CHAPTER – 5 MEASURES OF CENTRAL TENDENCY

I. Choose the correct answers (1 mark)

1. Five students obtained 10, 20, 30, 40 and 50 marks respectively. What would
be the mean?
a) 35 b)30 c) 25 d) 40
∑𝑥
2. 𝑋̅= is concerned with
𝑁
a) Arithmetic Mean b) Mode c) Median d) Geometric Mean
3.The most commonly used measure of central tendency is
a) Mode b) Median c) Arithmetic mean d) Percentile
4. Which of the following represent Median?
a) Q1 b) Q3 c) Q4 d) Q2
5. Percentiles divide the distribution equal into
a) 100 parts b) 75 parts c) 25parts d) 50 parts
6. Quartiles are measures which divide the data into
a) 2 equal parts b) 4 equal parts c) 1 equal part d) 3 equal parts
7. Assign weights to various item according to their importance is called
a) Arithmetic mean b) median c) weighted Arithmetic mean d) mode
8. What would be the median wage for the following wages of 5 labourers10, 20,
30, 35, 38
a) Rs 20 b) Rs 10 c) Rs 35 d) Rs 30
II. Fill in the blanks (1 mark)
1. Weighted arithmetic mean gives relative importance to each item
2. 3rd quartile and 75th percentile are the same.
3. There are 3 Quartiles in a series.
4. Median and mode is not affected by the extreme values.
5. Most frequently observed value in a series is called mode
6. A distribution with more than two modes is called multi-modal
III. Match the following: (5 marks).
A B
1. Arithmetic Mean 1.Positional Value (2)
2.Median 2.𝑿̅ (1)
3.∑𝑵 3.𝑸𝟑 (5)
4.𝑸𝟏 ,𝑸𝟐 , 𝑷𝟐𝟓, 𝑷𝟓𝟎 4.Total number of observations (3)
𝑵+𝟏 5.Divisional values (4)
5. 3 ( 𝟒
)

IV. Answer the following questions in a word / sentence (1 mark)

1. What is meant by central tendency?
Central tendency means single value representing entire data.
2. What is the meaning of Arithmetic mean?
Arithmetic mean refers to the sum of the values of all observations divided by the
number of observations.
3. Define median
Median refers to a positional value which divides series into two equal parts.
4. Pocket money of 8 students is Rs 6, 12, 18, 24, 30, 36, 42 and 48 calculate
arithmetic mean.
∑𝒙 𝟔+𝟏𝟐+𝟏𝟖+𝟐𝟒+𝟑𝟎+𝟑𝟔+𝟒𝟐+𝟒𝟖 𝟐𝟏𝟔
𝑿= = = = 27
𝒏 𝟖 𝟖
5. Write the formula for weighted mean.
∑𝒘𝒙
Weighted arithmetic mean =
∑𝒘
6. What do you mean by percentiles?
Percentiles mean the method of dividing the series into 100 equal parts.
7.What is Bi-modal?
Bi-modal means modal which has two modes.
8. Calculate mode from the following data
X: 10, 8, 10, 6, 4, 12, 10, 8, 10, 18, 16, 10, 18, 16.
Mode= 10
V. Answer the following questions in about four sentences (2 marks)
1. What are the types of measures of central tendency?
Mean median and mode.
2. Calculate arithmetic mean from the following data.
a) Marks obtained by 10 students 30, 62, 47, 25, 52, 39, 56, 66, 12, 24
∑𝒙 𝟑𝟎+𝟔𝟐+𝟒𝟕+𝟐𝟓+𝟓𝟐+𝟑𝟗+𝟓𝟔+𝟔𝟔+𝟏𝟐+𝟐𝟒 𝟒𝟏𝟑
𝑿= = = = 41.3
𝒏 𝟏𝟎 𝟏𝟎
3.Calculate the value of median from the following figures.
X: 5 7 9 12 11 8 7 15 25
Arranged no’s: 5,7,7,8, 9, 11,12,15,25
𝑵+𝟏 𝟗+𝟏 𝟏𝟎
Size of ( )thitem = = = 5th item= 9
𝟐 𝟐 𝟐
4.How do you classify modal series?
Uni –modal, bi-modal and multi-modal
5. What is mode? Give formula to find out mode in continuous series.
Mode is most fashionable value in the series.
Modal class = size of highest frequency
𝑫𝟏
Mode = L + xh
𝑫𝟏 +𝑫𝟐
VI. Answer the following questions in about twelve sentences (4 marks)
1. Calculate the arithmetic mean from the following data.
X 5 10 15 20 25 30 35 40
F 5 7 9 10 8 6 5 2

