SENIOR HIGH SCHOOL

Business Mathematics
Quarter 2 Module 5
(Week 7)
Analyze and Interpret Data Using Measures of
Central Tendency and Variability

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Introductory Message
Welcome to the Accountancy & Business Mathematics Module on Analyze and
Interprets Data Using Measures of Central Tendency and Variability.

This module was designed to provide you with opportunities for guided and
independent learning at your own pace and time. You will be enabled to process the
contents of the learning resource while being an active learner.
This module has the following parts and corresponding icons:

This part includes an activity that aims to

check what you already know about the
What I Know
lesson to take.
(Pre-Test)

This will give you an idea of the skills or

What I Need to Know competencies you are expected to learn in
(Objectives) the module.

This is a brief drill or review to help you

What’s In link the current lesson with the previous
(Review/Springboard) one.

In this portion, the new lesson will be

introduced to you in various ways; a story,
What’s New
(Presentation of the Lesson) a song, a poem, a problem opener, an
activity or a situation.
This section provides a brief discussion of
the lesson. This aims to help you discover
What is It
(Discussion) and understand new concepts and skills.

This section provides activities which will

What’s More help you transfer your new knowledge or
(Application) skill into real life situations or concerns.

What I Need to Remember This includes key points that you need to
(Generalization) remember.

This comprises activities for independent

What I Can Do practice to solidify your understanding and
(Enrichment Activities) skills of the topic.

This is a task which aims to evaluate your

Assessment level of mastery in achieving the learning
(Post Test) competency.

This contains answers to the following:

Answer Key ● What I Know
● What’s In
● What’s More

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At the end of this module you will also find:
References This is the list of all sources used in developing
this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in this module.
3. Read the instructions carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.

If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are not
alone.
We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!

About the Module

This module was designed and written with you in mind. It is here to help you
master about conversion of fractions, decimal and percent or vice versa. The scope of
this module permits it to be used in many different learning situations. The language
used recognizes the diverse vocabulary levels of students. The lessons are arranged to
follow on the standard sequence of the course. But the order in which you read them
can be changed to correspond with the textbook you are now using. The module
contains two lessons namely;

Lesson 1: Analyze and Interprets Data Using Measures of Central Tendency

and Variability.
Lesson 2: Measures of Variation: Range, Standard Deviation and Variance

After going through this module, you are expected to:

• define measure of central tendency and measures of variation;

• differentiate mean from median and mode;
• find the mean, median and mode of ungrouped data;
• calculate the range, standard deviation and variance.

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 What I Know (Pretest)

Direction: Read each item carefully then answer what is being asked for. Write the
letter of the correct answer on a separate sheet.

1. Measures of central tendency for a given set of observations evaluate____________.

A. the central location of the observations.
B. the spread of the observations.
C. the range.
D. both A and B.

2. Which of the following measures of central tendency is affected by extreme values?

A. Mean B. Median C. Mode D. Range

3. The statement “the mode is always unique” is _________.

A. True B. False C. Partly True D. Partly False.

4. The observation which occurs most frequently in the data is ____________.

A. Mean B. Median C. Mode D. Range

5. What will you do if there are two modes?

A. Find the average
B. Report the higher of the two numbers.
C. Report both.
D. Report the one closer to the mean.

6. The median defines “central tendency” in terms of the ____________.

A. central score.
B. most common score.
C. most likely score.
D. the largest score.

For items 7 to 9, use the problem below:

Nine people gave contributions in pesos 100, 200, 100, 300, 300, 200, 200,
150, 100, and 100, 175 for a door prize.

7. What is the average contribution of the nine people?

A. 100 B. 150 C. 175 D. 200
8. What is the median contribution?
A. 100 B. 150 C. 175 D. 200
9. What is the mode of the contribution?
A. 100 B. 175 C. 200 D. 300

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10. If the range of a set of scores is 14 and the lowest is 7, what is the highest score?
A. 7 B. 14 C. 21 D. 24

For items 11 to 15, use the problem below:

A shoe store wants to find out the performance sales of its two branches for the
last five months. The table shows its monthly sales in thousands of pesos.

