Descriptive Statistics

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 Agenda

• Data Analysis
• Measures of Central Tendency
• Dispersion
• Bivariate Data
• Volatility

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 Data Analysis – Context

• Collecting and Analyzing data is central to any decision making process

– Categorization and summarization gives an overall view of the complete scenario
– For example, Index gives a complete picture of the overall direction of the market
movement

• Descriptive statistics is used to describe the basic features of the data gathered from an
experiment
– Forms the first step to understand data
– Provides simple summaries about the sample and its measures (Mean, mode, median,
etc.)
– Graphics analysis (Histograms, trend lines, frequency plots, etc.)

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 Data Analysis – Context

• Techniques that are commonly used are classified as

– Graphical displays of the data in which graphs summarize the data or facilitate
comparisons
– Tabular description in which tables of numbers summarize the data
– Summary statistics (single numbers) which summarize the data

• Steps in descriptive statistics

– Collect data
– Classify data
– Summarize data
– Present data
– Proceed to inferential statistics if there are enough data to draw a conclusion

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 Graphical Summarization as a tool to understand Data

Summarization Frequency (No. of students

Range
• Useful tool to understand and interpret large in particular range)
dataset 0-20 10
20-40 20
Frequency table/Histogram
40-60 35
• Graphical or tabular representation displaying
number of observation within a given interval 60-80 25
80-100 10
Example
• Marks obtained by 100 students in PRM 40
examination out of 100 can be
99,98,98,94,93,23,24,10…..etc 30

• To analyze the performance of the class, we divide

the class in 5 major groups and make a frequency 20

table and then draw a histogram for graphical

presentation of the data 10

0
0-20 20-40 40-60 60-80 80-100

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 … Graphical Summarization as a tool to understand Data

Cumulative frequency distribution table Cumulative

Range Frequency
• Summary of a set of data showing the frequency
frequency (or number) of items less than or 0-20 10 10
equal to the upper class limit of each class
20-40 20 30
• Definition holds for quantitative data and for
categorical (qualitative) data 40-60 35 65
60-80 25 90
Ogive 80-100 10 100
• Analysis of the frequency of occurrence of
values of a phenomenon less than a
reference value in graphical form 100

• Cumulative frequencies are plotted on the 80

vertical axis and the class intervals are
60
plotted along the horizontal axis
40

20

0
0-20 20-40 40-60 60-80 80-100

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