Fundamentals of

Business Statistics

17th September, 2020.

Data Set

Data Set : Set of Numbers. Example : values as given below ….

Established as a State Private University under the
Government of Maharashtra Act XXXVIII
02, 10, 46, 62, 47, 20, 04, 08, 28, 35, 62, 44, 18, 04, 01, 09, 01, 04, 86, 91, 00,
129, 116, 03, 21, 02, 48, 106, 100, 09, 99, 05, 08, 08, 06, 25, 47, 60, 34, 00, 16,
35, 25, 29, 41, 07, 10, 02, 01, 05.
Arranging Data

Arranging Data – Simple Array

Established as a State Private University under the
It is an arrangement of given raw data inascendingGovernment
or descending order.
of Maharashtra Act XXXVIII
Numbers 3,5,7,8,9,10 are arranged in ascending order.
Numbers 10,9,8,7,6,5,3 are in descending order.

Arranging Data – Frequency Array

A frequency array is a statistical table in which various observations are arranged

in order of their magnitude along with their respective frequencies.

Number of Children : 0 1 2 3 4 5 Total

Number of Families : 5 12 14 10 6 3 50
Frequency Distribution

Established as a State Private University under the

Government of Maharashtra Act XXXVIII
Grouped Frequency Distribution

If you can order your categories numerically from lowest to highest, then you may
group your frequencies into intervals.
Established as a State Private University under the
Government of Maharashtra Act XXXVIII
Exclusive Class Intervals

Monthly Income (Rs.) Number of Families

Established as a State Private University under the
Government of Maharashtra Act XXXVIII
500 but less than 550 5
550 but less than 600 6
600 but less than 650 10
650 but less than 700 12
700 but less than 750 9

Total 42

Note : 500 is included but 550 is excluded.

Inclusive Class Intervals

Monthly Income (Rs.) Number of Families

Established as a State Private University under the
Government of Maharashtra Act XXXVIII
500 to 549 5
550 to 599 6
600 to 649 10
650 to 699 12
700 to 749 9

Total 42
Open End Class Frequency

Class Frequency
Established as a State Private University under the
Government of Maharashtra Act XXXVIII
Below 25 1
25 - 30 3
30 - 40 5
40 - 50 2
50 and above 1

Total 12
Note : At least one of its end must be open.
Unequal Class Frequency

Class Frequency
Established as a State Private University under the
Government of Maharashtra Act XXXVIII
20 - 25 1
25 - 30 3
30 - 40 5
40 - 55 2
55 - 60 1

Total 12
Cumulative Frequency Distribution (Less than type)

Monthly Income (Rs.) Simple Frequencies Cumulative

Established as a State Private University under the
Government of Maharashtra Act XXXVIII
Less than 550 5 5
Less than 600 6 5+6 11
Less than 650 10 5+6+10 21
Less than 700 12 5+6+10+12 33
Less than 750 9 5+6+10+12+9 42
Cumulative Frequency Distribution (More than type)

Monthly Income (Rs.) Simple Frequencies Cumulative

Established as a State Private University under the
Government of Maharashtra Act XXXVIII

More than 500 5 9+12+10+6+5 42

More than 550 6 9+12+10+6 38
More than 600 10 9+12+10 31
More than 650 12 9+12 21
More than 700 9 9
Measures of Central Tendency

It tell us about the typical score in a distribution. There are three measures of
central tendency. Established as a State Private University under the
Government of Maharashtra Act XXXVIII
Mode – is the number or event that occurs most frequently in a distribution.

Median – is the number or score that divides the distribution into equal halves
(i.e., the median is the 50th percentile). To be able to calculate the median, you
must first rank order the scores.

Mean – the mean is defined as the arithmetic average. To find the mean, you add
up all the scores in the distribution and then divide by the number of scores that
are added.
Basics of Statistics

The Mean
Four tests results : 15, 18, 22, 20 Established as a State Private University under the
The sum is: 75 Government of Maharashtra Act XXXVIII
Divide 75 by 4: 18.75
The 'Mean' (Average) is 18.75 - (Often rounded to 19)

The Median is the 'middle value' in your list. Hence, line up your values, the
middle number is the median! Be sure to remember the odd and even rule.

Find Median of : 9, 3, 44, 17, 15 (Odd amount of numbers)

Line up your numbers: 3, 9, 15, 17, 44 (smallest to largest)
The Median is : 15 (The number in the middle)
Basics of Statistics

Find Median of : 8, 3, 44, 17, 12, 6 (Even amount of numbers)

Line up your numbers: 3, 6, 8, 12, 17, 44 Established as a State Private University under the
= 20 ÷ 2of=Maharashtra
Add the 2 middles numbers and divide by 2 : 8+12 Government 10 Act XXXVIII
The Median is 10.

Mode

Find the mode of : 9, 3, 3, 44, 17, 17, 44, 15, 15, 15, 27, 40, 8.
Put the numbers is order for ease : 3, 3, 8, 9, 15, 15, 15, 17, 17, 27, 40, 44, 44.
The Mode is 15 (15 occurs the most i.e. 3 times).

It is important to note that there can be more than one mode and if no number
occurs more than once in the set, then there is no mode for that set of numbers.
Basics of Statistics

The preferred measure of central tendency depends on the shape of the

distribution. Established as a State Private University under the
Government of Maharashtra Act XXXVIII
In symmetrical distribution, the mean, median, and mode are all equal and the
mean is often the preferred measure of central tendency.
Basics of Statistics

For distributions that are strongly skewed or have outliers, the median is often
the most appropriate measure of central tendency. This is because in skewed
Established as a State Private University under the
distributions, the mean is pulled out toward the tail. The median
Government is less
of Maharashtra resistant
Act XXXVIII
to outliers compared to the mean. Of these three measures of central tendency,
the mean is most influenced by outliers.
Basics of Statistics

For distributions that are strongly skewed or have outliers, the median is often
the most appropriate measure of central tendency. This is because in skewed
Established as a State Private University under the
distributions, the mean is pulled out toward the tail. The median
Government is less
of Maharashtra resistant
Act XXXVIII
to outliers compared to the mean. Of these three measures of central tendency,
the mean is most influenced by outliers.
Thank You
Dr. Umesh B. Patwardhan
Dean, C&M

Vishwakarma University, Pune.

Survey No. 2, 3, 4 Laxmi Nagar, Kondhwa Budruk, Pune - 411 048.
www.vupune.ac.in
Vishwakarma University - VU @vishwakarmauniversity @VU_Connect