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Numerical Data

Lectures 3+4+5 Topics

Measures of Central Tendency

Mean, Median, Mode

Measures of Variation

The Range, Variance and

Standard Deviation

Shape

Symmetric, Skewed, Skewness, Kurtosis

Summary Measures

Central Tendency

Mean

Median

Mode

Summary Measures

Variation

Variance

Standard Deviation

Coefficient of

Variation

Range

Measures of Central Tendency

Central Tendency

Mean Median

Mode

n

x

n

i

i

¿

=1

The Mean (Arithmetic mean,

Average)

It is the Arithmetic Average of data values:

The Most Common Measure of Central Tendency

Affected by Extreme Values (Outliers)

n

x

n

1 i

i

¿

=

n

x x x

n 2 i

+ - - - + +

=

0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10 12 14

Mean = 5 Mean = 6

= x

Sample Mean

Sum of the observations

Number of observations

Mean =

ƥ ƥ This is the most popular and useful This is the most popular and useful

measure of central location measure of central location

The Arithmetic The Arithmetic

Mean Mean

n

x

x

i

n

1 i=

¿

=

Sample mean Population mean

N

x

i

N

1 i=

¿

= µ

Sample size Population size

n

x

x

i

n

1 i=

¿

=

The Arithmetic The Arithmetic

Mean Mean

=

+ + +

=

¿

=

=

10

...

10

10 2 1

10

1

x x x x

x

i i

Example 1

The reported time spent on the Internet of 10 adults are 0, 7, 12, 5,

33, 14, 8, 0, 9, 22 hours. Find the mean time spent on the Internet.

00 77 22 22

11.0 hours 11.0 hours

Example 2

Suppose the telephone bills represent

the population of measurements ( 200). The population mean is

=

+ + +

=

¿

= µ

=

200

x ... x x

200

x

200 2 1 i

200

1 i

42.19 42.19 38.45 38.45 45.77 45.77

43.59 43.59

The Arithmetic The Arithmetic

Mean Mean

The arithmetic

mean

Weighted mean for data grouped Weighted mean for data grouped

by categories or variants by categories or variants

i

i i

k

i

f

f x

x

¿

¿

=

=1

When many of the measurements have the same value, the

measurement can be summarized in a frequency table. Suppose

the number of children in a sample of 16 families were recorded

as follows:

NUMBER OF CHILDREN 0 1 2 3

NUMBER OF FAMILIES 3 4 7 2

16 families

5 . 1

16

) 3 ( 2 ) 2 ( 7 ) 1 ( 4 ) 0 ( 3

16

... .

16

16 16 2 2 1 1

16

1

=

+ + +

=

+ +

=

¿

=

=

f x f x f x f x

x

i i i

The Median

0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10 12 14

Median = 5

Median = 5

Important Measure of Central Tendency

In an ordered array, the median is the

³middle´ number.

If n is odd, the median is the middle number.

If n is even, the median is the average of the 2

middle numbers.

Not Affected by Extreme Values

Odd number of observations

0, 0, 5, 7, 8 9, 12, 14, 22

0, 0, 5, 7, 8, 9, 12, 14, 22, 33 0, 0, 5, 7, 8, 9, 12, 14, 22, 33

Even number of observations

Example 4.3

Find the median of the time spent on the internet

for the adults of example 1

ƥ ƥ The The Median Median of a set of observations is the of a set of observations is the

value that falls in the middle when the value that falls in the middle when the

observations are arranged in order of observations are arranged in order of

magnitude or ranked increasingly magnitude or ranked increasingly

The Median The Median

Suppose only 9 adults were sampled

(exclude, say, the longest time (33))

Comment

8

The Mode

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Mode = 9

A Measure of Central Tendency

Value that Occurs Most Often

Not Affected by Extreme Values

There May Not be a Mode

There May be Several Modes

Used for Either Numerical or Categorical Data

0 1 2 3 4 5 6

No Mode

ƥ ƥ The The Mode Mode of a set of observations is the of a set of observations is the

variable value that occurs most frequently. variable value that occurs most frequently.

