Technical University of Mombasa

COURSE TITLE: BASIC SOCIAL STATISTICS

COURSE CODE: HSO 4104
LESSON 1

INTRODUCTION

INTRODUCTION

Purpose

To introduce the student to the world of statistics and to acquaint them with the role of
statistics in Business.

Objectives

1) Define statistics and explain its uses.

2) Define Business Statistics
3) State limitations of statistics.
4) Explain why statistics is distrusted.
5) Distinguish between descriptive and inferential statistics.
6) Explain the types of variables.
7) State the levels and scales of measurement

1.1 What is Statistics?

The word 'statistics' is defined by Croxton and Cowden as follows:-

"The collection, presentation, analysis and interpretation of the numerical data."

This definition clearly points out four stages in a statistical investigation, namely:

1) Collection of data 2) Presentation of data

3) Analysis of data 4) Interpretation of data

In addition to this, one more stage i.e. organization of data is suggested

Definition:
Social statistics is the science of good decision making in the face of uncertainty and
is used in many disciplines such as sociology, psychology financial analysis,
econometrics, auditing, production and operations including services improvement, and
marketing research..

1.2 Uses of Statistics

1. To present the data in a concise and definite form: Statistics helps in classifying
and tabulating raw data for processing and further tabulation for end users.
2. To make it easy to understand complex and large data: This is done by presenting
the data in the form of tables, graphs, diagrams etc., or by condensing the data
with the help of means, dispersion etc.
3. For comparison: Tables, measures of means and dispersion can help in
comparing different sets of data..
4. In forming policies: It helps in forming policies like a production schedule, based
on the relevant sales figures. It is used in forecasting future demands.
5. Enlarging individual experiences: Complex problems can be well understood by
statistics, as the conclusions drawn by an individual are more definite and precise
than mere statements on facts.
6. In measuring the magnitude of a phenomenon:- Statistics has made it possible to
count the population of a country, the industrial growth, the agricultural growth,
the educational level (of course in numbers)

1.3 Limitations of Statistics

1. Statistics does not deal with individual measurements. Since statistics deals with
aggregates of facts, it cannot be used to study the changes that have taken place
in individual cases. For example, the wages earned by a single industry worker at
any time, taken by itself is not a statistical datum. But the wages of workers of
that industry can be used statistically. (2) class marks
 2. Statistics cannot be used to study qualitative phenomenon like morality,
intelligence, beauty etc. as these cannot be quantified.
3. Statistical results are true only on an average:- The conclusions obtained
statistically are not universal truths. They are true only under certain conditions.
This is because statistics as a science is less exact as compared to the natural
science.
4. Statistical data, being approximations, are mathematically incorrect. Therefore,
they can be used only if mathematical accuracy is not needed.
5. Statistics, being dependent on figures, can be manipulated and therefore can be
used only when the authenticity of the figures has been proved beyond doubt..

1.3 Distrust of Statistics

A Paris banker said, "Statistics is like a miniskirt, it covers up essentials but gives you
the ideas."

The term distrust of statistics mean lack of confidence in statistical statements and
methods.

The following reasons make statistics vulnerable to manipulations.

1. Figures are convincing and, therefore people easily believe them.

2. They can be manipulated in such a manner as to establish foregone conclusions.
3. The wrong representation of even correct figures can mislead a reader. For
example, John earned Ksh 400,000 in 1990 - 1991 and Jane earned Ksh
500,000. Reading this one would form the opinion that Jane is decidedly a better
worker than John. However if we carefully examine the statement, we might
reach a different conclusion as Jane’s earning period is unknown to us. Thus
while working with statistics one should not only avoid outright falsehoods but be
alert to detect possible distortion of the truth.

1.4 Types of Statistics

Broadly speaking, statistics may be divided into two categories, ie descriptive and
inferential statistics.

In most research conducted on groups of people, you will use both descriptive and
inferential statistics to analyze your results and draw conclusions.

1.4.1 Descriptive Statistics

Descriptive statistics is the term given to the analysis of data that helps describe, show
or summarize data in a meaningful way such that, for example, patterns might emerge
from the data. Descriptive statistics do not, however, allow us to make conclusions
beyond the data we have analyzed or reach conclusions regarding any hypotheses we
might have made. They are simply a way to describe our data.

Descriptive statistics allow us to present data in a more meaningful way which allows
simpler interpretation of the data. For example, if we had the results of 100 pieces of
students' coursework, we may be interested in the overall performance of those
students. We would also be interested in the distribution or spread of the marks.
Descriptive statistics allow us to do this. There are two general types of statistic that are
used to describe data:

• Measures of central tendency: these are ways of describing the central position of
a frequency distribution for a group of data.
• A frequency distribution is a table used to describe a data set. It lists intervals or
ranges of data values called data classes together with the number of data values
from the set that are in each class.
• The three common measures of central tendency are the :
• Mean
• Median
• mode
• Measures of spread or variation: these are ways of summarizing a group of data
by describing how spread out the scores are.
• Spread or variation in data set is the amount of difference between data values.
 • The common measures of spread are:

• Range
• Quartiles
• Absolute deviation
• variance
standard deviation.

• When we use descriptive statistics it is useful to summarize our group of data

using a combination of tabulated description (i.e. tables), graphical description
(i.e. graphs and charts) and statistical commentary (i.e. a discussion of the
results).

1.4.2 Inferential Statistics

Inferential statistics aim to make inferences from data in order to make conclusions that
go beyond the data.

inferential statistics are used to make inferences about a population from a sample in
order to make assumptions about the wider population and/or make predictions about
the future.

For example, a Board of Examiners may want to compare the performance of 1000
students that completed an examination. Of these, 500 students are girls and 500
students are boys. The 1000 students represent our "population". Whilst we are
interested in the performance of all 1000 students, girls and boys, it may be impractical
to examine the marks of all of these students because of the time and cost required to
collate all of their marks. Instead, we can choose to examine a "sample" of these
students and then use the results to make generalizations about the performance of all
1000 students. For the purpose of our example, we may choose a sample size of 200
students. Since we are looking to compare boys and girls, we may randomly select 100
girls and 100 boys in our sample. We could then use this, for example, to see if there are
any statistically significant differences in the mean mark between boys and girls, even
though we have not measured all 1000 students.

