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100% found this document useful (1 vote)
11K views115 pagesBusiness Statistics
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© © All Rights Reserved
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Available Formats
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Shiv Das
UNAS Sa ky
CBCS
(Hons)
Discipline Specific Elective-2
BUSINESS
STATISTICS 2.
Examinatic” aper
; 2Ci)
+ Examination Questions - Topic-wise
+ University Question Papers with Answers
+ Strictly according to Semester Course
« Latest Syllabus
Bineg
Shiv Das & Sons 1948
www.shivdas.in Shiv Das
Delhi University Series
CBCS
B.Com (tons)
Business
Statistics
PAST YEARS
Examination Papers
(Solved)
Shiv Das & Sons
Educational Publishers Table of CONTENTS
syllabus
1, Meaning, Functions, Importance
& Limitations of Statistics
2. Preparation of Frequency Distributions
3. Graphic Presentation of Data
4, Statistical Averages
Practical Problems
5, Measures of Dispersion
Practical Problems
f 6. Correlation
Practical Problems
7_Regression Analysis
Practical Problems
8. Index Numbers
Practical Problems
9. Analysis of Time Series
Practical Problems
10. Moments, Skewness & Kurtosis
11. Probability & Probability Distributions
University Question Papers
900
@
pee UH)
15
22
40
57
65
76
85,
93
98
107
118
129
133
143
154
175
onwards
SYLLABUS :
B.Com. (Hons.) a
Paper BCH 5.4(d): BUSINESS STATISTICS
‘Marks: 100.
Course Objective: To familiarize students with the basic statistical tools used to
summarize and analyze quantitative information for business decision making.
Duration: 3 hrs. Credits: 6
COURSE LEARNING OUTCOMES
After completing the course, the student shall be able to:
COL: acquire a fair degree of proficiency in comprehending statistical data,
processing and analysing it using descriptive statistical tools.
CO2: gather knowledge’ about various probability concepts and distributions
and their business applications.
C08: understand the relationship between two variables using concepts of
correlation and regression and its use in identifying and predicting the
variables.
C04: develop an understanding of the index numbers and their utility in daily
life and stock market.
(COS: become aware of the patterns revealed by the time series data and to use
it to make predictions for the future.
COURSE CONTENTS
Unit I: Descriptive Statistics
1.1 Measures of Central Tendency
(@) Concept and properties of mathematical averages including arithmetic
‘mean, geometric mean and harmonic mean
(6) Positional Averages including Mode and Median (and other partition
values—quartiles, deciles, and percentiles) with graphic presentation.
1.2 Measures of Dispersion: absolute and relative.
Range, quartile deviation, mean deviation, standard deviation, and their
coefficients; Properties of standard deviation/ variance.
1.3 Moments: Calculation and significance; Skewness: Meaning and Meastre=
‘ment (Karl Pearson and Bowley’s measures); Kurtosis.
Unit Il: Probability and Probability Distributions
2.1 Theory and approaches of probability
2.2 Probability Theoremns: Addition and Multiplication (Proof not required).
2.3 Conditional probability and Bayes’ Theorem (Proof not required).
2.4 Expectation and variance of a random variable, Business Applications.
25 Probability distributions:
(@) Binomial distribution: Probability distribution function, Constants,
Shape, Fitting of binomial distribution.
Gi) y luding Poisson approxi.
son distribution: Probability function (in proxi.
Steels asa distribution), Constants, Fitting of Poisson
distribution,
(Normal distribution:
Probabilities.
properties of Normal curve and computation of
nit I Simple Corelation and Regression Analysis ;
Conlon Analysis: Meaning and types of Correlation, Correlation Vs
Causation; Pearson's co-efficient of correlation: computation and
properties (proofs not required). Probable and standard errors; Rank
correlation,
3.2 Regression Analysis
Regression equations a
Relationships between Correlation an
Error of Estimate.
Unit IV: Index Numbers
4.1 Meaning and uses of index numbers; Construction of Index numbers:
fixed and chain base, univariate and composite; Methods of constructing
Index numbers: Aggregatives and average of relatives—simple and
weighted.
42 Tests of adequacy of index numbers; Base shifting, splicing and deflating;
as the constructions of index numbers
eer ‘of Consumer Price Indices; BSE SENSEX and
Principle of least squares and regression ines;
snd estimation; Properties of regression coefficients;
cd Regression coefficients; Standard
Unit V: Time Series Analysis
5.1 Time Series Data iti
eee oes of time series; Additive and Multiplicative
52 oe ie Fitting of trénd line using principle of least squares—
acme degree Poe = exponential; Shifting of Origin and
nn nd equat y
__ maar nts equation to quarterly/monthly basis
j a Beeps of Seasonal Indicés using Simple
wverages, Ratio-to-tren 7 i
peas and Ratio-to-moving averages methods; Uses of
Practical Lab
The students will be familiarize ware (Commonly used Statistic
vill be familiarized wi Pa
ed with software (Commonly ised cal Packages
frequency dis ter functions contained there rel fe
fren dro and cst Rr
ssion co-eficients; CPI, BS ge, measure of dispersion, correlation
Ahraghinteral assessment, eNSEX ONSE NIFTY. This wil be enluated
Qogg
o)
Cuarter 1
MEANING, FUNCTIONS,
IMPORTANCE & LIMITATIONS
OF STATISTICS
characteristics of statistics?
Q. 1. Define Statistics. What are the
Statistics can be defined both in
‘Ans. Meaning and Definition of Statistics.
singular and plural sense as under:
(In the singular sense, Statistics means science of Satistics of statistics
ie theds. it refers to techniques or methods relating to collection,
vTecifation, presentation, analysis and interpretation of quantitative
data
(i Inits plural sense, Statistics re
‘numerical data, such as Population Statistics,
Statistics concerning Public Expenditure ete.
Definition of Statistics in its Singular sense:
Stats may be defined as the science of collection, presentation, analis andl
interpretation of numerical data.” Croxton and Cowden
cyuistige i the ecience whic deals with the collection, classification and tabulation of
numerical facts ns a basis for the explanation, description and compari of
phenomena.” —Lovitt
The definition clearly points out four stages ina statistical investigation
() Collection of data. In statistics, most of the analysis s performed on the
aus af ellected data, The methods of cata collection lke primary and
secondary, census and sampling etc are related with data collection
(i) Organization and Presentation of data. After collestng dal systematic
arrangement is essential. They are organized and presented in table on
the basis of rows and columns. 5
xd data presented need to be analysed.
(ii) Analysis of data, The organize
peer tre various tools of analysis in statistics like average, correlation,
regression, dispersion etc
(jo) Interpretation of data. After analy
conclusions are drawn. It is the last and
If findings are interpreted wrongly, wron}
1
ers to information in terms of numbers or
Employment Statistics,
sis, results are interpreted and
‘most essential part of the work,
ig conclusion is obtained,
| ) BCs) DELHT UNIVERSITY SERIES
in Plural Sense:
2m Shiv Das [B.Com, (Prog,
Definition of Statistics
1 By statistics we men aggregates of af
af causes, numerically expressed, enumer
Standard of accuracy, collected in a systematic ma
placed in relation to each other.”
2 “Statistics are mumerial statement
relation to eachother”
ayy tts we mean quantitate data aed fo markt eet by multipiciy
of causes.” —Yule and Kendajj
; ms of numerical data are as follows;
constitute Statistics, Np
‘Main characteristics of Statistics in tern
1. Aggregate of facts. A single number does not
the aggregate number of facts that ig
ared and conclusions can be drawy
conclusion can be drawn from it. Its only
called Statistics, as the same can be comp:
ifitis stated that there are 1,000 employees ina company,
if it is stated that there are 309
from them. For example;
then it has no statistical significarice. But
400 in Sales Department and 300 in_
it makes statistical sense as this data
ted toa market extent by multiply
rat or estate according (0 @ reason
ner fora predetermined purpose ang
Horace Sacriy,
rent of enquiry placed iy
sof facts in any depart
Bowl
employees in Production Department,
Marketing Department in a company,
conveys statistical information.
