BUSINESS STATISTICS .S.P Gupta & M.

P Gupta (BBA
3312)
MEASURES OF CENTRAL TENDENCY
CHAPTER 4

S.P Gupta and M.P Gupta.

Page # 119/ # 12
From the following frequency distribution Calculate:
( a ) Arithmetic Mean : (i) Direct Method
(ii) Short Cut Method
(b) Median
(c ) Mode
Monthly Rent No of Persons Monthly Rent No of Persons
200 - 400 6 1200 - 1400 15
400 - 600 9 1400 - 1600 10
600 - 800 11 1600 - 1800 8
800 - 1000 14 1800 - 2000 7
1000 - 1200 20

Solution:
Calculation of Arithmetic Mean, Median and Mode:
Monthly Frequencies X(Mid X–A fd fX Cumulative
d =  
Rent (f) point) i  frequency (c.f)
200 - 400 6 300 — 4 — 24 1800 6
400 - 600 9 500 — 3 — 27 4500 15
600 - 800 11 700 — 2 — 22 7700 26
800 - 1000 14 900 — 1 — 14 12600 40
1000 - 1200 20 1100(A) 0 0 22000 60
1200 - 1400 15 1300 1 15 19500 75
1400 - 1600 10 1500 2 20 15000 85
1600 - 1800 8 1700 3 24 13600 93
1800 - 2000 7 1900 4 28 13300 100
∑ = 100 ∑ fd = 0 ∑fX = 110000
 Let Assumed Mean (A) = 1100

( a ) Arithmetic Mean : (i) Direct Method: X =

∑f X = 110000
= 1100( Ans)
N 100

(ii) Short Cut Method = X =A +

∑ fd ×i
N
0
= 1100 + 100 ⨯ 200 = 1100 ( Ans)

(b) Median = Size of N/2th item = (100/2) = 50th item , which lies in the class interval of ( 1000 –
1200) .
N
−p.c. f
Therefore, Median = L+ 2 ×i
f
50 – 40
= 1000 + 20
× 200

= 1100 ( Ans)
(c ) Mode: As the highest frequency is 20; so the mode lies in the class interval of ( 1000 – 1200 ).
Δ1
Mode = L+ ×i
Δ 1+∆ 2
6
= 1100 + 6+5 × 200

= 1109.09 ( Ans)
S.P Gupta and M.P Gupta.
Page # 120/ # 14
Calculate Geometric mean of the following price relatives:
Commodity Price Relative Commodity Price Relative
Wheat 237 Sugar 234
Rice 198 Salt 107
Pulses 158 Oils 196

Solution:
Commodity Price Relative(X) Log X
Wheat 237 2.3734
Rice 198 2.2967
Pulses 158 2.1931
Sugar 234 2.0934
Salt 107 2.2922
Oils 196 ∑ Log X = 13.2795

¿ G . M = Antilog ( ∑ logN N )
13.2795
¿ There fore ;G . M =antilog ( )
6
= 163.4 ( Ans)
 S.P Gupta and M.P Gupta.
Page # 120/ # 17
The following table gives the daily wages ( in taka) in a certain commercial organization :
Daliy Wages ( Tk). No of workers Daliy Wages ( Tk). No of workers
30 — 32 2 40 — 42 62
32 — 34 9 42— 44 39
34 — 36 25 44 — 46 20
36 — 38 30 46— 48 11
38 — 40 49 48 — 50 3
Calculate from the above data :
(a) the median and third quartile wages;
(b). the number of wage earners receiving between Tk 37 and Tk. 45.

Solution :
Calculation of Median :
Daliy Wages ( Tk). No of workers( f) Cumulative frequency
(c.f)
30 — 32 2 2
32 — 34 9 11
34 — 36 25 36
36 — 38 30 66
38 — 40 49 115
40 — 42 62 177
42— 44 39 216
44 — 46 20 236
46— 48 11 247
48 — 50 3 250
∑ N = 250

(a).We know that ; Median = Size of N/2th item = (250/2) = 125 th item ,
which lies in the class interval of ( 40– 42) .
 N
−p.c. f
Therefore, Median = L+ 2 ×i
f
125 – 115
= 40 + 62
×2