1.5 Common Mistakes Committed In Interpretation of Statistics

1. Bias: - Bias means prejudice or preference of the investigator, which creeps in

consciously and unconsciously in proving a particular point.
2. Generalization:- Some times on the basis of little data available one could jump to
a conclusion, which leads to erroneous results.
3. Wrong conclusion:- The characteristics of a group if attached to an individual
member of that group, may lead us to draw absurd conclusions.
4. Incomplete classification:- If we fail to give a complete classification, the
influence of various factors may not be properly understood.
5. There may be a wrong use of percentages.
6. Technical mistakes may also occur.
7. An inconsistency in definition can even exist.
8. Wrong causal inferences may sometimes be drawn.

Core text
S.P Gupta (2004): Introduction to statistical methods 23rd-ed: vikas publishing house
New Delhi
2. Futher reading
• Saleemi N.A (1997), Statistics Simplified Reprinted January 2011: Nairobi, Saleemi
Publication limited.

• Saleemi N.A (1992), Quantitative Techniques: Nairobi, Saleemi Publication limited.

LESSON TWO

Basic statistical concepts

Population
Refers to the complete set of observations of a given characteristics of interest.
(The universe )

Sample

Is a subset of a population. Its either representative or non representative

Individual or objects where the characteristic of interest is being observed or

interviewed are referred to as elementary units

The whole list of elementary list is known as sampling

list Census

This is a study where all the elements in the sampling frame are included in the
survey

If only a fraction of sampling frame is considered such a study is known as

sample survey

Parameter

It’s a summary measure of a population

Statistic

A summary measure of a sample

Statistics

The collection, presentation, analysis and interpretation of the numerical data.

This definition clearly points out four stages in a statistical investigation, namely:

1) Collection of data 2) Presentation of data

3) Analysis of data 4) Interpretation of data

1.2 Uses of Statistics

• To present the data in a concise and definite form : Statistics

helps in classifying and tabulating raw data for processing and
further tabulation for end users.

• To make it easy to understand complex and large data : This

is done by presenting the data in the form of tables, graphs,
 diagrams etc., or by condensing the data with the help of means,
dispersion etc.

• For comparison: Tables, measures of means and dispersion

can help in comparing different sets of data..

• In forming policies: It helps in forming policies like a

production schedule, based on the relevant sales figures. It is used
in forecasting future demands.

• Enlarging individual experiences: Complex problems can be

well understood by statistics, as the conclusions drawn by an
individual are more definite and precise than mere statements on
facts.

• In measuring the magnitude of a phenomenon:- Statistics

has made it possible to count the population of a country, the
industrial growth, the agricultural growth, the educational level (of
course in numbers)

1.3 Limitations of Statistics

• Statistics does not deal with individual measurements. Since

statistics deals with aggregates of facts, it cannot be used to study
the changes that have taken place in individual cases. For example,
the wages earned by a single industry worker at any time, taken by
itself is not a statistical datum. But the wages of workers of that
industry can be used statistically. (2) class marks

• Statistics cannot be used to study qualitative phenomenon

like morality, intelligence, beauty etc. as these cannot be quantified.

• Statistical results are true only on an average:- The

conclusions obtained statistically are not universal truths. They are
true only under certain conditions. This is because statistics as a
science is less exact as compared to the natural science.
 • Statistical data, being approximations, are mathematically
incorrect. Therefore, they can be used only if mathematical
accuracy is not needed.

• Statistics, being dependent on figures, can be manipulated

and therefore can be used only when the authenticity of the figures
has been proved beyond doubt..

1.4 Common Mistakes Committed In Interpretation of Statistics

• Bias: - Bias means prejudice or preference of the

investigator, which creeps in consciously and unconsciously in
proving a particular point.

• Generalization:- Some times on the basis of little data

available one could jump to a conclusion, which leads to erroneous
results.

• Wrong conclusion:- The characteristics of a group if attached

to an individual member of that group, may lead us to draw absurd
conclusions.

• Incomplete classification:- If we fail to give a complete

classification, the influence of various factors may not be properly
understood.

• There may be a wrong use of percentages.

• Technical mistakes may also occur.

• An inconsistency in definition can even exist.

• Wrong causal inferences may sometimes be drawn.

1.6 variable

A variable is a characteristic of interest e.g object or individual that can be

quantified
If immeasurable the character if interest is known as an attribute

1.6 Types of Variables

1.6.1 Discrete Variable

A discrete variable It is a variable that can only increase or decrease by full

number not by fraction e.g 1, 2, 3, 4, and 5
1.6.2Continuous Variable

A variable that can theoretically assume an infinite number of values between

any two points.

e.g Height

1.7 Scales of measurement

Measurement refers to assigning numbers to objects according a set of rules

1.7.1 Nominal Scale

Nominal measurement consists of assigning items to groups or categories. No

quantitative information is conveyed and no ordering of the items is implied.
Nominal scales are therefore qualitative rather than quantitative. Religious
preference, race, and sex are all examples of nominal scales. Frequency
distributions are usually used to analyze data measured on a nominal scale. The
main statistic computed is the mode. Variables measured on a nominal scale are
often referred to as categorical or qualitative variables.

