Professional Documents
Culture Documents
3: Business Statistics
Mohammad Arman, Ph.D.
North South University
Slide 1
Non Graphical Descriptive Statistics
Slide 2
Non Graphical Descriptive Statistics
n Measures of Location
n Measures of Variability
n Measures of Relative Location and Detecting
Outliers
n Measures of Association Between Two Variables
n The Weighted Mean
x
Slide 3
Measures of Location
n Mean
n Median
n Mode
n Percentiles
n Quartiles
Slide 4
Example: Apartment Rents
Slide 5
Mean
xi
x
n
n If the data are from a population, the mean is denoted by
m (mu)
xi
N
Slide 6
Example: Apartment Rents
n Mean
xi 34 , 356
x 490.80
n 70
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440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Slide 7
Median
Slide 8
Median
Slide 9
Example: Apartment Rents
n Median
Median = 50th percentile
i = (p/100)n = (50/100)70 = 35.5
Averaging the 35th and 36th data values:
Median = (475 + 475)/2 = 475
425 430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Slide 10
Mode
Slide 11
Example: Apartment Rents
n Mode
450 occurred most frequently (7 times)
Mode = 450
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440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Slide 12
Percentiles
Slide 13
Percentiles
Slide 14
Example: Apartment Rents
n 90th Percentile
i = (p/100)n = (90/100)70 = 63
Averaging the 63rd and 64th data values:
90th Percentile = (580 + 590)/2 = 585
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440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Slide 15
Quartiles
Slide 16
Example: Apartment Rents
n Third Quartile
Third quartile = 75th percentile
i = (p/100)n = (75/100)70 = 52.5 = 53
Third quartile = 525
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440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Slide 17
Measures of Variability
Slide 18
Measures of Variability
n Range
n Interquartile Range
n Variance
n Standard Deviation
n Coefficient of Variation
Slide 19
Range
Slide 20
Example: Apartment Rents
n Range
Range = largest value - smallest value
Range = 615 - 425 = 190
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440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Slide 21
Interquartile Range
Slide 22
Example: Apartment Rents
n Interquartile Range
3rd Quartile (Q3) = 525
1st Quartile (Q1) = 445
Interquartile Range = Q3 - Q1 = 525 - 445 = 80
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440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Slide 23
Variance
Slide 24
Variance
( x ) 2
2 i
N
Slide 25
Standard Deviation
Slide 26
Coefficient of Variation
Slide 27
Example: Apartment Rents
n Variance
2
s ( xi x ) 2
2 , 996.16
n 1
n Standard Deviation
s s2 2996. 47 54. 74
n Coefficient of Variation
s 54. 74
100 100 11.15
x 490.80
Slide 28
Measures of Relative Location
and Detecting Outliers
n z-Scores
n Chebyshev’s Theorem
n Empirical Rule
n Detecting Outliers
Slide 29
z-Scores
Slide 30
Example: Apartment Rents
Slide 31
Chebyshev’s Theorem
Slide 32
Example: Apartment Rents
n Chebyshev’s Theorem
Slide 33
Example: Apartment Rents
Slide 34
Empirical Rule
Slide 35
Empirical Rule
Slide 36
Empirical Rule
Slide 37
Example: Apartment Rents
n Empirical Rule
Interval % in Interval
Within +/- 1s 436.06 to 545.54 48/70 = 69%
Within +/- 2s 381.32 to 600.28 68/70 = 97%
Within +/- 3s 326.58 to 655.02 70/70 = 100%
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440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Slide 38
Detecting Outliers
Slide 39
Example: Apartment Rents
n Detecting Outliers
The most extreme z-scores are -1.20 and 2.27.
Using |z| > 3 as the criterion for an outlier,
there are no outliers in this data set.
Standardized Values for Apartment Rents
-1.20 -1.11 -1.11 -1.02 -1.02 -1.02 -1.02 -1.02 -0.93 -0.93
-0.93 -0.93 -0.93 -0.84 -0.84 -0.84 -0.84 -0.84 -0.75 -0.75
-0.75 -0.75 -0.75 -0.75 -0.75 -0.56 -0.56 -0.56 -0.47 -0.47
-0.47 -0.38 -0.38 -0.34 -0.29 -0.29 -0.29 -0.20 -0.20 -0.20
-0.20 -0.11 -0.01 -0.01 -0.01 0.17 0.17 0.17 0.17 0.35
0.35 0.44 0.62 0.62 0.62 0.81 1.06 1.08 1.45 1.45
1.54 1.54 1.63 1.81 1.99 1.99 1.99 1.99 2.27 2.27
Slide 40
Measures of Association
Between Two Variables
n Covariance
n Correlation Coefficient
Slide 41
Covariance
Slide 42
Covariance
( xi x )( yi y )
xy
N
Slide 43
Correlation Coefficient
xy
xy
x y
Slide 45
Weighted Mean
x = wi xi
wi
where:
xi = value of observation i
wi = weight for observation i
Slide 46
Grouped Data
Slide 47
Mean for Grouped Data
n Sample Data
x
fMi i
f i
n Population Data
fMi i
N
where:
fi = frequency of class i
Mi = midpoint of class i
Slide 48
Example: Apartment Rents
Slide 50
Thanks
Courtesy: Statistics for Business and Economics,.
David R. Anderson, Dennis J. Sweeney,. and Thomas A. Williams
Slide 51