Statistics

The collection, evaluation, and interpretation of data

Statistics

Statistics

Descriptive Statistics
Describe collected data

Inferential Statistics
Generalize and evaluate a population based on sample data

Data
Categorical or Qualitative Data Values that possess names or labels Color of M&Ms, breed of dog, etc.

Numerical or Quantitative Data Values that represent a measurable quantity Population, number of M&Ms, number of defective parts, etc.

Data Collection
Sampling
Random Systematic

Stratified
Cluster

Convenience

Graphic Data Representation

Histogram Frequency distribution graph
Frequency Polygons Frequency distribution graph Bar Chart Categorical data graph Pie Chart Categorical data graph %

Measures of Central Tendency

Mean x
Arithmetic average

Sum of all data values divided by the number of data values within the array

x x
n

Most frequently used measure of central tendency Strongly influenced by outliers- very large or very small values

Measures of Central Tendency

Determine the mean value of

48, 63, 62, 49, 58, 2, 63, 5, 60, 59, 55

x x
n

(8 4 63 62 49 58 2 63 5 60 59 55) x 11 524 x 11

x 47.64

Measures of Central Tendency

Median
Data value that divides a data array into two equal groups

Data values must be ordered from lowest to highest

Useful in situations with skewed data and outliers (e.g., wealth management)

Measures of Central Tendency

Determine the median value of

48, 63, 62, 49, 58, 2, 63, 5, 60, 59, 55

Organize the data array from lowest to highest value.

2, 5, 48, 49, 55, 58, 59, 60, 62, 63, 63

Select the data value that splits the data set evenly. Median = 58

What if the data array had an even number of values? 5, 48, 49, 55, 58, 59, 60, 62, 63, 63

Measures of central tendency

Mode
Most frequently occurring response within a data array

Usually the highest point of curve May not be typical

May not exist at all Mode, bimodal, and multimodal

Measures of Central Tendency

Determine the mode of

48, 63, 62, 49, 58, 2, 63, 5, 60, 59, 55

Mode = 63 Determine the mode of

48, 63, 62, 59, 58, 2, 63, 5, 60, 59, 55

Mode = 63 & 59 Bimodal Determine the mode of

48, 63, 62, 59, 48, 2, 63, 5, 60, 59, 55

Mode = 63, 59, & 48 Multimodal

Data Variation
Measure of data scatter

Range
Difference between the lowest and highest data value

Standard Deviation
Square root of the variance

Variance
Average of squared differences between each data value and the mean

Range
Calculate by subtracting the lowest value from the highest value.

R hl
Calculate the range for the data array. 2, 5, 48, 49, 55, 58, 59, 60, 62, 63, 63

R hl

R 61

R 63 2

Standard Deviation
1. Calculate the mean x .

x x ( 1) N

2. Subtract the mean from each value.

3. Square each difference.

4. Sum all squared differences.

5. Divide the summation by the number of values in the array minus 1. 6. Calculate the square root of the product.

Standard Deviation

Calculate the standard s deviation for the data array. ( 1) N 2, 5, 48, 49, 55, 58, 59, 60, 62, 63, 63
1.

x x

x x
n

2. x x

524 11

47.64
59 - 47.64 = 11.36 60 - 47.64 = 12.36 62 - 47.64 = 14.36 63 - 47.64 = 15.36 63 - 47.64 = 15.36

2 - 47.64 = -45.64

5 - 47.64 = -42.64
48 - 47.64 = 49 - 47.64 = 55 - 47.64 = 0.36 1.36 7.36

58 - 47.64 = 10.36

Standard Deviation
Calculate the standard s deviation for the data array.
3. x x
2

x x ( 1) N

2, 5, 48, 49, 55, 58, 59, 60, 62, 63, 63

-45.642 = 2083.01 -42.642 = 1818.17 0.362 = 0.13 11.362 = 129.05

12.362 = 152.77
14.362 = 206.21

1.362 =
7.362 =

1.85
54.17

15.362 = 235.93
15.362 = 235.93

10.362 = 107.33

Standard Deviation
Calculate the standard s deviation for the data array.
4. x x

x x ( 1) N

2, 5, 48, 49, 55, 58, 59, 60, 62, 63, 63

2083.01 + 1818.17 + 0.13 + 1.85 + 54.17 + 107.33 + 129.05 + 152.77 + 206.21 + 235.93 + 235.93
( 5.N 1)

= 5,024.55

7.

x x ( 1) N

11-1 = 10
6.
x x ( N1 )
2

5,024.55 502.46 10

502.46 S = 22.42

Variance

x x ( 1) N

Average of the square of the deviations 1.Calculate the mean. 2.Subtract the mean from each value. 3.Square each difference. 4.Sum all squared differences. 5.Divide the summation by the number of values in the array minus 1.

Variance
Calculate the variance for the data array.

x x ( 1) N

2, 5, 48, 49, 55, 58, 59, 60, 62, 63, 63

5024.55 s 502.46 ( 10 )
2

Graphing Frequency Distribution

Numerical assignment of each outcome of a chance experiment A coin is tossed 3 times. Assign the variable X to represent the frequency of heads occurring in each toss.
Toss Outcome X Value

HHH

HHT
HTH THH HTT THT TTH TTT

2
2

X =1 when?

2 1
1 1 0

HTT,THT,TTH

Graphing Frequency Distribution

The calculated likelihood that an outcome variable will occur within an experiment
Toss Outcome X value

P(x)
P0
P1

HHH HHT HTH THH HTT THT TTH TTT

3 2 2

2 1
1 1 0

Fx Px Fa

0 1

1 8

2
3

3 8 3 P2 8

P3

1 8

Graphing Frequency Distribution

Histogram
x
0

P(x)
P0
P1

1 8

1
2

3 8 3 P2 8

P3

1 8

Histogram
Open airplane passenger seats one week before departure
What information does the histogram provide the airline carriers?

What information does the histogram provide prospective customers?