1.7.2 Ordinal Scale

Measurements with ordinal scales are ordered in the sense that higher numbers
represent higher values. However, the intervals between the numbers are not
necessarily equal. For example, on a five-point rating scale measuring attitudes
toward gun control, the difference between a rating of 2 and a rating of 3 may not
represent the same difference as the difference between a rating of 4 and a rating
of 5. There is no "true" zero point for ordinal scales since the zero point is chosen
arbitrarily. The lowest point on the rating scale in the example was arbitrarily
chosen to be 1. It could just as well have been 0 or -5.
1.7.3 Interval Scale

On interval measurement scales, one unit on the scale represents the same
magnitude on the trait or characteristic being measured across the whole range of
the scale. For example, if anxiety were measured on an interval scale, then a
difference between a score of 10 and a score of 11 would represent the same
difference in anxiety as would a difference between a score of 50 and a score of
51. Interval scales do not have a "true" zero point, however, and therefore it is not
possible to make statements about how many times higher one score is than
another. A good example of an interval scale is the Fahrenheit scale for
temperature. Equal differences on this scale represent equal differences in
temperature, but a temperature of 30 degrees is not twice as warm as one of 15
degrees.

1.7.4 Ratio Scale

Ratio scales are like interval scales except they have true zero points. A good
example is the Kelvin scale of temperature. This scale has an absolute zero. Thus,
a temperature of 300 Kelvin is twice as high as a temperature of 150 Kelvin.

Core text
S.P Gupta (2004): Introduction to statistical methods 23rd-ed: vikas publishing house
New Delhi
2. Futher reading
• Saleemi N.A (1997), Statistics Simplified Reprinted January 2011: Nairobi, Saleemi
Publication limited.

• Saleemi N.A (1992), Quantitative Techniques: Nairobi, Saleemi Publication limited.

LESSON 3

CHAPTER 3

COLLECTION OF DATA

For any statistical enquiry, the basic objective is to collect facts and figures
relating to a particular phenomenon for further statistical analysis The process of
counting, enumeration or measurement together with systematic recording of
results is called collection of statistical data

Data types

2.1 Primary and Secondary Data

Primary data is data that you collect yourself using such methods as:

• questionnaires

• interviews

• focus group interviews

• observation

• case-studies

• diaries
 • critical incidents

The primary data, which is generated by the above methods, may be qualitative in
nature (usually in the form of words) or quantitative (usually in the form of
numbers or where you can make counts of words used

2.2.1 Questionnaires

Questionnaires are a popular means of collecting data, but are difficult to design
and often require many rewrites before an acceptable questionnaire is produced.

Advantages:

• Can be used as a method in its own right or as a basis for

interviewing or a telephone survey.

• Can be posted, e-mailed or faxed.

• Can cover a large number of people or organisations.

• Wide geographic coverage.

• Relatively cheap.

• No prior arrangements are needed.

• Avoids embarrassment on the part of the respondent.

• Respondent can consider responses.

• Possible anonymity of respondent.

• No interviewer bias.

Disadvantages:

• Design problems.
 • Questions have to be relatively simple.

• Historically low response rate (although inducements may

help).

• Time delay whilst waiting for responses to be returned.

• Require a return deadline.

• Several reminders may be required.

• Assumes no literacy problems.

• No control over who completes it.

• Not possible to give assistance if required.

• Problems with incomplete questionnaires.

• Replies not spontaneous and independent of each other.

• Respondent can read all questions beforehand and then

decide whether to complete or not. For example, perhaps because it
is too long, too complex, uninteresting, or too personal

2.2.2 Interviews

Interviewing is a technique that is primarily used to gain an understanding of the

underlying reasons and motivations for people’s attitudes, preferences or
behaviour. Interviews can be undertaken on a personal one-to-one basis or in a
group. They can be conducted at work, at home, in the street or in a shopping
centre, or some other agreed location.

Personal interview

Advantages:

• Serious approach by respondent resulting in accurate

information.
 • Good response rate.

• Completed and immediate.

• Possible in-depth questions.

• Interviewer in control and can give help if there is a problem.

• Can investigate motives and feelings.

• Can use recording equipment.

• Characteristics of respondent assessed – tone of

voice, facial expression, hesitation, etc.

• Can use props.

• If one interviewer used, uniformity of approach.

• Used to pilot other methods.

Disadvantages:

• Need to set up interviews.

• Time consuming.

• Geographic limitations.

• Can be expensive.

• Normally need a set of questions.

• Respondent bias – tendency to please or impress, create

false personal image, or end interview quickly.

• Embarrassment possible if personal questions.

• Transcription and analysis can present problems –

subjectivity.
 • If many interviewers, training required.

2.2.3 Case-studies

The term case-study usually refers to a fairly intensive examination of a single

unit such as a person, a small group of people, or a single company. Case-studies
involve measuring what is there and how it got there.

Iit is historical.

It can enable the researcher to explore, unravel and understand problems, issues
and relationships.

It does not allow the researcher to argue that from one case-study the results,
findings or theory developed apply to other similar case-studies. The case looked
at may be unique and, therefore not representative of other instances

The case-study method has four steps:

• Determine the present situation.

• Gather background information about the past and key

variables.

• Test hypotheses. The background information collected will

have been analysed for possible hypotheses. In this step, specific
evidence about each hypothesis can be gathered. This step aims to
eliminate possibilities which conflict with the evidence collected
and to gain confidence for the important hypotheses. The
culmination of this step might be the development of an
experimental design to test out more rigorously the hypotheses
developed, or it might be to take action to remedy the problem.

• Take remedial action. The aim is to check that the

hypotheses tested actually work out in practice. Some action,
correction or improvement is made and a re-check carried out on
the situation to see what effect the change has brought about.
The case-study enables rich information to be gathered from which potentially
useful hypotheses can be generated.

• It can be a time-consuming process.

• It is inefficient in researching situations which are already

well structured and where the important variables have been
identified.

• They lack utility when attempting to reach rigorous

conclusions or determining precise relationships between variables

2.2.4 Diaries

A diary is a way of gathering information about the way individuals spend their
time on professional activities.

Diaries can record either quantitative or qualitative data, and in management

research can provide information about work patterns and activities.

Advantages:

• Useful for collecting information from employees.

• Different writers compared and contrasted simultaneously.

• Allows the researcher freedom to move from one

organization to another.

• Researcher not personally involved.

• Diaries can be used as a preliminary or basis for intensive

interviewing.

• Used as an alternative to direct observation or where

resources are limited.