X f Fx
5 5 25
10 7 70
15 9 135
20 10 200
25 8 200
30 6 180
35 5 175
40 2 80
N=52 ∑fx=1065
∑𝒇𝒙 𝟏𝟎𝟔𝟓
𝑿̅ = = = 20.48
𝑵 𝟓𝟐
2.Define weighted mean? How do you calculate it? Explain.
• It is needed to assign weight age to various items according their
importance.
• Weighted arithmetic mean refers to assigning weights based on relative
importance.
 𝑞1 𝑝1+ 𝑞2 𝑝2
• Weighted arithmetic mean =
𝑞1 +𝑞2
∑𝒘𝒙
• Weighted arithmetic mean =
∑𝒘
• E.g: finding the average price of tomatoes and onions. Here weights and
prices of particular items are calculated together to get the averages.
3. Name and define any three statistical averages.
The most commonly used averages are
Arithmetic mean
• It refers to the sum of the values of all observations divided by the number
of observations.
• It can be calculated by using direct method, assumed mean method and
step deviation method.
∑𝑿
̅=
• Individual series :𝑿
𝑵
∑𝒇𝒙
̅=
• Discrete series : 𝑿
𝑵
∑𝒇𝒎
̅=
• Continuous series: 𝑿
𝑵
Median
• Median is a positional value which divides series into two equal parts.
• Median is the middle element when the data is arranged in order of the
magnitude.
𝑵+𝟏 th
• Individual series :Median = Size of ( ) item
𝟐
𝑵+𝟏 th
• Discrete series:Median = Size of ( ) item
𝟐
𝑵
• Continuous series:Median class = Size of ( )thitem
𝟐
𝑵
−𝒄𝒇
𝟐
Median = L + xh
𝒇
Mode
• The term Mode is derived from the French word ‘la mode’ which means
most fashionable value of a distribution.
 • Mode is the value which has the highest frequency.
• It is the most frequently occurring or repeated value.
• It is denoted by MO
• There are 3 modes : uni-modal, bi-modal and multi-modal
• Discrete series:Mode = Size of highest frequency
• Continuous series:Modal class = Size of highest frequency
𝑫𝟏
Mode = L + 𝑫 xh
𝟏 + 𝑫𝟐
4.Calculate median from the following data.
WEIGHT 40 50 60 70 80 90
NO OF 3 17 24 16 8 2
PERSONS

X F LCF
40 3 3
50 17 20
60 24 44
70 16 60
80 8 68
90 2 70
N=70
𝑵+𝟏 𝟕𝟎+𝟏 𝟕𝟏
Median = Size of ( )thitem= = =35.5th item = 60
𝟐 𝟐 𝟐
5. Calculate the lower quartile from the following data.
22, 26, 14, 30, 18, 11, 35, 41, 12, 32
Arranged no’s: 11,12,14,18,22,26,30,32,35,41
𝑵+𝟏
Q1=Size of( )thitem
𝟒
𝟏𝟎+𝟏
=Size of( )thitem
𝟒
𝟏𝟏
= Size of ( )thitem
𝟒
= Size of 2.75th item
= 2nd item +0.75(3 rd item – 2nd item)
Q1= 12+0.75(14-12) =12+0.75(2) =12+1.5=13.5
VII. Answer the following in about twenty sentences (6 marks)
1. Calculate arithmetic mean by direct, assumed mean and step deviation
methods for the following data.
40, 50, 55, 78, 58
X DIRECT METHOD ASSUMED MEAN METHOD STEP DEVIATION METHOD
X (d = X-A) 𝑿−𝑨
(dI= )
𝑪
40 40 40-55= -15 40 − 55
= −15
1
50 50 50-55= -5 −5
55 55(A) 55-55= 0 0
78 78 78-55= 23 23
58 58 58-55= 3 3
′
N= 281 ∑𝒅 = 𝟔 ∑𝒅 = 𝟔

Direct method
∑𝑿 𝟐𝟖𝟏
𝑿̅ = 𝑵 = 𝟓 = 56.2
Assumed mean method
∑𝒅 𝟔
𝑿̅ = A + 𝑵 = 55 + 𝟓 = 55 + 1.2 = 56.2
Step deviation method
∑𝒅 ′ 𝟔
𝑿̅ = A + 𝑵 x C= 55 + 𝟓 x 1= 55 + 1.2 = 56.2
2. Calculate average marks of the following students using
a) Direct method b) step deviation method.
MARKS(X) 0-10 10-20 20-30 30-40 40-50 50-60 60-70
NO OF 5 12 15 25 8 3 2
STUDENTS(f)

