Chapter 3

Describing Data Using Numerical Measures

Chapter Goals

After completing this chapter, you should be able to:

 Compute and interpret the mean, median, and mode for a set of
data
 Compute the range, variance, and standard deviation and know
what these values mean
 Construct and interpret a box and whiskers plot
 Compute and explain the coefficient of variation and
z scores
 Use numerical measures along with graphs, charts, and tables to
describe data

Chapter Topics
 Measures of Center and Location
 Mean, median, mode, geometric mean, midrange
 Other measures of Location
 Weighted mean, percentiles, quartiles
 Measures of Variation
 Range, interquartile range, variance and standard
deviation, coefficient of variation

Summary Measures

Describing Data
Numerically

Center and Other Measures Variation

Location of Location
Range
Mean Percentiles
Median Interquartile
Quartiles Range

Mode Variance

Weighted Standard
Mean Deviation

Coefficient
of Variation
 Measures of Center and Location

Center and Location

Mean Median Mode Weighted Mean

∑w x
n

∑x i
XW = i i
x=
∑w
i=1
n i
N

∑x i µW =
∑ wxi i

µ= i=1
N
∑w i
Mean (Arithmetic Average)
 The Mean is the arithmetic average of data values
Sample mean

n = Sample Size
n

∑x i
x1 + x 2 +  + x n
x= i =1
=
n n
Population mean
N = Population Size
N

∑x x1 + x 2 +  + x N
i
µ= =
i =1


N N
The most common measure of central tendency
 Mean = sum of values divided by the number of values
 Affected by extreme values (outliers)
0 1 2 3 4 5 6 7 8 9 10

Mean = 3 Mean = 4

1 + 2 + 3 + 4 + 5 15 1 + 2 + 3 + 4 + 10 20
= =4
= =3 5 5
5 5
Median

 In an ordered array, the median is the “middle” number

 If n or N is odd, the median is the middle number
 If n or N is even, the median is the average of the two middle
numbers

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

Median = 3 Median = 3

Mode
 A measure of central tendency
 Value that occurs most often
 Not affected by extreme values
 Used for either numerical or categorical data
 There may may be no mode
 There may be several modes

0 1 2 3 4 5 6 7 8 9 10 11
12 13 14
Mode = 5 No Mode

Weighted Mean
Used when values are grouped by frequency or relative importance

Example: Sample of
26 Repair Projects
Weighted Mean Days
Days to Frequency to Complete:
Complete
5 4 XW =
∑w x
i i
=
(4 × 5) + (12 × 6) + (8 × 7) + (2 × 8)
6 12 ∑w i 4 + 12 + 8 + 2
7 8 164
= = 6.31 days
8 2 26
Shape of a Distribution
 Describes how data is distributed
 Symmetric or skewed

Left-Skewed Symmetric Right-Skewed

Mean < Median < Mode Mean = Median = Mode Mode < Median < Mean
(Longer tail extends to left) (Longer tail extends to right)

Other Location Measures

Other Measures
of Location

Percentiles Quartiles

The pth percentile in a data array:  1st quartile = 25th percentile

 p% are less than or equal to this
value
 2nd quartile = 50th percentile
 (100 – p)% are greater than or = median
equal to this value
(where 0 ≤ p ≤ 100)  3rd quartile = 75th percentile
Quartiles

Quartiles split the ranked data into 4 equal groups

25% 25% 25% 25%

 A Graphical display of data using 5-number summary:

Minimum -- Q1 -- Median -- Q3 -- Maximum

Minimum 1st Median 3rd Maximum

Quartile Quartile

Shape of Box and Whisker Plots

The Box and central line are centered between the endpoints if data is
symmetric around the median
A Box and Whisker plot can be shown in either vertical or horizontal
format

Distribution Shape and Box and Whisker Plot

Left-Skewed Symmetric Right-Skewed

Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3

Measures of Variation
Variation

Range Variance Standard Deviation Coefficient of

Variation

Interquartile Population Population

Variance Standard
Range
Deviation

Sample Sample
Variance Standard
Deviation

Variation
Measures of variation give information on the spread or variability of
the data values.
 Same center,
different variation

Range
 Simplest measure of variation
 Difference between the largest and the smallest observations:

Range = xmaximum – xminimum

Example:

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

Range = 14 - 1 = 13
Interquartile Range
 Can eliminate some outlier problems by using the interquartile
range
Same center,
 Eliminate some high-and low-valued observations and calculate
different variation
the range from the remaining values.
  Interquartile range = 3rd quartile – 1st quartile
Interquartile Range

Example:
Median X
X Q1 Q3 maximum
minimum (Q2)
25% 25% 25% 25%

12 30 45 57 70

Interquartile range
= 57 – 30 = 27
Variance

Average of squared deviations of values from the mean

 Sample variance:
n

∑ (x i − x) 2

s2 = i=1
n -1
 Population variance:

∑ (x i − μ) 2

σ2 = i=1
Standard Deviation
 Most commonly used measure of variation N
 Shows variation about the mean
  Has the same units as the original data
 Sample standard deviation:
n

∑ i
(x − x ) 2

s= i =1
n -1
 Population standard deviation:

∑ i
(x − μ) 2

σ= i =1

Comparing Standard Deviations

N
Data A
Mean = 15.5
11 12 13 14 15 16 17 18 19 20 21 s = 3.338

Data B
Mean = 15.5
11 12 13 14 15 16 17 18 19 20 21 s = .9258
Data C
Mean = 15.5
11 12 13 14 15 16 17 18 19 20 21 s = 4.57
Coefficient of Variation
 Measures relative variation
 Always in percentage (%)
 Shows variation relative to mean
 Is used to compare two or more sets of data measured in
different units
 Population Sample
σ  s 
CV =
μ 
 ⋅100% CV =   ⋅100%

  x 

The Empirical Rule

 If the data distribution is bell-shaped, then the interval:
 μ ± 1σ contains about 68% of the values in the population or
the sample

68%

μ
μ ± 1σ
 μ ± 2σ contains about 95% of the values in the population or
the sample

 μ ± 3σ contains about 99.7% of the values in the population

or the sample

95% 99.7%

μ ± 2σ μ ± 3σ
Tchebysheff’s Theorem
 Regardless of how the data are distributed, at least (1 - 1/k2) of
the values will fall within k standard deviations of the mean
Examples:
(1 - 1/12) = 0% ……..... k=1 (μ ± 1σ)
(1 - 1/22) = 75% …........k=2 (μ ± 2σ)
(1 - 1/32) = 89% ………. k=3 (μ ± 3σ)

Using Microsoft Excel

 Descriptive Statistics are easy to obtain from Microsoft Excel

 Use menu choice:

tools / data analysis / descriptive statistics

 Enter details in dialog box

Use menu choice:

tools / data analysis /
descriptive statistics

 Enter dialog box

details

 Check box for

summary statistics

 Click OK
 Microsoft Excel
descriptive statistics output,
using the house price data:
House Prices:

$2,000,000
500,000
300,000
100,000
100,000
Chapter Summary

 Described measures of center and location

 Mean, median, mode, geometric mean, midrange
 Discussed percentiles and quartiles
 Described measure of variation
 Range, interquartile range, variance,
standard deviation, coefficient of variation
 Created Box and Whisker Plots
 Illustrated distribution shapes
 Symmetric, skewed
 Discussed Tchebysheff’s Theorem
 Calculated standardized data values