Disadvantages:

• Subjects need to be clear about what they are being asked to

do, why and what you plan to do with the data.
 • Diarists need to be of a certain educational level.

• Some structure is necessary to give the diarist focus, for

example, a list of headings.

• Encouragement and reassurance are needed as completing a

diary is time-consuming and can be irritating after a while.

• Progress needs checking from time-to-time.

• Confidentiality is required as content may be critical.

• Analyses problems, so you need to consider how responses

will be coded before the subjects start filling in diaries.

Secondary data is collected from external sources such as:

• TV, radio, internet

• magazines, newspapers

• reviews

• research articles

• stories told by people you know

Primary data is expensive and difficult to acquire, but it's trustworthy. Secondary
data is cheap and easy to collect, but must be treated with caution.

Data Classification

The process of grouping raw data into different classes or sub classes according to
some characteristics.
The collected data, also known as raw data or ungrouped data are always in an un
organized form and need to be organized and presented in meaningful and
readily comprehensible form in order to facilitate further statistical analysis. It is,
therefore, essential for an investigator to condense a mass of data into more and
more comprehensible form.
Classification is the first step in tabulation

Objectives of Classification

• It condenses the mass of data in an easy form.

• It eliminates unnecessary details.
• It facilitates comparison and highlights the
significant aspect of data.
• It enables one to get a mental picture of the information
and helps in drawing inferences.
• It helps in the statistical treatment of the information
collected.
Types of classification:
There are four basic types of classification
• Chronological classification- Based on order of time eg
monthly , yearly etc

• Geographical classification-According to geographical

area or place
e.g population per country
• Qualitative classification- on basis of same attribute or
quality eg male and female
• Quantitative classification
classification of data according to some characteristics that can be measured such
as
height, weight, etc., For example the students of a college may be classified
according to weight
In this type of classification there are two elements
• The variable i.e. weight
• The frequency e.g. number of students in each class.
 Tabulation:
This is the process of summarizing classified or grouped data in the form of a
table so that it is easily understood and an investigator is quickly able to locate
the desired information.
A table is a systematic arrangement of classified data in columns and rows. A
statistical table makes it possible for the investigator to present a huge mass of
data in a detailed and orderly form.
Advantages of Tabulation:
1. It simplifies complex data and the data presented are
easily Understood
2. It facilitates comparison of related facts
3. It facilitates computation of various statistical measures like
averages, dispersion, correlation etc.
4. It presents facts in minimum possible space and unnecessary repetitions and
explanations are avoided.
5. Tabulated data are good for references and they make it easier to present the
information in the form of graphs and diagrams.
An ideal table should consist of the following main parts:
Table number
Title of the table
Captions or column headings
Stubs or row designation
Body of the table
Footnotes
Sources of data
DIAGRAMATIC AND GRAPHICAL REPRESENTATION
1.FREQUENCY DISTRIBUTION
It is simply a table in which the data are grouped into classes and the number of cases
which fall in each class are recorded. It shows the frequency of occurrence of different
values of a single Phenomenon
A frequency distribution is constructed for three main reasons:
1. To facilitate the analysis of data.
2. To estimate frequencies of the unknown population distribution from the distribution
of sample data
3. To facilitate the computation of various statistical measures

Forms of frequency distributions

a) Discrete (or) Ungrouped frequency distribution:

In this form of distribution, the frequency refers to discrete value. The data are
presented in a way that exact measurement of units are clearly indicated.
Each class is distinct and separate from the other class. Non-continuity from one class to
another class exist.
Data as such facts like the number of rooms in a house, the number of companies
registered in a country, the number of children in a family, etc.

How to prepare
count the number of times a particular value is repeated- the frequency of that
class.
In order to facilitate counting prepare a column of tallies.
In another column, place all possible values of variable from the lowest to the
highest.
Then put a bar (Vertical line) opposite the particular value to which it relates.
To facilitate counting, blocks of five bars are prepared and some space is left in
between each block.
count the number of bars and get frequency.
Example 1:
In a survey of 40 families in a village, the number of children per family was recorded
and the following data obtained.
1 ,0, 3, 2, 1, 5, 6, 2,
2,1,0,3,4,2,1,6
3,2,1,5,3,3,2,4
2,2,3,0,2,1,4,5
3,3,4,4,1,2,4,5
Represent the data in the form of a discrete frequency distribution.

Solution:
Frequency distribution of the number of children
Number of frequency
children
Tally marks

0 111 3

1 1111 11 7

2 1111 1111 10

3 1111 111 8

4 1111 1 6

5 1111 4

6 11 2
total 40

b) Continuous frequency distribution:

In this form of distribution refers to groups of values. This becomes necessary in the
case of some variables which can take any fractional value and in which case an exact
measurement is not possible. Hence a discrete variable can be presented in the form of a
continuous frequency distribution.

Wage distribution of 100 employees

 Weekly wages (sh) Number of workers
50-100 4
100-150 12
150-200 22
200-250 33
250-300 16
300-350 8
350-400 5
Total 100

Basic Terms
a) Class limits:
T he class limits are the lowest and the highest values that can be included in the class.
For example, take the class 30-40.The lowest value of the class is 30 and highest class is
40. The two
boundaries of class are known as the lower limits and the upper limit of the class.
The lower limit of a class is the value below which there can be no item in the class.
The upper limit of a class is the value above which there can be no item to that class. Of
the
class 60-79, 60 is the lower limit and 79 is the upper limit, i.e. in the case there can be
no value which is less than 60 or more than
79. The way in which class limits are stated depends upon the nature of the data. In
statistical calculations, lower class limit is denoted by L and upper class limit by U.
b) Class Interval:
The class interval may be defined as the size of each
grouping of data. For example, 50-75, 75-100, 100-125… are class
intervals. Each grouping begins with the lower limit of a class interval and ends at the
lower limit of the next succeeding class interval
c) Width or size of the class interval:
The difference between the lower and upper class limits is called Width or size of class
interval and is denoted by ‘ C’ .
d) Range:
The difference between largest and smallest value of the observation is called The Range
and is denoted by ‘ R’ ie
R = Largest value – Smallest value
R=L-S
e) Mid-value or mid-point:
The central point of a class interval is called the mid value or mid-point. It is found out
by adding the upper and lower limits of a class and dividing the sum by 2. (i.e.)
Midvalue = (L+ U)/2
For example, if the class interval is 20-30 then the mid-value
is (20 +30)/2

f) Frequency:
Number of observations falling within a particular class interval is called frequency of
that class.
The total frequency indicate the total number of observations considered in a frequency
distribution.
g) Number of class intervals:
The number of class interval should not be too many. For an ideal frequency
distribution, the number of class intervals
To decide the number of class intervals for the frequency distributive in the whole data
choose the lowest and the highest of the values. The difference between them will enable
us to decide the class intervals.(use intuition)

