Quantitative

Tools for
Managers
Iftikhar Ahmed
 Median For the Grouped Data
{ }
Find Cumulative
h 𝑁
𝑀𝑒𝑑𝑖𝑎𝑛=𝑙+ −𝐶 Now Finding the Values for Frequency
𝑓 2 Formula

Class Class Frequency Cumulative Freq Find Median Group

Interval Boundary < Upper CB
Group which is
1----5 0.5 ----5.5 2 2 containing the middle
6----10 5.5 ----10.5 4 6 value
22/2 =11 is the middle
11---15 10.5 ----15.5 6 12
value
16---20 15.5 ----20.5 5 17
21---25 20.5 ----25.5 3 20 Where is the 11th Value
26---30 25.5 ----30.5 2 22
Total 22 7th to 12th are there in
group Shown in Red
l = 10.5 f=6 C=6
h = 15.5 - 10.5
= 14.66
Measures of Central Tendency: Midrange
 The midrange is the average of the lowest and highest values
in a data set.

Lowest  Highest
MR 
2
 4

Example 3-15: Water-Line Breaks

In the last two winter seasons, the city of
Brownsville, Minnesota, reported these numbers
of water-line breaks per month. Find the
midrange.
2, 3, 6, 8, 4, 1

1 8 9
MR    4.5
2 2

The midrange is 4.5.

Bluman, Chapter 3
Properties of the Mean
 Uses all data values.
 Varies less than the median or mode
 Used in computing other statistics, such as the variance
 Unique, usually not one of the data values
 Cannot be used with open-ended classes
 Affected by extremely high or low values, called outliers
Properties of the Median
 Gives the midpoint
 Used when it is necessary to find out whether the data values
fall into the upper half or lower half of the distribution.
 Can be used for an open-ended distribution.
 Affected less than the mean by extremely high or extremely
low values.
Properties of the Mode
 Used when the most typical case is desired
 Easiest average to compute
 Can be used with nominal data
 Not always unique or may not exist
In the Same Way Quartile, Decile,
Percentile Can Be Calculated
Only Quartile is Being
Qi Explained
i = 1, 2 and 3
Q1

Q2 = Median

Q3
In the Same Way Quartile, Decile,
Percentile Can Be Calculated
Di Decile is Being
Explained
i = 1, 2,3,,,,,9

Pi Percentile is Being
Explained
i = 1, 2,3,,,,,99
Quartiles
CB F C Find Quartile Positions through N
0.5-----10.5 2 2
Q
10.5----20.5 4 6
20.5----30.5 3 9 Q
Q1 is at N/4
30.5----40.5 6 15
which is 15
40.5----50.5 5 20 Q
50.5----60.5 7 27
Q
60.5----70.5 4 31 Q2 is at N/2
70.5----80.5 7 38 which is 30
Q
80.5----90.5 4 42
90.5---100.5 6 48 Q2 is at 3N/4 Q
which is 45
100.5---110.5 5 53 Q
110.5----120.5 4 57
Q
120.5----130.5 3 60
Total 60 Q
Measure of Dispersion
Basics Concepts of Measure of Dispersion
 Measure of
Dispersion

Grouped Data Ungrouped Data

Standard Range
Deviation

Variance
Range
 Easy to Measure and Compute
 It Emphasizes only the extreme values so it gives a
very distorted picture
 Definition
The range of a set of data values is the difference
between the maximum data value and the minimum
data value.

Range = (maximum value) – (minimum value)

It is very sensitive to extreme values; therefore, it is

not as useful as other measures of variation.
Range
 Find the Range for the given data
 Data Set: 25, 30, 40, 45
 Range = Max – Min = 45 – 25 = 20
Definition
The standard deviation of a set of
sample values, denoted by s, is a
measure of how much data values
deviate away from the mean.
Standard Deviation
 It is the most frequently used measure of dispersion
 It is a computed measure whose value is affected by every
value
 Its value may be distorted by extreme values
 It can not be computed from an open-ended distribution
 Standard Deviation and Variance
for Ungrouped Data

Defining Formula

√
∑ (𝑥 −𝜇) 2 S
𝜎=
𝑁

√ ∑
√∑
2
Computing 𝑥 2 𝑥 2
𝑛𝑥
2
Formula
𝜎= −𝜇 𝑆= −
𝑁 𝑛 −1 𝑛− 1
Variance - Notation
s = sample standard deviation

s2 = sample variance

 = population standard deviation

 2
= population variance
 Calculating Standard Deviation Through
Defining Formula
Find the Standard Deviation
X
25 =100 for the given data Set: 25,
30, 40, 45
30 (30 - 35=25

√
40 (40 - 35=25
45 (45 - 35=100
𝜎=
∑ (𝑥 −𝜇) 2

140 250
Total
𝑁

√
Average 140/4
250
Average 35 𝜎=
4
= 7.905

= 9.128
Calculate Standard Deviation Through
Computing Formula

√ ∑𝑥
X 2
2
25 625
𝜎= −𝜇
30 900 𝑁

√
40 1600
45 2025 5150 2
Total 140 5150 𝜎= − 35
4
Average 140/4
𝜎 =7.90564
Average 35

∑
√ 5150
√
2
𝑥 𝑛𝑥
2
𝑆= − ¿ −4 ¿¿¿ = 9.128
𝑛 −1 𝑛 −1 4 −1
 Example-1
Use either formula to find the standard
deviation of these numbers of chocolate
chips:
22, 22, 26, 24
 Example-1

x  x 
2

s
n 1
 22  23.5   22  23.5   26  23.5   24  23.5
2 2 2 2


4 1
11
  1.9149
3