1

ChapterNo.
1
WHATISSTATISTI
CS
1.St
ati
sti
cs:

“Thesci
enceofcoll
ecti
on,pr
esent
ati
on,
anal
ysi
sandi
nter
pret
ati
onofnumer
ical
datai
scall
edstat
ist
ics”.

2.Descr
ipt
iveSt
ati
sti
cs:

“Thebr
anchofstat
ist
icswhi
chdealswi
thcol
l
ect
ion,
present
ati
onandanal
ysi
sof
datai
scall
eddescr
ipt
ivest
ati
sti
cs”
.

OR

“Thebranchofstat
ist
icsi
nwhichdat
aiscoll
ect
ed,pr
esentedindi
ff
erentf
ormsl
i
ke
graph,
tableset
candanalyzedi
scall
eddescr
ipt
ivest
ati
sti
cs”.

3.I
nfer
ent
ialSt
ati
sti
cs:

“I
tisbr
anchofstat
ist
icsinwhichwemakeconcl
usi
onaboutpopul
ati
onpar
amet
er
onthebasesofsampleinfor
mation”
.

4.Meani
ngofSt
ati
sti
cs:

“
Thewor
dst
ati
sti
csi
susedt
ogi
vet
hreemeani
ngs”
.

i
. PLURALSENSE:
“
Inthepl
ural
sensest
ati
sti
csar
etheaggr
egat
eoff
act
sexpr
essedi
nnumer
ical
f
orm”.

i
i. SINGULARSENSE:
“I
nsingul
arsensethewordstat
ist
icsrefer
stothesci
encecomprisi
ngmethods
usedincol
lect
ion,
present
ati
on,anal
ysisandint
erpr
etat
ionofnumeri
cal
data”.

i
ii
. TECHNICALSENCE:
“
Thewor
dst
ati
sti
csi
susedi
ntechni
cal
senseaspl
ural
ofst
ati
sti
c”.

5.Char
act
eri
sti
csofSt
ati
sti
cs

i
. St
ati
sti
csar
eaggregatesoffacts.
i
i
. St
ati
sti
csar
enumer i
call
yexpressed.
i
i
i. St
ati
sti
csar
eaff
ectedt oagreatextentbymul
ti
pli
cit
yofcauses.
i
v. St
ati
sti
csar
ecol
lectedinasy st
emat i
cmanner
.

6.Li
mit
ati
onsofSt
ati
sti
cs:

i
. St
ati
sti
cal
resul
tsaretr
ueonl
yint
helongrun.
i
i
. St
ati
sti
csdoesnotdealwi
tht
hefact
swhichcannotbenumer
ical
l
y
measur
ed.
==========================================================================
========
 2

i
i
i. I
fsuf f
ici
entcar
eisnotexerci
sedinthecoll
ect
ion,
anal ysisand
i
nterpret
ati
onofdata,
stati
sti
calr
esult
smaybemi sleading.
i
v. Onlyskil
ledper
soncanhandlestati
sti
caldat
aeffi
cientl
y .

7.Funct
ionsorUsesofSt
ati
sti
cs:

i
. St
ati
sti
cssimpli
fiescomplexi
ti
es.
i
i
. St
ati
sti
csaidsforecast
ing.
i
i
i. St
ati
sti
csguidest hef
ormulat
ionofpoli
cies.
i
v. St
ati
sti
csteststhelawsofothersci
ences.

8.I
mpor
tanceofSt
ati
sti
csi
ndi
ff
erentf
iel
ds:

i
. Stati
sti
csplaysanimportantrol
einbusiness.
i
i
. Allty
pesofbanksmakeuseofst ati
sti
csforanumberofpurposes.
i
i
i. Thewhol estr
uctureofi
nsuranceisbasedonst at
ist
ics.
i
v. Stati
sti
csisofgreatusei
nt echnol
ogy.
v
. Stati
sti
csplaysanimportantrol
einfor
mul ati
onofeconomi
clawsand
theori
es.

