Professional Documents
Culture Documents
Descriptive Statistics
WHAT IS STATISTICS?
Impractical
Too costly
Parameter Versus Statistic
population.
Qualitative - Quantitative -
Categorical or Measurable or
Nominal: Countable:
Examples are- Examples are-
Color Temperatures
Gender Salaries
Nationality Number of points
scored on a 100
point exam
Scales of Measurement
EXAMPLE:
The Median
MEDIAN The midpoint of the values after they have been ordered from
EXAMPLES:
The ages for a sample of five college students are: The heights of four basketball players, in inches, are:
frequently.
Measures of Dispersion
A measure of location, such as the mean or the median, only describes the center of the data. It is valuable from that
standpoint, but it does not tell us anything about the spread of the data.
For example, if your nature guide told you that the river ahead averaged 3 feet in depth, would you want to wade
across on foot without additional information? Probably not. You would want to know something about the variation
in the depth.
A second reason for studying the dispersion in a set of data is to compare the spread in two or more distributions.
RANGE
MEAN DEVIATION
VARIANCE AND
STANDARD DEVIATION
EXAMPLE – Mean Deviation
EXAMPLE:
The number of cappuccinos sold at the Starbucks location in the Orange Country Airport between 4 and 7 p.m. for a sample
of 5 days last year were 20, 40, 50, 60, and 80. Determine the mean deviation for the number of cappuccinos sold.
Step 3: Sum the absolute differences found in step 2 then divide by the number of observations
Variance and Standard Deviation
VARIANCE The arithmetic mean of the squared deviations from the mean.
The variance and standard deviations are nonnegative and are zero only if all observations are the same.
For populations whose values are near the mean, the variance and standard deviation will be small.
For populations whose values are dispersed from the mean, the population variance and standard deviation will be large.
The variance overcomes the weakness of the range by using all the values in the population
EXAMPLE – Population Variance and Population
Standard Deviation
The number of traffic citations issued during the last twelve months in Beaufort County, South Carolina, is reported below:
Step 2: Find the difference between each observation and the mean, and square that difference.
Step 3: Sum all the squared differences found in step 3
Step 4: Divide the sum of the squared differences by the number of items in the population.
x
19 17 ... 34 10
348
29
N 12 12
2
(X ) 2
1,488
124
N 12
Sample Variance and
Standard Deviation
Where :
s 2 is the sample variance
X is the value of each observation in the sample
X is the mean of the sample
n is the number of observations in the sample
EXAMPLE
EXAMPLE: EXAMPLE
Determine the arithmetic mean vehicle selling Compute the standard deviation of the vehicle selling prices in the frequency table below.
price given in the frequency table below.
Group Data and the Histogram
Dividing data into groups or classes or intervals
Groups should be:
Mutually exclusive
Not overlapping - every observation is assigned to only one
group
Exhaustive
Every observation is assigned to a group
Equal-width (if possible)
First or last group may be open-ended
Frequency Distribution
Table with two columns listing:
Each and every group or class or interval of values
Associated frequency of each group
Number of observations assigned to each group
x f(x) f(x)/n
Spending Class ($) Frequency (number of customers) Relative Frequency
184 1.000
x F(x) F(x)/n
Spending Class ($) Cumulative Frequency Cumulative Relative Frequency
Alternative ways of describing spread of data include determining the location of values that
divide a set of observations into equal parts.
To formalize the computational procedure, let Lp refer to the location of a desired percentile.
So if we wanted to find the 33rd percentile we would use L33 and if we wanted the median,
the 50th percentile, then L50.
Locate the median, the first quartile, and the third quartile for the commissions earned.
Step 2: Compute the first and third quartiles. Locate L25 and L75 using:
25 75
L25 (15 1) 4 L75 (15 1) 12
100 100
Therefore, the first and third quartiles are located at the 4th and 12th
positions, respectively
L25 $1,721
L75 $2,205
Measures of Variability or Dispersion
Range
Difference between maximum and minimum values
Interquartile Range
Difference between third and first quartile (Q3 - Q1)
Variance
Average*of the squared deviations from the mean
Standard Deviation
Square root of the variance
Definitions of population variance and sample variance differ slightly .
Skewness
Another characteristic of a set of data is the shape.
There are four shapes commonly observed: symmetric, positively skewed, negatively skewed, bimodal.
A value of 0, which will occur when the mean and median are equal, indicates the distribution is symmetrical and that there is no skewness present.
The Relative Positions of the Mean,
Median and the Mode
Methods of Displaying Data
Pie Charts
Categories represented as percentages of total
Bar Graphs
Heights of rectangles represent group frequencies
Frequency Polygons
Height of line represents frequency
Ogives
Height of line represents cumulative frequency
Time Series Plots
Represents values over time
• Stem-and-Leaf Displays
Quick listing of all observations
• Box Plots
Median
19.0%
Enjoy job, but it is not on my career path
23.0%
My job just pays the bills
Bar Chart
Figure 1-11: SHIFTING GEARS
Quartely net income for General Motors (in billions)
1.5
1.2
0.9
0.6
0.3
0.0
1Q 2Q 3Q 4Q 1Q
2003 C4 2004
Frequency Polygon and Ogive
0.2
0.5
0.1
0.0 0.0
0 10 20 30 40 50 0 10 20 30 40 50
Sales Sales
(Cumulative frequency or
relative frequency graph)
Time Series Plot
M o n t h ly S t e e l P r o d u c tio n
8 .5
7 .5
Millio ns of To ns
6 .5
5 .5
EXAMPLE
Listed in Table 4–1 is the number of 30-second radio advertising spots purchased by each of the 45 members of the Greater
Buffalo Automobile Dealers Association last year. Organize the data into a stem-and-leaf display. Around what values
do the number of advertising spots tend to cluster? What is the fewest number of spots purchased by a dealer? The
Step 2: Draw a box that starts at Q1 (15 minutes) and ends at Q3 (22
minutes). Inside the box we place a vertical line to represent the median (18 minutes).
Step 3: Extend horizontal lines from the box out to the minimum value (13
160
140
120
100
80
N= 45
NUMBERS
Scatter Plots
Example
30
20
P ric e ($ 0 0 0 )
10
20 30 40 50 60
AGE