2 Numerically expressed. Statistics are expressed~in terms of numbers
Qualitative aspects like ‘small’ or “big'; ‘rich’ or ‘poor’; etc. are not called
Statistics. For instance, to say, Amitabh Bachchan is tall and Aamir Khan is short,
has no statistical sense. However, if itis stated that height of Amitabh Bachchan,
is 6 ft and 2-inches and that of Aamir Khan is 5 ft. and S-inches, then these
‘numericals will be called Statistics
3. Affected by maltiplcity of causes. Statist
b Statistics are not affected by any single
gor bat are nfo by many factors Had they been alfected by one fe
pe aes that factor they would lose all their significance. For
, 30 per cent rise in prices may have been due to several
sere oy fo several causes, like
reduction n supply, increase in demand, shortage of power, isin wages rs in
- ee aera. reasoable degree of accuracy must be kept in view
ical data. This accuracy depends
invest, i mature size and avaabe aol eee
5, Placed in. relati 2
enc it in relation to each other, Only those numercals willbe called
ee ually flated and so comparable. Uness they have the
i cap manson they canet be ale Statistics. For exp iii sated
‘numbers will not be called Statistics, ora Berean hier «then tha
{o compaa e Satiss, 5 they are not mutually related nor subject
inne hen ere th, 28e BBM and weight of all the thee are
pt te ill be considered as Statist
oS mined purpose. Statistics are collected with
betve, Any infomation clleted without Binion ctr ee
value and not Me Re only
uperal aad oa Satis da era purpose will only be a
eee some predetermiri
cole forthe panne oh ore slobjectve, Whether the Statistics ae
omic position, or distribution of
Jand among: them
or their total
abjectves must be predetermined ney OTF any other purpose, all these
CHAPTER 1: MEANING, FUNCTIONS, IMPORTANCE de LIMITATIONS OF STATISTICS #3
timated, Statistics may be collected by enumeration or the
Mt if the field of investigation is vast, the procedure of
‘timation may be helpful. For example; an estimate that 5 lakh people witnessed
the Republic Day parade does not mean, ‘exactly 5 lakh, it may be a few hundreds
the RePrands mote or lse, These statistics are based on estimation. As against it,
Mf thecfeld of enquiry is limited, the enumeration method is appropriate. For
‘example, if we count the number of students in a class and say that there are 60
students, this figure would be 100 % accurate. i
f Collected in a Systematic Manner. Statistics should be collected in a
systematic manner, Before collecting them, a plan must be prepared. No
aoe isin can be drawn from Statistics collected in haphazard manner.
Tr chort it i.concluded that “all numerical data cannot be called Statistics but all
Statistics are called numerical data,” ,
(Q. 2."ls Statistics a Science or an Art or both?” Explain. os
‘Ans. In order to Tcnow whether statistics is a science or an art or both, it is,
necessary to know the meaning of science and art.
Statistics as a Science. Science refers to a systematized body of knowledge. It
studies cause and effect relationship and tries to find out generalizations which
are called laws of that science. Statistics is also a science ‘but only ina limited
sense viz.,as a specialized branch of knowledge. Ibis not simular fo exact sciences
like Physics, Chemistry etc. Statistics may be regarded as a stientific method
‘because it can be used in scientific studies.
Statistics as an Art. Art, refers to skill of handling facts so as to achieve a given
objective. It is concerned with ways and means of presenting and handling data,
making inferences logically and drawing relevant conclusions, Statistics is an art
also, Art is that branch of knowledge ‘which tells us the best method to achieve
the objectives. It is an action. Statistics involves the application of given method.
to obtain facts, derive results; and finally to use them for appropriate action.
Statistics is a Science as well as an Art. Statistics is a Science as well as an Art
dealing with the study of the methods of collecting, presentation, analysis and
interpretation of aggregates of quantitative data. It is a science of scientific
‘methods and art of applying those methods.
In the words of Tippet, “Statistics is both a scence and an art Tis a scence that
its methods ae basically systematic and have general application; and an att that their
‘successful application depends, to a considerable degree, on the still and “special
experience ofthe statistician, and on his knowledge ofthe field of applications.”
Q. 3. Discuss the functions of Statistics.
‘Ans. Functions of Statistics:
Statistics simplifies complex facts. Statistics simplifies mass data the
‘use of statistical concepts helps in simplification of complex data. Using
Statistical concept, the manager can make decisions more easily. The
Statistical methods help in reducing the complexity of the data and
consequently in the understanding of any huge mass of data,
Statistics makes comparison easier. Without using statistical methods
and concepts, collection of data and comparison can't, be done ‘easily.
Statistics helps us to compare data collected from different sources,
7. Enumerated or Es!
same may be estimate
(i) ) ORCS) DELHI UNIVERSITY SERIES
res of central tendency, measures of dispers
relation all provide ample
Shiv Das [B.Com. (Prog
Grand totals, measur
graphs and diagrams, coefficient of co
for comparison.
(ii) Statistics brings out
collected, it’s easy to anal
‘using the various concepts of Statistics :
(i) Statistics rings out the hidden relations between variables. Statist
analysis helps in drawing inferences on data. Statistical analysis brin
‘out the hidden relations hetween variables.
(©) Decision making power becomes easier. With the proper application of
Statistics and statistical software packages on the collected data,
managers can take effective decisions, which can increase the profit in
trends and tendencies in the data. After data
jyse the trend and tendencies in the data
business.
(ci) Helps in forecasting. Plans and policies of organization$ are invariab
formulated’ well in advance of the time of their implementation:
knowledge of future trends is very helpful in framing suitable policies
+ and plans. Statistical methods provide helpful means of forecasting
future events. .
(ii) Formulation of policies. Statistics provide the basic material for framing
suitable policies. The decision would depend upon the expected internal
production and the likely demand for that product
Q.4. Write a short note on the importance of Statistics.
Ans. In ancient times, statistics was regarded as the science of state craft and
‘was used to collect information related to military force, population, wealth, et
But in moder times, the use of statistic is broad. It is not only the device for
collecting sound techniques for handling analysis and drawing valid conclusions,
but also plays a significant role in the solution of problems related to planning,
‘economics, business, management, mathematics, etc
The importance of statistics in different fields:
() In Business, Statistics plays an important role in business. It helps a
businessman to plan his production according to the taste and preference
of the customer. It also helps to determine the quality of the product, A.
businessman can make correct decision regarding the location of business,
__ marketing of the products finance, resources, etc. through statistics.
(i) In Economics, Statistics play an important role in economics, Economics
lrgly ‘depends upon statistics. In economics statistical methods are used
for collecting and analysing the data. The relationship between supph
and demand is also studied by statistical methods, ‘The imports ye
exports, the inflation rate, the per capita income are the problems which.
e ree goo hnowledge of statistics, y a
athe
1a cua Sains Wa ae of applied mathematics. The large
ssp like probability, averages, dispersions,
tin used in mathematics and different techn
athematics like integratic i cee of oa
ration, differentiation and algebra are used in
statistics. Thus, stati
pe and mathematics are interrelated with each
CHAPTER 1: MEANING, FUNCTIONS, IMPORTANCE te LIMITATIONS OF STATISTICS #1 5
(io) In Banking, Statistics plays an important role in banking, The banks
make use of statistics for a number of purposes. The bankers use
Matistical approaches to estimate the numbers of depositors and their
claims for a certain day.
One cannot completely rely on statistical data as it may not be accurate.
research and development program should also be exercised
while analyzing statistical data.
(0) In Accounting and Auditing. Accounting is impossible without
exactness, But for decision making purpose, so much precision is not
fveential. The decision may be taken on the basis of approximation,
oon the basis of the purchasing power of money or the current value of it.
Im auditing, sampling techniques are commonly used: An auditor deter-
tines the sample size of the book to be audited on the basis of error,
(oi) In Natural and Social Sciences. Statistics plays a vital role in almost all
the natural and social sciences. Statistical’ methods are commonly used
for analyzing* the experiments’ results, testing their significance in
Biology, Physics, Chemistry, Mathematics, Meteorology, Research
Chambers of Commerce, Sociology, Business, Public Administration,
= Communication and Information Technology, etc.
(oi in Astronomy. Astronomy is one of the oldest branches of statistical
study; it deals with the measurement of distance, sizes, masses and
densities.of heavenly: bodies by means of observations. During these
measurements, errors are unavoidable so most probable measurements
are founded by using statistical methods.
Example, The distance of moon from the earth is measured. Since old
days the astronomers have Been using statistical methods like method of
iding the movements of stars.
least squares for fin 3
5. Discuss the application of Statistical Methods in business.
‘Ans. Application of statistical methods in business: ‘ ;
Statistics is an indispensable tool of any actiyity relating to business, commerce
and industry. There is extensive use of statistical methods in different spheres of
business and economics such as production, accounting, finance, marketing,
insurance, banking etc E
In Production different statistical tools are used to determine about the
acceptable quality of product. Control charts afe used fo this process,»
“Aditing irms use different statistical methods while conducting audit of
books of accounts.
Financial analysts use a variety of
decisions. ; ae
Marketing statistics are api in artigo identity mae trends
eacure and evaluate the potential and success of marketing programs,
Thcurance. In insurance, statistics is used to determine what risk and insured
poses to an insurance company, what percentage of policies are ikely fo mature,
etc.
¢ statistical information to guide investment ERTS
B Shiv Das [R.Gom. (Prog) CBCS} DELHT UNIVERSITY
i :
Q.6 How does Statistics help a business mains Warn obi
An Stati hes mag re ME Soa f
{9 With the help of statistical methods respect of PPO
cca ei ae ating suitable policies, i
. etc latin .
(ay Ths formation can be of immerse sn fee in maintaining ality
(Gi) The technique of statistical quality NY. item,
ch and e' sales manager tg
standards without inspecting ect used by
(Ge) Statistica tables and charts are freauenlY .