CI f M DIRECT STEP DEVIATION STEP DEVIATION

METHOD METHOD METHOD
(fm) 𝒎−𝑨 (fdI)
(dI= 𝑪 )
5−35
0-10 5 5 25 = -3 -15
10
10-20 12 15 180 -2 -24
20-30 15 25 375 -1 -15
30-40 25 35 (A) 875 0 0
40-50 8 45 360 1 8
50-60 3 55 165 2 6
60-70 2 65 130 3 6
N=70 ∑fm=2110 ∑fdI=-34
Direct method
∑𝒇𝒎 𝟐𝟏𝟏𝟎
𝑿̅ = 𝑵 = 𝟕𝟎 = 30.14
Step deviation method
′
̅ = A + ∑𝐟𝐝 x C= 35 + −𝟑𝟒 x 10= 35 - 4.857 = 30.14
𝑿
𝑵 𝟕𝟎
3. Find median of the following data
WAGES 60-70 50-60 40-50 30-40 20-30
NO OF 7 21 11 6 5
WORKERS

CI f LCF
20-30 5 5
30-40 6 11
40-50 11 22(cf)
50-60 21(f) 43
60-70 7 50
N=50
𝑵 𝟓𝟎
Median class = Size of ( 𝟐 )th item= =25th item = 50-60
𝟐
𝑵
𝟐
−𝒄𝒇 𝟐𝟓−𝟐𝟐 𝟑
Median = L + x h = 50+ x 10 = 50+ x10 = 50+1.43 =51.43
𝒇 𝟐𝟏 𝟐𝟏
4. Calculate Q1,Q2 and Q3 from the following data.
15, 21, 26, 30, 40, 45, 50, 54, 60, 65, 70
𝑵+𝟏
Q1=Size of( )thitem
𝟒
𝟏𝟏+𝟏
=Size of( )thitem
𝟒
 𝟏𝟐
= Size of ( )thitem
𝟒
rd
= Size of 3 item
Q1= 26
𝑵+𝟏
Q2=Size of 2( )thitem
𝟒
𝟏𝟏+𝟏 th
=Size of 2( ) item
𝟒
𝟏𝟐
=Size of𝟐 ( )thitem
𝟒
=Size of 2(3)thitem
= size of 6 th item
Q2= 45
𝑵+𝟏
Q3=Size of 3( )thitem
𝟒
𝟏𝟏+𝟏 th
=Size of 3( ) item
𝟒
𝟏𝟐
=Size of𝟑 ( )thitem
𝟒
=Size of 3(3)thitem
= size of 9 th item
Q3= 60
5. Calculate Q1 Q2 and Q3 from the following data.
22, 26, 14, 30, 18, 11, 35, 41, 12, 32
Arranged no’s: 11,12,14,18,22,26,30,32,35,41
𝑵+𝟏
Q1=Size of( )thitem
𝟒
𝟏𝟎+𝟏
=Size of( )thitem
𝟒
𝟏𝟏
= Size of ( )thitem
𝟒
= Size of 2.75th item
= 2nd item +0.75(3 rd item – 2nd item)
Q1= 12+0.75(14-12) =12+0.75(2) =12+1.5=13.5
 𝑵+𝟏
Q2=Size of 2( )thitem
𝟒
𝟏𝟎+𝟏 th
=Size of 2( ) item
𝟒
𝟏𝟏
=Size of𝟐 ( )thitem
𝟒
=Size of 2(2.75)thitem
= size of 5.5th item
= 5nd item +0. 5(6th item – 5th item)
Q2= 22+0.5(26-22) =22+0.5(4) =22+2=24
𝑵+𝟏
Q3=Size of 3( )thitem
𝟒
𝟏𝟎+𝟏 th
=Size of 3( ) item
𝟒
𝟏𝟏
=Size of𝟑 ( )thitem
𝟒
=Size of 3(2.75)thitem
= size of 8.25th item
= 8th item +0.25(9th item – 8th item)
Q3= 32+0.25(35-32) =32+0.25(3) =32+0.75=32.75
6.Find the mode of labour family from the following data
MONTHLY BELOW BELOW BELOW BELOW BELOW BELOW BELOW BELOW
INCOME 50 45 40 35 30 25 20 15
(IN 000)
CUMULATIVE 97 95 90 80 60 30 12 4
FREQUENCY

