1

Business Statistics
A branch of Mathematics dealing with the Collection, Analysis, and
Interpretation and Presentation of Business Numerical data is known as
Business Statistics.

Data
A Group of Numbers is known is data.

Types of Data
1. Primary Data:
Any investigation data collected first time is called primary data. Such
data was in original shape according to that object of investigation.
2. Secondary Data:
These data are those which are collected by other person and used by
other person after the notification according to the object of
investigation. Such data is not in original shape. So it is called modified
data.
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1. Collection of data
Methods of Collecting Data
 For Primary Data


1. Direct personal investigation.

2. Indirect oral investigation.
3. Information through local agencies and correspondent.
4. Mailed Questionnaires method
5. Schedules to be filled in by enumerate.

 For Secondary Data

1. Published sources.
2. Unpublished sources

Classification of Data
Series
1. Individual series: Data are given individually.
 Only data are given:

25,27,29,32,45,58,66,69,78,89,93

 Data are given individually

S. No. 1 2 3 4 5 6 7 8
Values 56 23 45 63 78 95 45 57
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Roll No. 1 2 3 4 5 6 7 8
Marks 6 5 9 8 7 6 0 8

Days Mon Tue Wed Thu Fri Sat Sun

No. of 1 3 5 0 8 4 2
Accidents

Name A B C D E F G
of
Worker
Salary 20,000 12,000 13,000 16,000 8,000 9,000 50,000
P.M.

2. Discrete Series: Data are given in parts.

Size 0 1 2 3 4 5 6
Frequency 5 7 9 12 6 5 3

Marks 0 1 2 3 4 5
No. of Students 12 15 23 28 14 7

Salary per 10,000 20,000 30,000 40,000 50,000 60,000

month
No. of 2 5 7 9 6 3
Employees

Max. Temp. 30 32 34 36 38 40 42
No. of days 2 5 7 9 5 2 1
in a Month
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3. Continuous Series: Limits are given

Marks 0-10 10-20 20-30 30-40 40-50
No. of 2 5 7 9 6
Students

Following Wordings are used in series:

 Less than, Below, Up to, Under, Not more than etc.

Marks Less 10 20 30 40 50 60
than
No. of 2 7 14 23 29 30
Students

 More than, Above, Over, Not less than

Marks 0 10 20 30 40 50
More than
No. of 30 27 22 15 7 1
Students

 Mid Value, Mid-Point, Central Point, Center Size, center Value etc.

Mid Value 5 15 25 35 45
Frequency 2 7 9 7 5

3. Tabulation of data
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Terms of Statistics:
 X – Values
 F – Frequency
 C.F. – Cumulative Frequency
 N – No. of Items/ Total of Frequencies

In Individual Series:
 Only Values (X) are given, Frequency (F) not given
 N- No. of Items
 C.F. Cannot be calculated.

S. No. Values (X)

1 56
2 23
3 45
4 63
5 78
6 95
7 45
8 57
N= 8

In Discrete Series:
 Values (X) are given, Frequency (F) given
 N = Total of Frequency
 C.F. = Cumulative Frequency
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Size Frequency C.F

(X) (F)
0 5 5
1 7 12
2 9 21
3 12 33
4 6 39
5 5 44
6 3 47
7 3 50
N= 50

In Continuous Series:
 Values (X) are given, Frequency (F) given
 N = Total of Frequency
 C.F. = Cumulative Frequency

Marks No. of C.F.

(X) Students
(F)
0-10 5 5
10-20 7 12
20-30 9 21
30-40 12 33
40-50 6 39
50-60 5 44
60-70 3 47
70-80 3 50
N= 50
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TYPES OF GROUPS:

Inclusive and Exclusive Series

 Inclusive Series – In case of Inclusive series upper limit of a group

figure include in the group.
 Exclusive series - In case of Exclusive series upper limit of a
group figure not include in the group. It will be included in Next
group.