9.Var
iabl
e:

“Achar
acteri
sti
cthatv
ari
esf
rom persont
oper
son,
timet
oti
meandpl
acet
opl
acei
s
cal
ledvar
iabl
ee-g,Hei
ght
,Weightet
c”.

10.Ty
pesofVar
iabl
e:

a)Quant
it
ati
veVar
iabl
e:

“Avar
iabl
ewhichchangesonl
yinquant
it
yf r
om oneper
sont
oanot
heri
scal
l
ed
quant
it
ati
vev
ar i
abl
ee-g,Age,
Height
,Weight,
etc”
.

==========================================================================
========
 3

b)Qual
it
ati
veVar
iabl
e:

“Avar
iabl
ewhichchangesonl
yinqual
i
tyf
rom onepersontoanot
heri
scal
l
ed
qual
it
ati
vevar
iabl
ee-g,Col
orofey
es,mar
it
alstat
us,
etc”.

11.Ty
pesofQuant
it
ati
veVar
iabl
e:

i
. Discr
eteVari
able
“Avar
iablewhi
chtakescountabl
enumberofvaluesiscall
eddiscret
evar
iabl
ee-
g,
numberofdail
yroadaccident
s,andnumberofchil
drenindif
ferentf
amil
i
esetc”
.

i
i. Conti
nuousVariable
“
Av ari
abl
ewhichtakesmeasurablev
aluesi
scal
l
edcont
inuousv
ari
abl
ee-
g,
Weight
,Temperat
ure,Heightet
c”.

12.Const
ant
:

“
Anyv
aluewhi
chdoesnotchangebutr
emai
nsf
ixedi
scal
l
edconst
ant
”.

13.Popul
ati
on:

“Theaggr
egateofi
ndi
vi
dual
shav
ingsomecommonchar
act
eri
sti
csofi
nter
esti
s
call
edpopul
ati
on”.

OR

“
Thewhol
eofany
thi
ngi
scal
l
edpopul
ati
on”
.

14.Sampl
e:

“
Asmal
lrepr
esent
ati
vepar
tofapopul
ati
oni
scal
l
edsampl
e”.

15.Par
amet
er:

“
Anumeri
calval
uecal
cul
atedfrom t
hepopul
ati
oni
scal
l
edpar
amet
ere-
g,popul
ati
on
mean,
medianandmodeetc”.

16.St
ati
sti
c:

“
Anumeri
calv
aluecal
cul
atedf
rom sampl
eiscal
l
edast
ati
sti
ce-
g,Sampl
emean,
medi
anandmodeetc”
.

17.Dat
a:

“
Col
l
ect
ionofany
thi
ngi
nanyf
iel
dofst
udyi
scal
l
eddat
a”.

18.Pr
imar
yDat
a:

“
Thedat
awhi
chhav
enotunder
goneanyst
ati
sti
cal
treat
menti
scal
l
edpr
imar
ydat
a”.

19.Secondar
yDat
a:

==========================================================================
========
 4

“Thedatawhichhaveunder
goneanysor
tofst
ati
sti
cal
treat
mentatl
eastoncei
s
call
edsecondarydat
a”.

20.Pr
imar
ySour
ces:

i
. Dir
ectpersonalint
ervi
ew.
i
i
. Mailedquesti
onnaire.
i
i
i. Registr
ati
on.
i
v. I
ndirectoral
invest
igati
on.
v
. Throughlocalcorr
espondence.

21.Secondar
ySour
ce:

i
. Offi
cialsources.
i
i
. Semi-offi
cialsources.
i
i
i. Pri
vatesour ces.
i
v. Technicalandt r
adej our
nal
s.

22.Edi
ti
ngofDat
a:

“
Edi
ti
ngi
sdonet
oremov
etheer
ror
sandomi
ssi
onsoft
hef
iel
dwor
k”.

