Lecture Notes of

Business Statistics

Unit 1: Measure of Central Tendency &

Measure of Dispersion

by

Prof. Kewal Dhiraj Malde

for the course

F.Y.B.Com. (Entrepreneurship)
Affiliated to

University of Mumbai

(Academic Year 2021-2022)

 Table of Content

Table of Content ............................................................................................................................. 2

Unit 1: Measure of Central Tendency and Dispersion .................................................................... 4

1.1. Unit Structure: ................................................................................................................ 4

Lecture 1: 11th January 2022 (8:30 AM – 10:30 AM) .............................................................. 5

Classwork Problems (Mean) ........................................................................................... 5

Lecture 2: 12th January 2022 (8:30 AM – 9:30 AM) ................................................................ 6

Lecture 3: 18th January 2022 (8:30 AM – 10:30 AM) .............................................................. 6

1.2. Measure of Central Tendency......................................................................................... 6

1.3. Mean ............................................................................................................................... 6

1.4. Median ............................................................................................................................ 7

Lecture 4: 19th January 2022 (8:30 AM – 9:30 AM) ................................................................ 8

Lecture 5: 25th January 2022 (8:30 AM – 10:30 AM) .............................................................. 8

Lecture 6: 01st Feb 2022 (8:30 AM – 10:30 AM) ..................................................................... 9

1.5. Mode ............................................................................................................................... 9

Lecture 7: 02nd Feb 2022 (8:30 AM – 10:30 AM) .................................................................. 13

1.6. Combined Mean............................................................................................................ 13

1.7. Measure of Dispersion .................................................................................................. 14

F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

1.8. Range ............................................................................................................................ 14

1.9. Standard Deviation ....................................................................................................... 14

1.10. Coefficient of Variance.................................................................................................. 14

Lecture 8: 17th Feb 2022 (8:30 AM – 10:30 AM) .................................................................. 15

1.11. Revision for CE-I ............................................................................................................ 15

Lecture 9: 18th Feb 2022 (8:30 AM – 10:30 AM) .................................................................. 23

1.12. Combined Standard Deviation ...................................................................................... 23

Prof. Kewal Dhiraj Malde Page 3

 Unit 1: Measure of Central Tendency
and Dispersion
1.1. Unit Structure:
 Data and Frequency Distribution

 Mean, Median and Mode

F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

Lecture 1: 11th January 2022 (8:30 AM – 10:30 AM)

Classwork Problems (Mean)

1.

̅ ( )

74

89

93

68

85

76

Total 485

N 6

Mean 80.83333333

Average 80.83333333

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

Lecture 2: 12th January 2022 (8:30 AM – 9:30 AM)

 Basics

Lecture 3: 18th January 2022 (8:30 AM – 10:30 AM)

1.2. Measure of Central Tendency

1.3. Mean

̅ ( )

∑
̅

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

∑
̅
∑

∑
̅
∑

1.4. Median

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

[ ( )]

[ ( )] ( )

( )

Lecture 4: 19th January 2022 (8:30 AM – 9:30 AM)

Mean and Median in Students’ Excel Sheet

Lecture 5: 25th January 2022 (8:30 AM – 10:30 AM)

[ ( )]

[ ( )] ( )

( )

( )

Prof. Kewal Dhiraj Malde Page 8

F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

( )

Lecture 6: 01st Feb 2022 (8:30 AM – 10:30 AM)

1.5. Mode

( )

( )

( )

( )

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

1.

Solution:

Continuous Class f

50-65 4

65-80 7

80-95 15 f0

95-110 28 f1

110-125 11 f2

125-140 5

( )

( )

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

2.

Solution:

Continuous Class f

200-400 15

400-600 22

600-800 40 f0

800-1000 65 f1

1000-1200 38 f2

1200-1400 26

1400-1600 10

( )

( Malde
Prof. Kewal Dhiraj ) Page 12
F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

Lecture 7: 02nd Feb 2022 (8:30 AM – 10:30 AM)

1.6. Combined Mean

̅̅̅

̅̅̅

̅̅̅

̅ ̅̅̅ ̅̅̅ ̅̅̅

̅̅̅ ̅̅̅ ̅̅̅

̅

̅̅̅ ̅̅̅ ̅̅̅

̅

̅ ̅̅̅ ̅̅̅ ̅̅̅

̅̅̅ ̅ (̅̅̅ ̅̅̅ )

̅ (̅̅̅ ̅̅̅ )
̅̅̅

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

1.7. Measure of Dispersion

1.8. Range

1.9. Standard Deviation

√ ( )

( ̅)
( ) ( ) ( ) ( ( )) ( )

( ̅)
( ) ( ) ( ) ( ( )) ( )

( ̅)
( ) ( ) ( ) ( ( )) ( )

1.10. Coefficient of Variance

3.