“present rumercal facts of sales. rice of the commodities.
(©) Similarly, statistics helps in fixing UP. ee to forecast the future,
(ei) The technique of time series helps the ™ [2011R, 2012R
is imitatic tistics: :
Q.7. Explain the limitations of Stat
Ans. Limitations of Statistics: istics studied onl such Eras can be
(@ Study of numerical facts only. a pot study pales = nomena
terms. , justice, ete.
Sie py ween a ed
. with individu.
(i) Study of Aggregates but nit We. it does riot study Satis fac
the aggregates of quanti! ie, It may be a statistical fact
Example, °
relating to any particular unit Ex But, as this fact relates to an
your clas teacher ears £50000 pet OND ft stistics, However,
individual, it is not deemed as 4 se tne study income of schools of
becomes a subject mati tt 3 finding regional ifferences jy
parts of the country, for pt
income. nies
i) iformity and homogeneity: is
es data, it is essential that statist
passe ‘be compared.
mantic ee cl Be. Most statistical findings are trup
an average.
ees ee only the bro tendencies. Unlike
z es, statistical observations are not error-free.
a ey ante all condition, For instance ft is said thy
are not always vali
per capita income in India is $50,000 per annum, it does not mean that
the income of each and every Indian is 250,000 per annum. Some. may
haye more and some may have less. :
(0) Statistics can be misused, Misuse of Statistics is very common. Statistics
“may be used to support a pre-drawn conclusion even when it ig
absolutely false. !
Q. 8 Write a short note on distrust of Statistics.
Ans. Distrust of Statistics, Due to limitations of statistics an attitude of distrust
towards it has been developed. There are some people who place statistics in the
category of lying and maintain that, “there are three degrees of comparison in |
Iying—lies, dammed lies and statistics’, But this attitude is not correct, The
person who is handling statistics may be a iar or inexperienced. But that would
be the fault not of Statistics but of the person handling them.
The person using statistics should not take them at their face value, He shoul
i
|
j
i
j
essential in statistical data, 7,
fics ar uniform in quality. Data of |
rr
(CHAPTER 1: MEANING, FUNCTIONS, IMPORTANCE & LIMITATIONS OF StanisTiCS = 7
check the result from an independent source. Also only experts should handle the
Salistcs otherwise they may be misused. It may be noted that the distrust of
statistics is due more to insufficiency of knowledge regarding the nature,
limitations and uses of-statistics than to any fundamental inadequacy in the
Science of statistics. Medicines are meant for curing People, but if they are
unscientifically handled by quacks, they may prove fatal tothe patient. I both,
the cases, the medicine is the same; but its usefulness or depends
upon the man who handles it.
‘Main causes for the distrust of statistics are as under.
() Different kinds of statistics are obtained in respect ofa given problem,
(ii) Statistics can be altered to match the predetermined conclusions
(ti) Authentic statistics can also be presented in such a manner as to confuse
the reader. :
(ie) When statistics are collected ina partial manner, the results are generally
wrong
‘However, it may be noted that if statistics are presented wrongly, then the fault
does not lie with statistics as a subject matter The fault ies with these people
who collect wrong statistics or draw wrong conclusions. Infact, statistics are like
clay which can be moulded in any way. These examples help us in emphasizing
that if statistical facts are misused by some people it would be wrong to blame
the statistics as such. Tt is the people who are to be blamed.
How to remove distrust:
(9, Consideration of statistical limitations. While making use of statistics,
limitations of statistics must be taken care of.
(i) No bias. The user must be impartial. He should make use only of the
relevant data and draw conclusions without any bias or prejudice.
(i) Application by experts. Statistics should be used only by the experts to
minimize the possibility of misuse.
aou0 Cuapter Z:
PREPARATION OF
FREQUENCY DISTRIBUTIONS
)
Q.1. What do you mean by variables? Distinguish between discrete ang
continuous variables. (2010R, 2011SOL, 2012R)
"Ans, A measurable characteristic whose value changes overtime is called
variable. It refers to that quantity which keeps on changing and which can be
‘measured by some unit, For example, if we measure the ‘weight of students of 3
lass, then weight of students will be called Variable.
Diserete Variables, A discrete Variable is a type of statistical variable that can
assume oly fixed number of distinct values and lacks an inherent order
Ttassumesa finite set of data and a countable number of values. Also known as
a categorical variable, because itas separate, invisible categories, The number of
wales that it can suppose is either finite or countably infinite. Hence‘
Sou are able to count the set of items, then the variable is said to be discrete. A
x recht variable assumes independent values. It can be graphically represented
by isolated points, Examples, Number of printing mistakes in a book, Number of
‘road accidents in New Delhi, Number of siblings of an individual.
‘Continuous Variables. Continuous variable is a variable which takes on an
infinite set of data and an unaccountable number of values. Itcan take any value
within the given range. So, ifa variable can take an infinite and uncountable set
tf values, then the variable is referred to as a continuous variable. It is defined
‘over an interval of values, meaning that it can suppose any values in between the
‘minimum and maximum value. It can be understood as the function for the
interval and for each function, the range for the variable may vary. A continuous
‘variable assumes any value in a given range or continuum. It can be indicated'on
te graph with the help of connected points.
Examples: Height of a person, age of a person, profit earned by the company,
Q. 2. What is a frequency distribution?
| ‘Ans. Collected and classified data are presented in the form of frequency
distribution. Frequency distribution is simply a table in which the data are
‘grouped into classes on the basis of common characteristics and the number ot
‘cases which fallin each class are recorded. It shows the frequency of occurrent
of different values of a single variable,
6
CHAPTER 2: PREPARATION OF FREQUENCY DISTRIBUTIONS m1 9
A frequency distribution is constructed to satisfy three objectives:
(i) to facilitate the analysis of data,
(ii) to estimate frequencies of the unknown population distribution from the
distribution of sample data, and
(iif) to facilitate the computation of various statistical measures.
Frequency distribution can be of two types~(i) Univariate Frequency Distri-
bution; and (ii) Bivariate Frequency Distribution.
Q.3. Write a note on univariate frequency distribution.
‘Ans, The word ‘Uni’ méans one. When data is classified on the basis of single
variable, the distribution is known as univariate frequency distribution. It aims to
give the description about the particular variable. It is known as one-way
frequency distribution. For example, heights of students in a ‘class, income of
people etc. Univariate frequency distribution could be discrete and continuous,
The Univariate frequency distribution is further classified into three categories:
(i Series of Individual Observations. When the observations are expressed
individually, the value of each and every item can be observed
separately, it is known as individual series. Thus in this series values are
tcqual to number of tems, If data in an individual series are presented in
sh array, they will be called as organized data and if they are notin an
array they will be known as raw or ‘unorganized data.
(i) Discrete frequency distribution. In a statistical data when the values are
largely repeated, then we can ‘prepare a series showing the different
values of the variables along with the number of repetitions of each
vase. Such a series is called a discret series. Ina discrete series the data
are presented in a way that exact measurements of units are clearly
indjcated. There is definite difference between the variables of different
groups of items. Each class is distinct and separate from the other classes.
Non-continuity from one class to another exists.
[No.of Chitdren [No.of Families
0 0
i
a 3
eal 5
saree 5
ee
ii) Continuous frequency distribution, Contnunas Sere ° here
OO asureren se only approximations and are expressed in class
vase, within certain limits In a continuous Frequeney distribution, the
‘als vals theoretically continue from the begining of the frequency
distribution to the end without break
[Marks Ottained | No: of Students 30 w Shiv Das [B.Com. (Prog) CBC] DELHT [UNIVERSITY SERIES
se terms associated with frequency distributions are
Sere ech stated interval, sich a8 10-20, called @ ci
Glas Limit The boundaries of the class are called class-limit
‘Glas Interonl: The width of the classes is called class interval... ig
Gas fequencies: The number of value of the series which falls in a
mown as class frequencies,
'Q. 4. What is Bivariate Frequency Distribution? ters,
oe A frequency distribution obtained by the simultaneous classification
dase according to two. characteristics is known as a bivariate frequency
distribution. :
Q.5. What are Class Limits?
‘Ans. The two values which dete:
the smaller one is known as lower limit (Ly) an
upper limit (L,).
"6 Explain with
of determining limits of class intervals.
‘Ans, Exclusive method. When the class interv
Jimit of one class is the lower limit of the next class,
‘method of classification.
sine a class are known as class limits. First or
3d the greater one is known as
examples the ‘Exclusive method’ and ‘Inclusive method”
011 SOL)
als are so fixed ‘that the upper
it is known as the ‘exclusive’
The following data are classified on this basis:
‘Marks [No.of Students
10-20, 210
21-30 w
30-40 3
40-50 5 fs
50-80 5
In the above example, if a student whose marks are 30 would be included in
the cass of 30-40 notin the class of 20-30.
Tndlusive method. Under the ‘inclusive’ method of classification, the upper
limit of one class is included in that class itself. The following example illustrates
the method:
[Maris [No.of Students
10-19. 10
20-29 2 .
