MMW Lecture 4.2 Data Management Part 2

Chapter 4:
Data
Management
Learning Objectives
o Discuss the properties of mean, median and mode.
o Compute the different measures of dispersion for ungrouped
data.
o Discuss the uses, characteristics, advantages and
disadvantages of measures of dispersions.
o Perform operations on mathematical expressions correctly.
o Analyze and interpret the data presented in the table using
measures of central tendency.
Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

Learning Objectives
o Advocate the use of statistical data in making important
decisions.
o Use a variety of statistical tools to process and manage
numerical data.
o Articulate the importance of mathematics in one’s life.
o Express appreciation for mathematics as a human endeavor.
o Support the use of mathematics in various aspects and
endeavors in life.

Topic Outline
I. Introduction to Data Management

II. Measures of Central Tendency
III. Measures of Dispersion
IV. Measures of Relative Position
V. Probabilities and Normal Distributions
VI. Linear Regression and Correlation

Measures of Central Tendency
 a single value that represents a data set.
 Its purpose is to locate the center of a data set.
 commonly referred to as an average.

Properties of Mean
 A set of data has only one mean
 Applied for interval and ratio data
 All values in the data set are included
 Very useful in comparing two or more data sets.
 Affected by the extreme small or large values on a data set
 Cannot be computed for the data in a frequency

distribution with an open-ended class

Arithmetic Mean
 The only common measure in which all values plays an

equal role meaning to determine its values you would need
to consider all the values of any given data set.
x x bar (for sample)
μ mu (for population)

Mean for Ungrouped Data
Sum of all values

Mean 
Number of values
Sample Mean: x
 x
n
Population Mean: 
 x
N

Example 1
The daily rates of a sample of eight employees at GMS Inc. are
₧550, ₧420, ₧560, ₧500, ₧700, ₧670, ₧860, ₧480. Find the
mean daily rate of employee.
Solution:
x
 x x
 1  x 2  x 3    xn
n n
550  420  560  500  700  670  860  480 4,740
   592.50
8 8
Sample mean daily salary is ₧592.50

Example 2
Find the population mean of the ages of 9 middle-
management employees of a certain company. The ages
are 53, 45, 59, 48, 54, 46, 51, 58, and 55.
Solution:

 x x
 1  x 2  x 3    xn
N N
53  45  59  48  54  46  51  58  55 469
   52.11
9 9
Mean population age of middle-management employee is

52.11.

Median
 The midpoint of the data array
Note: Data Array is a data set arranged in order

whether ascending or descending
 Appropriate measure of central tendency for data that

are ordinal or above, but is more valuable in an ordinal
type of data.

Properties of Median
 It is unique, there is only one median for a set of data
 It is found by arranging the set of data from lowest or

highest (or highest to lowest) and getting the value of the
middle observation
 It is not affected by the extreme small or large values.
 It can be computed for an-open ended frequency

distribution
 It can be applied for ordinal, interval and ratio data

Median for Ungrouped Data
 If n is odd, the median is the middle ranked
 If n is even, then the median is the average of the two

middle ranked values
n 1
Median (Rank Value )  th
2

Example 1
Find the median of the ages of 9
middle-management employees of a
certain company. The ages are 53,
45, 59, 48, 54, 46, 51, 58, and 55.
Solution:
Step 1: Arranged the data set in order.
45, 46, 48, 51, 53, 54, 55, 58, 59

Solution
Step 2: Select the middle rank.
n  1 9  1 10
Median (Rank Value )    5
2 2 2
Step 3: Identify the median in the data set.
45, 46, 48, 51, 53, 54, 55, 58, 59
5th
The median age is 53 years.

Example 2
The daily rates of a sample of
eight employees at GMS Inc. are
₧550, ₧420, ₧560, ₧500, ₧700,
₧670, ₧860, ₧480. Find the
median daily rate of employee.
Solution:
Step 1: Arranged the data set in order.
420, 480, 500, 550, 560, 670, 700, 860
Step 2: Select the middle rank.

n 1 81 9
Median (Rank Value )     4.5
2 2 2
Solution
Step 3: Identify the median in the data set.
420, 480, 500, 550, 560, 670, 700, 860
4.5th
Get the average of the two values.
550  560 1,110

Median    555
2 2
The median daily rate is ₧555.