Inclusive Series Exclusive Series

Marks No. of Marks No. of
Students (F) Students (F)
X X

1-10 3 0.5-10.5 3
11-20 5 10.5-20.5 5
21-30 7 20.5-30.5 7
31-40 9 30.5-40.5 9
41-50 6 40.5-50.5 6
N=30 N=30
𝑳𝟏 = 𝑳𝒐𝒘𝒆𝒓 𝒍𝒊𝒎𝒊𝒕: 𝑳𝟏 – ½ of difference (1-.5 =0.5)
𝑳𝟐 = 𝑼𝒑𝒑𝒆𝒓 𝒍𝒊𝒎𝒊𝒕: 𝑳𝟐 + ½ of difference (11+.5 =11.5)
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 Less than, Below, Up to, Under, Not more than etc.: C.F. is given

 More than, Above, Over, Not less than etc. : C.F. is given
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 Mid Value, Mid-Point, Central Point, Center Size, Center Value etc. :
F is given

Marks No. of Marks No. of

Students (F) Students (F)
(Mid Values) X
5 2 0-10 2
15 5 10-20 5
25 7 20-30 7
35 9 30-40 9
45 6 40-50 6
55 1 50-60 1
N=30 N=30
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𝑳𝟏 = 𝑳𝒐𝒘𝒆𝒓 𝒍𝒊𝒎𝒊𝒕: Mid value – ½ of Interval (5-5 = 0)

𝑳𝟐 = 𝑼𝒑𝒑𝒆𝒓 𝒍𝒊𝒎𝒊𝒕: Mid value + ½ of Interval (5+5 =10)

Measures of Central Tendencies

Mean Median Mode

X M Z
Arithmetic Mean = X
Geometric Mean = Gm
Harmonic Mean = Hm
Weighted Mean = X𝑤
Combined Mean = X123
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(𝑨𝒓𝒊𝒕𝒉𝒎𝒆𝒕𝒊𝒄 𝑴𝒆𝒂𝒏)= 𝐗

(i) In Individual Series

(a) Direct Method

𝛴𝑋
X =
𝑁

(b) Shortcut Method

𝛴𝑑𝑥
X =𝐴+
𝑁

ΣX = Total of values

N = No. of item

𝛴𝑑𝑥 = Σ(X–A)

S. No X A = 30
𝒅𝒙 = (X – A)
1 22 -8
2 25 -5
3 29 -1
4 31 +1
5 35 +5
6 36 +6
7 42 +12
N=7 Σ𝐗 = 220 Σd𝒙 = +10
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(a) Direct Method

Σ𝑋 220
X = =( )
𝑁 7

𝐗 = 31.43

(b) Short Cut-Method

Σ𝑑𝑥
X =A+
𝑁
10
= 30 + = 30 + 1.43
7

𝐗 = 31.43

(ii) In Discrete Series

(a) Direct Method

ΣFX
X =
𝑁

(b) Short Cut Method

𝛴𝐹𝑑𝑥
X =𝐴+
𝑁

𝛴𝐹𝑑𝑥 = 𝛴{ 𝐹(𝑋 − 𝐴)}

N = Total of frequency = ΣF
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X F FX 𝑨=𝟐 𝑭𝒅𝒙
Marks No. of 𝒅𝒙 = (𝐗 − 𝑨)
Students
0 2 0 -2 -4
1 5 5 -1 -5
2 7 14 0 0
3 9 27 +1 9
4 6 24 +2 12
5 3 15 +3 9
N = 32 𝛴𝐹𝑋 = 85 𝛴𝐹𝑑𝑥 = 21

(a) Direct Method

Σ 𝐹𝑋 85
X = = = 2.66
𝑁 32
(b) Short Cut Method
Σ 𝐹𝑑𝑥
X =A+
𝑁
21
=2+
32
= 2 + 0.66
𝐗 = 2.66
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Mean in Continuous Series

(a) Direct Method

Σ 𝐹𝑋
X =
𝑁

(b) Short Cut Method

Σ 𝐹𝑑𝑥
X =𝐴+ 𝑁

(c) Step Deviation Method

Σ 𝐹𝑑 ′ 𝑥
X =𝐴+ ×𝑖
𝑁
(X−𝐴)
𝛴𝐹𝑑′𝑥 = Σ𝐹 { }
𝑖

𝑁 = 𝛴𝐹
𝑖 = Class interval

𝐱 𝐅 𝑿 FX A = 25 𝐅𝒅𝒙
Marks No. of Mid 𝒅𝒙 = (𝐗 − 𝑨)
Students Value
0–10 2 5 10 –20 –40
10–20 5 15 75 –10 –50
20–30 7 25 175 0 0
30–40 9 35 315 +10 90
40–50 6 45 210 +20 120
N = 29 𝜮𝑭𝑿 = 845 𝜮𝑭𝒅𝒙 = 120