30-39 8
cry ens.
059 5
In the above example if a student whose marks are 29 would be included in
class of 20-29.
Q.7, What do you mean by an inclusive series and an exclusive series? How
can an inclusive series be converted into an exclusive series? Illustrate with
the help of an example,
‘Ans. An inclusive series is that series which includes all items w
r p to its upper
limit, In such case, the upper limit of class interval does not repeat itself as @
CHAPTER 2: PREPARATION OF FREQUENCY DISTRIBUTIONS m 11
lower limit ofthe next clas interval. Thus, there is a gap between the upper limit
of a class interval and the lower limit of the next class interval. The gap ranges
between 01 to 1.0.
For example, 1-10, 11-20, 21-30, etc. represents an iriclusive series
“Marks (No.of Students
11-20 nee
21-30 6
31-40 107
41-50 5
Total 30
Conversion of Inclusive Series into Exclusive Series. Inclusive series are used
when there is some definite difference between the values of various items in the
population. In the above table if a student has obtained 10.5 or 205 marks these
can be expressed only if the inclusive series is converted into an exclusive series.
Following steps are involved in the conversion’ of an inclusive series into an
exclusive series:
() First, we find the difference between the upper limit of class interval and
the lower limit of the next class interval.
(i) Half ofthat difference is added to the upper limit of a class interval and
_ half is subtracted from the lower limit of the class interval
Conversion of the above Inclusive series into an Exclusive Series:
“Marks ‘No.of Students
05-105, 4
105-205 5
205-305 6
305-405 10)
405-505 5 :
Q.8 Explain the following with suitable examples:
() Mid-value
(if) Open-ended classes
(ii) Cumulative frequency distribution
Ans. () Mid-value. Mid-value is the average value of the upper and lower
limits. It is known by adding up the upper limit and lower limit values
and dividing the total by 2
Upper Limit-+ Lower Limit
‘Thus, Mid-value =
im=mid-value
stehere| I = lower limit
Ip = upper line
For example, mid-value of 10-20 class interval = 2219 = 15.
(ii) Open-ended classes. Open-ended classes refers to those situations where
the last class has no upper limit and the first elass has no lower limit. The
necessity of open-ended classes arises when there are few very high 22 m Sh Das
values or low values whi
Sbservations. The following examP!
(i)
[BCom (Prog) CBCS] DELHI UI
ich are
le
classes.
res remioney
Tess than 50. 3.
50-100 TT
100-150 Beers
asp unser pee
200-above 2
Total 20
However, the use of open-
end classes creates
INIVERSITY SERIES
far apart from the
illustrates the case of OP
ye majority of
jen-ended
difficulties in finding mid-
tion. The best way to
vais while analysing grouped frequency distribu
the use of open-end classes as
Overcome this type of probl
far as possible
Cumulative frequency distributio
that series in which
the frequencies
1, Cumulative freq!
juency distribution is
‘are. continuously added
eetresponding to each class interval in the series:
fo cumulative frequency
‘There are two ways
series.
These are:
{@) On the basis of upper
Jess than 15, etc, when the
(@ On the basis of lower class limit of
Me more than 10, etc., when the class in
‘Conversion of an ordinary frequet
limits of the class
‘ass intervals
the class intervals,
jervals are 5-10,
sncy distribution into
juency distribution
‘of converting this series int
intervals, eg. less than 10,
is are 5-10, 10-15.
eg, more than
10-15.
@
"Jess than type cumulative freq)
—aitaary frequency distribution [Test then cmulatioe
‘frequency distribution.
Marks | No. of Students (0 Marks ‘No, of Students
0-10) 5 Tess than 10 5
10-20 7 Less than 20 2
20-30. i Less than 30 20
30-40" 5 Less than 40 25
40-50 2 Tess than 50 57
50-60. 3 an) |
Steps:
Steps ve write the upper limit, ie, 10, 20. and before all
less than.
these upper limits, we W!
« First cumulative frequency is
+ Second cumulative frequency
rite the words
Third cumulative frequency = 12 + 8 =
Last cumulative freq
(Cumulative frequencies
25 +12=
yuency = 97 + 13
are obtained by ad
same as first frequency,
=5+7=12
Fourth cumulative frequency = 20 + 5 =
th cumulative frequency ~
es 5.
20
25
37
50
(CHAPTER 2: PREPARATION OF FREQUENCY DISTRIBUTIONS = 13
() ‘onversion of an ordi
Canc of an ordinary frequency distribution into
more than type cumulative frequency distribution
inary Feency tribution “More an ype amulet
frequency distribution
Nf es | Hats | Mea se
10 5 More tan 0
ey 7 | More than 10 S
23 & More than 20 x
0 5 More than 30 2
40-50 2 More than 40
50-60 3 More than 50 3
Steps: i i
StePe ve write the lower limite i, 0,10, x et. and before all these
Leribe mode or
donee viiltive frequency is same as last frequency,
Seem eee
‘Third cumulative frequency = 25+ 5 =30
Fourth cumulative frequency = 30-+8 ~ 38
Fink curnulative frequency = 38+ 7= 45
nmin ee 30
as rn cle are obtained by adding frequencies vps
Q. 9. Briefly explain the principles of i tated data for frequency
distributions.
‘Ams. Principles of classification:
Hr of cage sould be preferably between 5 and 2)
Ti mete one should veld values of lass eral 8 9,
‘A Tar as poss ly, one akould have clan intervals of ether ve oF
2 ples of 5 like 10, 20,25, 100 ee
(a roe pol the lower iit of he Bak les PO
The stating Potro For example tthe lowest vl of he dats 2°
and we have taken a hen the fist clas should be 60
70 instead, of 6-73
70 inated, of OO ant et colextlatinimeal we should at
Te Giive’ method of classification.
(OS sb enable 1
Bea Tastnbution presens protiams of SMBS and further
omiysia
Q.10. os the purposes of classification of data into distributions.
10, Discs te om Man evel Se
4 ea ata, Man ae See
mt data in af fer and aime
ses Erthe data aa ik bongs oot
ation enhances tii
Jovious differences among the
‘class-interval of 10,
@)
pr
diy Uttty. Classifica
(2 UAT within the diverse set of daa,
(ip Dintinetivenes. Cassifation Fendes
data more distinctly "
(io) Comparability. It makes data comparable and estimative J DELHI UNIVERSITY SERIES
yrrangement of data, in
y:
data more attractive and,
44 w Shiv Das [BCom (Prog) CBCS
(0) Scientific Arrangement. Classification facilitat
‘a scientific manner which increases their relia
(e) Attractive and effective. Classification makes
effective s
Cuapter 3
21, Deine Tabalaton, a cen iy erage of
: GRAPHIC PRESENTATION
data in columns and rows.”
“Tabulation is a process of presenting the collected and classified data in proper
‘order and systematic way in columns and rows so that it can be easily compared
Se OF DATA
Objectives of Tabulation:
{) Orderly and systematic presentation of data.
(i) Making data precise and stable.
To facilitate comparison. it fi if
(0 Touma he protien dear ad sl evident Coe gee eet pra
the problem dea and self event, : cv Jc values of variable on a graph paper i
(©) To facilitate analysis and interpretation Fe called ‘arithmetic line-graph’. Often such graphs are constructed to esa time
pat series data, that is, the data (like the value of exports or imports) corresponding
to different weeks, months or years. Therefore, arithmetic line-graphs are often
called ‘time series graphs’
There are two types of time series graphs:
1. One variable graph. One variable graphs are
those graphs in which values of anly one variable ssf jocineyecs soos 0 2004
are shown with respect to-some time period. ‘i ae
Years ‘Sales (€7000),
2000) 20)
2001 30
: 2002: 34
2003. 38 oases oe
2004 5 Years
2. Two or more than two variable graphs. These are the graphs in which
values of two (or more than two) variables are simultaneously shown with
| 5 respect to some period of time.
Example, Average monthly Income and 2 y ,GuPhStowing Montly
fi oe PEESIS © ¥ incomeand Expenditure of
‘Expenditure of an unskilled labour, pam an .unskilled labour
Years] tncome (77 | ExpeRARTETRI] — $ 200 y
| 2000 1,500 1,400 E500} =
- 2001 | 1.600 1480 se
2002 | 1.650 10]. F ==
2003 1,800 1,750 eo See
2004 1,900 71,800. 0) Ssomnamisoarsas a
2005 [2.200 2.100 Years
Q. 2. What is false base line? When is it used on an arithmetic line graph?
‘Ans, False base line. It is a device relating to graphical presentation. This line
6
mE Nt = No-of tems in the st part
=, NiXi+NgXa wnere|No_ =)No of items inthe second part
Xu= Nana Xp ~ Anithmesc Mean oft part
: x2. = Arithmetic Mean of second part
Example, 2
‘Number of students in Section A of B.Com. [M4 year (N;) = 60
Number of students in Section B of B.Com. U4 year (N;) = 40
‘Average marks of the students of Section A (X1) = 30
‘Average marks of the students of Section B (X2) > 28
= = 60x30 40x28 _ 180081120 _ 2920
os Xi 60440) a0ogimaoonm
3, Sum of the squares of the deviations of the items from Arithmetic Mean is
ei
Exanp, a REEDS =F
5 | 6-1%=10 | 6-5-0 | 6 25
10 | a0= 152 WOR RH25 | 0-207 = 100
| asi O | Os=se—t00 | (5 - 207 = 25
o-a= 3s | @oas= 2s | ao-
5-15 = 100 | @sase= 400 | OS - 207
TX= R= 280 | BSH 0 | EX - 20 —
DELHI UNIVERSITY SERIES
i the mean, below the
in the above example;we calculate the mean deviation UN TT ares of
mean and above the mean, We observe that in all three Set
the deviations of the items from Arithmetic mean is, aes.