2. Apply Sturges’ Rule.

The rule states that the number of classes can be determined by the formula
K = 1 + 3. 322 log10 N
Where N = Total number of observations
log = logarithm of the number
K = Number of class intervals.
Thus if the number of observation is 10, then the number of class intervals
is K = 1 + 3. 322 log 10 = 4.322---4
If 100 observations are being studied, the number of class interval is
 K = 1 + 3. 322 log 100 = 7.644-----8
h) Size of the class interval:
Since the size of the class interval is inversely proportional to the number of class
interval in a given distribution. The approximate value of class width of the class interval
‘ C’ is obtained by using sturges’ rule as Size of class interval
C = Range/number of class intervals

=Range/1+3.322 log N
Where Range = Largest Value – smallest value in the distribution.

Types of class intervals:

There are three methods of classifying the data according to class intervals namely
Exclusive method
Inclusive method
Open-end classes

a) Exclusive method:
In exclusive method, the class intervals are so fixed that the upper limit of one class is
the lower limit of the next class.
This method ensures continuity of data
Its widely used in practice

Example

Expenditure No. of families

0 – 5000 60
5000-10000 95
10000-15000 122
15000-20000 83
20000-25000 40
Total 400
b) Inclusive method:
This method avoids the overlapping of class intervals
Both the lower and upper limits are included in the class interval.
This type of classification may be used for a grouped frequency distribution for discrete
variable like members in a family, number of workers in a factory etc., where the
variable may
take only integral values. It cannot be used with fractional
values like age, height, weight etc.
Class interval Frequency
5- 9 7
10-14 12
15-19 15
20-29 21
30-34 10
35-39 5
Total 70
In case of continuous variables, the exclusive method must be used while the inclusive
method should be used in case of discrete variable
c) Open end classes:
A class limit is missing either at the lower end of the first class interval or at the upper
end of the last class interval or both are not specified. Its frequently used when there are
few very high values or few very low values which are far apart from the majority of
observations.
The example for the open-end classes as follows :
Salary Range No of workers
Below 2000 7
2000 – 4000 5
4000 – 6000 6
6000 – 8000 4
8000 and above 3
Preparation of frequency table

The first step is to divide the observed range of variable into a suitable number of class-
intervals and to record the number of observations in each class. Example

The following data on weights of fifty college students. Construct a frequency

table to represent the data

42 62 46 54 41 37 54 44 32 45
47 50 58 49 51 42 46 37 42 39
54 39 51 58 47 64 43 48 49 48
49 61 41 40 58 49 59 57 57 34
56 38 45 52 46 40 63 41 51 41

Apply sturges’ rule

Number of class intervals: 1+3.322 log N=6.64 Approximately 7

Size of Class intervals = c = range/1+3.322 log N, (64 – 32)/1+3.322 log (50)

=32/6.64=4.8 Approx….five

The required frequency distribution is prepared using tally marks as given below:
Class Interval Tally marks Frequency
30-35 2
35-40 6
40-45 12
45-50 14
50-55 6
55-60 6
60-65 4
Total 50
2. Percentage frequency table
It is also called relative frequency table
The percentage frequency distribution facilitates easy comparability especially when the
total number of items are large and highly different from one distribution to another. In
percentage frequency table actual frequencies are converted into percentages. The
percentages are calculated by using the formula given below:
Frequency percentage = Actual Frequency/Total Frequency× 100 An
example is given below to construct a percentage frequency table.
Marks No. of students Frequency percentage
0-10 3 6
10-20 8 16
20-30 12 24
30-40 3 4
40-50 6 12
50-60 4 8
Total 50 100
3. Cumulative frequency table
Cumulative frequency distribution has a running total of the values. It is constructed by
adding the frequency of the first class interval to the frequency of the second class
interval. Again add
that total to the frequency in the third class interval continuing until the final total
appearing opposite to the last class interval will be the total of all frequencies. The
cumulative frequency may be downward or upward.
Example
Age (yrs) No. men Less than c.f More than c.f

15-20 3 3 64
20-25 7 10 61
25-30 15 25 54
30-35 21 46 39
 35-40 12 58 18
40-45 6 64 6
4. Histogram:
A histogram is a bar chart or graph showing the frequency of occurrence of each value of
the variable being analysed. In histogram, data are plotted as a series of rectangles.
Class intervals are shown on the ‘X-axis’ and the frequencies on the ‘Y-axis’ . The height
of each rectangle represents the frequency of the class interval. Each rectangle is formed
with the other so as to give a continuous picture.

Example
For the following data, draw a histogram.
Marks Number of Students
21-30 6
31-40 15
41-50 22
51-60 31
61-70 17
71-80 9

Solution:
For drawing a histogram, the frequency distribution should be continuous. If it is not
continuous, then first make it continuous as follows.
Marks Number of Students
20.5-30.5 6
30.5-40.5 15
40.5-50.5 22
50.5-60.5 31
60.5-70.5 17
70.5-80.5 9
4. Frequency Polygon

If we mark the midpoints of the top horizontal sides of the rectangles in a histogram and
join them by a straight line, the figure so formed is called a Frequency Polygon. This is
done under the assumption that the frequencies in a class interval are evenly distributed
throughout the class.