ƥ ƥ Set of data may have one mode (or modal Set of data may have one mode (or modal

class), or two or more modes. class), or two or more modes.

The modal class

For large data sets

the modal class is

much more relevant

than a single-value

mode.

The Mode The Mode

Approximating Descriptive Approximating Descriptive

Measures for grouped Measures for grouped

Data by CLASSES Data by CLASSES

ƥ ƥ Approximating descriptive measures for Approximating descriptive measures for

grouped data may be needed in two grouped data may be needed in two

cases: cases:

ƛƛ when approximated values.suffices the needs, when approximated values.suffices the needs,

ƛƛ when only secondary grouped data are when only secondary grouped data are

available. available.

i

k

i

i i

k

i

f

f x

x

1

1

=

=

¿

¿

=

x midpoint

f frequency

Class Class Frequency Midpoint

i limits f

i

x

i

x

i

f

i

1 2-5 3 3.5 10.5

2 5-8 6 6.5 39.0

3 8-11 8 9.5 76.0

«. «. « «. «. .

6 17-20 2 18.5 37.0

n =sample size= 30=f

1

+«+f

n

312.0

Class Class Frequency Midpoint

i limits f

i

x

i

x

i

f

i

1 2-5 3 3.5 10.5

2 5-8 6 6.5 39.0

3 8-11 8 9.5 76.0

«. «. « «. «. .

6 17-20 2 18.5 37.0

n =sample size= 30=f

1

+«+f

n

312.0

ƛƛ Example 3 Example 3

ƥ ƥ Approximate the mean (calculate the mean) of Approximate the mean (calculate the mean) of

the telephone call durations problem as the telephone call durations problem as

represented by the frequency distribution represented by the frequency distribution

5 8 11 14 17 20 More

5

6.5

26 . 10

: value Real

= x

Median and Mode Median and Mode

ƥ ƥ Median Median

Me

1 - Me

1 i

i

0

n

n - 1) (

2

1

K x

¿ ¿

=

+

+ =

i

n

Me

Median and Mode Median and Mode

ƥ ƥ Mode Mode

2 1

1

0

K x

( + (

(

+ = Mo

ƥ ƥ If a distribution is symmetrical, the If a distribution is symmetrical, the

mean, median and mode coincide mean, median and mode coincide

ƥ ƥ If a distribution is non symmetrical, and If a distribution is non symmetrical, and

skewed to the left or to the right, the skewed to the left or to the right, the

three measures differ. three measures differ.

A positively skewed distribution

(´skewed to the rightµ)

Mean

Median

Mode

Mean

Median

Mode

A negatively skewed distribution

(´skewed to the leftµ)

Relationship among Mean, Median, Relationship among Mean, Median,

and Mode and Mode

Summary Measures

Central Tendency

Mean

Median

Mode

n

x

n

i

i

¿

=1

Summary Measures

Variation

Variance

Standard Deviation

Coefficient of

Variation

Range

¸ )

1 n

x x

s

2

i

2

¿

=

Measures of Variation

Variation

Variance Standard Deviation Coefficient of

Variation

Population

Variance

Sample

Variance

Population

Standard

Deviation

Sample

Standard

Deviation

Range

100%

¹

º

¸

©

ª

¨

=

X

S

CV

Measure of Variation

Difference Between Largest & Smallest

Observations:

Absolute Range =

Relative Range =

Ignores How Data Are Distributed:

The Range

Smallest rgest La

x x

7 8 9 10 11 12

Range = 12 - 7 = 5

7 8 9 10 11 12

Range = 12 - 7 = 5

mean x x

Smallest La

/ ) (

rgest

Deviation Deviation

ƥ ƥ Individual deviation from the mean = Individual deviation from the mean =

ƥ ƥ Overall deviation = 0, because Overall deviation = 0, because

ƥ ƥ Summing squared deviations Summing squared deviations

or or

absolute values of the deviations absolute values of the deviations

mean x

i

¸ )

¿

= 0 X X

i

¸ )

¿

2

X X

i

| | x x

i ¿

Important Measure of Variation

Shows Variation About the Mean

Computed as an arithmetic mean of

squared deviations or as a square mean of

individual deviations

For the Population:

For the Sample:

Variance

¸ )

N

X

i

¿

=

2

2

µ

o

¸ )

1

2

2

¿

=

n

X X

s

i

For the Population: use N in the

denominator.