(a) Direct Method

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ΣFX 845
X = = = 29.14
𝑁 29
(b) Short Cut Method
Σ𝐹𝑑𝑥
X = 𝐴+
𝑁
120
X = 25 +
29

X = 25 + 4.14
𝐗 = 29.14
𝐗 𝐅 𝐱 A = 25 𝑭𝒅′𝒙
Marks No. of Students Mid Value 𝐱−𝑨
𝒅′𝒙 = ( )
𝒊
0–10 2 5 –2 –4
10–20 5 15 –1 –5
20–30 7 25 0 0
30–40 9 35 +1 9
40–50 6 45 +2 12
N = 29 𝜮𝑭𝒅′𝒙 = 12

(c) Step Deviation Method

Σ𝐹𝑑x
X = 𝐴+ ×𝑖
𝑁
12
= 25 + × 10
29
120
= 25 +
29
= 25 + 4.14
𝐗 = 29.14
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Median = M

Midlist value of frequency is known as media.

(a) In Individual Series

First of all series will be adjusted in ascending or descending order

𝑁+1
M= th item
2
Q. 1. Calculate the median form the following data:
S. No. X
1 6
2 9 𝑁+1
3 10 M= th item
2
4 12
15+1
5 18 = = 8th item
2
6 19
7 23 M = 23
8 23
9 24
10 28
11 37
12 48
13 49
14 53
15 60
N = 15
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Q.2 . Calculate the Median from the following data:

84, 91, 72, 87, 68, 78, 95, 65

First of all series will be adjusted in ascending order.

S. No. X 𝑁+1
1 65 M= th item
2
2 68
3 72 8+1
=( ) = 4.5th item
4 78 2
5 84
𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 4𝑡ℎ + 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 5𝑡ℎ
6 87 M=( )
7 91 2
8 95 78 + 84
N=8 M=( ) = 81
2

(b) Median in Discrete Series

F will be convert in C.F.

𝑁+1
𝑀= 𝑡ℎ 𝑖𝑡𝑒𝑚
2

𝑁+1
Cf = =M
2
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X F CF
Size Frequency
0 2 2
𝑁+1
1 5 7 M= th item
2

2 7 14 32 + 1
= th item
2
3 9 23
M = 16.5 th item
4 6 29
M = 3
5 3 32
N = 32

Median in Continuous Series

𝑁
𝑀= 𝑡ℎ 𝑖𝑡𝑒𝑚
2

𝑖
𝑀 = 𝑙1 + 𝐹 (𝑚 − 𝑐)

𝑙1 = Lower Limit of Median Group

i = Interval of median Group
F = Frequency of Median Group
C = C.F. before Median Group
𝑁
M=
2
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𝐗 𝐅
Marks No. of Students C.F.
0–10 2 2 𝑁
M= th item
2
10–20 5 7
32
= = 16th item
2
20–30 7 14 c

𝒍𝟏 30–40 9f 23

40–50 6 29

50–60 3 32

N = 32

𝑖
M = 𝑙1 + (m – c)
𝐹
10
M = 30 + (16 – 14)
9
10 × 2
M = 30 +
9

M = 30 + 2.22
M = 32.22

Measures on the Base of Median

M = 2
Quartile = Q=4
Quintile = Qn = 5
Octile = O=8
Decile = D = 10
Percentile = P = 100
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 (Value of Middle 80% items) = P90 – P10

 (Value of Middle 50% items) = Q3 – Q1

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Individual Series
S. No X
1 6
2 9
3 10
4 12
5 18
6 19
7 23
8 23
𝑁+1
9 24  M= th item
2
10 28 15 + 1
M= = 8 th item
11 37 2