5 Frequency Curve

If the middle point of the upper boundaries of the rectangles of a histogram is corrected
by a smooth freehand curve, then that diagram is called frequency curve. The curve
should begin and end at the base line.
example
Draw a frequency curve for the following data.
Monthly Wages(sh.) No. of family
0-1000 21
1000-2000 35
2000-3000 56
3000-4000 74
4000-5000 63
5000-6000 40
6000-7000 29
7000-8000 14
(see paper)
6.Ogive
This curve is obtained by plotting cumulative frequencies.
There are two methods of constructing ogive namely:
1. The ‘ less than ogive’ method
2. The ‘more than ogive’ method.
In less than ogive method we start with the upper limits of the classes and go adding the
frequencies. When these frequencies are plotted, we get a rising curve. In more than
ogive method, we start with the lower limits of the classes and from the total frequencies
we subtract the frequency of each class. When these frequencies are plotted we get a
declining curve.
Example 15:
Draw the Ogives for the following data.
Class interval Frequency cf
20-30 4 4
30-40 6 10
40-50 13 23
50-60 25 48
60-70 32 80
70-80 19 99
80-90 8 107
90-100 3 110
Solution:
Class limit Less than ogive More than ogive
20 0 110
30 4 106
40 10 100
50 23 87
60 48 62
70 80 30
80 99 11
90 107 3
100 110 0

MEASURES OF CENTRAL TENDENCY

A measure of central tendency is a representative number that summarises the whole

data set. Its also know as an average or a measure of locations

E.G
Mean, Median and mode…………..simple averages

Harmonic and geometric mean……..special averages

Characteristics for a good or an ideal average:

The following properties should possess for an ideal average.
1. It should be rigidly defined.
2. It should be easy to understand and compute.
3. It should be based on all items in the data.
4. Its definition shall be in the form of a mathematical formula.
5. It should be capable of further algebraic treatment.
6. It should have sampling stability.
7. It should be capable of being used in further statistical computations or processing
Arithmetic mean or mean:
Arithmetic mean or simply the mean of a variable is defined as the sum of the
observations divided by the number of observations. If the variable x assumes n values
x1, x2 … xn then the
n
mean, x , is given by i  xi ( For ungrouped or raw data)
n
i=1

For grouped Data :

The mean for grouped data is obtained from the following formula:

 fx
x= N
where x = the mid-point of individual class
f = the frequency of individual class
N = the sum of the frequencies or total frequencies.

Example :
Following is the distribution of persons according to different income groups. Calculate
arithmetic mean. ( see HR paper)
Income sh (1000)
0-10 10-20 20-30 30-40 40-50 50-60 60-70
6 8 10 12 7 4 3

Merits and demerits of Arithmetic mean

• Merits
1. It is rigidly defined.
2. It is easy to understand and easy to calculate
3. If the number of items is sufficiently large, it is more accurate and more reliable.
4. It is a calculated value and is not based on its position in the series
5. It is possible to calculate even if some of the details of the data are lacking.
6. Of all averages, it is affected least by fluctuations of sampling.
7. It provides a good basis for comparison.
• Demerits:
1. It cannot be obtained by inspection nor located through a frequency graph.
2. It cannot be in the study of qualitative phenomena not capable of numerical
measurement i.e. Intelligence, beauty, honesty etc.,
3. It can ignore any single item only at the risk of losing its accuracy.
4. It is affected very much by extreme values.
5. It cannot be calculated for open-end classes.
6. It may lead to fallacious conclusions, if the details of the data from which it is
computed are not given
Median
The median is that value which divides the data group into two equal parts, one part
comprising all values greater, and the other, all values less than median.

Ungrouped or Raw data :

Arrange the given values in the increasing or decreasing order. If the number of values
are odd, median is the middle value. If the number of values are even, median is the
mean of middle two values.
Example
When odd number of values are given. Find median for the following data
25, 18, 27, 10, 8, 30, 42, 20, 53
Solution:
Arranging the data in the increasing order 8, 10, 18, 20, 25,27, 30, 42, 53
The middle value is the 5th item i.e., 25 is the median. W hen even number of values is
given.
Example
Find median for the following data
5, 8, 12, 30, 18, 10, 2, 22
Solution:
Arranging the data in the increasing order 2, 5, 8, 10, 12,18, 22, 30.Here median is the
mean of the middle two items (i.e) mean of (10,12) i.e.
= 10 +12 median = 11
Grouped Data:
In a grouped distribution, values are associated with frequencies. Grouping can be in the
form of a discrete frequency distribution or a continuous frequency distribution.
Whatever may be the type of distribution , cumulative frequencies have to be calculated
to know the total number of items.
Discrete Series:
Step1: Find cumulative frequencies.
Step2: Find
N +1
 2 
Step3: See in the cumulative frequencies the value just greater than

N +1
 2 
Step4: Then the corresponding value of x is median.
Example :
The following data pertaining to the number of members in a family. Find median size
of the family.
Number of members x 1 2 345 67 8 9 10 1112
Frequency 1 3 5 6 10139 5 3 2 2 1
Solution:
X f cf
1 1 1
2 3 4

3 5 9  60 +1 =30.5
 

 2 
4 6 15
5 10 25
6 13 38
7 9 47
8 5 52
9 3 55
10 2 57
11 2 59
12 1 60
60
The cumulative frequencies just greater than 30.5 is 38.and the value of x corresponding
to 38 is 6. Hence the median size is 6 members per family
Continuous Series:
The steps given below are followed for the calculation of median in continuous series.
Step1: Find cumulative frequencies.
Step2: Find
N/2
Step3: See in the cumulative frequency the value first greater than N/2. Then the
corresponding class interval is called the Median class. Then apply the formula

N 2− m
Median = l +  c Where l = Lower limit of the median class, m = cumulative
f
frequency preceding the median class, c = width of the median class, f =frequency in the
median class. N=Total frequency. If the class intervals are given in inclusive type
convert them into exclusive type and call it as true class interval and consider lower
limit in this case.
Example 7:
Determine the median of the data in the table below using Formula method