Shoe
Sizes 5 5.5 6 6.5 7 7.5 8 8.5 9 10
(in)
Branch
18 15 25 17 18 4 15 12 6 11
A
Branch
20 20 18 19 19 19 16 12 10 10
B

11. What are the average sale of Branch A and B, respectively?

A. 14, 16 B. 15, 18 C. 17, 19 D. 18, 25
12. What is the range of Branch A and B, respectively?
A. 4, 25 B. 10, 20 C. 21, 10 D. 25, 20
13. Which has a greater standard deviation?
A. Branch A B. Branch B
B. Both A and B D. Cannot be determined
14. Which branch has the lowest standard deviation?
A. Branch A B. Branch B
B. Both A and B D. Cannot be determined
15. Which store is consistently performing?
A. Branch A has consistent sales since it has the lowest standard deviation.
B. Branch B has consistent sales since it has the lowest standard deviation.
C. Branch A has consistent sales since it has the highest standard deviation.
D. Branch B has consistent sales since it has the highest standard deviation.

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Lesson Analyze and Interprets Data Using
Measures of Central Tendency and
1 Variability

What I Need to Know

At the end of this lesson, you are expected to:

• define measures of central tendency;
• differentiate mean from median and mode;
• find the mean, median and mode of ungrouped data.

What’s In

Importance of Mean, Median & Mode

In Business- It helps to make swift decisions by providing useful

information about customer trends and variations.
In Mathematics- It helps in describing measurements and
providing accuracy of theories.
In Economics- It helps to find relationship between two variables
like demand and supply, cost and revenue, imports and exports. It
also helps to establish inflation rate, per capita income, and income
distribution.
Source: [Link]

What’s New

According to Columbia
University Summation or sigma
notation Summation or sigma notation
is a convenient and simple form of
shorthand used to give a concise
expression for a sum of the values of a
variable.

The symbol at the right can be

read as “the summation of x sub i as i
Figure 1: Single Summation Notation starts from 1 to N”

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 What Is It

Let us consider the problem below:

Two groups of sales representatives submitted their shoe sales report on the first
quarter of 2020.
Question 1: Which group has a better overall performance?
Question 2: What is the middle number of shoe sales of Group 1? Of Group 2?
Question 3: What is the most common number of shoe sales of the whole group?

Group 1 Anna Bea Carl Dino Era Fely Gino

No. of
32 25 40 28 22 33 32
Cars

Group 2 Pia Ken Chel Stella Tina Micah Vico

No. of
40 26 33 40 31 34 25
Cars

Measure of Central Tendency refers to a single score or value that can best describe a
given set of observation.

There are three ways of getting the measure of central tendency: Mean, Median
and Mode.
Question 1: Which group has a better overall performance?
To determine the group who performed better, we need to get the means of both
groups. Mean is the average of a given set of data obtained by dividing the sum of all
the scores by the number of observations.

Solution:

Mean of Group 1 Mean of Group 2

Based on the computation, the average sales of group 1 and group 2 are 30 and 34
respectively. Therefore, group 1 performs better than group 2 based on their means with
a difference of 4.

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Question 2: What is the middle number (Median) of shoe sales of Group 1? Of Group
2?
To answer this question, we need to look for the median of the sales of each group.
Median is the middlemost score of a given set of data if arranged in either ascending or
descending order. It divides the set of data into two sets with the same number of
frequencies.

Solution:
Step 1: Arrange the score in ascending order (lowest to highest).
Step 2: Look for the middlemost quantity,this is your the median.

Group 1: 22, 25, 28, 32, 32, 33, 40

Group 2: 24,25, 26, 31, 33, 40, 40

The 4th data or middle quantity or also called the median of Group 1 is 32 while for
Group 2 is 31. At most, 50% of the entries are below and above the median.

But, with an even number of data, we may find a middle pair of numbers. To find the
exact median we will find the median by adding them together and dividing it by two.