= 40.32 (Ans)
Again, we know that Q3 =

Size of 3N/4 th observation = ( 3⨯250)/4 = 187.5th observation , which lies

in the class interval ( 42 – 44).
3N
−p.c.f
Therefore; Q3 = L+ 4 ×i
f
187.5−177
= 42 + 39
×2

10.5
= 42 + 39 ⨯ 2 = Q3 = 42.54 ( Ans)

(b).Calculation of Range Frequencies

Target Class Calculations Target Frequencies
37 — 38 30 ⨯ ½ 15
38 — 40 49 49
40 — 42 62 62
42 — 44 39 39
44 — 45 20⨯ ½ 10
Total = 175 ( Ans)
 S.P Gupta and M.P Gupta
Page 120 #18
Six types of workers are employed in each of the two workshops but at different rates of
wages as follows:
Types of Workshop A ( Daily No of workers Workshop B No of workers
workers wages per worker) ( Daily wages per
worker)
Machine 92.50 2 93.00 11
Fitter 93.50 14 93.00 50
Electrician 94.00 20 94.25 8
Carpenter 93.00 7 93.50 10
Smith 93.00 6 93.50 10
Clerk 92.00 1 93.50 2

In which of the two workshops is the average rate of wages per worker higher and by how
much?

Solution :
Calculation of Average Wages
Types of Worksho frequenc fx worksho frequenc fx
workers p (A) y p (B) y
Wages(X Wages(X
) )
Machine 92.50 2 185 93.00 11 1023
Filter 93.50 14 1309 93.00 50 4650
Electrician 94.00 20 1880 94.25 8 754
Carpenter 93.00 7 651 93.50 10 935
Smith 93.00 6 558 93.50 10 935
Clerk 92.00 1 92 95.00 2 190
N=50 ∑fx= 4675 N=91 ∑fx= 8487
 ∑f x 4675
Average wages for workshops (A) = X = N = 50 =93.50

∑f x 8487
Average wages for workshops (A) = X = N = 91 =93.26

So the Workshop A has higher average rate on wages than Workshop B at

Tk(93.50-93.26) = Tk 0.24

S.P Gupta and M.P Gupta.

Page # 122/ # 32
From the following table showing the wage distributions in a certain factory,
determine:
( a) the mean wage ( b) the median wage ( c ). The modal wage
(d) The wage limits for the middle 50% of the wage earners
( e) The percentage of the workers who earned between Tk.1750 and 2250.
(f) The percentage who earned more than Tk.2500 per week, and
(g) The percentage who earned less than Tk.2000 per week.

Weekly wages No of Employees Weekly wages No of Employees

( Taka) ( Taka)
1200 — 1400 8 2200 — 2400 32
1400 — 1600 12 2400 — 2600 18
1600 — 1800 20 2600 — 2800 7
1800 — 2000 30 2800 — 3000 6
2000 — 2200 40 3000 — 3200 4
 Solution :
Calculations of Mean, Median and Mode
Weekly wages No of X ( Mid fX Cumulative
( Taka) Employees (f) Point) frequency
( C.F)
1200 — 1400 8 1300 10400 8
1400 — 1600 12 1500 18000 20
1600 — 1800 20 1700 34000 40
1800 — 2000 30 1900 57000 70
2000 — 2200 40 2100 84000 110
2200 — 2400 32 2300 73600 142
2400 — 2600 18 2500 45000 160
2600 — 2800 7 2700 18900 167
2800 — 3000 6 2900 17400 173
3000 — 3200 4 3100 12400 177
∑N = 177 ∑fX = 370700

( a). ( a). Mean( X )=

∑f X = 370700
= 2094.35 ( Ans)
N 177

(b). (a).We know that ; Median = Size of N/2th observation = (177/2) =

88.5th item , which lies in the class interval of ( 2000– 2200) .
N
−p.c. f
Therefore, Median = L+ 2 ×i
f
177
– 70
= 2000+ 2 × 200 = 2000 + 92.50 = 2092.50 ( Ans)
40

(c ) Mode: As the highest frequency is 40; so the mode lies in the class
interval of ( 2000 – 2200 ).
Δ1
Mode = L+ ×i
Δ 1+∆ 2
 10
= 2000 + 10+8 × 200

= 2111.11.( Ans)

(d).The wage limits for the middle 50% of the wage earners shall be given
by
Q1 and Q3 .
N
−p.c. f
Q1 = L+ 4 ×i
f