==========================================================================
========
 5

Chapt
erNo.
2
PRESENTATIONOFDATA
1.RawDat
a:

“
Dat
aini
tsor
igi
nal
for
miscal
l
edr
awdat
a”.

2.Ar
ray
:

“
Anar
rangementofnumer
ical
dat
ainascendi
ngordescendi
ngor
deri
scal
l
edar
ray
”.

3.Ar
ray
edDat
a:

“
Dat
aar
rangedi
nascendi
ngordescendi
ngor
deri
scal
l
edar
ray
eddat
a”.

4.Cl
assi
fi
cat
ion:

“Thepr
ocessofarr
angingdat
aintoclassesorcat
egor
iesaccor
dingt
osome
commoncharacter
ist
icindat
aiscal
ledclassi
fi
cat
ion”
.

5.Basesf
orCl
assi
fi
cat
ion:

Ther
ear
efourbasesf
orcl
assi
fi
cat
ion

i
. Quant
it
ati
v e
i
i
. Qual
it
ati
ve
i
i
i. Geogr
aphical
i
v. TemporalorChr
onol
ogi
cal

6.Ty
pesofCl
assi
fi
cat
ion:

i
. Whendataisclassif
iedbyonecharact
eri
sti
c,cl
assi
fi
cati
onissaidtobe
onewayclassif
icati
on.
i
i
. Whendataisclassif
iedbytwocharact
eri
sti
c,cl
assi
fi
cati
onsissaidtobe
twowayclassif
icati
ons.
i
i
i. Whendataisclassif
iedbythr
eecharact
eri
sti
c,cl
assi
fi
cati
onsissaidtobe
thr
eewayclassifi
cati
ons.
i
v. Datacl
assi
fiedbymanychar act
eri
sti
ciscal
ledmanywaycl assi
fi
cati
ons.

7.Tabul
ati
on:

“
Theprocessofar
rangi
ngdat
aint
over
ti
cal
col
umnsandhor
izont
alr
owsi
scal
l
ed
t
abul
ati
on”.

8.Tabl
e:

”
Atabl
eisasy
stemat
icar
rangementofdat
aint
over
ti
cal
col
umnandhor
izont
al
r
ows”.

9.Par
tsofaTabl
e:
==========================================================================
========
 6

i
. Tit
le
i
i
.Pr efat
orynote
i
i
i.Rowcapt i
onsorstub
i
v.Columncaptionsorboxhead
v
.Bodyoft hetable
v
i.Footnote
v
ii
.Sourcenote

10.Mai
npar
tsofTabl
e:

i
. Tit
le
“
Atit
leisthemainheadi
ngwrit
tenincapi
tal
let
ter
sshownatt
het
opoft
het
abl
e.
I
tdescri
besthecont
entsoft
able”
.

i
i. TheBoxHead( Col
umnCapt i
on)
“Theheadingf
orv
ari
ouscolumnsarecal
ledcapt
ionsandt
hepor
ti
onoft
het
abl
e
contai
ningcol
umncapti
onsiscal
l
edboxhead”.

i
ii
. St ub( RowCaption)
“
Theheadi ngsofvar
iousrowsarecal
ledrowcapt
ionsandt
hepor
ti
onoft
he
t
ablecontainingr
owcapt i
onsi
scall
edstub”
.

i
v. BodyofTabl e
”
Thi
spartoft
hetabl
econtai
nsthenumer
ical
inf
ormat
ioncl
assi
fi
edwi
thr
espect
t
orowsandcolumnscapt
ions”
.

11.Fr
equencyDi
str
ibut
ion:

“Afrequencydi
str
ibut
ioni
satabul
arar
rangementofdat
ainwhichv
ariousi
temsar
e
arr
angedi nt
ocl
assesandnumberofit
emsf al
l
ingi
neachclassi
sstat
ed”.

12.Gr
oupedDat
a:

“
Dat
apr
esent
edi
nthef
orm ofaf
requencydi
str
ibut
ioni
scal
l
edgr
oupeddat
a”.