Let us take the example:

What is the median of the scores 8,16,9,5,12,10?

Step 1: Arrange the scores in ascending order.

5,8,9,10,12,16
Step 2: Count the number of data. Since there are only 6 scores, the middle
most score is between the 3rd and 4th score.
3rd score

5,8,9,10,12,16

4th score

Step 3: Add the 3rd and 4th scores of these data and divide them by 2 to get 9.5.
This is your median.

9+10
𝑀𝑑 = = 9.5
2

Question 3: What is the most common number of shoe sales of the whole group?
For this question we are asked to find the most number of sales or the mode of
the data. Mode is the score that appears the most in a given set of data. For
ungrouped data, modal value can easily be obtained.

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Solution:
To do this, we need to tabulate the data of the two groups.

Number of Shoes Sold Number of Salesman

40 3
33 2
32 2
31 1
28 1
26 1
25 2
24 1
22 1

Three sales representatives, Carl, Pia and Stella sold the same number of shoes. Thus,
the mode of sales for shoes of the whole group is 40.

Note: We can have more than one mode. Bimodal is having two modes. Multimodal
having more than two modes. Let us take the example below.

What is the mode of the following set of observation?

a. 12,8,9,6,8,7,10,8
Ans. Since there are three 8’s, the mode is 8.

b. 5,6,1,6,9,7,5,4
Ans. In this example there are two 5’s and two 6’s; hence, the modes are 5
and 6. The set of data is bimodal.
c. 4,9,11,13,10
Ans. In this example all observations appear once; hence, there is no
mode.

What I Need to Remember

Measures of central tendency help you find the middle or the average of
a data set. The 3 most common measures of central tendency are the
mode, median and mean.

• Mode is the most frequent value.

• Median is the middle number in an ordered data set.
• Mean is the sum of all values divided by the total number of values.

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 What’s More

Activity 1.1: NOW IT’S YOUR TURN!

A. Modified True or False: Determine whether the statement is true or false. If it is
false, change the underline term to make it true. Write your answer on a separate sheet
of paper.

________1. The median is the measure of central tendency most likely to be affected by
extreme value.
________2. The mode is used to look for the lowest count.
________3. The mean can be affected by extreme scores.
________4. The mean is used to tell us the most popular category.
________5. Median is the middle value when data is ordered from low to high.

B. Problem-Solving: Given the problem below, answer what is being asked for. Write
your answer on a separate sheet of paper.

Problem:
Ice cream is a popular dessert for all ages. A group of business students made
a survey on the cost of one-liter ice cream the 14 consumers usually buy. The data are
presented below but vary because of the brands and flavors.

234 297
300 285
312 312
287 234
287 257
312 285
285 297

1) complete the table; and

2) find the mean, median and mode and interpret the data.

Cost of Ice Cream per Liter No. of Consumer

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 Measures of Variation:
Lesson Range, Standard Deviation
2 and Variance

What I Need to Know

At the end of this lesson, you are expected to:

• define each type of the measures of variation;
• calculate the range, standard deviation and variation.

What’s In

Figure 2
Summary of Measures

The measures of central tendency help a researcher to determine the

typical score or the category of the distribution in question. The measures of
variability represent numbers that describe the variability of the variable in the
distribution.
Measures other than the mean may provide additional information about
the same data. These are the measures of variability.

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 What’s New

According to (Lopez, BR, 2016) measures of variability is a statistic that

describes the amount of dispersion within a set of data. It describes how much
the values of the data set are spread and its discrepancy or difference between
the data.

Standard deviation is the principal square root of the variance. It

measures the difference between the mean and each data point. A smaller
standard deviation means that the values of a data set are closely
grouped. On the other hand, a larger standard deviation indicates
that the values are spread out more, hence the standard distance is
greater.

Variance is the average of the square of the difference between values

from their mean. Most business firms measure the variance. For instance, a
budget variance is a discrepancy between the predicted cost and revenue in a
given account. They need to keep the “discrepancy or difference” small.
Range is the easiest measure of variability to use. It is the difference
between the data set's largest value and the smallest value. If the data set has
a wide range, it means that such a data set has high variability and vice
versa. A range is also affected by the size of the data set. The larger the
sample size, the more chances of obtaining the extreme values.