Therefore Q1 = Size of N/4th observations = (177/4) = 44.25th observations, which lies in the class interval of
(1800 – 2000).
N
−p.c. f 44.25−40
Now; Q1 = L+ 4 × i =1800 +
30
X200 =1828.33
f

For Q3 = Size of 3N/4th observations = (3 x177/4) = 132.75 th observations, which lies in the class interval of (2200 –
2400).
3N
−p.c.f 132.75−110
Therefore; Q3 = L+ 4 × i =2200 + X200 =2342.20
32
f

So the limits for the middle 50% workers is (1828.33 to 2342.20) ( Ans)
(e) Calculations of Range Frequencies
Target Class Calculations Target Frequencies
1750 — 1800 20 ⨯1/4 =5 5
1800 — 2000 30 30
2000 — 2200 40 40
2200 — 2250 32⨯1/4 =8 8
Total : 83

So the percentage of workers who earned between Tk. 175 0 and Tk 2250
is :
¿) = 46.89 % ( Ans)
 (f) Calculations of Range Frequencies
Target Class Calculations Target Frequencies
2500 — 2600 18 ⨯1/2 =5 9
2600 — 2800 7 7
2800 — 3000 6 6
3000 — 3200 4 4
Total : 26
So the percentage of workers who earned more than Tk.2500 per week
is :
¿) = 14.69% ( Ans)

(g) Calculations of Range Frequencies

Target Class Calculations Target Frequencies
1200 — 1400 8 8
1400 — 1600 12 12
1600 —1800 20 20
1800 — 2000 30 30
Total : 70
So the percentage of workers who earned less than Tk.2000 per week is
:
¿) = 39.55% ( Ans)

S.P Gupta and M.P Gupta

Page 123 #33
From the following distribution of travel time to work of a firms employees , find
the modal travel time:
Travel time ( In minutes) Frequency

Less than 80 218

Less than 70 215
Less than 60 195
Less than 50 156
Less than 40 85
Less than 30 50
Less than 20 18
Less than 10 2

Solution :
Calculation of Mode
Travel Time (in mts) Frequency Cumulative Frequency (C.f)
0-10 2 2
10-20 16 18
20-30 32 50
30-40 35 85
40-50 71 156
50-60 39 195
60-70 20 215
70-80 3 218

Here the highest frequency is 71; So the mode Class is (40-50).

∆❑1
So, Mode = L+ ×C
∆❑1 +∆ ❑2
36
= 40 + ×10=45.29 [Ans:]
36+32

S.P Gupta and M.P Gupta

Page 123 #34
 You are given the following incomplete frequency distribution. It is known that
the total frequency is 1000 and that the median is 413.11. Estimate by calculations
the missing frequencies and find the value of mode.
Sales (Taka lakhs) No of Companies Sales (Taka lakhs) No of Companies
300 –325 5 400 –425 326
325 –350 17 425 – 450 ?
350 –375 80 450 –475 88
375 – 400 ? 475 – 500 9

Solution :

Calculation of Missing Frequency:

Sales No. of Companies (f) Cumulative Frequency
(C.f)
300-325 5 5
325-350 17 22
350-375 80 102
375-400 ? 102 + f1
400-425 326 428+ f1
425-450 ? 428+ f1+ f2
450-475 88 516+ f1+ f2
475-500 9 525+ f1+ f2
∑ N = 1000

Median = Size of N/2 th

item = (1000/2) = 500 th
item, which lies in the class
interval of (400-425).
N
−p.c. f
So, Median = L+ 2 ×C
f
 1000
−−(102+f 1)
 413.11 = 400 + 2 ×25
326
500−(102+ f 1 )
 413.11 = 400 + ×25
326
12500−2550−25 f 1
 413.11 – 400 =
326
9950−25 f 1
 13.11 =
326
 4273.86 = 9950-25 f1
 25 f1 = 5676.14
 f1 = (5676.14/25) = 227. [Ans:]

We know that; 525+ f1+ f2 = 1000

putting the value of f1, which is 227, we get,

 525+227+f2 = 1000
 f2 = 248. [Ans:]

