STATISTICS FOR MANAGEMENT

Presentation

By

Prof. (Dr.) T. Muthukumar

M.Sc; MCA; MBA; PhD.
Professor – Business Analytics
XIME-Bangalore
STATISTICS FOR MANAGEMENT
• Formation of a grouped Frequency Table:
• Class Limits : These are the lowest and the highest
values of a class.
• Class Interval : The difference between the upper
limit and the lower limit of a class is known as a class
interval.
• Class frequency : The number of observations
belonging to a particular class is known as the
frequency of that class or the class frequency.
• Class mid-point : (Lower limit of the Class + Upper
limit of the class) / 2
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STATISTICS FOR MANAGEMENT
 Exclusive Method : The Upper limit of one class is
shown as the lower limit of the next class.
• ( Ex. 10-20, 20-30, 30-40, 40-50, 50-60)
• Inclusive Method : The upper limit of one class is
included in that class itself.
• ( Ex. 10-19, 20-29, 30-39, 40-49, 50-59)

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STATISTICS FOR MANAGEMENT
 Deciding the Appropriate Number of Class
Grouping : Struges’ formula n = 1+ 3.322 log N .
For ex: If the total number of observations is 100,
then the number of classes would be 1+ 3.322 (2) =
7.644 or 8.
• Choosing a Suitable Size or Width of a Class
Interval :
• Width of class interval = (Highest value – Lowest
value) / Number of Class grouping.

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STATISTICS FOR MANAGEMENT
 Ex.1 : The following data pertain to weights (in kg)
of 33 students of a class:
• 42, 74, 40, 60, 82, 115, 41, 61, 75, 83, 63, 53, 110, 76,
84, 50, 67, 65, 78, 77, 56, 95, 68, 69, 104, 80, 79, 79,
54, 73, 59, 81 and 110. Prepare a suitable
frequency table.
• Ans.1: Here, we find that the highest value is 115
and the lowest is 40. We can decide the width of the
class-interval. Since the range is 115 – 40 = 75, we
may decide there should be 8 classes starting from
40. Thus, class intervals would be as shown in
following table :
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STATISTICS FOR MANAGEMENT
 Classification of Students by Weight
• -----------------------------------------------------------
• Class Intervals Frequencies
• -----------------------------------------------------------
40 to under 50 3
50 to under 60 5
60 to under 70 7
70 to under 80 8
80 to under 90 5
90 to under 100 1
100 to under 110 1
110 to under 120 3
---------------------------------------------------------------
Total 33
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STATISTICS FOR MANAGEMENT
 Ex.2: The data given below relate to the number of years
that 50 workers of a small factory have worked for :
• 1.4 2.4 0.6 5.1 4.1 4.8 10.9 3.9 11.6 0.9
• 11.0 8.6 4.4 0.8 5.7 2.3 1.3 7.6 9.3 14.4
5.4 6.9 8.6 3.2 10.6 6.8 7.1 8.4 2.1 11.3
0.4 4.9 8.2 10.8 15.0 9.3 2.3 0.7 3.9 6.2
2.2 5.7 13.8 10.1 0.7 3.2 4.6 9.8 3.9 2.7
• Construct a frequency distribution starting from 0 and
under 2.0 and having equal width in each class.

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STATISTICS FOR MANAGEMENT
 Ans.2: A Frequency Distribution with Equal width Classes
• Class-intervals Frequencies
0 and under 2 8
2 and under 4 11
4 and under 6 9
6 and under 8 5
8 and under 10 7
10 and under 12 7
12 and under 14 1
14 and under 16 2
Total 50
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STAISTICAL FOR MANAGEMENT
 Cumulative Frequency Distribution
• Ex.3. Suppose we have a grouped frequency
distribution as Follows :
• Class Interval 0-10 10-20 20-30 30-40 40-50
Frequency 7 10 18 9 6
• We can transform this distribution into a
cumulative frequency distribution as shown in the
following table :

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STATISTICS FOR MANAGEMENT
 Cumulative Frequency Table
• --------------------------------------------------------------
• Class-interval F C.F
• -------------------------------------------------------------
less than 10 7 7
less than 20 10 17
less than 30 18 35
less than 40 9 44
less than 50 6 50
--------------------------------------------------------------------------

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STATISTICS FOR MANAGEMENT
 Graphing Frequency Distribution
• Histogram
• Ogive
• Histogram : It is a series of rectangles, each
proportional in width to the range of values within
a class and proportional in height to the number of
items falling in the class. Another feature of this
graph is that the rectangles are adjacent to each
other without having any gap amongst them.

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STATISTICS FOR MANAGEMENT
 Ex.1: Suppose we are given the following data to be
displayed by means of a histogram.
• ----------------------------------------------------
• Marks Number of Students
• ----------------------------------------------------

0-20 10
20-40 22
40-60 35
60-80 28
80-100 51
------------------------------------------------------
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STATISTICS FOR MANAGEMENT
 Ex.2: Daily Production in a Sample of 30 Carpet Looms
with 0.3 yard Class Intervals:
• ---------------------------------------------
• Class Frequency
• --------------------------------------------
15.2-15.5 2
15.5-15.8 5
15.8-16.1 11
16.1-16.4 6
16.4-16.7 3
16.7-16.9 3
Total 30
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STATISTICS FOR MANAGEMENT
 Ogive (Cumulative Frequency Curve) :It enables
us to see how many observation lie above or below
certain values, rather than merely recording the
number of items within intervals.
• Ex.1 : Daily Production in a Sample of 30 Carpet
Looms with 0.3 yard Class Intervals:

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STATISTICS FOR MANAGEMENT
• Ans.1: --------------------------------------
• Class Frequency
• --------------------------------------
less than 15.2 0
less than 15.5 2
less than 15.8 5
less than 16.1 11
less than 16.4 6
less than 16.7 3
less than 17.0 3
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STATISTICS FOR MANAGEMENT
 Ex.2: Suppose we are given the following data:
• ---------------------------------------------------------------
• Weekly Earnings (Rs) Number of Employees
• ---------------------------------------------------------------
Below 550 5
550-600 10
600-650 22
650-700 30
700-750 16
750-800 12
800-850 15
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STATISTICS FOR MANAGEMENT
 Ex. 3: From the following data to draw an ogive
and determine graphically the number of
observation lying between 360 and 440.

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STATISTICS FOR MANAGEMENT
• -------------------------------------------------------------
• Size of item Number of Observation
• --------------------------------------------------------------
More than 200 400
More than 250 370
More than 300 315
More than 350 220
More than 400 115
More than 450 45
More than 500 15
More than 550 0
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STATISTICS FOR MANAGEMENT
 Ans: We can find out the number of observation lying
between 360 and 440 sizes. As described earlier in the
case of following figure, we have drawn the
perpendiculars from the two value of 360 and 440 to
meet the ogive at points A and B respectively. From
these, points, straight lines have been drawn to meet
the vertical line at points C and D respectively. Now, C
gives the value of 195 observations and D gives the
value of 57 observations. Thus, the difference between
C and D, that is, C-D gives us the number of
observations lying between these values, which is 138
approximately.
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