Business Statistics Problems
Business Statistics Problems
Individual series:
Expenditures – 1500, 2500, 2300, 5000, 4200, 4500, 3500, 3000, 2800, 2000
N 10
Expenditure
(X)
1500
2500
2300
5000
4200
4500
3500
3000
2800
2000
= ∑X= 1500+2500+2300+5000+4200+4500+3500+3000+2800+2000
N 10
= 31300/10 = 3130
A.M(X) = 3130
A = assumed mean ; A =
Expenditure D= X-A(4200)
(X)
1500 1500-4200= -2700
2500 2500-4200 = -1700
2300 2300-4200= -1900
5000 5000-4200 = 800
4200 (A) 4200-4200 = 0
4500 4500 – 4200 = 300
3500 3500-4200 = -700
3000 3000-4200 = -1200
2800 2800-4200 = -1400
2000 2000-4200 = -2200
∑X =31300 ∑d = -10,700
∑d = -11800+1100
∑d = -10700 ∑X =31300
A.M (X) = A + ∑d
10
A.m(X) = 3130
28, 29, 30, 35, 45, 15, 16, 27, 32, 10, 32
Direct method :
X
28
29
30
35
45
15
16
27
32
10
32
X D = X-A
28
29
30
35
45
15
16
27
32
10
32
Discrete Series:
X 0 1 2 3 4 5
f 3 7 10 8 6 2
X f fx
0 3 3*0 = 0
1 7 7*1 = 7
2 10 10*2 = 20
3 8 8*3 = 24
4 6 6*4 = 24
5 2 2*5 = 10
∑f = 36 ∑fx = 85
Direct method :
∑f
X 0 5 10 15 20 25 30
f 8 12 20 26 22 14 9
Sol :
X f fx
0 8 8*0 = 0
5 12 12*5 = 60
10 20 20*10 = 200
15 26 26*15 = 390
20 22 20*22 = 440
25 14 25*14 = 350
30 9 30*9 = 270
∑f = ∑ fx = 1710
111
∑f
Continuous series:
∑f = 30 ∑fm = 740
∑f
∑f
Practice problems :
Calculate the average salaries of the employees from the following data
∑f=142 ∑fd
=(-33000)+8050
0 = 47500
∑f 142
A.M(X) = 2084.5
Combined Mean:
If X1 and X2 are the means of N1 and N2 observations then the combined mean of two
groups is
N1 X1 + N2 X2
N1+ N2
1) In a company the average wages of 500 male workers is Rs.2380, the average wages
of 400 female workers is Rs.2220 then find combined mean of male and female.
N1 X1 + N2 X2
N1+ N2
500+400 900
N1=50 , N2 = 60, N3 = 55
N1+ N2+N3
Median: it is also known as positional average. It is used to find the location of central
value, this is the second measure of central tendency.
8,10,12,2,6,14,6.
2, 6, 6, 8, 10, 12, 14
Median = 8
12,26,14,18,6,9,9,10
Median = 11
X 5 2 3 1 0 4
F 6 10 22 14 4 9
Sol :
Now look at the item C.F column check whether 33 or next higher number i.e.50
Median = 3
2. Find median
X 0 5 10 15 20 25 30
f 6 8 12 22 20 14 9
Sol :
X F Cumulative frequency
0 6 6
5 8 6+8= 14
10 12 14+12=26
15 22 26+22=48
20 20 48+20=68
25 14 68+14=82
30 9 82+9=91
N =91
Median item = size of (N+1)th term
Now look at the CF column check whether 46th term is there or higher to it is there. i.e.
48 corresponding to 48 is value X =15
Median = 15
Median = l + N/2 - CF *c
Sol:
Class interval F CF
0-10 3 3
10-20 7 3+7 = 10
20-30 10 10+10 = 20 CF
30-40 15 f 20+15 = 35
40-50 6 35+6 = 41
50-60 4 41+4 = 45
N=
45
l = 30 N/ 2 = 22.5 , cf = 20 f = 15 C = 10
median = l + N/2 - cf *C
= 30 + 22.5-20 * 10
15
= 30 + (2.5/15)*10
= 30 + (0.167) *10
= 30+1.67
Median = 31.67
Mode: Mode is the number which repeated more no. of times or the value which have
maximum frequency.