1 rr aniug ofthe Arithmetic Mean is affected by change of OFgin a Se
of scale tae
Q.7. Write a note on Weighted Arithmetic Mean.
‘Ans, In the computation of simple arithmetic mean, it is assu 3
iteme (or observations) ofthe distribution are of equal importance, Howett, ©
all the items are not of equal importance, then simple arithmetic mean W
be a good representative ofthe distribution. Hence, the weighting of different
items’ becomes. necessary and weights are: assigned in proportion to the
importance of the item in the group, -e, more important item is assigned more
wei
Computation of Weighted Arithmetic Mean,
26 m Shiv Das [BCom (Prog) CBOE]
Kye = Weighted Arithmetic Mean
Sy LUX Veta volo tthe Yr
EW WwW =Weights
Q. 8. Define Median.
‘Ans, Median is a simple measure of central tendency. To find the median, we
arrange the observation either in ascending, or descending order. If there is an
‘odd number of observations, the median is middle value. If there is an‘even
number of observations, the median is the average of two middle values.
"The Median is that value of the variables which divides the group into twoo equal
parts, one part comprising all values greater than the Median, and the other all values
Tess than the Median.” Connor
In case of Discrete Series, median value would be (N21)" term of the series
and for Continous series median value would be ("term of the series.
Q. 9. How would you compute Median in (i) individual series, (ii) discrete
series and (ji) continuous series?
‘Ans, Computation of Median:
Individual Series.
‘Step 1; Arrange the data in ascending or descending order.
Step 2:M = Size of (SZ) item
Discrete Series, .
Step 1: Arrange the data in ascending or descending order.
Slep2: Find out cumulative frequencies
Shep 3: Median» Size of (N24) item
Step 4: Find out the cumulative freq ft
quency which is either equal to or just
greater than the value obtained in step number 3, The value
to this cumulative frequency is Median,
Continuous Series (Grouped data with class i
Sep 1: Find out cumulative frequency 9"
‘where [M = Median; N = Number of items
e
CHAPTER 4: STATISTICAL AVERAGES m 27
Step 2: Median = Size of (‘Z)" item
Step 3: Find out the cumulative frequency which is just grater than the value
obtained in step nuimber 2. The cass corresponding to this cumulative
frequency is the median class,
Step 4: “Apply the following formals:
we BEE)
fedian
Lower Limit of Median Class
ipper Limit of Median Class
requency of the Median Class
‘umulative frequency ofthe class preceding the median class
M=l+ ae where {ii the ass interval of the median class, i, Ly ~ Ly
Q 10. Js it true to say that Median is not affected by extreme values?
Illustrate your answer by giving an example.
‘Ans. Yes, it is true, that Median is not affected bythe magnitude of extreme
deviations from it. To understand this we take following example.
Marks of 5 students (in ascending ordet) = 10, 12, 20, 25, 32
Here, m= size of SE)" tem = Size of (254) item
= Size of 3° item = 20 Marks
‘We observe that the value of median depends upon the number of observations
and not on extreme values. Which are 10 and 32 in this case. Thus, middle most
value is median value and it is not affected by extreme values.
(Q. 11, Is it true to say that the sum of the absolute deviations from Median
is the minimum? Illustrate your answer with the help of an example.
‘Ans. Yes, it is true, that the sum of the absolute deviations from Median is the
minimum, For example ;
Marks (in ascending order) of students = 20, 2,30, 35, 42
Here, M = Size of (2) item = size of (254)* item
= Size of 3*4 item = 30 Marks
Now, we take the absolute deviations of the values from Median, a value less
than Median (ie,, 20) and a value greater than Median (i.e, 35).
Mars 00) [1X = MI = X= 300 [Sa TEST
20 10 0 5
2 8 2 B
50 0 10 5
3 | 5 & d
2.) a 2 >
[DERE MSS ae ao [EK ST =
‘Thus, sum of the absolute deviations from Median is the minimum. wea
) RCS} DELHI UNIVERSITY SERIES
28 m Shiv Das [B.Com. (PPS: :
‘and demerits of Median.
Q. 12, State the merits
Ans, Merits:
() This easy to understand the
observations or ungrouped data, i
(He Hay ee cone valor exe devon So
(fo) It can be determined even if the given distribution has open ends.
(0) It can also be located graphically: : it
(0) Mean al rhe average in dealing with quliative daa
Demerits: 9
{) When the number of observations is large’ the location of median
requires their arrangement in ascending OF descending order which is a
very cumbersome process.
(i It is a positional average
mathematically.
(ii) For a grouped frequency distribution, the
not located.
io) The value of median is affected more by sampling fluctuations than the
: value of arithmeti
lue of arithmetic mean. fi
Q.13, Write a note on quartiles.
‘Ans. Quartiles are the values of a variable that divide a distribution into four
jas. For a discrete distribution, the first quartile Q, is the value such that
gr least 25% of the observations are less tham or equal to it. The second quartile
eq 4
(Quis equal to median andthe third quartile Q; isa value such that at least 75%
of the observations are less than or equal to it.
Computation of quartiles:
‘1 Individual Series
Step 1; Arrange the data in ascending or descending order.
Sip 2 Q, = Size of (SZ4)” item
s-where[Q, = First or the lower quartile; N = No.of items
= sie of 2 (N12)
Q = Size of 2 (N#4)" item
+1)
= Size of (N1)" item
f individual
xy to compute. In case of tual
and easy in) be located even by inspection,
and hence is not capable of being treated
median is only estimated but
_where [Q; = Second or middle quartile
Q, = Size of 3(“24)" item
2. Discrete Series
Step 1: Arrange the data in ascending or descending order.
Step 2: Find out cumulative frequencies
Step 3: = Size of (N#2)" item,
© Qn sie of (N2)* tem
ays
where [Q, = Third or upper quartile
CHAPTER 4: STATISTICAL AVERAGES @ 29
Step 4; In the cumulative frequency column, locate the cumulative frequency
either equal to of just greater than the value obtained in Step 3. The
Value. against this cumulative frequency would be the required
quartile, ie, Qy, Qz and Qs-
3, Continuous Series (Grouped data with class intervals)
Step 1: Find out cumulative frequencies
Step 2: Qy = Size of Ce item,
) = size of (item,
"
Qj = Size of 3(%) ‘item
Step 3: In the cumulative frequency column, locate the cumulative frequency
just greater than the value obtained in Step 2. The class corresponding
to this cumulative frequency is the required quartile class.
Step 4: Apply the following formula
ante Hs)
arte FA)
ants SEG
Q.14. Write a note on deciles.
‘has. Decles ofa distribution divide a series of observations into 10 equal parts
and there are in all 9 deciles, Dy, Dy. Dy
Computation of Deciles:
1. Individual Series :
Siep 1: Arrange the data in ascending or descending order.
i
Step 2: Dy = Size of x(Na4) item
X can take the values from 1 to 9.
If we are to find out Dy the formula would become
D, = Size of x(a)" item
10
2. Discrete Series
Step 1: Arrange the data in ascending or descending order.
Slep 2: Find out cumulative frequencies
:
ix of x(S21) tem
Step 3: Dx
70
Step 4: In the cumulative frequency column, locate the cumulative frequency
either equal to or just greater than the value obtained in Step 3. The
value corresponding to this cumulative frequency would be the value
of Dy. >
0 w sav Des [BCom (og) CBCS] DEL UNIVERSITY SERIES
3. Continuous Series (Grouped data with class interval )
CHAPTER 4: STATISTICAL AVERAGES = 31
‘Ans. We take the following example for computing the values of Median, Q,
and Q, by constructing Less than Ogive and More than Ogive.
‘Step 1: Find out cumulative frequencies
‘i
Step 2: Dy = Size of X($8) item on a Wo, aaa
ive frequency column, locate the cumulative frequency
ete Rar oies tan te ‘Value obtained in Step 2, The class corresponding $0 6
to this cumulative frequency is the required decile class. 1015 10
Step 4 Apply the formula— 15-20 10
a1 (ep 20-25 i
Pee eee ‘) 25.30 2
Q.15. Write a note on percentiles. -
‘Ans. Percentiles of a distribution divide a series of observations into 100 equal = 18
parts and there are, in all, 99 percentiles, Py, Pay .-» Poy 5.
