Mastering Statistics

Anshikha Gupta
Neha Mishra
Jyoti Shetty
Stenju Varghese
Sachu Santhosh
Contents
• Mean

• Median

• Range

• Mode

• Standard Deviation

• Co-efficient of variation
Mean

• Mean is the average of a set of numbers.

• To find it, add up all the numbers and then

divide by the total count of numbers.

• It's a central measure that gives you a

sense of the typical value in a dataset.

• For example, the mean of 2, 4,6 and

8 is (2+4+6+8)/4 = 5.
Example
• Example: To find the mean score of a

student in 5 tests.

• Scores (85, 90, 92, 88, and 95).Add them

up (450) and divide by the number of

tests(5).

• So, the mean score is 90.This Shows that

the student scores on an average 90 in each

test conducted.
Median
• Median is the middle value of a
dataset.
• If the dataset has an odd number of
values, the median is simply the
middle one.
Example
• For example, in the dataset 1, 2, 3,
4, 5, the median is 3.
• If the dataset has an even number of
values, the median is the average of
the two middle values.
 Range

• “Range" refers to the di ff erence

between the maximum and minimum
values in a dataset.
• It provides a simple measure of the
spread or variability of the data.
Example
Match1: 20 runs
Match 2: 35 runs
Match 3: 10 runs
Match 4: 45 runs
Match 5: 30 runs
Range Calculation: Highest Score: 45 runs
Lowest Score: 10 runs
Range = 45 runs - 10 runs = 35 runs

Conclusion: Range indicates performance variability.

Batsman's scores ranged from 10 to 45 runs.
Performance fluctuated by up to 35 runs.
 Mode

• The mode is a statistical measure that

represents the most frequently occurring
value or values in a dataset.
• In other words, it is the value that appears
most often.
• Unlike the mean and median, which focus
on the central tendency of a dataset, the
mode identifies the data point(s) that occur
with the highest frequency.
Example
Beer and Diaper case study –

• Observation: Retailers noticed a pattern of male customers

buying beer and diapers together, particularly on Friday
afternoons.

• Frequency: During observation periods, a significant

percentage of male customers purchased both beer and
diapers.

• Mode: The combination of beer and diapers emerged as

the most frequently occurring pairing of items bought
together.

• Strategy: Retailers strategically placed beer and diapers in

close proximity within stores to capitalize on this pattern.

• Outcome: This strategic placement led to increased

convenience for customers and boosted sales of both items.
 Standard Deviation
• Standard deviation measures how much the numbers in a data
set vary or spread out from the average (mean).
• Standard deviation helps in understanding the consistency or
variability of data.
• It's commonly used in fields like finance, quality control, and
data analysis to assess risk, make predictions, and evaluate
performance.
• So, in simpler terms, standard deviation shows us how much
the numbers in a set of data spread out from the average,
helping us understand the consistency or variability of the data.
Example
• A supermarket collects data on the daily sales of a particular
product over a month.
• Using this data, the store calculates the mean (average) daily
sales and the standard deviation of these sales.
• If the standard deviation is low, it indicates that daily sales tend
to be close to the mean, suggesting a consistent demand pattern.
• Conversely, a high standard deviation suggests that daily sales
vary widely from the mean, indicating more erratic or
unpredictable demand.
• With this insight, the supermarket can adjust its inventory
management and ordering processes.
• For example, if there's high standard deviation, they might need
to adopt more flexible ordering strategies to accommodate
fluctuating demand and avoid stockouts or overstocking.
Coefficient of variation
• The coefficient of variation is a statistical measure used to
assess the relative variability of a dataset compared to its mean.
• It is calculated as the ratio of the standard deviation to the
mean, expressed as percentage
• The coefficient of variation is particularly useful when
comparing the variability of different datasets with varying
means. Higher the CV greater the variability , while a lower
CV suggests more consistent data.
• It is useful in the fields of finance , manufacturing , agriculture
, education etc
Example
• Lets consider an example involving two investment portfolios
Portfolio X has an average annual return of 8% with standard
deviation of 4%
Portfolio Y has an average annual return of 12% with a standard
deviation of 6%

• Lets consider an example of a manufacturing scenario involving

two production lines , line A and line B
Line A produces an average of 100 units per hour with a
standard deviation of 9 units
Line B produces an average of 120 units per hour with a
standard deviation of 10 units
Thank You!