12 48 M = 23

13 49
𝑁+1
14 53  Q1 = th item
2
15 60 Q1 =
15 + 1
= 4th item
4
N = 15
Q1 = 12

3(𝑁 + 1)
 Q3 = th item
4
(15 + 1)
Q3 = = 12th item
4

Q3 = 48
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3(N + 1)
 Qn3 = th item
5
3(15 + 1)
= = 9.6th item
5

Qn3 = Value of 9th + .6 (Value of 10th –Value of 9th )

= 24 + .6 (28–24)
= 24 + .6 × 4 =
= 24+2.4
Qn3=26.40

5(𝑁 + 1)
 O5 = th item
8
5(15 + 1)
= 10 th item
8

O5 = 28

7(𝑁 + 1) 7(15 + 1)
D7 = th item = = 11.20th item
10 10

D7 = Value of 11th + .20 (Value of 12th – Value of 11th)

= 37 + .20 (48 – 37)
= 37 + 2.2
D7 = 39.2
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10(𝑁 + 1)
 P10 = th item
100
10(15 + 1)
= = 1.60th item
100

P10 = Value of 1st + .60 (Value of 2nd – Value of 1st)

= 6 + .6 (9 – 6)
= 6 + .6 × 3
P10 = 6 + 1.8 = 7.8

90(𝑁 + 1)
 P90 = th item
100
90(15 + 1)
= =14.4th item
100

P90 = Value of 14th + .4 (Value of 15th – Value of 14th )

= 53 + .4 (60 – 53)
= 53 + 2.8
P90 = 55.8

 Value of Middle 80% Item

= P90 - P10
= 55.80 – 7.80
= 48
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 Value of Middle 50% Item

= Q3 – Q1
= 48 – 12
= 36

In Discrete Series

𝐗 𝐅
Size Frequency C.F.
0 2 2
1 5 7
2 7 14
3 9 23
4 6 29
5 3 32
N = 32

𝑁+1
 M= th item
2
32 + 1
M= = 16.5 th item
2

M =3

3 (𝑁 + 1)
 Q3 = th item
4
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3 (32 + 1)
Q3 = = 24.75 th item
4

Q3 = 4
𝑁+1
Q1 = th item
4
32 + 1
Q1 = = 8.25 th item
4

Q1 = 2

3 (𝑁 + 1)
 Qn3 = th item
5
3 (32 + 1)
Qn3 = = 19.8 th item
5

Qn3 = 3

7(𝑁 + 1)
 D7 = th item
10
7(32 + 1)
D7 = 23.1 item
10

D7 = 4

5(𝑁 + 1)
 O5 = th item
8
5(32 + 1)
O5 = th item
8

O5 = 20.625 th item
O5 = 3
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90 (𝑁 + 1)
 P90 = th item
100
90 (32 + 1)
P90 = = 29.7 th item
100

P90 = 5

10 (𝑁 + 1)
 P10 = th item
100
10 (32 + 1)
P10 = = 3.3rd item
100

P10 = 1

 Value of Middle 50% item

= Q3 – Q1
=4–2=2

 Value of Middle 80% item

= P90 – P10
=5–1=4
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In Continuous Series

𝐗 𝑭 M=
N
th item
2
Marks No of C.F.
32
Student = th item
2

0 – 10 2 2 = 16th item
𝑖
10 – 20 5 7 M = 𝑙 1 + th item (m - c)
𝑓

20 – 30 7 14 M = 30 +
10
(16 – 14)
9
30 – 40 9 23 10 × 2
M = 30 +
9
40 – 50 6 29 M= 30 + 2.22
50 – 60 3 32 M = 32.22
N = 32

𝑁
 Q1 = th item
4
32
= ( ) = 8th item
4
𝑖
Q1 = 𝑙1 + (𝑞1 − 𝐶)
𝑓
10
= 20 + (8 – 7)
7
10
= 20 + = 20 + 1.43
7

Q1 = 21.43 marks.
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3(𝑁) 3 × 32
 Q3 = th item = = 24th item
4 4
𝑖
Q3 = = 𝑙1 + (𝑞3 − 𝐶)
𝑓
10
= 40 + (24 – 23)
6