‘Computation of Percentiles: ‘Marks (Less than) | No.of Students)| [/ Marks (More than) [No.of Students
‘1 Individual Series 5 4 0 100
‘Step 1: Arrange the data in ascending or descending order. 7 ‘i a a
"
Step 2: Py = Size of x(NSt) item 5 20 10 0 |
X21 9 20 30 15. 80
If we are to find out Pay the formula wold become) 2. 55 a ea 70.
Py- see ofa( Nees Ue 30 71 NW 5
Be en 1% Vw 35 95 BS 0 B
40. ‘100, rs 35 5
‘Step 1; Arrange it lescendin, =
Se pod pest este ¢ ae We first draw less than ogive by | We first draw more than ogive by
7 * taking upper limit of each class | taking lower limit of each class and
Step 3: Px = Size of X(N*1)" item ‘and finding less than cumulative finding more than cumulative
am; ‘freque frequency.
Step 4: In the cumulative frequency column, locate the cumulative frequency rep ;
cither equal to or just greater than the value obtained in step 3. The Aa Tees then Ontve *
Yale comesponding to this umulative frequency would be the value r “qual Seca
5 90 0
3, Continuous Series (Grouped data with cl ae he
Step 1: Find out cumulative frequencies, eos vee i E by i Fx
: ge B= a
Step 2: P= Size of X( 85)" item : SE 3
Step 3; In the cumulative frequency column, k 2» i
ju par tntevihedhandinsep2 Tce, |e as
{oO cee oo corresponding 10 0
frequency juired percentile class, O-§ fo ts 0s 7 z
ec
rons arali-f)
Q. 16. How would you
third quartile (Qy) frome Put Ie Values of median, first quartile (Qy) and
(i) Less than ogive
IMlustrate with the help of an eee: than ogive,
Marks
Median = size of (%)" item
"
= Size of (42) item's size of 50! item
From the graphs, Median = 24 marks Sea xiv es cam. roe) CHC] DELET UNIVERSITY SERIES
= size (Stem
ray (22) em = Size of 25% Hem
From the graphs, Qy = 175 marks
Q ~size of (28)"item
= Size of (2309)" nem = size of 75! item
From the graph, Q, = 29.5 marks. i
Ta Tah te ogi giv Be sane vals of Median Q; and Oy in ce of more a oe,
Net po ge talus N/a N/2 and SN) fo te gs ve
Q.17. How would you compute the values of the Median by drawing less
give as well as more than ogive?
aaa e Median value of a series may also be determined through the graphic
presentation ofthe data in the form of ozive. In this simultaneously both theless
Than’ and ‘more than’ ogives are graphically presented. This can be seen in the
fiven graph. Mark the point ‘O' where the ogive curves cut each other. Draw a
colar from that point on X-axis. The corresponding value on the X-axis
‘would be the median value.
B10 ts 20 2 3035 0
‘Marks
‘Ans, Mode fs the value which repeats highest number of times in a series. AS
per another definition, mode tells us the position where concentration of
frequencies is the maximum,
“The mode ofa distribution isthe onlue at the point around which the items tend te
‘be most heavily concentrated. It may be regarded as the most typical ofa series of values.”
—Croxton and Cowden
Q. 19. How would you compute mode in (i) individual series (ii) discrete
series and (iii) continuous series.
Ans. Computation of Mode;
(9 Individual series. The mode of this series can be obtained by mere
inspection. In case of ungrouped data value of mode is the size of item
Tepeating maximum number of times,
(CHAPTER 4: STATISTICAL AVERAGES m 33
Example, for the data 10, 6, 9, 7, 10, 11, 7, 10, 9, 8, 5, 6,10.
Value 10 repeats maximum number of times therefore, Mode = 10
(ii) Discrete series. Value of mode is the size of the item with highest
frequency.
(ii) Continuous series. Three methods are used for a continuous series:
(@) Algebraic method. First the modal class is ascertained, i. class with
maximum frequency and then mode is calculated by using given
formula:
Mode, My = Ly + ae xi
Mo = Mode
Peleg
fo
fi
‘= Frequency ofthe modal class
f= Frequenty ofthe class succeeding the modal cass
() Graphic method. Mode can be determined with the help of
histograms. The highest bar in it represents the modal class. And
then two diagonals are drawn, one joining the top left corner of
‘modal class bar to the top left corner of post-modal class and the
other joins the top right comet to the top Comer of pre-modal class.
‘A perpendicular is drawn on Xeaxis from the point of intersection to
‘et the value of mode. .
(©) Empirical method. In ease of symmetrical distribution or bimodal
series, formtila for calculating mode is:
Mode = 3 Median - 2 Mean
Q. 20. Briefly explain the role of grouping and analysis table in the
calculation of mode.
‘Ans. Mode is the value around which there is heaviest concentration of items.
When two or more frequencies are highest or highest frequency is very close to
next highest frequency, mode is found out by grouping. This method involves the
construction of (2) Grouping Table and (b) Analysis Table
‘Through grouping table, we find out the concentration of items around a value.
Bsaiierel fe sf fo f
50-60 2
2B
70 7 a
5 T
70-80 w 3 |
36
80.90 8 en
2B
90-100 10 ) cpcs) DELHI UNIVERSITY SERIES
wwe prepare the analysis table to find out the
prepared as follows:
90-100
cpm [we]
se
1 1
[ax sehen
1 1
1 1
i I a
1 rae (eee
Total i 3 4 7 +
Modal Class is 70-80.»
” Mode said to be ill-defined?
led as ill-defined. For
ener tne mode is not FgidlY defined it is cal
example,
emmy 0 | 0 | oto
eee Pe Tet
"pis ill-defined because the number of
Here mode is not rigidly defined, i.e, h
ctedents petting 30 mazks is the same as the number ‘of students getting 45 marks.
(0, 2 State the merits and demerits of Mode- A
‘Ans. Merits:
andefstand and easy t calculate, Very often, itis located by
() Itis easy to
just inspection.
(iy It can be locafed even when the variable i, not measurable but
a regorization or ranking of observations is possible.
open ends.
() It isnot based on all the observations.
(i) It is not capable of further mathematical treatment,
ij in certain cases, mode may not be rigidly defined and hence the
important requisite ofa good measure of central tendency is not satisfied.
(io) Wienoteasy to calculate unless the numberof observations is suffi ently
{ange and reveal a marked tendency of concentration around a particular
value.
(0) I is not suitable when different items of the data are of unequal
importance.
Q, 23. How would you compute Mode in a bimodal series?
Or ©
State the interrelationship amongst Mean, Median and Mode.
‘Ans, Mode in a bimodal series is calculated by the following formula:
‘Mode =3 Median - 2 Mean
‘This formula shows inter-relationship amongst the three, j.., Mean,
and Mode.
Median
CHAPTER 4; STATISTICAL AVERAGES ® 35
Q. 24. How would you compute the value of Mode graphically?
‘Ans. Mode of a series may be located through a graphic presentation of the
data. It involves the following steps:
(i) Present the given information in the
forth eval ecb gril tena 9 Galata ef
highest rectangle. This corresponds $1 |
to modal class ofthe series.
(i) Join the top comers of the modal Fa
rectangle with the immediate next ©.
comers of the adjacent rectangles. §
‘The joining lines muist cut each.
other
(ii The point where the joining lines cut
ach other points to. the. modal
Value. This value is determined by 35 =
drawing a perpendicular from that ok
point on to the X-axis.
9.25 Can the values of Mean, Mode and Median be the same? If yes, state
the situation.
a Yes, Ifthe distribution is symmetrical then. values of mean,
mode could be the same
(Q. 26. Find the missing figure:
‘Median = Mode + ? (Mean - Mode)
‘Ans. Median = Mode + 3 (Mean - Mode)
(0.27, Is it true to say that in a bimodal case value of mo
with the help of 2X - 2 Median formals.
“Ans. No, itis not true. In the case of Bimodal series,
calculated by using the following formula
‘Mode = 3 Median = 2 Mean
Q. 28, Find out the missing figure:
‘Mean = ? (3 Median ~ Mode)
‘Ans, Mode = 3 Median ~ 2X
4
me
No.of student
EO
6
+
2
2
val)
#3
in
0s:
f
i
ars (
‘median and
de can be calculated
value of mode can be
2X =3 Median ~ Mode
= _. 3Median -Mode
= x- ee
ie, Mean = + Median ~ Mode)
(0,28, Define Geometric Mean. Haw would you combats in:
(i individual series
(i) discrete series and
continuous series?
anc Mean may be defined asthe 1 root of He product of m items
aeaae ir there are two items, we take the squae Took if there are three items,
wwe take the cube root, and 80 on.