13.Ungr
oupedDat
a:

“
Dat
anotpr
esent
edi
nthef
orm ofaf
requencydi
str
ibut
ioni
scal
l
edungr
oupeddat
a”.

14.Cl
assLi
mit
s:

“
TheNon-
Over
lappi
ngcl
assesar
ecal
l
edcl
assl
i
mit
s”.10-
19,
20-
29…

15.Cl
assBoundar
ies:

“
TheOv
erl
appi
ngcl
assesar
ecal
l
edcl
assboundar
ies”
.E-
g,10-
20,
20-
30…

16.Cl
assI
nter
val
:

“
Classi
nter
val
ist
hedi
ff
erencebet
weent
hev
aluesoft
heupperandl
owercl
ass
==========================================================================
========
 7

boundar
ies”
.

17.Cl
assMar
k:

“Thecent
ralval
ueofcl
assi
scal
l
edcl
assmar
koft
hatcl
ass.Cl
assmar
kisal
so
call
edmid-poi
nt”
.

L.
C.L+U.
C.L L.
C.B+U.
C.B
Cl
assmar
k=>X= or X=
2 2

18.Fr
equency
:

“
Numberofi
temsf
all
i
ngi
nanypar
ti
cul
arcl
assi
scal
l
edf
requencyoft
hatcl
ass”

19.Open-
EndFr
equencyDi
str
ibut
ion:

“I
fthefr
equencydist
ri
buti
oni
sfr
eeoflowercl
assli
mi toft
hefi
rstcl
assandupper
cl
assli
mitoflastcl
assthent
hef
requencydi
str
ibut
ionisknownasopen-end
fr
equencydi
stri
buti
on”.

20.Rel
ati
veFr
equencyDi
str
ibut
ion:

“
Ifthefr
equencyofadist
ri
but
ioni
sdi
vi
dedbyt
otal
frequencyt
heni
tiscal
l
edr
elat
ive
f
requencydi
stri
but
ion”
.

f
E-
g, R.
F=
∑f

21.Gr
aph:

“Agraphconsist
sofcur
veorst
rai
ghtl
i
nesshowi
ngt
hef
luct
uat
ionsandt
rendsi
n
stat
ist
ical
data”.

22.Hi
stor
igr
am:

“
Thegr
aphoft
imeser
iesi
scal
l
edhi
stor
igr
am”
.

23.Gr
aphofFr
equencyDi
str
ibut
ion:

i
. Histogram.
“
Ahi
stogram consist
sofasetofadjacentrect
angl
eshavi
ngbasesal
ongx-axi
s
(
mar
kedof fbyclassboundar
ies)andareaspropor
ti
onal
tothecl
assfr
equenci
es.

OR

“
Thegr
aphoff
requencydi
str
ibut
ioni
scal
l
edhi
stogr
am”
.

i
i. Polygon.
“
Af r
equencypolygoni
samanysi dedclosedfi
gur
e.Iti
sconstr
uctedbypl
ott
ing
t
hemi dpointsandcor
respondi
ngfrequenci
esandconnect
ingthenbyst
rai
ght-
l
i
nesegment .
==========================================================================
========
 8

i
ii
. Cumul at
iveFr
equencyPoly
gonorOgi v
e.
“
Agraphshowi
ngthecumulat
ivef
requencypl
ottedagai
nstt
heupperboundar
ies
i
scal
ledacumul
ati
vefr
equencypoly
gonorogive”.

i
v. Fr equencyCurve.
“
Ifthefr
equencypoly
goni ssmoot
hedout
,ther
esul
ti
nggr
aphi
scal
l
eda
f
requencycurve”
.

24.Char
t:

“Acharti
sadiagr
ammat
icr
epr
esent
ati
onofadat
awher
edat
aisdi
vi
dedi
nto
di
ff
erentcat
egori
es”
.

