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åX i
Population mean, µ =
i =1
N
Where, N = Number of values in the population
å X = sum of the X values in the population
Example: There are 30 IT companies in the city of Rangpur. Their profits (in
lakh taka) in the year 2022-2023 are given below:
20, 22, 35, 42, 37, 42, 48, 53, 49, 65, 39, 48, 67, 18, 16, 23, 37, 35, 49, 63, 65, 55,
45, 58, 57, 69, 25, 29, 58, 65.
What is the average profit of the companies?
åx i
Sample Mean, x =
i =1
n
Where, n = sample size.
Example: From our previous example, we take sample of 5 companies’ profit (in
lakh taka) as below:
65, 22, 48, 55, 29.
Find the average profit of the companies from the sample data?
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Arithmetic Mean for grouped Data:
x=
åfx i i
Formula,
åf i
åf i
Where,
fi = frequency of each class
Example: We organize the raw data from our previous example and present in
the form of a frequency distribution (We consider the data as sample):
Weighted Mean
The weighted mean is a special case of the Arithmetic Mean.
Formula:
Weighted Mean= X w =
W1 X 1 + W2 X 2 + W3 X 3 + ................. + Wn X n
=
åW X
i i
W1 + W2 + W3 + ....... + Wn åW i
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Definition:
The geometric mean of a set of n positive numbers is defined as the nth root of
the product of n values. The formula is:
GM = n ( X 1 )( X 2 )...( X n )
• The geometric mean will always be less than or equal to (never more than)
the arithmetic mean.
GM = n ( X 1 )( X 2 )...( X n ) = 4 (3)(2)(4)(6)
= 4
144 = 3.46
So the average profit earned by RIIT is about 3.46 percent.
• A second application of the geometric mean is to find average percent
increase over a period of time.
The formula is:
Value - at - end - period
GM = n -1
Value - at - start - period
Example: If RIT Institute earned $30,000 in 2012 and $50,000 in 2013. What is
the average annual rate of percentage increase during the period?
Solution: Earning increased at a rate of …..percent from 2012 to 2013.
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Harmonic Mean
The formula for the Harmonic mean is.
n
HM =
1 1 1 1
+ + + ............ +
x1 x2 x3 xn
Example: In a journey from campus to the Bus terminal, the scheduled bus of
BSMRAAU moves first 50 km at a speed of 60km/hour, second 50 km at a speed
of 75km/hour, third 50 km at a speed of 65km/hour, fourth 50 km at a speed of
80km/hour. What is average speed of the bus throughout the journey?
Solution: 69.10 km/h……
THE MEDIAN:
Median: Median is the middle most values of any ranked or ordered
observations.
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Example: Find the median of the following values: 11, 9, 13, 4, 7, and 15?
Solution: First, we array the data in an ascending order as follows: 4, 7, 9, 11,
13, and 15
n n
+ ( + 1)
Median = 2 2 th item in the ordered series
2
9 + 11
= (3rd + 4th obs.)/2= = 10 , so the median value is 10.
2
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Example:
The following data represent the distribution of marks obtained by the students
of BSMRAAU in an assignment in a Statistics course:
<10 10 10 132
10-15 25 35 122
15-20 48 83 97
20-25 21 104 49
25-30 16 120 28
30+ 12 132 12
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Mode
Suppose a group of people ages 22, 26, 27, 31, and 35. Both the ages 27 and 35
are modes. This grouping of ages is referred to as bimodal (having two modes).
Example:
The following data represent the distribution of the of the part time job students
of BSMRAAU according to their daily salary (in taka):
Class interval of salary (in taka) No. of students, c.f.
fi
<600 10 10
600-700 40 50
700-800 65 115
800-900 250 365
900-1000 175 540
1000-1100 82 622
1100-1200 50 672
Solution:
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
1) The major group of the students are 250 whose salary in the limit 800-
900.There,on average, salary is given by mode, where,
h( f1 - f 0 )
Mode = l +
2 f1 - f 0 - f 2
100(250 - 65)
= 800 + = 871.15 taka.
2 ´ 250 - 65 - 175
2) From c.f. it is observed that 540 students’ salary is less than 1000.00 taka.
Measures of location
Some measures which are not based their position in series of observations but
not but they are not necessarily central values and hence they are referred to as
measures of Measures of location.
Ø Quartiles
Ø Percentiles
Ø Deciles.
The Quartiles
There are three quartiles in a data set, usually denoted by Q1, ³ and Q3 which
divide the whole distribution into four equal parts. The second quartile is identical
with the median. The first quartile, Q1, is the value at or below which one-fourth
(25%) of all observations in the set fall; the third quartile, Q3 is the value at or
below which three-fourths (75%) of the observations lie.
For ungrouped data, a quartile, as does the median, either assumes the value of
one of the items or falls between two values. If n is divisible by 4, the first quartile
( Q1, ) has the value half-way between the n/4th and (n/4 +1)th observation. If n is
not exactly divisible by 4 (i.e. n/4 is not an integer), the first quartile is the value
of next higher integer. To find the third quartile, Q3 we replace n/4 by 3n/4.