GM. = (XXX
te. ae various values of the variable
caaherehy Xe
deen —
SNIVERST ‘SERIES
se w'3e¢ De [BCom frog) CHC DEL UNIVERSTY
Computation of Geometric Mean:
1 Individual series
(Ee)
GM. = Antilog| values of the variable, N= No. of items
“ere [GM. = Geometric Mean: X = Vaious
2 Discrete series
ze 2
GM = Antilog| "
3. Continuous series
too =ites”)
a= Anilog|=208™] 5
(0.30. State the various mathematic al properties of Geometric Mean
: o Vanious mathematical properties of Geometric Mean:
‘ante sum ofthe deviation ofthe logarithm ofthe values fom logarithm of
Geometric Mean is 2er0.
log X log GM] = 0
‘Geometric Mean of 2,4 and 8 is 4
= (log 2 log 4) + log 4 log 4) + (log 8 ~ log 4) =0 <
(i The product ofthe ratios ofthe Geometric Mean to the figures which are
qual to orless than itis equal to the product ofthe ratios of figures more
than the Geometric Mean to the Geometric Mean.
(ii) Combined Geometric mean=
i ae ore
snashere [m= Midvale: N = 2f
MeN
(a= Combined Geometic Mean
‘Nambar of een the fit serie
eee ora |
Q. 31. State the merits and demerits of geometric mean.
Ans. Merits of Geometric Mean:
(9 Itis rigidly defined.
(ii) Itis based on all the items.
(ii) ti capable of further algebraic treatment.
(io) It gives less weight to large items and more to small items,
Demerts of Geometric Mean:
(j) Its difficult to compute,
(i) Itis not easy to understand,
(i) If there are negative values in the series, it can not be computed.
Q. 32, Under what circumstances Geometric Mean can be used? (2011R & SOL
i) Geometric is specifically used to find the average growth
ate. For example to find average percentage increase in sales, aati
" pai ies) ‘business or economic series,
{t) It's considered to be the best average in construction of Index Numbers
(i) GMs most suitable when large weights have to be given to small ites
and vice-versa,
CHAPTER 4: STATISTICAL AVERAGES m 37
Q. 33. State the formula for computing Weighted Geometric Mean.
[GMye = Weighted Geometric Mean
= Antilog| = °8%)] where] W "= Weights
Aw y= oto | tn tent
Q. 34. Define Harmonic Mean, How would you compute it in: (2011R & Sol)
() individual series
(ii) discrete series and
(iif) continuous series?
‘Ans. Harmonic Mean. The harmonic mean is based on the reciprocals of the
numbers averaged. It is defined as the reciprocal of the arithmetic mean of the
reciprocal of the individual observations.
Computation of Harmonic Mean:
__ [FLM.=Harmonic Mean
-nwhere|N/=Numberof items
X= Various values of the variable
Ans. Mathematical properties of Harmonic Mean:
1, The sum of the deviations of the reciprocals of the values from the
reciprocal of Harmonic Mean is zero. 3
22 1
x” HM.
2, Combined Harmonic Mean:
eM: Cumbia Hamers enn
Ni+Nz Ny" =Numberafitems in the st series
oR .-where|N3__=Number of items in the second series
HIM, =Harmonie Mean ofthe fist series
HLM, =Harmonic Mean of te second series
Q. 36, State the merits and demerits of Harmonic Mean.
‘Ans. Merits:
(i It is based on all the observations.
(ii) Itis a rigidly defined average.
(ii) Tt gives less weight to large items and vice-versa,
(iv) It is capable of further algebraic treatment,
(0) It is suitable for a distribution with wide dispersion,
Ma * HM. rc:
46 w Shiv Das [BCom. (Prog) CBCS] DELHI UNIVERSITY SERIES
Deneits técut to understand and compute the harmonic mean of a
distribution. Fig,
(a Ieanpot be calculated if one or more observation of a dstibution* "0
(ii) It may not be representative of a distribution if small observations are
given correspondingly small weights. Thus it is not very useful for
analysis of economic data.
0.37, Explain the specific uses of Harmonic Mean.
eit ie useful for computing the average rate of increase in profits of «
concen or average speed at which a journey has been performed or the average
price at which an article has been sold.
Q. 38. State the formula for computing Weighted Harmonic Mean.
HMw =Welghed Harmonic Mean
where] Wo = Weights
X= Various values ofthe variable
mM
Ans. HMy =
(0.39. Explain the difference between Geometric Mean and Harmonic Mean,
‘Ans. Geometric mean is the n' root of product of n values. It is used to obtain
average growth or decline rates, average changes in prices, average rate of
depreciation, etc.
Harmonic mean is the reciprocal of arithmetic mean of their reciprocals. It is
used primarily when rates are to be averaged over numerator units. For example
averaging speeds when equal distances are covered with varying speeds.
Q. 40. State the relationship amongst Arithmetic Mean, Geometric Mean and
‘Harmonic Mean.
‘Ans. 1. If ll the items have the same value
AM.=GM.=HM.
2. If items have different values
AM. >GM.> HM.
3. For two items
a (GMP =AM.x HM.
41. State ons whi nip
ae ee Teast hich average will be more appropriate in the
() The distribution has open-end classes,
(ii) The distribution has wide range of variations,
(tii) When depreciation is charged by diminishing balance method and an
) een ‘of depreciation is to be calculated.
The dance covered is fixed but speeds are varying and an average
‘Ans. ()) Median an
: Oe ea rae ig ae in case of Open ended classes because these
i) Median is used i ist
ee oak See rin {ride sange of variations
beeny jeri wards extremes as this will
calculate average rate of depreciation
te because GM is v
data where exponential law of growth or decline is applcble. ad
(CHAPTER 4: STATISTICAL AVERAGES @ 39
(jv) Where distance is fixed and speeds are varying Harmonic Mean is used
because if rates are to be averaged over numerator units HIM is used.
Q. 42. State the various limitations of averages.
Ans. Various limitations of averages:
() Since an average is a single value representing, a group of values, it must
“be properly interpreted, otherwise, there is every possibility of jumping
to wrong conclusions.
(i) An average may give us a value that does not exist in the data. For
‘example, the arithmetic mean of 100, 300, 250, 50, 100 is
that does not exist in the data.
(it) At times the average may give a very absurd result. For example, if we are
calculating average size of a family we may get a value 4.8. But this is
impossible as persons cannot be in fractions.
(io) Measures of central value fail to give any idea about the formation of
these series.
goaa ARITHMETIC MEAN (A.M.),
HARMONIC MEAN (H.M.),
GEOMETRIC MEAN (G.M.)
i km per
1. IE X travels 8 km at 4 km per hour, 6 km at 3 km ps
Pee ana 4 kan at 2km per hour, what would be the average
!
is
iN
¢
i
|
6
i
5
i ? 2010R)
rate per hour at which he travels? (2000,
Sol When different distances are travelled at different speeds,
Weighted Harmonic Mean is computed:
W
hour) (0) Distance em) (W) #
8 2
6 2
4
IW =18
CHAPTER 4: STATISTICAL AVERAGES m 41
Total distance covered = 20 + 10 + 30 = 60 km
». Average speed = “0 = 69 x 7 = 45 kyr
3
Q.3. Mr. X travels from Delhi to Shimla at a speed of 40 km per hour, while
returning from Shimla to Delhi, he travels at a speed of 50 km per hour. What
is his average speed for the entire journey? (20128)
Sol. Since, distance travelled from Delhi to Shimla and Shimla to Delhi is the
same. The average speed will be H.M. of the two speeds
: 2 _ 2 _ 2%200_ 400_
BM.= 74 $13 5 = SR = 44.44 kor
w* 0 20. 0
Q.4. Mr. X travelled by car for 4 days. He drove 10 hours each day. He drove:
first day at the rate of 45 km per hour, second day at the rate of 40 km per hour,
third day at the rate of 38 km per hour; and fourth day at the rate of 37 km per
hour. Find his average speed using an appropriate measure of central value.
(2013)
Sol. Distance covered on I* day = Speed x Time = 45 10.= 450 kms,
Distance covered on II" day = 40 x 10 = 400 kms,
Distance covered on III™ day = 38 x 10 =380/kms.
Distance covered on IV! day = 37 x 10 = 370 kms,
Since distances covered and speeds on fouridays are different, weighted
harmonic mean would be an appropriate measure of céntral value.