For the Sample : use n - 1

in the denominator.

Most Important Measure of Variation

Shows Variation About the Mean:

For the Population:

For the Sample:

Standard Deviation

¸ )

N

X

i

¿

=

2

µ

o

¸ )

1

2

¿

=

n

X X

s

i

For the Population: use N in the

denominator.

For the Sample : use n - 1

in the denominator.

Sample Standard Deviation

¸ )

1

2

¿

=

n

X X

i

Data: 10 12 14 15 17 18 18 24

s =

n = 8 Mean =16

1 8

16 24 16 18 16 17 16 15 16 14 16 12 16 10

2 2 2 2 2 2 2

+ + + + + + ) ( ) ( ) ( ) ( ) ( ) ( ) (

= 4.2426

s

: X

i

Comparing Standard Deviations

¸ )

1

2

¿

n

X X

i s =

= 4.2426

¸ )

N

X

i

¿

=

2

µ

o = 3.9686

Value for the Standard Deviation is larger for data considered as a Sample.

Data : 10 12 14 15 17 18 18 24 : X

i

N= 8 Mean =16

Comparing Standard Deviations

Mean = 15.5

s = 3.338

11 12 13 14 15 16 17 18 19 20 21

11 12 13 14 15 16 17 18 19 20 21

Data B - AGE

Data A - AGE

Mean = 15.5

s = .9258

11 12 13 14 15 16 17 18 19 20 21

Mean = 15.5

s = 4.57

Data C - AGE

Coefficient of Variation Coefficient of Variation

ƥ ƥMeasure of Measure of Relative Variation Relative Variation

ƥ ƥAlways a Always a % or coefficient % or coefficient

ƥ ƥShows Variation Relative to Mean Shows Variation Relative to Mean

ƥ ƥUsed to Used to Compare 2 or More Groups Compare 2 or More Groups

ƥ ƥFormula ( for Sample): Formula ( for Sample):

100%

¹

º

¸

©

ª

¨

=

X

S

CV

Comparing Coefficient of Variation Comparing Coefficient of Variation

ƥ ƥ Stock A: Stock A: Average Price last year = Average Price last year = $50 $50

ƥ ƥ Standard Deviation (sd) Standard Deviation (sd) = = $5 $5

ƥ ƥ Stock B: Stock B: Average Price last year Average Price last year = = $100 $100

ƥ ƥ (sd) = (sd) = $5 $5

100%

¹

º

¸

©

ª

¨

=

X

S

CV

Coefficient of Variation:

Stock A: CV = 10%

Stock B: CV = 5%

Both average prices are

representatives

Shape Shape

ƥ ƥ Describes How Data Are Distributed Describes How Data Are Distributed

between smallest and largest values between smallest and largest values

ƥ ƥ Measures of Shape: Measures of Shape:

ƥ ƥ Symmetric or skewed Symmetric or skewed

Right-Skewed or

Positively Skewed

Left-Skewed or

Positive Skew-ness

Symmetric

Mean = Median = Mode Mean Median Mode Median Mean Mod

e

Box plot Box plot ƛƛ graphical presentation of graphical presentation of

CTM CTM

Central tendency Central tendency

measures summary measures summary

ƥ ƥ Discussed Measures of Discussed Measures of Central Tendency Central Tendency

ƥ ƥ Mean, Median, Mode Mean, Median, Mode

ƥ ƥ Addressed Measures of Addressed Measures of Variation Variation

ƥ ƥ The Range The Range, , Variance, Variance,

ƥ ƥ Standard Deviation, Coefficient of Standard Deviation, Coefficient of Variation Variation

ƥ ƥ Determined Determined Shape Shape of Distributions of Distributions

ƥ ƥ Symmetric or Skewe Symmetric or Skewed d

ƥ ƥCoefficient of skewness Coefficient of skewness

Mean= Median = Mode Mean Median Mode Mode Median Mean

Lectures 3+4+5 Topics

Measures of Central Tendency

Mean, Median, Mode

Measures of Variation

The Range, Variance and Standard Deviation

Shape

Symmetric, Skewed, Skewness, Kurtosis

Summary Measures

Summary Measures

Central Tendency

Mean Median Mode

Variation Range Variance Standard Deviation Coefficient of Variation

Measures of Central Tendency Central Tendency Mean i !1 Median Mode § xi n n .

