 47 GRE 8 Gad 90 600 checking-account in our calculation the mean). Ath our data point i approximate TABLE 3-7 TIMES FOR TRACK-TEAM MEMBERS INA) -MILE RACE Faas 46-49 50-53 ‘5.4 and above CLASS IN MINUTES. 2 1 FREQUENCY _?. 2 use we do use every 5.4, or far above 5.4. entral tendency (how data group = esentative of the ean is truly repr nt assumption, Warning: If there be calculate which one of these to compute is to (©) Repeat part (>) with 0 assigned (a) Explain why your SC3-2 Davis Furniture Company oan showed the following ending ‘mont Jan. $121,300 APF hem Feb. ‘aa. Me Mar 700 June $57,300 Sept $50,400 ‘The company is eligible for a reduced rate of $65,000. Does it qualify? Applications Child-Care Community Nursery is Ze sverage age ofits children stays below 9. aaeatly attending Child-Care, do they quali 4 oiies 31 ) 8 - 9 10 Yo chil-care Community Nursery office as long as the average annual income of| is below $12,500. The family incomes $14,500 $15,600 $12,500 $8,600 $7,800 $6,500 $5,900 $10,200 $8,800 $14,300 3 ® ig Child-Care qualify now for county support? e answer to is yok part (a) is no, by how much must the average family (©) If the answer to part (a) is yes, by Care still stay eligible? is yo, by how much ca Sea pe These data represent the ages of patients admitted to a small hospital on 85 % 6 “3 “ 4 Ss. 0 6. Seer 983 65 3 3 ae ie ee (a) Construct a frequency distribution with ch Compute with classes o ae iple mean from the frequency: @ Cop Rea ee (b) and (c) and comment on your Of Central Tendency and Dispersion in Frequancy Distributions | “85” re) ¥ distribution etow : "presente ibe time in seconds needed to serve a sample of lern At Hullsliye Discount Store in Decomber 1996 Time (in seconds) Prequency 20-29 6 10-39 16 40-49 a 50-59 29 60-69 25 10-79 22 80-80 il 90.99 7 100-109 4 Ho-119 0 120-129 2 (@) Compute the sample mean using Equation 3-3. (6) Compute the sample mean using the coding method (Equation 3-4) with 0 assigned to the 70-79 clans, H10 Z The owner of Pets *R Us is interested in building a new store. The owner will build if the aver- age number of animals sold during the first 6 months of 1995 is at least 300 and the overall monthly average for tho year is at least 285, The data for 1995 are as follows: jon, Feb, Mar, Apr. = May June July Aug. Sept, Oct. Nov. Dee, 24-216 195400315 a4 302-291-275 3007 What is the owner's decision and why’? A cosmetics manufacturer recently purchased a machine to fill 3-ounce ‘colognet the accuracy of the machine's volume setting, 18 trial bottles were run. The resul (in ounces) for the trials were as follows; 302 289 2,92 2.84 290 297 2.95 2.94 301 197-295 2.90 2.94 296 6299 2.99 The company does not normally recalibrate the filling machine for this © volume is within 9.04 of 3.00 ounces, Should it recalibrate? The production manager of Hinton Press is determining the average time ph one printing plate, Using a stopwatch and observing the platen following times (in seconds) 204 2000 222 238213 25a 249° 227 244 249 s indie: aE” —S ic for Management 86 | Statist funds in 1 rire Company Wolds rexerve ; YY Miveanose rations) of the a week! 0 SERB ee 0" Week 2 1.969 What wag the average (aiean) AOU invested in marketab ca). The first week? {h) ‘The second! week? 1¢ 2 weeks of more ity? es . rf ‘970 millions PY how 1e (e) Ifthe answer (© invested amount (A) Afthe answer to part withdraw from reserve M. T, Smith travels the caster United She is paid on 8 commisston basis rel 3 years are given below ——————— ‘Year! Year 2 Year 3 (a) Calcviate separately $10,000 20,000 30,000, M. T’saverage earnings in each of the four quarters. (b) Calculate separately M. T'saverage quarterly earnings in each of the 3 years. (e). Show that the meat ‘of the four numbers You found in part (a) is equal to the mean sambers you found in part (). Furthermore, numbers eq ofall 12 numbers in the data table, (This is M. 4-15 Lillian Tyson has been the chairperson of the