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

Lecture 8: 17th Feb 2022 (8:30 AM – 10:30 AM)

1.11. Revision for CE-I

Revision – CE-I

Q.1. A. Match the Column. (1/2x4= 2 Mks.)

i) Mean of 50, 100, 100, 150 a) 150

ii) Median of 100, 150, 150, 200 b) 125

iii) Mode of 75, 125, 125, 175 c) 100

iv) Range of 25, 50, 50, 75 d) 75

e) 50

Solution:

i)

ii)

[ ( )] [( )] [( )]

( ) ( )

( ) ( )

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

iii)

iv)

Q.1. B. Fill in the blanks with suitable answers. (1/2x6=3 Mks.)

i) If variance is 390625, then standard deviation is _______. (25, 5, 625, 10)

√ ( ) √

( )

ii) If standard deviation is 5, then the variance is ________. (16, 4, 25, 64)

( )

iii) Mean of the following ungrouped data is ________. (100, 200, 300, 600)

x 100 200 300

f 2 4 2

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

x f x*f

100 2 200

200 4 800

300 2 600

Total 8 1600

iv) Median of the following ungrouped data is ________. (100, 200, 300, 600)

x 100 200 300

f 2 4 2

x f c.f.

100 2 2

200 4 4+2=6

300 2 2+6=8

Total N=8

( ) ( ) ( ) ( )

v) Mode of the following ungrouped data is ________. (100, 200, 300, 600)

x 100 200 300

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

f 2 4 2

vi) Range of the following ungrouped data is ________. (100, 200, 300, 600)

x 100 200 300

f 2 4 2

Q.2. Answer the following concepts in One Sentence. (1x5=5 Mks.)

i) If mean of score of 10 counter-terrorist is 15 and mean score of 15 terrorist is 10

then find the combined mean.

̅̅̅

̅̅̅

̅̅̅ ̅̅̅
̅

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

ii) If variance is 1225 and mean is 70, then find coefficient of variance.

√ ( ) √
̅ ̅

iii) Find Skp, if mean is 30, mode is 15 and variance is 225.

√ ( ) √

iv) Find Skb, if Q1 = 4, Q2 = 8 and Q3 = 12.

( ) ( )
( ) ( )

( ) ( )
( ) ( )

v) Find standard deviation, if E(X2) = 200 and E(X) = 10.

( ) ( ) [ ( )]

√ ( ) √

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

Q.3. Answer Any Two of the following Questions. (5x2=10 Mks.)

i) Find Mean for the following grouped data.

Wages in Rs. 10 – 20 20 – 30 30 – 40

Number of workers 500 1000 500

Class x f x*f

10 – 20 15 500 7500

20 – 30 25 1000 25000

30 – 40 35 500 17500

Total 2000 50000

ii) Find Median for the following grouped data.

Wages in Rs. 10 – 20 20 – 30 30 – 40

Number of workers 500 1000 500

Class f c.f.

10 – 20 500 c.f. = 500

L = 20 – 30 = U f = 1000 1000 + 500 = 1500 Median class

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

30 – 40 500 500 + 1500 = 2000

Total N = 2000

( )

( )

iii) Find Mode for the following grouped data.

Wages in Rs. 10 – 20 20 – 30 30 – 40

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

Number of workers 500 1000 500

x f

10 – 20 f0 = 500

L = 20 – 30 = U f1 = 1000 Modal Class

30 – 40 f2 = 500

( )

( )

( )

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

Lecture 9: 18th Feb 2022 (8:30 AM – 10:30 AM)

1.12. Combined Standard Deviation

1. For a group of 50 male workers the mean and standard deviation of their daily wages are

63 dollars and 9 dollars respectively. For a group of 40 female workers these values are 54

dollars and 6 dollars respectively. Find the mean and variance of the combined group of 90

workers.

Solution:

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

( ) ( ) ( ) ( )

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F.Y.B.Com. (Entrepreneurship) Measure of Central Tendency Business Statistics

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