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Module 1 Part 1

The document outlines the syllabus for a module on statistical measures, focusing on central tendency and dispersion. It explains key concepts such as measures of central value, characteristics of ideal measures, and methods for calculating the arithmetic mean and median. Examples are provided to illustrate the computation of these measures in both individual and grouped data scenarios.

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Rajesh Kumar
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Download as PPTX, PDF, TXT or read online on Scribd
17 views

Module 1 Part 1

The document outlines the syllabus for a module on statistical measures, focusing on central tendency and dispersion. It explains key concepts such as measures of central value, characteristics of ideal measures, and methods for calculating the arithmetic mean and median. Examples are provided to illustrate the computation of these measures in both individual and grouped data scenarios.

Uploaded by

Rajesh Kumar
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Module 1

Syllabus
• Measures of Central value
• Characteristics of an ideal measure
• Measures of Central tendency
Mean, median, mode
• Application in Business decisions
• Measures of Dispersion
• Absolute and relative measures of dispersion
Range, Quartile Deviation, Mean Deviation, Standard
Deviation
Co-efficient of Variation
• Moments, Skewness, Kurtosis -
Measures of Central value
In statistics, the central value is the descriptive summary of a data set.
Through the single value from the dataset, it reflects the center of the data
distribution. Moreover, it does not provide information regarding individual
data from the dataset, where it gives a summary of the dataset. Generally,
the central value of a dataset can be defined using some of the measures in
statistics.
Characteristics of an ideal measure
(i) It should be simple to understand.
(ii) It should be easy to calculate.
(iii) It should be based on all the observations of the series.
(iv) It should be rigidly defined.
(v) It should be suited for further algebraic treatment.
Measures of Central
Tendency
The measure of central tendency is defined as the statistical measure
that identifies a single value as the representative of an entire distribution. It
aims to provide an accurate description of the entire data. It is the single value
that is most typical/ representative of the data. Since such typical values tend
to lie centrally within a set of observations when arranged according to
magnitudes, averages are called measures of central tendency. In other words,
the measure of central tendency summarizes the data in a single value in such
a way that this single value can represent the entire data. The word average is
commonly used in day-to-day conversations.
For example, we may talk of average income of an Indian, average rainfall,
average production, average price etc.
The following are the important types of averages:
Arithmetic mean
Median
Mode.

The first one is called ‘mathematical average’ where as other two are
called ‘measures of location’ or ‘measures of position’ or ‘positional
averages’.
Arithmetic
Mean
Arithmetic mean is the most commonly used measure of central
tendency. Arithmetic mean is computed by adding all the values in the
data set divided by the number of observations in it.
Computation of Arithmetic Mean in
case of Individual Series
The arithmetic mean in case of individual series can be computed using
following methods:
Direct Method
Assumed Mean Method
Direct
Method:
If there are N observations as X1, X2 ,X3 ,... XN then
the Arithmetic Mean (usually denoted by , which is
read as X bar) in case of individual series using direct
method is given by:
=
Example:
Calculate Arithmetic Mean from the data showing the marks obtained
by 7 students of class XIth in certain examination 5,11,16,17,19,24,30.

Solution:
The Arithmetic Mean of marks is given by:
=
=
= =17.43 marks

The average marks are 17.43.


Assumed Mean Method:
The actual arithmetic mean is calculated using the following formula:

Where = Arithmetic mean


A = Assumed mean
Σd = Σ(X – A)
Σd = sum of deviations
N = Number of Individual observations
Example:
Data of exports of a certain firms for the year
2013-2014 are mentioned in the following table:
Soluti
on
Computation of Arithmetic Mean for
Grouped data
• Direct Method
• Assumed Mean Method
• Step Deviation Method
(i) Direct Method:
According to this method the arithmetic mean
is given by:

where Σf = total frequency


Example :
The following data gives the weekly wages (in Rs) of 20 workers in a
factory:
Weekly Earnings (in Rs) 100 140 170 200 250
No. of workers 5 2 6 4 3
Calculate the average weekly earnings of the workers.
Solution:
(ii) Assumed Mean Method:

Since in the discrete series frequency (f) of each item is


given, we multiply each deviation (d) from the assumed
mean (A) with the respective frequency (f) to get fd.
According to this method, arithmetic mean is given by:
where A = assumed mean,
d = X – A and
N = Σf
(iii) Step Deviation Method:
In this case the deviations taken from
assumed mean are divided by the common
factor ‘c’ which simplifies the calculation.
Example:

From the following data of the marks obtained by 60 students of a class.


Solution:
Computation of Arithmetic Mean in
case of continuous series

(i) Direct Method


(ii) Assumed Mean Method
(iii) Step Deviation Method
Example:
Calculate average Land- size of the farmers of
a village from the following data using (a)
Direct method (b) Step deviation method.
Solution:
Properties of Arithmetic Mean

1. The sum of the deviations, of all the values of X, from their arithmetic mean, is
zero.
2. The product of the arithmetic mean and the number of items gives the total of
all items.
3. The sum of the squares of the deviations of the items taken from arithmetic
mean is minimum.
4. If a constant is added or subtracted to all the variables, mean increases or
decreases by that constant.
5. If all the variables are multiplied or divided by a constant, mean also gets
multiplied or divided by the constant.
MEDIAN
Median is the positional value that divides the series into two
equal parts in such a way that half of the items lie above this value and
the remaining half lie below this value. In Connor’s words - “The
median is that value of the variable which divides the group into two
equal parts, one part comprising all values greater and the other all
values lesser than the median.” Median is called a positional average
because it is based on the position of a given observation in a series
arranged in an ascending or descending order and position of the
median is such that equal number of items lie on either side of it.
Median is denoted by Med. or Md
Computation of Median in case of
Individual Series
The steps involved in the calculation of median are as follows:

Step 1: Arrange the data in ascending or descending order.


Step 2: Ascertain th item. This will give the position of the median i.e.
item/items at which the median lies.
Example :

The following data relates to the no. of patients examined per hour in the
hospital:

No. of Patients Examined 10 12 15 20 13 24 17 18

Calculate the median


Computation of Median in case of
Discrete Series:
In case of discrete series the position of median i.e. th item
can be located through cumulative frequency. The steps involved in the
calculation of median are as follows:
Step 1: Arrange the data in ascending or descending order of
magnitude.
Step 2: find out the cumulative frequency (c.f.)
Step 3: Median = size of th item
Step 4: Now look at the cumulative frequency column and find that
total which is either equal to or next higher to that and determine the
value of the variable corresponding to it. That gives the value of
median.
Example:
Calculate Median from the following
data:
Solution:
Computation of Median in case of Continuous Series

The steps involved in the calculation of median are as follows:


Step 1: Calculate Cumulative Frequencies.
Step 2: Ascertain th item.
Step 3: Find out the cumulative frequency which includes th item and
corresponding class frequency. The corresponding class of this cumulative
frequency is called the median class.
Step 4: Calculate Median as Follows:
Thank You

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