Q3 = 40 + 1.67
Q3 = 41.67

3𝑁
 Qn3 = th item
5
3 × 32
=( ) = 19.2th item
5
𝑖
Qn3 = 𝑙1 + (𝑞𝑛3 − 𝐶)
𝑓
10
= 30 + (19.20 – 14)
9
10 × 5.20
= 30 +
9

30 + 5.78
Qn3 = 35.78 marks

5 (𝑁) 5 (32)
 Q5 = th item = th item = 20th item
8 8
𝑖
O5 = 𝑙1 + (O5 – C)
𝑓
10
= 30 + (20 – 14)
9
10 × 6
= 30 +
9
 30

60
O5 = 30 +
9

O5 = 36.67 Marks.

7(𝑁) 7 × 32
 D7= th item = = 22.40th item
10 10
𝑖
D7 = 𝑙1 + (d7 – C)
𝑓
10
= 30 + (22.40 – 14)
9
10 × 8.4
= 30 + ( )
9

= 30 + 9.33
D7 = 39.33

90 𝑁 90 × 32
 P90 = th item = ( ) = 28.80th item
100 100
𝑖
P90 = 𝑙1 + (P90 – C)
𝑓
10
P90 = 40 + (28.80 – 23)
9
10 × 5.80
P90 = 40 +
6

P90 = 40 + 9.67
P90 = 49.67

10 𝑁
 P10 = th item
100
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10 × 32
P10 = = 3.20th item
100
𝑖
P10 = 𝑙1 + (P10 – C)
𝑓
10
P10 = 10 + (3.20 – 2)
5

P10 = 40 + 2 ×1.20
= 10 + 2.4
P10 = 12.40

 Value of Middle 50% item = Q3 – Q1

= 41.67 – 21.43
= 20.24

 Value of Middle 80% Item = P90 – P10

= 49.67 – 12.40
= 37.27
Mode = Z

(i) In Individual Series

Most Popular Value is called mode

Q 3. 7, 4, 10, 9, 15, 12, 7, 9, 7, 3, 7, 9

𝒁 = 𝟕
 32

(ii) In Discrete Series

(Largest frequency’s Value is Called Mode but it is necessary that frequency
of largest frequency should also larger than)

Size Frequency
0 2
1 5 𝑍=3

2 7
3 9
4 6
5 3
6 2

Size Frequency 2-2 3-3 Total

1 4
2 9 13 28

3 15 24 41

4 17 32 54

5 22 39 66 1 1
6 27 49 74 1111 4
7 25 52 78 1111 5
8 26 51 73 111 3
9 22 48 73 1 1
10 25 47 55

11 8 33
𝒁=𝟕
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Size Frequency 2–2 3-3 Total

0 2
11
1 9 15 17 111 3
2 6 20 111 3
11
3 5 19 111 3
13 20
4 8 15 111 3
17
5 7 11 2
9
6 2

If Mode = 1 = (9 + 2 + 6) = 17
= 2 =( 6 + 9 + 5 )= 20
= 3 = (5 + 6 + 8) = 19
= 4 = (8 + 5 + 7) = 20

Z=Mode = 2 & 4

Mode in Continuous Series

∆𝟏
𝒁 = 𝒍𝟏 + ×𝒊
∆𝟏 + ∆𝟐

Z = Mode
𝑙1 = Lower limit of Mode Group
 34

i = Internal of Mode Group

∆1 = (f1 – f0)
∆2 = (f1 – f2)
f1 = Frequency of mode group
f0 = Frequency before mode group
f2 = Frequency after mode group

Marks No. of 2–2 3–3 Total

Students
(1-1)
0 – 10 2
7
10 – 20 5 12 14 1 1
21
20 – 30 7f0 111 3
16
𝑙 130 – 40 9f1 22 11111 6
15 18

40 – 50 6f2 111 3
50 – 60 3 9 1 1

∆1 = (f1 – f0) = (9 – 7) = 2
∆2 = (f1 – f2) = (9 – 6) = 3.
∆1
Z = 𝑙1 + ×𝑖
∆1 + ∆2
2
Z = 30 + × 10
2+3
20
Z= 30 +
5

Z = 30 + 4 = 34
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