25.Open-
EndCl
ass:

“Aclasswhi
chhasei
thernol
owercl
assl
i
mitornouppercl
assl
i
miti
scal
l
edan
open-endcl
ass”
.

==========================================================================
========
 9

Chapt
erNo.
3
AVERAGESOFFI
RSTORDER
MEASUREOFLOCATION
MEASUREOFCENTERALTENDENCY

1.Av
erage:

“
Asingl
evaluewhi
chrepresent
sal
lthev
aluesoft
hedi
str
ibut
ioni
nsomedef
ini
te
wayi
scall
edanaverage”
.

NOTE:

“
Sincet
heav er
agetendst ol
ieint
hecentr
eoft
hedatat
heyarecal
led
measur
eofcentralt
endency.Theyareal
socall
edmeasur
eofl
ocat
ionbecauset
hey
l
ocat
ethecentr
eofadi st
ri
bution”

2.Av
eragesofFi
rstOr
der
:

Theav
eragesoff
ir
stor
derar
e:

i
. TheAr
it
hmeti
cMean
i
i
. TheMedi
an
i
i
i. TheMode

3.TheAr
it
hmet
icMean:

“Ar
ithmet
icMeani
sdefi
nedast
hev
alueobt
ainedbydi
vi
dingt
hesum oft
hev
alues
ofthedat
abythei
rnumber
”.

̅ ∑X
A.
M =X=
n
4.TheMedi
an:

“
Medi
ani
sthev
aluewhi
chdi
vi
desanar
rangedsetofdat
aint
otwoequal
par
ts”
.

OR

“
Thecent
ral
val
ueofanar
rangedsetofdat
aiscal
l
edMedi
an”
.

5.TheMode:

“
Modei
sthev
aluewhi
choccurmaxi
mum numberoft
imei
nadat
a”.

OR

“
Themostf
requentv
aluei
nthedat
aiscal
l
edMode”
.
==========================================================================
========
 10

6.Uni
-ModelDi
str
ibut
ion:

“
Adi
str
ibut
ionhav
ingonemodei
scal
l
eduni
-model
dist
ri
but
ion”
.

7.Bi
-ModelDi
str
ibut
ion:

“
Adi
str
ibut
ionhav
ingt
womodesi
scal
l
edbi
-model
dist
ri
but
ion”
.

8.Mul
ti
-ModelDi
str
ibut
ion:

“
Adi
str
ibut
ionhav
ingmor
ethant
womodesi
scal
l
edmul
ti
-model
dist
ri
but
ion”
.

9.Wei
ght
edAr
it
hmet
icMean:

“Ar
ithmeti
cMeaninwhi
chrel
ati
veimport
anceoftheobser
vat
ionofdat
ais
consider
ediscal
l
edwei
ght
edarit
hmeticmean”.

̅ ∑XW
Xw =
∑W

10.Pr
oper
ti
esofA.
M:

i
. Meanofconst
antisconst
anti
tsel
f.
̅
i
-e,A=A

i
i
. Thesum ofdev
iat
ionsoft
heval
uesoft
hedat
afr
om t
hei
rmeani
szer
o.
̅
i
-e,
∑(x-x)=0

i
i
i. Thesum ofsquar
eddevi
ati
onoft
heval
uesf
rom t
hei
rmeani
smi
nimum.
̅2
i
-e,
∑(x-x) i
smini
mum.

̅ ̅
i
v. Ifn1v
alueshav
emean x1,n2val
ueshav
emean x2andsoon,
then
combinedmeanofal
lthev
alueswil
lbe:

̅ ̅ ̅
̅ n1x1+n2x2+…+nkxk
Xc=
n1+n2+…+nk

̅ ̅
v
. I
fy=a+bx,
then y=a+bx.