What Is It

To understand better measures of variability, let us take the example

below. The table shows the daily earnings from sales of two sari-sari stores.

Daily Earnings
of Sari-Sari 10 380 0 20 390 400 200
200
Store M
Daily Earnings
of Sari-Sari 199 200 200 195 210 201 190 205
Store P

Based on the given data, let us answer the following questions:

1. What is the mean, median and mode for the daily earnings from sales of Sari-
Sari store M?

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 Solutions for Mean

Solution for Median:

Arrange the numbers in
0,10,20,200,200,380,390,400 ascending order

Since N is even, we get the

average of the two middle
most sales

Solution for Mode:

Since 200 appeared twice, the Mode for Store M is 200.

2. What is the mean, median and mode for the daily earnings from sales of Sari-Sari
store P?
Solution for Mean:

Solution for Median:

Arrange the numbers in
190,195,199,200,200, 201, 205,210 ascending order

Since N is even, we get the

average of the two middle
most sales

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Solution for Mode:

Since 200 appeared twice, so the Mode for Store P is 200.

3. Compare the computed averages of the daily earnings from sales of Sari-Sari stores
M and P?

Both stores have the same mean, median and mode in terms of the daily earnings
from sales, that is 200 pesos.

4. Which of the stores has more consistent daily earnings? Why?

There are instances that using the measures of central tendency are not adequate
to describe which stores have better sales. Other measures are needed to describe data.
In this problem, we will be using the measures of variability.

Solutions:

1) First, we may use the Range, which is the difference between the largest and smallest
value.

The range of Store M is bigger compare to store P, we can say that Store M has a wide
range of variability in terms of the daily earnings. Thus, we can say that the store
earnings is not consistent compared to Store P that has smaller range.

2) Second, we may use Variance (𝑠2 ). It is the average of the squared deviation of every
score from the mean. The formula is:
where:

∑𝑁 ̅ 2
𝑖=1(𝑥1 − 𝑋 )
2
𝑠 =
𝑁−1

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Solution:
Variance for Store M:

Daily Earnings 𝑥𝑖 − 𝑋̅ ̅̅̅2

(𝑥𝑖 − 𝑋)
200 200-200=0 0
10 -190 36100
380 180 32400
0 -200 40000
20 -180 32400
390 190 36100
400 200 40000
200 0 0
TOTAL 217000

Using the formula for variance:

Variance for Store P:

Daily Earnings 𝑥𝑖 − 𝑋̅ (𝑥𝑖 − ̅̅̅

𝑋)2
199 -1 1
200 0 0
200 0 0
195 -5 25
210 10 100
201 1 1
190 -10 100
205 5 25
TOTAL 252

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3) Lastly, find the Standard Deviation.

Let us compare the standard deviation (s) of both stores using the formula:

Solution:

Standard Deviation for Store M Standard Deviation of Store P

The standard deviation of Store P is relatively small compared to Store M. It

means that the there is a small discrepancy of the daily earnings to its mean. Thus, we
can say that Store P is more consistent in its daily earnings.

What’s More

Activity 2.1: Which Company is Better?

Instruction: Based on the table below, which of the two companies is more
consistent in terms of payment of dividend? Support your answer using the
measures of variability.

Dividend
paid by
6 18 15 7 4 8 9 6
Company
M
Dividend
paid by
6 15 12 10 10 8 5 9
Company
P

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 What I Need to Remember

Measure of Variability:
Standard deviation is a standard difference between the mean and
each data point. A smaller standard deviation means that the values of a
data set are closely grouped. On the other hand, a larger standard
deviation indicates that the values are spread out more hence the standard
distance is greater.
Variance is an average square of the difference between values from their
mean.
Range is the difference between the data set's largest value and the
smallest value. If the data set has a wide range, it means that such a data
set has high variability and vice versa.