Average) It is the Arithmetic Average of data values: x! Sample Mean n i !1 § xi n xi x 2 y y y xn ! n The Most Common Measure of Central Tendency Affected by Extreme Values (Outliers) 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10 12 14 Mean = 5 Mean = 6 .The Mean (Arithmetic mean.

The Arithmetic Mean This is the most popular and useful measure of central location Sum of the observations Mean = Number of observations .

The Arithmetic Mean Sample mean x! n § i!1 x ii 1x Population mean Q! N § i!1 x i n N Sample size Population size .

.. 8.The arithmetic mean The Arithmetic Mean Example 1 The reported time spent on the Internet of 10 adults are 0.. 12. 14.19 38. 9.77 x1 x 2 . 33. x 200 Q! ! ! 200 200 200 § i!1 x i 43.59 . Find the mean time spent on the Internet. 5. 22 hours. 0. 7..0 hours 10 Example 2 Suppose the telephone bills represent the population of measurements ( 200). x! 10 § i !1 xi 10 ! x 0x1 7 2 x10 . The population mean is 42.45 45. 22 ! 11.

Weighted mean for data grouped by categories or variants § k i !1 x! xi f i § fi .

the measurement can be summarized in a frequency table. x16 f16 3(0) 4(1) 7( 2) 2(3) x ! i! ! ! ! 1.. Suppose the number of children in a sample of 16 families were recorded as follows: NUMBER OF CHILDREN NUMBER OF FAMILIES 0 3 1 4 2 7 3 2 16 families §161 xi f i x1.5 16 16 16 .. f1 x2 f 2 .When many of the measurements have the same value.

the median is the middle number. If n is odd. the median is the ³middle´ number. the median is the average of the 2 middle numbers.The Median Important Measure of Central Tendency In an ordered array. If n is even. Not Affected by Extreme Values 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10 12 14 Median = 5 Median = 5 .

33 Odd number of observations 0. 8.The Median The Median of a set of observations is the value that falls in the middle when the observations are arranged in order of Comment Example 4. 9. 14. 22. 9. 7. 22. 22 .12. 8 9. 14. 5.3 or ranked increasingly magnitude Find the median of the time spent on the internet for the adults of example 1 Suppose only 9 adults were sampled (exclude. 7. 12. say. the longest time (33)) Even number of observations 0. 12. 5. 33 0. 0. 7. 8. 0. 5. 14.

The Mode A Measure of Central Tendency Value that Occurs Most Often Not Affected by Extreme Values There May Not be a Mode There May be Several Modes Used for Either Numerical or Categorical Data 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 0 1 2 3 4 5 6 Mode = 9 No Mode .

Set of data may have one mode (or modal class). The modal class For large data sets the modal class is much more relevant than a single-value mode. . or two or more modes.The Mode The Mode of a set of observations is the variable value that occurs most frequently.

x midpoint § x f x! § i !1 i i k i !1 i f f frequency .suffices the needs. when only secondary grouped data are k available.Approximating Descriptive Measures for grouped Data by CLASSES Approximating descriptive measures for grouped data may be needed in two cases: when approximated values.

5 37.5 39.0 8-11 8 9. «.5 5-8 6 6. « «.0 «.5 . 5 8 11 14 17 20 More 5 6.5 10. 6 Class Frequency Midpoint limits fi xi xi fi 2-5 3 3. 17-20 2 18.0 Real value : x ! 10.0 n =sample size= 30=f1+«+fn 312.Example 3 Approximate the mean (calculate the mean) of the telephone call durations problem as represented by the frequency distribution Class i 1 2 3 «.5 76.26 .

Median and Mode Median Me -1 1 (§ ni 1) 2 Me ! x 0 K n Me §n i !1 i .