11.Qual
it
iesofaGoodAv
erage:

i
. I
tshoul
dbecl
earl
ydefined.
i
i
. I
tshoul
dbeeasytocalculateandsimpletounderstand.
i
i
i. I
tshoul
dbebasedonal lobservat
ions.
i
v. I
tshoul
dbeunaff
ectedbyext remev al
ues.
v
. I
tshoul
dbecapabl
eoff urthermathematical
treat
ment .
==========================================================================
========
 11

12.Empi
ri
calRel
ati
onshi
pbet
weenMean,
Medi
anandMode:

Ther
elat
ionshi
pisdef
inedi
nfol
l
owi
ngway
s:

i
.Insy
mmet r
ical
dist
ribut
ion
Mean=Medi an=Mode

i
i
.Inmoder
atel
yskeweddi
str
ibut
ion
Mean–Mode=3( Mean–Medi
an)

OR

Mode=3Medi
an–2Mean

13.Mer
it
sofA.
M:

a)I
tisri
gidl
ydefi
ned.
b)I
tiseasytocal
culat
eandsi mplet
ounderst
and.
c)I
tisbasedonallobser
vations.
d)I
tprovi
desgoodbasesf orcompari
son.

14.Demer
it
sofA.
M:

a)I
tishi
ghlyaf
fect
edbyext remevalues.
b)I
tisnotappr
opri
ateaverageforhi
ghlyskeweddi
str
ibution.
c)I
tcansometimelocateav al
ue,whichmaynotev
enexi stinthedata.
d)I
tcannotbeaccurat
elycomputedincaseofanopen-endf requencyt
abl
e.

15.Mer
it
sofMedi
an:

a)I
tissi
mpletounder
stand.
b)I
tisnotaf
fect
edbyextremeval
ues.
c)I
tcanbecomputedexactl
y.

16.Demer
it
sofMedi
an:

a)I
tcannotbecalcul
atedbysi
mplemat hemati
calformul
a.
b)I
trequi
resarr
angementofdatawhichissometimesnotpossi
ble.
c)I
tisnotbestsui
tedforf
urt
hermathematical
treatmentl
ikeAr
it
hmeti
cMean.

17.Mer
it
sofMode:

a)I
tisaposit
ionalar
rangement.
b)I
tsconceptiseasytounderstand.
c)I
tisnotaff
ectedbyextremelylargeandsmal
lval
ues.

==========================================================================
========
 12

18.Demer
it
sofMode:

a)I
tisnotri
gidl
ydefi
nedbythemathematicalf
ormula.
b)I
tmaynotexistinsomecases.
c)I
tisnotsui
tablef
orfur
therst
ati
sti
cal
treatmentl
ikeAri
thmet
icMean.

==========================================================================
========
 13

Chapt
erNo.
4
I
NDEXNUMBERS

1.I
ndexNumber
:
“Anindexnumberisastat
ist
icalmeasurewhi
chshowschangesi
nav
ari
abl
eora
groupofrel
atedvar
iabl
eswithrespectt
oti
meorspace”
.
2.Si
mpl
eIndexNumber
:

“
Ani
ndexnumberwhi
chi
sbasedononl
yonev
ari
abl
eiscal
l
edsi
mpl
eindexnumber
”.
3.Composi
teI
ndexNumber
:

“I
ndexnumbercomput
edf
ormor
ethanonev
ari
abl
eiscal
l
edcomposi
tei
ndex
number”
.
4.Ty
pesofI
ndexNumber
s:

i
. Pri
ceI
ndexNumber
i
i
.Quanti
tyIndexNumber
i
i
i.Val
ueIndexNumber

5.BasePer
iod:

“Theper
iodwithwhichpri
cesofot
herper
iodst
obecompar
edi
scal
l
edt
hebase
peri
odorref
erenceperi
od”.

6.Fi
xedBaseMet
hod:

“
Inf
ixedbasemet
hodt
hebaseper
iodr
emai
nsf
ixedf
rom t
imet
oti
me”
.

7.Chai
nBaseMet
hod:

“
Inchai
nbasemet
hodbaseper
ioddoesnotremai
nfixedbutpr
ice/
quant
it
yofeach
y
eariscompar
edwit
hpr
ice/
quant
it
yofprecedi
ngyear”.