If sometimes different numbers may repeat same no. of times then, the mode is known
as bimodal
In individual series mode can be calculated by inspection method I.e. the number which
is repeated more no. of times.
Mode = 6
22, 26, 12, 12, 18, 14, 6, 4, 9, 13, 13, 12, 2, 13, 20
Here 12 and 13 repeated same no. of times this type of mode is called bimodal
2. If the difference between highest frequency and preceding or succeeding is very less
(0 or 1). In this case we can say that inspection method fails.
Mode under discrete series the value which have maximum frequency
Marks (X) 0 1 2 3 4 5
No. of 8 12 16 20 14 5
(f)students
Grouping table : step 1 : grouping table consists of 6 columns in column I consider the
given frequencies.
Step 3: in column III leave the first frequency and the group the remaining two
Step 5 : in column V leave the first frequency and the remaining frequencies group
them into three’s
Step 6 : in column VI leave the first two frequencies remaining frequencies group
them into three’s.
Step 8 : prepare the analysis table by tally marks corresponding to the circled
numbers then find the total and select the highest total corresponding values
becomes the mode.
Marks (X) 0 1 2 3 4 5 6 7
No. of 3 7 10 14 13 8 4 1
(f)students
1. The highest frequency either occurred in the beginning or at the end
There fore the highest frequency 22 occurred in the end so inspection method fails
2. If the difference between highest frequency and preceding or succeeding is very less
(0 or 1). In this case we can say that inspection method fails
Sol : here the highest frequency appeared in the ending then the inspection method
fails
Marks (X) 0 1 2 3 4 5 6 7
No. of 3 7 10 14 13 8 4 1
(f)students
Mode =
L1 = 20
I/c = 10
Mode = 20 + 20-12 * 10
2*20 – 12-14
Mode = 20 + (8/14)*10
Mode = 25.71
2. Find mode for the following data
Here , the given data is in inclusive series. We convert this inclusive series into exclusive
series by subtracting 0.5 from all lower limits and add 0.5 to all upper limits. Then the
series become exclusive series. Now we can apply usual procedure (apply only to
median and mode)
L = 29.5
F1 = 15, f0 = 10 , f2 = 12
i/c = 10
2*15-10-12
Mode = 29.5 + (5/8)*10
Mode = 35.75
Class I II III IV V VI
0-10 8 8+28 = nil 8+28+18=54 nil Nil
10-20 28 36 28+18= 28+18+20= Nil
20-30 18 18+20= 46 66 18+20+24=62
30-40 20 38 20+24=44 20+24+16=60
40-50 24 24+16 24+16+12=
50-60 16 =40 16+12=28 52
60-70 12
Analysis table
Mode = 20
12 = 3(median) – 2 (10)
12 = 3 median – 20
12+20 = 3 median
32 = 3 median
Median = 32/3
Median = 10.67
Mode = 3*21 – 2 * 21
Mode = 63-42
Mode = 21
● Range
● Quartile deviation (QD)
● Mean deviation (MD)
● Standard deviation (SD)
● Coefficient of QD
● Coefficient of MD
● Coefficient of SD
The first four methods range , QD, SD, MD are known as absolute measures of
deviation
● The methods Coefficient of QD, Coefficient of MD, Coefficient of SD are known as
relative measures of dispersion
● Range : it is the difference between largest value and smallest value of the
distribution
● Range = largest value – smallest value
● Range = L- S
L+S
1. find range , coefficient of range for the following data (Individual series)
6, 7 , 20 , 24 , 9 , 4 , 10 , 15 , 18
L+S
X (range) 0 1 2 3 4 5
F 3 7 14 19 4 1
Range = L-S
=L = 5 , S = 0
L+S 5+0
Range = L-S
Range = 50-0 = 50
L+S
2
Quartile deviation is also known as semi inter quartile range
Q3+Q1
Decile : decile means dividing the data into ten equal parts then there exist 9
partitions. They are D1, D2,D3……….D9
Percentile : percentile means dividing the data into 100 equal parts then there
exist 99 partitions they are P1,P2,P3…….P99