Computation of Weighted Harmonic Mean
Alternatively. In all three cases, time taken is same, i
. Arithmetic Mean would also give the same result
Average speed = 4*3*
Q. 2. A man travels 20 kms at 40 kms per hour, 10 kms at 30 kms per hour
2 hours.
and 30 kms at 60 kms per hour. Find out his average speed. (20108)
Sol. Average speed = all Distance
Time taken in covering 20 kms at a speed of 40 kms per hour = 22 = 1 hr
Time taken in covering 10 kms ata speed of 30 kms per hour = 2° = hr
Time taken in covering 30 kms ata speed of 60 kms per hour = 22=2 hr
Total time = Uy 1,1 34243 8 4
we taken = 545455
Day Speed 00) Distance covered W) Wx
(am pr hou) (co)
r 5 450 10
m | 40 , 400 10
oe 38 380 10
ve 37 370 40
EW = 1600 W/X) = 40
«: Weighted Harmonic Mean (HM) = =
{
Ww
x)
‘Thus, Average Speed = 40 km per hour
Alternate Solution, Since time taken on all the four days is same, simple
arithmetic mean of the four speeds can be used to get the average speed,
45 + 40 +38 +37
Besey 2 = 40 kan per hour
Q. 5, Find the Geometric mean of two numbers if their arithmetic mean is
15 and the harmonic mean is 9 (2014)
Sol, Given: AM, = 15; HM. = 9.6
1,600 _
Sea
‘Average Speed (X) =
‘GM. slands for Geometric Mean,
where] A.M. stands for Arithmetic Mean
HLM stands for Harmonic Mean,
GM. = Jit = 12
For two numbers (G.M.)* = AM. x HM.
= (GM)'=15 «96 = 144 ae
sty Das [Com (rep) CBCS] DELHT UNIVERSITY SERIES
42 w Shiv Das [B
by 15% during
CHAPTER 4 STATISTICAL AVERAGES m 43
Sol. Here, the appropriate measure to find average increase or decrease is
6.aF price increases by 10% du in prices ou) :
BGs Neate the average ncresedeent® OTT oj ecrense ig Geomee Me
Sol Flew the appropriate measure to calculate Year Bale | Pee a We od of the year Tak
ease: : ai inerese/ | taking preceding year as 100
Calculation of Geometric Mean (GM) ai decrease &
Fee ab te end of the year 1 (Increase) 10% THO = (100 + 10) 20414
ae as ae preceding year a 100 ire (Increase) 20% 120 = (100 + 20) 207972
0) 1 (Decrease) 40% ‘60 = (100 - 40) 1.7782
soe PERN 20414 IV" (Increase) 5% 105 = (100+ 5) 20n12
Tipe box 85 = (100-15) Sees N=4 Dlog X = 79200
== [Blog X= 39708 ElogX 79200)
2 GM. = Antilog|—72=| = Antilog| 7 |
“ape ? |
GM= Anti E~ = antlog|22 | = Antitog 1.9854 = 96.70 Antilog 1.9900 = 9550
in the price = 100 - 96.70 = 330% ‘+. Average decrease in the’ price = 100 - 95.50 = 4.5% c
Ree rect drei of stock market prices, a stock sold at €50 _Q. 9, Find the geometric mean of 16 and 36. (2015)
per share on day one £40 onthe second day cle the a day: Sol. Geometric Mean (G.M) = itz = Yr) * 2)
investor 4100, 120 and 180 shares on three respective
ORmin a GM. = Vi6x36 = V576 = 24
days, find the average price paid per share. é
cc) Se a fr purchases €,000 worth of shares on each three days, find
(2014)
Q.10. A cyclist pedals from his house to his college at a speed of 10 km per
hour and back from the college to his house at 15 km per hour. Find the
the average price paid per share’ d the
Sol. (i) Here the woroprate measure would be Weighted Arithmetic Mean, average speed. (2015)
Calculation of Weighted Arithmetic Mean Sol. In this case, distance travelled is constant, the appropriate average is (H.M.)
5 5 al a N
Pre OO) F wx Harmonic Memmi ee “crhere| N= Number of speeds
30 5,000 eee ) Xrapeed
a 4,800 x
3 4500 ie zee zeae
EW = 400 EWX = 14,300 ao
x.) = WX _ 14,300 10g He
Weighted Arithmetic Mean (Xw) = “q-= gpg = ©35.75 ‘Thus, the average speed is 12.kmph.
Beare (2016)
Thus, the average price paid per share is €35.75.
(i Since shares are bought with varying prices by investing the same
amount of money each time, the average price per share is given by
‘Simple Harmonic Mean
Harmonic Mean (H.M.) ="
x
i)
i N= amrof ines the shares hae been purchased =
ten] P-180b-206-+3,600= 0 = bb ~ 180) - 20(0 - 180) = 0
5 (6-180) (6-20)=0 " b= 20 or b= 180
Whenb=20, 2 = 200-20= 180
When b= 180, @= 200 - 180 = 20
‘Thus, the two values are 20 and 180
Verification:
a+b _20+180 _ 200 _ 19)
GM. = Jaxb =/20x180 = (3600 = 0; AM.= "==
Q.15.A cyclist pedals from his house to his college at a speed of 20 km. per
hour and back from the college to his house at 30 km per hour. Find the
average speed. (2017)
Sol. In this case, distance travelled is constant, the appropriate average is
Harmonic Mean (H.M).
N
‘Harmonic Mean (HM) = > sawhere [N = No. of speeds; X = Speed
2}
Selon an
user aia 4D
2°30 a
Thus the average speed is 24 kny/h,
Q.16. The mean and median of the marks of a
m group of 75 students in atest
were calculated as 27 and 29 respectively. It was later discovered that {W0
‘observations were wrongly recorded as 53 and 45 instead of 35 and 55
Examine to what extent the calculated value
la of the abov will be
affected by the discovery of the errors? en rh en
are ae
CHAPTER 4: STATISTICAL AVERAGES ™ 45
Sol. Given: N = 75 X = 27 marks Median = 29 marks
Incorrect items = 53 and 45
Correct items = 35 and 55
Incorrect EX = NX = 75 x 27 = 2025
Correct 3X = 2025 + 35 + 55 ~ 53 - 45 = 2017
Court PE 207 = 26.89 Marks (approx)
Median is not affected since both the correct and incorrect items are greater
than median
Q. 17. Geometric mean of the two numbers was found to be 4. However it
was later discovered that while calculating the GM one of the numbers was
taken as 8 instead of 18. Find the correct GM. (2013)
Sol. Let the tio numbers be a’and b.
Let b has been taken incorrectly as § instead of 18
Given: Incorrect Geometric Mean (GM) = 4
Incorrect b= 8, Correct b = 18
Incomect GM. = Jax (Incorrect B)
4= fax8
‘Squaring both sides, we get
(2 = (vay? =. 16-80 >a
Comect GM, =
DS M5 95 HS 5 545 HS OS
Marks —>
QUARTILES, DECILE & PERCENTILE
Marks [NG of Students [Marks Tess tant | Ciamulative fequency'(cf)
BSUS 3 Tess than 345 3 Q. 22. Draw an Ogive showing the distribution of marks in the table below
pees # ates oo A and locate and measure the median and quartiles, (20108)
5095 is ed a as % Marks] 1-5 | 6-10 | 11-15] 16-20] 21-25] 26-30] 31-85] 36-40] 41-45]
495-545 4 Less than 54.5 52 Frequencies| 7 | 10 | 16 | 32 | « [1/0] 5 | 1 |
55-595, 6 Less than 595 58 ae ze
595-615 ri ess than 645 eA Sol. The real limits of classes shall be 0.5-55, 55-105, etc
Giistogam: y; Marks Mid-oatie | Froyuencies Marks | Cumulatioe
13 Mode = 47 (approx. “eid o. (Less than) Frequency
18
15 05-55 7 55 7
6 6-10 55-105 10 105 7
wn 115 105-155 16 155 3
\ il 16-20 | 155-205 2 205 6
sn < 2-25 205-255 4 255 89
dn 26-30 255-305 8 305 107
2 31-35 305-355 10 355 17
ef 36-40 355-405 5 40.5 12
ae | 6 41-45 405-455 1 455 23
! Total N= 13 a
5 MS M5 MS 5 5 HS ASS
Maths —> ) BCS) DELHI UNIVERSITY SERIES
50 m Shiv Dos [8Com. (15
Ogive:
E (455,123)
13 ;
120
10
8
m.
te
E |
o.
0
40-
30.
2.
s me as as *
Eopansnsy 5/2 )305 >
Q, = Size of N/ item = 3B - go 7s item
From the graph, itis lear that Qy = 14.7%,
(y= Size of N/A item = 2 = 92.250 tern
From the graph iti clear that Qs = ae y
Median = Size of N/2! item = “> = 61.5¢" item
From the graph, it is clear that Medina = 19.95
‘Working notes:
| Calenatons for Qy Qs and Medion:
Nie
5 abr nh o 08+ a
v
BU x5 = 105 +42" 187
Ne
te Qe bed ah 255+ R55 0 255409 = 264
sy Median» La 2h 185+ 550155 +44 = 199
Q, 23, The marks obtained by 70 students in an examination are grouped as
follows: COUR
[Sit era | 0-10 | 10-20 | 20-30 [20-40 | 40-50 | 50-60
Number of Students | 4 8 10 23 7 16
Calculate:
(i) The marks at the 25! percentile,
CHAPTER 4: STATISTICAL AVERAGES m 51
(ti) The marks at the third quartile.
(iif) The approximate number of students who failed in the examinations
if the pass marks are considered to be 40%.
Sol. Marks Number of Students (f) of
coe