8.Pr
iceI
ndexNumber
:

“Anindexnumberwhichshowsthechangeinpr
icesofapar
ti
cul
arcommodi
tyora
groupofcommoditi
esiscall
edpri
ceindexnumber”
.

9.Quant
it
yIndexNumber
:

“Anindexnumberwhichmeasur
est
hechangei
nthequant
it
yofgoodsi
scal
l
ed
quanti
tyindexnumber
”.

==========================================================================
========
 14

10.St
epsI
nvol
vedI
nConst
ruct
ionOfPr
iceI
ndexNumber
:

 Speci
fi
cat
ionofpur
poseandscope.

 Sel
ect
ionofi
tems.

 Col
l
ect
ionofdat
a.

 Sel
ect
ionofbaseper
iod.

 Sel
ect
ionofappr
opr
iat
eav
erage.

 Sel
ect
ionofappr
opr
iat
ewei
ght
s.

11.Pr
iceRel
ati
ve:

“Pr
icer
elat
iveist
heper
cent
ager
ati
oofcur
renty
earandbasey
earpr
ices”
.
Symbol
ical
ly:

Pn
Pon= x100
Po

12.Li
nkRel
ati
ve:

“Li
nkr
elati
veist
heper
cent
ager
ati
oofcur
renty
earandpr
ecedi
ngy
earpr
ice”
.
Symbol
ical
ly:

P
Pon= n x100
Pn-1

13.Un-
wei
ght
edI
ndexNumber
:

“I
ndexnumberi
nwhichrel
ati
vei
mpor
tanceofeachcommodi
tyi
snotconsi
der
edar
e
cal
ledun-
wei
ghtedi
ndexnumber”
.

14.Wei
ght
edI
ndexNumber
:

“I
ndexnumberinwhichrel
ati
veimpor
tanceofeachcommodi
tyi
sconsi
der
edi
s
cal
ledwei
ghtedindexnumber”.

15.Chai
nIndi
ces:

“
Chai
nindi
cesar
eobt
ainedbyconv
ert
ingl
i
nkr
elat
ivest
ofi
xedbase”
.

16.Laspey
resI
ndexNumber
:

“Anindexnumberinwhi
chbasey
earquant
it
ies/
pri
cesar
eusedaswei
ghti
scal
l
ed
Laspeyresi
ndexnumber
”.
Symbolical
l
y:

==========================================================================
========
 15

∑pq
Pon= n o x100
∑poqo

Forquant
it
yindexnumber
:

∑qp
Qon= n o x100
∑qopo

I
tisal
socal
l
edbasey
earwei
ght
edi
ndexnumber
.

17.Paasche’
sIndexNumber
:

“Anindexnumberinwhi
chcur
renty
earquant
it
ies/
pri
cesar
eusedaswei
ghti
scal
l
ed
Paasche’si
ndexnumber
”.
Symbolical
l
y:

∑pq
Pon= n n x100
∑poqn

Forquant
it
yindexnumber
:

∑qp
Qon= n n x100
∑qopn

18.Fi
sherI
ndexNumber
:

“I
tist
hegeomet
ri
cmeanofLaspey
re’
sandPaasche’
sindexnumber
”.
Symboli
cal
l
y:

Pon= L.P

OR

∑pnqo∑pnqn
Pon= x100
∑poqo∑poqn

19.UsesofI
ndexNumber
:

 Hel
psinfor
mulat
ingpoli
cies.
 I
ndexnumbershowstrendsandtendenci
es.
 I
ndexnumberi
susedtomeasur echangeinpurchasingpowerofmoney.
 I
ndexnumberi
salsousedt oanal
yzepart
icul
arkindsofgoodsandserv
ices.