Median and Mode Mode (1 Mo ! x 0 K (1 ( 2 .

Median. median and mode coincide If a distribution is non symmetrical. and skewed to the left or to the right. A positively skewed distribution (´skewed to the rightµ) A negatively skewed distribution (´skewed to the leftµ) Mode Mean Median Mean Mode Median . the three measures differ.Relationship among Mean. and Mode If a distribution is symmetrical. the mean.

Summary Measures Summary Measures § .

xi x s ! n 1 2 2 Central Tendency Mean i !1 Variation Range Variance Coefficient of Variation Mode Median § xi n n Standard Deviation .

Measures of Variation Variation Variance Range Population Variance Sample Variance Standard Deviation Population Standard Deviation Sample Standard Deviation Coefficient of Variation ¨S¸ CV ! © ¹ 100% ªX º .

The Range Measure of Variation Difference Between Largest & Smallest Observations: Absolute Range = x Largest x Smallest Relative Range = 7 8 9 10 11 12 ( xLargest xSmallest ) / mean Ignores How Data Are Distributed: 7 8 9 10 11 12 Range = 12 .7 = 5 .7 = 5 Range = 12 .

Deviation Individual deviation from the mean = xi mean Overall deviation = 0. because § .

X i X Summing squared deviations or absolute values of the deviations !0 § .

X i X 2 §| x i x | .

Variance Important Measure of Variation Shows Variation About the Mean Computed as an arithmetic mean of squared deviations or as a square mean of individual deviations § .

Xi Q For the Population: W ! N 2 2 § .

1 in the denominator. . For the Sample : use n .X i X For the Sample: s ! n 1 2 2 For the Population: use N in the denominator.

Standard Deviation Most Important Measure of Variation Shows Variation About the Mean: 2 § .

X i Q For the Population: W! N For the Sample: s! § .

X i X n 1 2 For the Population: use N in the denominator. For the Sample : use n .1 in the denominator. .

Sample Standard Deviation s Data: § .

2426 .X i X ! n1 2 Xi : 10 12 14 15 17 18 18 24 n=8 Mean =16 s= (10 16) 2 (12 16) 2 (14 16)2 (15 16) 2 (17 16) 2 (18 16) 2 (24 16)2 81 = 4.

Comparing Standard Deviations Data : X i : 10 12 14 15 17 18 18 24 N= 8 Mean =16 s = W ! § .

X i X n1 2 § .

.2426 = 3.X i Q N 2 = 4.9686 Value for the Standard Deviation is larger for data considered as a Sample.

5 s = .5 s = 4.AGE 11 12 13 14 15 16 17 18 19 20 21 Mean = 15.AGE 11 12 13 14 15 16 17 18 19 20 21 .Comparing Standard Deviations Data A .338 Data B .57 Data C .5 s = 3.9258 Mean = 15.AGE 11 12 13 14 15 16 17 18 19 20 21 Mean = 15.

Coefficient of Variation Measure of Relative Variation Always a % or coefficient Shows Variation Relative to Mean Used to Compare 2 or More Groups Formula ( for Sample): ¨S¸ CV ! © ¹ 100% ªX º .

Comparing Coefficient of Variation Stock A: Average Price last year = $50 Standard Deviation (sd) = $5 Stock B: Average Price last year = $100 (sd) = $5 Coefficient of Variation: Stock A: CV = 10% Stock B: CV = 5% Both average prices are representatives ¨S¸ CV ! © ¹ 100% ªX º .

Shape Describes How Data Are Distributed between smallest and largest values Measures of Shape: Symmetric or skewed Left-Skewed or Positive Skew-ness Mean Median Mod e Symmetric Right-Skewed or Positively Skewed Mode Median Mean Mean = Median = Mode .

Box plot CTM graphical presentation of .

.

.

Variance. Range.Central tendency measures summary Discussed Measures of Central Tendency Addressed Measures of Variation The Range. Mode Determined Shape of Distributions Symmetric or Skewed Skewed Coefficient of skewness Mean Median Mode Mean= Median = Mode Mode Median Mean . Coefficient of Variation Mean. Median. Standard Deviation.

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