Properties of Mode
 It is found by locating the most frequently occurring value
 the easiest average to compute
 There can be more than one mode or even no mode in

any given data set
 It is not affected by the extreme small or large values
 It can be applied for nominal, ordinal, interval and ratio

data

Mode
 The value in a data set that appears most frequently
 A data may not contain any mode if none of the values is

most typical.
Unimodal  With 1 mode

Bimodal  With 2 modes
Multimodal  With more than 2 modes
No mode  Without mode

Example 1
The following data represent the
total sales for Condominium units
from a sample of 10 Real Estates for
the month of August: 15, 17, 10, 12,
13, 10, 14, 10, 8, and 9. Find the
mode.
Solution:
The ordered array for these data is
8, 9, 10, 10, 10, 12, 13, 14, 15, 17
Lowest to Highest
The mode is 10.

Example 2
An operations manager in charge of a company’s manufacturing
keeps track of the number of manufactured 55” LED Television in a
day. Compute for the following data that represents the number of
LED Television manufactured for the past three weeks: 20, 18, 19, 25,
20, 21, 20, 25, 30, 29, 28, 29, 25, 25, 27, 26, 22, and 20. Find the mode
of the given data set.
Solution:
18, 19, 20, 20, 20, 20, 21, 22, 25, 25, 25, 25, 26, 27, 28, 29, 29,
30
There are two modes 20 and 25.

Example 3
Find the mode of the ages of 9 middle-

management employees of a certain
company. The ages are 53, 45, 59, 48,
54, 46, 51, 58, and 55.
Solution:
45, 46, 48, 51, 53, 54, 55, 58, 59
There is no mode.

Weighted Mean
 It is useful when various classes or groups contribute

differently to the total.
 It is found by multiplying each value by its corresponding

weight and dividing by the sum of the weights.
where: x w  weighted mean.

wi = corresponding weight.
xi = the value of any particular observations or
measurement.
Example 1
Frequency
At the Advertising Company in Makati City there are

18 staff members, 12 supervisors, 7 assistant
managers, and 3 managers. Their monthly salaries
are ₧30,500, ₧33,700, ₧38,600, and ₧45,000. What is
the weighted mean salary?
Weight
Solution
Let w1 = 18 w2 = 12 w3 = 7 w4 = 3
x1 = 30,500 x2 = 33,700 x3 = 38,600 x4 = 45,000
30,500 ( 18 )+ 33,700 ( 12 ) +38,600 ( 7 )+ 45,000 ( 3 )

𝑥𝑤 =
18 +12+7+ 3
1,358,600
  33,965
40
The weighted mean salary is ₧33,965.
Example 2
Riana’s first quarter grade is shown

in the table below. Use the weighted
mean formula to find Riana’s GPA for
the first quarter.
Subjects English Mathematics Filipino Science P.E. Religion

Grade 90 87 88 93 95 96
Units 3 3 3 3 2 1

Solution
Let w1 = 3w2 = 3 w3 = 3 w4 = 2 w5 = 1
x1 = 90 x2 = 87 x3 = 88 x4 = 95 x5 = 96
90 ( 3 ) +87 ( 3 ) +88 ( 3 ) +95 ( 2 ) + 96(1) 1,088

𝑥𝑤 = = =90.67
3+3 +3+ 2+ 1 12
The GPA for the first quarter is 90.67.

Example 3
A certain subdivision in Laguna consists of 50 homes. The table
shows the frequency distribution of homes with respect to the
number of bedrooms it has. Find the mean number of
bedrooms for the 50 homes.
No. of Bedrooms 2 3 4 5 6
No. of Homes 13 21 10 4 2

Solution
Let w1 = 2w2 = 3 w3 = 4 w4 = 5 w5 = 6
x1 = 13 x2 = 21 x3 = 10 x4 = 4 x5 = 2
𝑥𝑤 = ¿ ¿
The weighted mean of bedrooms per home is 3.22.

Measures of Dispersion and Location
 The difference between the actual value and the
average value.
Measures of Dispersion Measures of Location

Range Quartiles
Variance
Standard Deviation

Range
 The difference of the highest value and the lowest value in
the data set.
Example: The daily rates of a sample of

eight employees at GMS Inc. are ₧550,
₧420, ₧560, ₧500, ₧700, ₧670, ₧860,
₧480. Find the range.
Solution:
420, 480, 500, 550, 560, 670, 700, 860
HV = ₧860 and LV = ₧420

Range = HV – LV = 860 – 420 = 440

Standard Deviation
 It is a statistical term that provides a good indication of
volatility. Measure of risk
 It measures how widely values are dispersed from the

average.
 It is calculated as the square root of variance.