20.Li
mi t
ationofIndexNumber:
 Ani ndexnumbercannotserveal
lpurpose.
 Differentcomputat
ionmethodsofindexnumberpr
oducedi
ff
erentresul
tsf
or
thesamedat e.
 Indexnumber saresubj
ecttoper
sonal bi
asaswel
lassampl
i
nger r
or.
==========================================================================
========
 16

 I
tisnotnecessar
ythatt
hesel
ect
edbaseper
iodi
snor
mal
inal
lrespect
.

==========================================================================
========
 17

Chapt
erNo.6
PROBABI
LITY

1.Random Exper
iment:
Anexperi
mentwhi chproducesdiff
erentr
esul
tsev
enthoughi ti
srepeatedal
arge
numberofti
mesundersimilarcondi
ti
onsiscal
l
edarandom exper
iment.

OR

“
Theuncer
tai
nsi
tuat
ioni
nst
ati
sti
csi
sregar
dedasr
andom exper
iment
”.

2.SampleSpace:
Setofal
lpossi
bleout
comesofar
andom exper
imenti
scal
l
edsampl
espace.

3.Sampl
ePoint
:
Eachel
ementofasampl
espacei
scal
l
edsampl
epoi
nt.

4.Random Event
:
Anysubsetofasampl
espacei
scal
l
edr
andom ev
ent
.

5.Si
mpleEv ent:
Aneventconsist
ingofonl
yonesampl
epoi
nti
scal
l
edsi
mpl
eev
ent
.

6.CompoundEv ent
:
Aneventconsi
sti
ngofmor
ethanonesampl
epoi
nti
scal
l
edcompoundev
ent
.

7.I
mpossibl
eEvent
:
Aneventwhi
chcont
ainsnosampl
epoi
nti
scal
l
edi
mpossi
bleev
ent
.

8.Sur
eEvent
:
Aneventwhi
chcont
ainsal
lthesampl
epoi
ntsi
scal
l
edsur
eev
ent
.

9.Compl
ementaryEvent:
IfAisaneventofthesampl espaceS,t
henAisaneventt
hatcont
ainsal
lthose
sampl
epoint
sofSwhi charenoti
nAandiscal
l
edcompl
ementar
yevent
.

10.Equall
yLikel
yEvent
:
Twoev entsAandBbel ongingt
osamesampl espaceSar
ecal
l
edequal
l
yli
kel
y
event
siftheycontai
nequalnumberofsampl
epoi
nts.

11.Mutuall
yExcl
usi
veEv
ents:
Twoev entsAandBbelongingt
osamesamplespaceSar
emut
ual
l
yexcl
usi
vei
f
ther
eexistnosampl
epoi
ntcommoninAandB.
i
-e i f A∩B=ɸ

12.NotMutual
lyExcl
usiveEvents:
Twoevent
sAandBbel ongi
ngt osamesampl
espaceSar
enotmut
ual
l
yexcl
usi
vei
f
==========================================================================
========
 18

t
her
eexi
statl
eastonesampl
epoi
ntwhi
chbel
ongst
obot
hev
ent
s.
i
-e if A∩B≠ɸ

13.Exhausti
veEvents:
Twoev entsbel
ongingtosamesampl
espacear
eexhaust
iveev
ent
sifandonl
yif
AUB=S.

14.Probabi
li
ty:
Anev entAi
sdefinedi
nsamplespaceS.Letthenumberorsamplepoint
sinSisn(S)
andthenumberofsampl epoi
ntinAaren( A),t
hent
hepr obabi
l
ityofoccur
renceof
eventAisdefi
nedas

n(
A)
P(
A)=
n(
S)

15.I
ndependentEvent:
TwoeventsAandBar esaidtobei
ndependentevent
,ift
heoccur
renceofoneev
ent
doesnotaff
ecttheoccurr
enceoft
heotherevent
s.

16.DependentEvent
:
Twoev ent
sAandBar esaidt
obedependent
,ift
heoccur
renceofoneev
entaf
fect
s
theoccurr
enceoftheot
herev
ent
.

==========================================================================
========