county libra tends that during her tenure she has managed the book-mobil predecessor did. Here are data for bookmobile repair for 15 years: A ————_ Town Budget Year ‘Town Bi or__Town Budget _Year_Town BUCge’ 1992 $30,000 1987 $24, gh 1991 28,000 19% ; 5 86 19,000 is paid i 1981 si 1985 1989 27,000 1984 pee 1988 26,000 a EEE ; 1983 u“ — dian fas some disadvantages as well, Certain stauis~ —wisaay hat use the median are more complex than those NT because the median is the value at the ' alculations. This is time consum array the dat ons ‘a large number of elements. Therefore, if we want to use & sample statistic as the mean is easier to use than the median. Chapter 7 will discuss me ied sasenpilitnaiabe in using the inedian, there is good news and bad news. The good news is tha a culate and it avoids the effect of very large and very small valu is that you do ies, The bad news give up some accuracy By choosing a single value to represent a distribution. With the values 2, 4, 5, 40, 100, 13, and 347, the median is 40, which has no apparent relationship to any of the 4 values in the distribution. Waming: Before you do any cal culating, take a commonsense Jook at the data themselves, If the distribution looks unusual, just about anything you calculate from it will have shortcomings. XERCISES 3.5 vcs i eee, elf-Check 3-7. Swifty Markets compares prices charged for identical items in all of its food stores. Here @ the prices charged by each store for a pound of bacon last week: $1.08 0.98 1.09 1.24 133 114 155 1.08 1.22 1.05 (a) Calculate the median price per pound, (b) Calculate the mean price per pound. (c) Which value is the better measure of the central tendency of these 3-8 For the following frequency distribution, determine (a) The median class, (b) The number of the item that represents the median. (c) The width of the equal steps in the median class. (d) The estimated value of the median for these data. —_—_—_— eS 100-149.5 12 150-199,5 14 200-249,5 250-299,5 ‘Measures of Central Tendency and Dispersion in Frequency Distributions ‘ompare parts (a) and (b) and comment on which is the better measure of the central "tendency of these data, Chicago Transit Authority thinks that excessive speed on its buses increases maintenance cost. It believes that 8 reasonable median time from O" Hare Airport to John Hancock Center is about 30 minutes. From the following sample data (in minutes) can you help them determine rer the buses have been driven at excessive speeds? If you conclude from these data that ave, what explanation might you get from the bus drivers? 7 32 2 2 29 19 29 34 33 2 28 33 32 29 4a 39 44 30 41 lerritt, manager of Quality Upholstery Company, is researching the amount of material he firm's upholstery jobs. The amount varies between jobs, owing to different furni- ind sizes. Merritt gathers the following data (in yards) from the jobs completed last iculate the median yardage used on a job last week. 6% 6 Th % % 10% 6 6% 6. Je Be % 10% Sh 6A 8% % 10% 10% % 7 8% % 10% 10% 5h Th 9 % a 10 1,066 researcher obtained the following answers to a statement on an evaluation survey: strongly "disagree, disagree, mildly disagree, agree somewhat, agree, strongly agree. Of the six answers, _ which is the median? : Worked-Out Answers to Self-Cheok Exercises 8C3-7. We first arrange the prices in ascending order: 1051.08.08 1.09 0.98 108 | Stotistics for Monagermenr the The median may be th, TeBtion because it is always location MeaEUre In akgy ghly — gistributions we fmetiecn the mean and the mode. The median is Hot Mt ni pi Pinuenced by the frequency of occurrence of & 8 ngle value as is i os Harve nor iat polled by extreme values aa ts the mee th oak, there are no universal guidelines for applying the mean, es ox ae ofcentral tendency for different populations. Each case ‘must be judged independently, guidelines we have discussed. a9 Hint; In trying to decide on the uses o| cal situations in which each of the = group