Variance
 It is a mathematical expectation of the average squared
deviations from the mean.
Sample Variance:
For ungrouped data

(  x) 2
s2 
 ( x  x ) 2
 
x 2
n
n1 s2 
n1
or or
(x  x) 2
(  x) 2
s
n1 x 2

n
s
n1

Standard Deviation
where:
s2 = sample variance.
s = sample standard deviation.
x = the value of any particular observation or measurement.
x = sample mean.
n = sample population.

Sample Variance and SD
Individual
Sample Variance value
Sample mean
Sample
Variance
s2 
 ( x  x ) 2
n1
Sample
Population
Sample Standard Deviation
Sample SD
s
 ( x  x ) 2
n1

Example 1
The daily rates of a sample of eight
employees at GMS Inc. are ₧550, ₧420,
₧560, ₧500, ₧700, ₧670, ₧860, ₧480.
Find the variance and standard
deviation.
Solution:
Compute for the mean
x
 x 550  420  560  500  700  670  860  480

n 8
4,740
  592.50
8
Solution
x xx (x  x)2
550 –42.5 1,806.25
550 – 592.5 420 –172.5 29,756.25
560 –32.5 1,056.25
500 –92.5 8,556.25
700 107.5 11,556.25
670 77.5 6,006.25
860 267.5 71,556.25
480 –112.5 12,656.25
 x  4,740  (x  x)  0  (x  x) 2
 142 ,950
s2 
 (x  x) 2

142,950
 20,421.43
n1 8 1
s
(x  x) 2

142 ,950
 20 ,421.43  142.90
n1 8 1
Solution
(  x) 2
x x 2
x 2

s2  n
550 302,500 n1
420 176,400
560 313,600 ( 4 ,740) 2
2 ,951,400 
500 250,000  8
700 490,000 8 1
670 448,900 2 ,951,400  2 ,808 ,450
860 739,600 
480 230,400 7
 20,421.43
 x  4 ,740   2,951,400
x 2
(  x) 2
 
x 2
n
s  20,421.43  142.90
n1
Population Variance and SD
Population Variance
Population mean
Population
Variance
 2  ( x   ) 2
N
Population
Population Standard Deviation

Population
SD

 ( x  ) 2
N
Example
The monthly income of the five Bank

Branch Managers are: ₧55,000, ₧59,500,
₧62,500, ₧57,000, and ₧61,000. Find the
variance and standard deviation.
Solution:
Compute for the mean

 x 55,000  59 ,500  62 ,500  57 ,000  61,000

N 5
295,000
  59,000
5
Solution
x x ( x  ) 2
55,000 –4,000 16,000,000
59,500 500 250,000
62,500 3,500 12,250,000
57,000 –2,000 4,000,000
61,000 2,000 4,000,000
x  295 ,000  ( x  )  0  (x  )  36,500,000

2
2
 
 ( x   ) 2

36 ,500,000
 730,000
N 5

 ( x   ) 2
 730 ,000  2 ,701.85

N
Measures of Location
k( N  1)
Quartiles Qk 
4
k( N  1)
Deciles Dk 
10
k( N  1)
Percentiles Pk 
100
Example
Find the 1st, 2nd, and 3rd quartiles of
the ages of 9 middle-management
employees of a certain company. The
ages are 53, 45, 59, 48, 54, 46, 51, 58,
and 55.
Solution:
1( N  1) 1(9  1) 10
Q1     2.5
4 4 4
2( N  1)  2(9  1)  2(10)  5
Q2 
4 4 4
3( N  1) 3(9  1) 3(10)
Q3     7.5
4 4 4
Solution
45, 46, 48, 51, 53, 54, 55, 58, 59
2.5th 5th 7.5th

Q1 Q2 Q3
46  48 94 55  58 113
Q1    47 Q3    56.5
2 2 2 2
Q1 = 47, Q2 = 53, and Q3 = 56.5.

z-Score
z-score is used to know the position of one observation relative
to others in a set of data.
The mean and the standard deviation of the scores can be used
to compute a z-score, which measure the relative standing of a
measurement in a data set.
A z-score measures the distance between an observation and

the mean, measured in units of standard deviation.
(for population)
(for sample)

Example 1
The monthly expenditures of a large group of households are

normally distributed with a mean of ₧48,700 and a standard
deviation of ₧10,400. What is the z-value of monthly
expenditures of ₧ 59,400 and ₧ 38,300?

Solution
Let  = 48,700  = 10,400
x values = ₧59,400 and ₧38,300
For x = 59,400:
For x = 38,300:
z = 1.00 indicates that a monthly expenditure of ₧59,400 for

households is one standard deviation above the mean, and
z = –1.00 shows that a ₧38,300 monthly expenditures is one

standard deviation below the mean.