IQ No of residents
0–20 6
20–40 18
40–60 32
60–80 48
80 – 100 27
100 – 120 13
120 – 140 2

73.5 - 56
=60+ × 20
48
= 60 + 7.29
= 67.29

Merits of Median :
1. Median is not influenced by extreme values because it is a positional average.
2. Median can be calculated in case of distribution with open end intervals.
3. Median can be located even if the data are incomplete.
4. Median can be located even for qualitative factors such as ability, honesty etc.
Demerits of Median:
1. A slight change in the series may bring drastic change in median value.
2. In case of even number of items or continuous series, median is an estimated value
other than any value in the series.
3. It is not suitable for further mathematical treatment except its use in mean deviation.
4. It is not taken into account all the observations
Quartiles :
The quartiles divide the distribution in four parts. There are three quartiles. The second
quartile divides the distribution into two halves and therefore is the same as the median.
The first (lower) quartile (Q1) marks off the first one-fourth, the third (upper) quartile
(Q3) marks off the three-fourth. First arrange the given data in the increasing order and
use the formula for Q1 and Q3

Q1 = n 4+1 th item, Q3 = n 4+1 3 th item

Q− Q
Q.D = 3 1
Quartile Deviation
2
Example 22 :
Compute quartiles for the data given below 25,18,30, 8,
15, 5, 10, 35, 40, 45
Solution
5, 8, 10, 15, 18,25, 30,35,40, 45
10−8 3

Q3=3(2.75) = 8.25th item= 35+1/4(40-35) =36.25

Discrete Series
Step1: Find cumulative frequencies.
N +1
Step2: Find
4
Step3: See in the cumulative frequencies, the value just greater than
N +1
, then the corresponding value of x is
Q1 4
3 N +1
Step4: Find  
4 4 
3  N +1
, then the
Step5: See in the cumulative frequencies, the value just greater than 

4 4 
corresponding value of x is Q3
Example 23:
Compute quartiles for the data given bellow.
x f c.f
5 4 4
8 3 7
12 2 9
15 4 13
19 5 18
24 2 20
30 4 24
Total 24
Solution
Q1= 24+1/4= 6.25th item = 8

Q3=3/4(6.25) = 18.75th =24

Continuous series
Step1: Find cumulative frequencies
Step2: Find N/4
Step3: See in the cumulative frequencies, the value just greater than N/4, then the
corresponding class interval is called first quartile class. Find 3/4N. See in the
cumulative frequencies the value
just greater than ¾(N) then the corresponding class interval is called 3rd quartile class.
N
4− 3 −
m = 4 m3
Then apply the respective formulae Q1 =1 + Q3 
N 1

f1 c1 and 3 + f3 c3

Where l1 = lower limit of the first quartile class

f1 = frequency of the first quartile class c1 =
width of the first quartile class
m1 = c.f. preceding the first quartile
class l3 = 1ower limit of the 3rd quartile
class f3 = frequency of the 3rd quartile
class c3 = width of the 3rd quartile class
m3 = c.f. preceding the 3rd quartile class

Example
C.I. f cf
0-10 11 11
10-20 18 29
20-30 25 54
30-40 28 82
40-50 30 112
50-60 33 145
60-70 22 167
70-80 15 182
80-90 12 194
90-100 10 204
204
N/4=204/4=51, 3(204/4) = 153

MODE
The mode refers to that value in a distribution, which occur most frequently. It is an
actual value, which has the highest concentration of items in and around it. It shows the
centre of concentration of the frequency in around a given value. Therefore, where the
purpose is to know the point of the highest concentration it is preferred. It is, thus, a
positional measure.
Computation of the mode:
Ungrouped or Raw Data:
For ungrouped data or a series of individual observations, mode is often found by mere
inspection.
Example
2 , 7, 10, 15, 10, 17, 8, 10, 2\ Mode = M0=10
In some cases the mode may be absent while in some cases there may be more than one
mode.
Example
12, 10, 15, 24, 30 (no mode)
7, 10, 15, 12, 7, 14, 24, 10, 7, 20, 10\ the modes are 7 and 10
Grouped Data
For Discrete distribution, see the highest frequency and corresponding value of X is
mode.
Continuous distribution
See the highest frequency then the corresponding value of class interval is called the
modal class. Then apply the formula

m0 = l +  1
c
+
1 2
l = Lower limit of the model class ,∆1 = f1-f0, ∆2 =f1-f2 ,f1 = frequency of the modal
class,f0 = frequency of the class preceding the modal class,f2 = frequency of the class
succeeding the modal class or simply

m0 = l + f 1
−f 0

2f −f −f
1 0 2

Example
Calculate mode for the following :
C- I f
0-50 5
50-100 14
100-150 40
150-200 91
200-250 150
250-300 87
300-350 60
350-400 38
400 and above 15
Solution
The highest frequency is 150 and corresponding class interval is
200 – 250, which is the modal class.
Here l=200,f1=150,f0=91, f2=87, C=50
Mode=224.18
Merits of Mode:
1. It is easy to calculate and in some cases it can be located mere inspection
2. Mode is not at all affected by extreme values.
3. It can be calculated for open-end classes.
4. It is usually an actual value of an important part of the series.
5. In some circumstances it is the best representative of data.
Demerits of mode:
1. It is not based on all observations.
2. It is not capable of further mathematical treatment.
3. Mode is ill-defined generally, it is not possible to find mode in some cases.
4. As compared with mean, mode is affected to a great extent, by sampling fluctuations.
5. It is unsuitable in cases where relative importance of items has to be considered.
Core text
S.P Gupta (2004): Introduction to statistical methods 23rd-ed: vikas publishing house
New Delhi
2. Futher reading
• Saleemi N.A (1997), Statistics Simplified Reprinted January 2011: Nairobi, Saleemi
Publication limited.