What I Can Do

Activity 2.3:
Instruction:

1. Conduct a survey from your FB friends about an information you like to know about
them. You may choose one (1) of these categories: height, weight, study hours or time
spent using gadgets.

2. From the gathered information, present the information on a table, then compute for
the measures of central tendency, range, variance and standard deviation of the data.

3. Give your analysis of the data in 3-5 sentences only.

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 Assessment (Post Test)

Direction: Read each item carefully then answer what is being asked for. Write the
letter of the correct answer on a separate sheet.

1. The three commonly used in measures of central tendency are mean, median and
mode. Which of the following statements is TRUE?

A. It will always have the same value.

B. It is always defined as the average.
C. It will always have the same order, the mean will have the highest value,
followed by median and the mode.
D. The middle value of the distribution when data are organized from lowest to
highest is called the median.

2. The observation which occurs most frequently in a sample is the _____________.

A. Mean B. Median C. Mode D. Range

3. Is the statement “the mean can be affected by extreme scores” true?

A. True B. False C. Maybe D. Cannot be determined.

4. The purpose of measures of central tendency is to describe what value of a

distribution of scores is _________________.
A. the most typical or representative.
B. the most significant.
C. the most unexpected.
D. all the above.

5. The mode measures in terms of the most _____________ score.

A. average B. common C. central D. important

6. The median is the score of the middle case when the number of cases is__________.
A. even B. less than C. more than D. odd

For items 7 to 9, use the problem below:

Ten people gave contributions in pesos 150, 275, 150, 300, 500, 600, 200, 150,
100, and 100, for a door prize.

7. What is the average contribution of the ten people?

A. 100 B. 155 C. 252 D. 275
8. What is the median contribution?
A. 100 B. 150 C. 175 D. 200
9. What is the mode of the set of contributions?
A. 100 B. 150 C. 200 D. 300

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For items 11 to 15, use the problem below:
A shoe store wants to find out the performance sales of its two branches for the
last five months. The table shows the monthly sales in thousands of pesos.
Shoe
Sizes 5 5.5 6 6.5 7 7.5 8 8.5 9 10
(in)
Branch
18 20 25 17 16 10 15 12 10 11
A
Branch
18 20 20 19 19 19 16 12 12 10
B

11. What are the average sales of Branch A and B, respectively?

A. 14, 16 B. 15, 17 C. 17, 19 D. 18, 25

12. What is the range of Branch A and B, respectively?

A. 4, 25 B. 10, 20 C. 15, 10 D. 25, 20

13. Which has a greater standard deviation?

A. Branch A C. Branch B
B. Both A and B D. Cannot be determined

14. Which branch has the lowest standard deviation?

A. Branch A B. Branch B
B. Both A and B D. Cannot be determined

15. Which store is consistently performing?

A. Branch A has consistent sales since it has the lowest standard deviation.
B. Branch B has consistent sales since it has the lowest standard deviation.
C. Branch A has consistent sales since it has the highest standard deviation.
D. Branch B has consistent sales since it has the highest standard deviation.

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References

BOOKS

Lopez, Brian Roy C. Business Mathematics Textbook. Quezon City: Vibal Group, Inc.
2016.

Solano, Dr. Irene P. "Business Math." In Business Math, by Denmark C. Alarcon Dr.
Irene P. Solano. Makati City,Philippines: Diwa Learning Systems,Inc, 2016.

ONLINE SOURCES

Math Problem- Solving Rubric. Accessed December 14, 2020.

[Link]

Summation Notation -Columbia University. Accessed December 12, 2020.

[Link]

ONLINE SOURCES

Image source 1: [Link]

Image Source 2: [Link]
Image source 3: [Link]

Congratulations!
You are now ready for the next module. Always remember the following:

1. Make sure every answer sheet has your

▪ Name
▪ Grade and Section
▪ Title of the Activity or Activity No.
2. Follow the date of submission of answer sheets as agreed with your teacher.
3. Keep the modules with you AND return them at the end of the school year or
whenever face-to-face interaction is permitted.

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