STATISTICS

Measures of Central Tendency

Measures of Dispersion
Measures of Relative Location
 STATISTICS – a science of classifying and interpreting numerical information.

MEASURES OF CENTRAL TENDENCY

MEAN – or the arithmetic mean, is obtained by getting the sum of all the values in a given set of
data and dividing by the number of observations in that set
∑ =1 1 + 2 + 3 +…+
¯= = = (sample)

∑ =1 + + +…+
¯ = = = 1 2 3
(population)

Example:
Compute the mean of a given set of a sample data having the values 10, 12, 8, 4 and 4.
Solution:
5
∑ =1 1 + 2 + 3 + 4 + 5 10 + 12 + 8 + 4 + 4
¯= = = = 7.6
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 MEDIAN
Case 1: Odd number of observations
Given a set of numbers which are arranged in an increasing or decreasing order, the median is
simply the middle value.
Example: Find the median of the set of numbers in the above example.
Solution: Arrange first in increasing (or decreasing order)
4 4 8 10 12 Ans. ~ = 8
Case 2: Even number of observations
Given a set of numbers arranged in ascending or descending order of magnitude, the median
is the arithmetic mean of the two middle values.
Example: Find the median for the set of numbers 9, 12, 15, 9, 8, and 14
Solution: Arranging in increasing order, we have 8 9 9 12 14 15
~ = 9 + 12 or ~ = 10.5
2
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MODE – that value which occurs with the greatest frequency

Example: Find the mode of the given set of data in the above example
Ans. 9

Example: Find the mode of the given set of observations

6.1, 4.9, 8.3, 4.9, 10.0, 3.1, and 8.3
Ans. 4.9 and 8.3

Example: Find the mode of the given set of observations

7, 11, 5, 12, 9, 8
Ans. none
 MEASURES OF DISPERSION
Range or R – the difference between the highest and the lowest values in a set
Example: Find the range in the example above.
Solution : R = 12 -5 = 7

Variance

( − ¯)
2
2
= (sample)
−1
( − )
2
¯
2
= (population)

Example: Find the sample variance for the set of data give in the first example, i.e.,
4 4 8 10 12
Solution: The mean was already computed as ¯ = 7.6 . In computing the variance of a given sample
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or population it is more convenient if we present it in tabular form.
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 ( − ¯)
2
−¯
4 -3.6 12.96
4 -3.6 12.96
8 0.4 0.16
10 2.4 5.76
12 4.4 19.36
Σ=51.2
2 51.2
= = 12.8
5−1

Standard Deviation, s or σ – the square root of the variance

In the above example,
2
s= = 12.8 = 3.58
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 Measures of Relative Location

Fractiles/Quantiles – are values below which a specific fraction or percentage of

the observations in a given set must fall.

Percentiles – are values that divide a set of observations into 100 equal parts.
These values denoted by 1, 2, . . . , 99, are such that 1% of the data falls below
1, 2% falls 2, . . . , and 99% falls below 99.
Deciles – are values that divide a set of observations into 10 equal parts. These
values denoted by 1, 2, . . . , 9, are such that 10% of the data falls below 1,
20% falls 2, . . . , and 90% falls below 9.
Quartiles – are values that divide a set of observations into 4 equal parts. These
values denoted by 1, 2, and 3, are such that 25% of the data falls below 1,
50% falls 2, and 75% falls below 3.
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 Initial Computations
Let be the number of observations and , ⅆ, be the quantile of interest (the subscripts).

( 100 )
= ⋅

( 10 )
= ⋅

(4)
= ⋅

Arrange the observations in increasing order first.

Case 1: Computed value is not a whole number or is a decimal number → Round UP to the nearest
integer. Take that observation.
Case 2: Computed value is a whole number → Take the average of that observation and the next
observation.
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 Example: Given a set of observations 11, 13, 16, 7, 16, 21, 9, 18. Find 77, 5, and 1.
After arranging in increasing order, we have 7 9 11 13 16 16 18 21

( 100 ) ( 100 )
77
• = ⋅ =8⋅ = 6.16 (decimal number) → round up to 7

Take the 7th observation.

Ans. 77 = 18

( 10 ) ( 10 )
5
= ⋅ =8⋅ = 4 (whole number)

13 + 16
Take the 4th and 5th observations and get their average, i.e., = 14.5
2
Ans. 5 = 14.5

(4) (4)
1
= ⋅ =8⋅ = 2 (whole number)

9 + 11
Take the 2nd and 3rd observations and get their average, i.e., = 10
2
Ans. 1 = 10
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The Standard Normal Distribution
– the normal distribution that has a mean of 0 and a standard deviation of 1

Properties:
1. The curve is symmetrical with respect to the mean.
2. The total area under the curve is equal to 1.
3. The curve is asymptotic to the z-axis.
4. The mean, median and mode are all equal along the axis of symmetry.