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Formula
Qi =value of ¼(in+1)th observation ,if n is odd
A value of 34.67 for Q1, implies that 25percent of the workers are below age
34.67.Similarly,there are 75 percent workers in the company who are below 43.87
years of age and only 25 of them are above this age as implied by the value, Q3
Decile
Formula:
Di =value of i(n+1)/10th observation, if n is odd
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Percentile
Pi =value of i(n+1)/100th observation, if n is odd
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Measures of Dispersion
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Range: Range is the difference between the largest and smallest observations.
Range = X (n)
- X (1) = Largest Value – smallest value
For example, let us consider the total annual rainfall (in mm) recorded in some
meteorological stations in Bangladesh, where the rainfall data are as follows:
3863,3914,4672,4139,4435,4245,3216,2518,3368,4388,2312,1819,2200,2858,2
548,1490,1994,3217,2852,2601,2391,1636,1540,2365,3139.
Here, n = 25, Range of rainfall is R= X ( n ) - X (1)
=4672-1490=3182 mm
Coefficient of Range =
X (n)
- X (1)
X (n)
+ X (1)
Range = X (n)
- X (1) = Largest Value – smallest value = 20-5 = 5
Coefficient of Range
=
X (n)
- X (1)
==
X (n)
- X (1)
=
20 - 5 15
= = 0.6 ´ 100 = 60 percent
X (n)
+ X (1) X (n)
+ X (1) 20 + 5 25
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Mean deviation
The mean deviation is computed as the arithmetic mean of absolute values of the
deviation from a typical value of the distribution.
å xi - x
• MD = ( Mean deviation from mean)
n
å xi - Me
• MD( Median) = ( Mean deviation from median )
n
å xi - Mo
• MD( Mode) = ( Mean deviation from mode )
n
For frequency distribution,
K
• MD(Mean) = 1 å fi x i - x ( Mean deviation from mean)
N I =1
K
1
• MD( Median) =
N
å fi x - Me ( Mean deviation from median )
I =1
i
K
1
• MD( Mode) =
N
å fi x - Mo ( Mean deviation from mode )
I =1
i
s2 = å
(x i - µ ) 2
N
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
The same formula can be used for more convenient used in calculation:
å x - åN
2
(x )
2 i
i
s2 =
N
å (x - x )
2
i
The formula for the sample variance, s 2
=
n -1
The same formula can be used for more convenient used in calculation:
å xi 2 - å
( xi ) 2
s2 = n
n -1
Since our goal is to find an average of squared deviations from the mean, one
would expect division by n.So why is sample variance found by division of(n-1)?
If we were to take a very large number of samples, each of size,n from the
population and compute the sample variance, then average of all these sample
variances would be the population variance, s 2 .For now, we rely on
mathematical statisticians who have shown that,if the population variance is
unknown, a sample variance is a better estimator of the population variance if the
denominator in the sample variance is (n-1),rather than n.
s2 = å
fi(x i - µ ) 2
The formula for the population variance,
N
å fi( xi - x )
2
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
The formula for the population Standard deviation, s = å (x i
- µ )2
N
n -1
Example:
A professor teaches two large sections of introductory statistics and
randomly selects a sample of test scores from both sections. Find the range
and standard deviation for each sample?
Section 1: 50 60 70 80 90
Section 2: 72 68 70 74 66
Solution: Although the average grade for both sections is 70, we notice that the
grades in section 2 are closer to the mean, 70, than are the grades in section 1.And
just as we would expect, the range of section 1,40 is larger than the range of
section 2, which is 8.
Similarly, we would expect the standard deviation for section 1 to be greater than
the standard deviation for section 2.
Problem: The hourly wages part time graduates of BSMRAAU at aviation
company are: $12, $20, $16, $18, $19
Compute the variance & standard deviation (Sample, Population)?
Solution:
Hourly Wage (X) (X - X ) ( X - X )2
$12 -5 25
20 3 9
16 -1 1
18 1 1
19 2 4
Total-85 0 40
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Coefficient of variation
The Coefficient of variation (CV) is one of the important measures of dispersion
that attempt to measure the variability in data relative to the mean.
If the standard deviation in sales for large and small stores selling similar goods
are compared, the standard deviation for large stores will almost always be
greater. A simple explanation is that a large store could be modeled as number of
small stores. Comparing variation using the standard deviation would be
misleading. The coefficient of variation overcomes this problem by adjusting for
the scale of units in the population.
S
CV = ´ 100
x
• The data are in the same units, but the means are far apart (such as the
incomes of top executives and the incomes of the unskilled employees).
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Example:
The combined grade point average (CGPA) in different semesters of eight
students from two sections in a statistics course at BSMRAAU are:
Section CGPA in semesters
A 2.5 2.5 3.0 3.5 3.5 4.0 3.5 3.5
B 2.5 3.0 4.0 4.0 4.0 2.0 2.5 4.0
Which section of students would you consider better throughout the courses
of studies? Solution: For section A,
S
CV = ´ 100
x
=15.38%
For section B,
S
CV = ´ 100
x
=24.31%
It is observed that the average CGPA of students in both sections is the same:
C.V. of A is less than the C.V. of B. This implies that the students from section
A is better than students from section B throughout the courses of study. The
performance of A is more homogenous in all semesters.
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman
Interpretations on arbitrary data
PROBLEMS ON MEASURES OF CENTRAL TENDENCY, LOCATION & DISPERSION Prepared by: Dr. Md. Siddikur Rahman