of fctory wages fairly near each oth Fithme' sre cre 500 new houses in a development all within $104 ‘ median is much quicker and quite accurate (00. Dealing with the cumul interest requires the geometric mean if you want accuracy, A.common-sense it’s true that the average family has 1.65 children, automobile designers Wi by using the modal value of 2.0 kids. negatively of positively. When the population is skewed median is often the best measure of prac EXERCISES 3.6 Self-Check Exercises SC 3-9 Here are the ages in years of the cars worked on by the Village Autohaus last wi 5 6 Sigg oy, 10), 2. AemeD TS (a) Compute the mode for this data set. (b) Compute the mean of the data set. (c) Compare parts (a) and (b) and comment on which is the better measure of th tendency of the data. SC 3-10 The ages of a sample of the students attenciig Sandhitis Community College are: 19 17 1S 20 23 Al 33 21 18 20 fe 33322) hk $5 19 22% 25 28 0 AAI ea 7B @) vim a frequency distribution with intervals 15-19, 20-24, 25-29, (b) Estimate the modal value-using Equation (c) Now compute the mean otis a data. “ (d) Compare your answers in parts (b) and (c) ‘measure of the central tendency of these dat Mecwires st Cectrel Yendeney and Diepersign In Frequency Distributions | 109 Applications 3-18 A librarian polled 20 different peopl, = brary many books Mey Checked ou Here are the responay 7 th MAY ad ake them how many NGO SABO es/ orien ce data set data net frequency versus number checked out. Is the mean or the mode tral tendency of the data? Takes Retirement Village have this frequency distribution: (a) Compute the mode for this (b) Compute the mean for thi (©) Graph the data by plotti 4 better measure of the cen 4.39 The nges of residents of Twin 62-66.9 a2 67-119 39, 72-769 20 7-819 9 Estimate the modal value of the distribution using Equation 3-9, 340 What are the modal values for the following distributions? (#) Halr Color Black Brunette Redhead Blonde Frequency " 24 6 18 (b) Blood Type AB oO A B Frequency 4 12 35 16 (©) Day of Birth — Mon. Tues. = Wed. Thurs Fri, Sat. Sun. Frequency 2 10 2 7 3 2 4 M4 The numbers of apartments in 27 apartment complexes in Cary, North Carolina, are given below. 91 9 66 8 127 139 1s4 147 192 88 97 92 87 142 127 184 145 162 95 89 86 98 145 129 149 18241 (a) Construct a frequency distribution using intervals 66-87, 88~-109,..., 220-241, (b) Estimate the modal value using Equation 3-9, (c) Compute the mean of the raw data. ‘ (d) Compare your, answers in parts (b) and (c) and comment on which of the two is the better a measure of central tendency of these data and why. + ¥stimate the mode for the distribution given in Exercise 3-36.. : jo 10 ene pulls js quite large, and eto a ava gistribution of na Suni ies, Inet rey jniversilY Laborato! a for Monooere™ a syst aired. seen a —a a 2 s10 | stoi jer of oie Heat The nut erorage COPE ities ae wet jems th quite re vested 2B syst aporarories, In, knows that its report the basis for tax legislation on solar-heat all be as reflective of the data as possible. (a) Compt the mean for these data. compute the mode for these data. ic) Compute the median for these data. i Sel aye answer among parts (a), (b), and (c) that best reflects the central tend fest data and justify your choice, Ed Grant is the director of the Student Financial Aid Offi used available data on the summer earnings of all students w! ing frequency distribution: University it uses 10 ce at Wilderness Col hho have applied to his 0 financial aid to develop the followi ——— ‘Summer Earnings Number of Students 550-499 231 500-999 304 1,000-1,499 400 1,500-1,999 296 ht 2,000-2,499 123 sep EM 2,500-2,999 . iia 3,000 or more a ia (a) Find the modal class for Ed’ (b) Use Equation eid ea fe 5 © Sa A is restricted to those fie” a carnings least | summer eamings, how many of the see aig rked-Out Ans: ivi. Wers to Self-Check Exercises ¥ i (b) 722_87 ng 38

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