Calculation of Mode:
 Class Interval f C.f

300-325 5 5

325-350 17 22

350-375 80 102

375-400 227 329

400-425 326 655

425-450 248 903

450-475 88 991

475-500 9 1000

∑N = 1000

As the highest frequency is 326, the Mode lies in the class interval of
(400-425).
∆❑1
so, Mode= L+ ∆❑ +∆ ❑ × C
1 2

99
 400 + L+ 99+78 × 25
 413.98 [Ans:]

S.P Gupta and M.P Gupta

Page 123 #35
(a) In a certain office a letter is typed by A in 4 minutes. The same letter is
typed by B, C and D in 5,6,10 minutes respectively. What is the average time in
completing one letter? How many letters do you expect to be typed in one day
comprising 9 working hours?
 (b) For an income distribution of a group of men, 20 pc of men have income
below Tk.. 3500; 35 pc below Tk 7500, 60 pc below below Tk. 17500 and 80 pc
below Tk. 25000; the first and third quartile are Tk. 5500 and Tk. 20000. Put the
above information in cumulative frequency distribution and find the median.

Solution :
N
a) The Harmonic mean is: H.M = 1
∑( X)
4
 1 1 1 1
+ + +
4 5 6 10

4
 0.25+0.20+0.17+ 0.10

4
 0.72

 5.56 [Ans:]

In 9 hours i.e. in (9x60)= 540 minutes letter typed will be (540/5.56) = 97

[Ans]
 b) Here Q1 and Q2 indicate N/2th item which is 50% of N. Also the
Q 1+Q3 55+200
average of Q1 and Q3 is ( ) = ( 2 ) = 127.5th observation which
2
indicated that the median wages lies in the class interval of (75-175),
because observation 127.5 stands in the wages class interval (75-
175).

wages f C.f

0-35 20 20

35-75 15 35

75-175 25 60

175-250 20 80

above 250 20 100

N=1000
N
−p.c. f
So, median = L+ 2 ×C
f

50−35
 75+ ×100
25
15
 75 + 25 ×100
 75+ 60
 135 ( Ans)

Page # 115/# 36( Illus)

 Calculate the Arithmetic mean and the Median of the frequency
distribution given below. Hence calculate the Mode using the empirical
relation between the three.
Heights ( in No of students Heights ( in No of students
cms) cms)
130 —134 5 150 —154 17
135 —139 15 155 —159 10
140 —144 28 160 —164 1
145 —149 24
Solution :
We know that; in order to ensure continuity and to get correct class
Interval , we should adopt “ Exclusive Method” of classification.
However, where the “Inclusive Method” has been adopted it is
necessary to make an adjustments to determine the correct class
interval and to have continuity.

Lower Limit of the 2 nd Class−Upper Limit of the First Class

Correction Factor = 2
135−134
= 2
= 0.5
This value will be subtracted from all lower limits and adding the value to all
the upper limits. So the new frequency distribution will be:

Calculation of Arithmetic Mean and Median

Height ( in X ( Mid- Frequency X–A fd Cumulative fX
d =   =¿
cms) Point ) ( f) i  frequency
( X – 147)/5 ( C.f)
129.5 —134.5 132 5 ̶ 3 – 15 5 660
134.5 —139.5 137 15 – 2 ̶ 30 20 205
139.5 —144.5 142 28 ̶1 – 28 48 397
144.5 —149.5 147(A) 24 0 0 72 352
149.5 —154.5 152 17 1 17 89 258
154.5 —159.5 157 10 2 20 99 157
159.5 —164.5 162 1 3 3 100 162
∑ N = 100 ∑d = 0 ∑fd = – 33 ∑fX

We know that; Arithmetic Mean (Short Cut Method):

X =A +
∑ fd ×i
N
̶ 33
X =147+ ×5
100

¿ 147 ̶ 1.65 = 145.35 ( Ans).

A . M ( Direct Method )=X =

∑f X =
N
14535
=145.35(Ans)
100

Now; Median = Size of N/2th item = (100/2) = 50 th observation, which lies

in the class interval of ( 144.5– 149.5)
N
−p.c. f
Median = L+ 2 ×i
f
50 – 48
= 144.5 + 24
× 5 = 144.5 + 0.417 = 144.917 (Ans)

Using the Empirical relation; Mode = 3 Median ̶ 2 Mean

= ( 3 ⨯ 144.917) ̶ (2⨯ 145.35) = 144.051 ( Ans)

 135. [Ans:]