• Saleemi N.A (1992), Quantitative Techniques: Nairobi, Saleemi Publication limited.

 LESSON 4

MEASURES OF DISPERSION

6.1 INTRODUCTION TO MEASURES OF DISPERSION

The measures of dispersion are very useful in statistical work because they indicate
whether the

rest of the data are scattered around the mean or away from the mean.

If the data is approximately dispersed around the mean then the measure of dispersion
obtained

will be small therefore indicating that the mean is a good representative of the sample
data. But

on the other hand, if the figures are not closely located to the mean then the measures of

dispersion obtained will be relatively big indicating that the mean does not represent the
data

sufficiently

The commonly used measures of dispersion

are i. The range

ii. The absolute mean deviation

iii. The standard deviation

iv. The semi – interquartile and quartile deviation

v. The 10th and 90th percentile range

vi. Variance
6.2 RANGE

The range is defined as the difference between the highest and the smallest values in a
frequency

distribution. This measure is not very efficient because it utilizes only 2 values in a given

frequency distribution. However the smaller the value of the range, the less dispersed
the

observations are from the arithmetic mean and vice versa

Example 1:

The following are the prices of 4 kgs of beans in Mathare slums market

Day Monday Tuesday Wednesday Thursday Friday Saturday

Price(Ksh.) 200 210 208 160 200 250

Required:

Find the range and Co-efficient of range.

Solution

Range=L-S

250-160=90

Co-efficient of Range=L-S/L+S

=250-160/250+160=90/410

=0.22
INTERQUARTILE RANGE

This is a measure of dispersion which involves the use of quartile. A quartile is a mark or
a value

which lies at the boundary of a division when any given set of data is divided into four
equal

divisions.

Each of such divisions normally carries 25% of all the observations

The semi interquartile range is a good measure of dispersion because it shows how the
rest of the

data are generally spread around the mean

The quartiles normally used are three namely;

i. The lower quartile (first quartile Q1) this usually binds the lower 25% of the data

ii. The median (second quartile Q2)

iii. The upper quartile (third quartile Q3)

The semi-interquartile range,

Q3-Q1 SIR

=2

Example 2:

The weights of 15 parcels recorded at the GPO were as follows:

16.2, 17, 20, 25(Q1) 29, 32.2, 35.8, 36.8(Q2) 40, 41, 42, 44(Q3) 49, 52, 55 (in kgs)
Required

Determine the semi interquartile range for the above

data (Q3 -Q1 )/2

=(44 - 25 19)/2= 8.5

Mean Deviation and Coefficient of Mean Deviation:

Mean Deviation:

The range and quartile deviation are not based on all observations. They are positional
measures of dispersion. They do not show any scatter of the observations from an
average. The mean deviation is measure of dispersion based on all items in a
distribution.

Definition:

Mean deviation is the arithmetic mean of the deviations of a series computed from any
measure of central tendency; i.e., the mean, median or mode, all the deviations are
taken as positive i.e., signs are ignored. According to Clark and

Schekade, “Average deviation is the average amount scatter of the items in a distribution
from either the mean or the median, ignoring the signs of the deviations”.

We usually compute mean deviation about any one of the three averages mean, median
or mode. Some times mode may be ill defined and as such mean deviation is computed

from mean and median. Median is preferred as a choice between mean and median. But
in general practice and due to wide applications of mean, the mean deviation is
generally computed from mean. M.D can be used to denote mean deviation.

Coefficient of mean deviation:

Mean deviation calculated by any measure of central tendency is an absolute measure.
For the purpose of comparing variation among different series, a relative mean
deviation is required. The relative mean deviation is obtained by dividing the mean
deviation by the average used for calculating mean deviation.

Coefficient of mean deviation: = Mean deviation

Mean or Median or Mode

If the result is desired in percentage, the coefficient of mean

deviation = Mean deviation x 100

Mean or Median or Mode

Computation of mean deviation – Individual Series:

1. Calculate the average mean, median or mode of the series.

2. Take the deviations of items from average ignoring signs and denote these deviations
by |D|.

3. Compute the total of these deviations, i.e., S |D|

4. Divide this total obtained by the number of items.

Symbolically: M.D. = |D|

Calculate mean deviation from mean and median for the following data:

100,150,200,250,360,490,500,600,671 also calculate coefficients

of M.D.

Solution:

Mean = 369
Md =  |D|/n

=1570 /9 = 174.44

Mean deviation-Continuous series:

The method of calculating mean deviation in a continuous series same as the discrete
series. In continuous series we have to find out the mid points of the various classes and
take deviation of these points from the average selected. Thus

M.D =  f | D |

Where D = m - average
M = Mid point

Find out the mean deviation from mean from the following series.

Age in years No.of persons

0-10 20

10-20 25

20-30 32

30-40 40

40-50 42

50-60 35

60-70 10

70-80 8
Solution:

Mean = 35

MD =  f| D | = 3193/212 = 15.06

Merits and Demerits of M.D :

Merits:

1. It is simple to understand and easy to compute.

2. It is rigidly defined.

3. It is based on all items of the series.

4. It is not much affected by the fluctuations of sampling.

5. It is less affected by the extreme items.

6. It is flexible, because it can be calculated from any average.

7. It is better measure of comparison.

Demerits:

1. It is not a very accurate measure of dispersion.

2. It is not suitable for further mathematical calculation.

3. It is rarely used. It is not as popular as standard deviation.

4. Algebraic positive and negative signs are ignored. It is mathematically unsound and illogical.

Standard Deviation:

Karl Pearson introduced the concept of standard deviation in 1893. It is the most important

measure of dispersion and is widely used in many statistical formulae. Standard deviation is also
called Root-Mean Square Deviation. The reason is that it is the square–root of the mean of the

squared deviation from the arithmetic mean. It provides accurate result. Square of standard

deviation is called Variance.

Definition:

It is defined as the positive square-root of the arithmetic mean of the Square of the deviations of

the given observation from their arithmetic mean. The standard deviation is denoted by the

Greek letter  (sigma)