Example 2
A normal curve has a mean of 650 and a
standard deviation of 40. An analyst is
interested in value of 575 and wants to
find its equivalent z-score.
Solution:
Given: = 650 s = 40 x = 575
The value 575 has a z-score of –1.875.

Example 3
A time study reports indicates that can assembly line task

should be finished in an average of 5.64 minutes, with a
standard deviation of 0.97 minutes. One particular item had a
z-score of 1.53. What was the completion time of this item?

Solution
Given: = 5.64 s = 0.97 z = 1.53
 x = + zs
x = + zs
= 5.64 + (1.53)(0.97)
= 5.64 + 1.4841
= 7.1241
 7.12 minutes
The item had an assembly time of 7.12 minutes.

Example 3
The salary of junior executives in a large corporation in Ortigas

area is normally distributed with a standard deviation of
₧15,600. Cutback is pending, at which time those who earn
less than ₧85,000 will be discharged. If such a cut represents a
z-score of –1.28 of the junior executives, what is the mean
salary of the group of junior executives?

Solution
Given: s = 15,600 x = 85,000 z = –1.28
 = x – zs
= x – zs
= 85,000 – (–1.28)(15,600)
= 85,000 + 19,968
= 104,968
Thus, the mean salary of junior executives is ₧104,968.

Boxplot (Box-and-Whisker-Plot)
Introduced by John Tukey in 1970’s..
It gives the following information:
 If the median is near the center of the box, the

distribution is approximately symmetric.
 If the median falls to the right of the center of the box, the
distribution is negatively skewed.
 If the median falls to the left of the center of the box, the
distribution is positively skewed.
 If the lines are about the same length, the distribution is

approximately symmetric.

Boxplot (Box-and-Whisker-Plot)
 If the left line is larger than the right line, the distribution
is negatively skewed
 If the right line is larger than the left line, the distribution
is positively skewed.
Figure: Boxplot
Xlowest Xhighest
Q1 Q2 = Median Q3
0 10 20 30 40 50 60

Example
Construct a boxplot for the data set of
the ages of 9 middle-management
employees of a certain company. The
ages are 53, 45, 59, 48, 54, 46, 51, 58,
and 55. What can we say about the
distribution of the data set
Solution:
Recall that Q1 = 47, Median = 53, and Q3 = 56.5
Lowest Value = 45
Highest Value = 59

Solution
Figure: Employees Age
The data set of the distribution in negatively-skewed, since

the median falls to the right of the center of the box

Statistics maybe defined as “a body
of methods for making wise
decisions in the face of uncertainty.”
– W. A. Wallis
Copyright 2018:
Mathematics in the Modern World by Winston S. Sirug, Ph.D.

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Chapter 4:

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

I. Introduction to Data Management

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

 a single value that represents a data set.

 Its purpose is to locate the center of a data set.

 commonly referred to as an average.

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

 A set of data has only one mean

 Applied for interval and ratio data

 All values in the data set are included

 Very useful in comparing two or more data sets.

 Affected by the extreme small or large values on a data set

 Cannot be computed for the data in a frequency

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

 The only common measure in which all values plays an

x x bar (for sample)

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

Sum of all values

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

Sample mean daily salary is ₧592.50

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

Mean population age of middle-management employee is

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

Note: Data Array is a data set arranged in order

 Appropriate measure of central tendency for data that

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

 It is found by arranging the set of data from lowest or

 It is not affected by the extreme small or large values.

 It can be computed for an-open ended frequency

 It can be applied for ordinal, interval and ratio data

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

 If n is odd, the median is the middle ranked

 If n is even, then the median is the average of the two

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

45, 46, 48, 51, 53, 54, 55, 58, 59

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

Step 3: Identify the median in the data set.

45, 46, 48, 51, 53, 54, 55, 58, 59

The median age is 53 years.

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

Step 2: Select the middle rank.

420, 480, 500, 550, 560, 670, 700, 860

Get the average of the two values.

550  560 1,110

The median daily rate is ₧555.

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

 It is found by locating the most frequently occurring value

 the easiest average to compute

 There can be more than one mode or even no mode in

 It is not affected by the extreme small or large values

 It can be applied for nominal, ordinal, interval and ratio

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

 The value in a data set that appears most frequently

 A data may not contain any mode if none of the values is

Unimodal  With 1 mode

No mode  Without mode

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.

8, 9, 10, 10, 10, 12, 13, 14, 15, 17

The mode is 10.

There are two modes 20 and 25.

Copyright 2018: Mathematics in the Modern World by Winston S. Sirug, Ph.D.