CI LCF F
10-15 4 4
15-20 12 8
20-25 30 18
25-30 60 30
30-35 80 20
35-40 90 10
40-45 95 5
45-50 97 2
N=97

Modal class = Size of highest frequency

= 30
= 25-30
𝑫𝟏 𝟑𝟎−𝟏𝟖 𝟏𝟐 𝟏𝟐
Mode = L + 𝑫 x h = 25+𝟑𝟎−𝟏𝟖+𝟑𝟎−𝟐𝟎 x 5= 25+𝟏𝟐+𝟏𝟎 x 5= 25+𝟐𝟐 x 5
𝟏 + 𝑫𝟐
= 25+2.72 = 27.72
VII. Project Oriented Question (5 Marks)
1. As per recorded temperature per two hours in a day from 6 am to 6 pm,
calculate the range and mean temperature of a day.
HOUR 6-8 8-10 10-12 12-14 14-16 16-18
TEMPERATURE 18 24 26 29 30 25
Range = L – S
= 30 – 18 = 12
HOURS TEMPERATURE
6-8 18
8-10 24
10-12 26
12-14 29
14-16 30
16-18 25
N =152

Mean temperature of a day

∑𝒙 𝟏𝟓𝟐
̅ =
𝒙 = = 25.33
𝑵 𝟔
CHAPTER – 6 MEASURES OF DISPERSION
I. Choose the correct answers (1 mark).
1. Inter - quartile range is based upon middle of 50% the values in a distribution.
a) 30% b) 20% c) 50% d) 25%
2. For Q.D., we need to calculate this value along with Q3
a) Q2 b) Q4 C) Q1 d) Q0
3. Coefficient of Range =
𝑳−𝑺 𝑅−𝐿 𝐿+𝑆
a)𝑳+𝑺 b) 𝑅+𝐿 c) 𝐿−𝑆 d) None of the above
4. What is the graphical measure available to measure dispersion?
a) Lorenz curve b) Marshal Curve c) Production curve d) None of the above
5. The deviation which is calculated by arithmetic mean only
a) Quartile deviation b) Standard deviation c) Range d) None of the above
II. Answer the following questions in a word / sentence (1 mark).
1. What is Dispersion?
Dispersion refers to the extent to which values in a distribution differ from the
average of the distribution.
2. How do Range and quartile deviation measure the dispersion?
Range and Quartile deviation is based on spread of values.
3. How do Mean and standard deviation measure the dispersion?
Mean deviation and standard deviation is takes deviation from an average.
4. Give the meaning of standard deviation.
Standard deviation is the positive square root of the variance.
5. What is Mean deviation?
Mean deviation is the arithmetic mean of the differences of the values from their
average.
III. Answer the following questions in about four sentences (2 marks)
1. Which quartiles are used to calculate inter quartile range? Give the formula of
it?
𝑸 𝟑 −𝑸 𝟏
Quartile deviation is used to calculate inter quartile range. Q.D. =
𝟐
2. What is standard deviation? Write the formula of its assumed mean method.
Standard deviation is the positive square root of the variance.
Formula to calculate of assumed mean method
∑𝒅 ∑𝒅 𝟐 𝟐
UNGROUPED DATA – 𝝈 =√ 𝒏 − ( 𝒏 ) d = (x – A)
∑𝒇𝒅 ∑𝒇𝒅 𝟐 𝟐
GROUPED DATA - 𝝈 =√ −( ) d = (x – A) OR d = (m – A)
𝑵 𝑵
3. Mention the different measures of dispersion.
Range, Mean deviation, Quartile deviation and Standard deviation
IV. Answer the following questions in about twelve sentences (4 marks)
1. The yield of Jower(in Tonnes) per acre for 10 districts of a state is as under:
District A B C D E F G H I J
Jower 22 29 12 23 18 15 12 34 18 12
Calculate Mean Deviation from Mean.
X |𝑑 |= X - 𝑋̅
22 22-19.5=2.5
29 29-19.5=9.5
12 12-19.5=7.5
23 23-19.5=3.5
18 18-19.5=1.5
15 15-19.5=4.5
12 12-19.5=7.5
34 34-19.5=14.5
18 18-19.5=1.5
12 12-19.5=7.5
∑X=195 ∑|𝑑 |= 60
∑X 195
𝑋̅ = = = 19.5
𝑛 10
∑ |𝑑 | 60
𝑀. 𝐷𝑋̅ = = =6
𝑛 10
2. The yield of rice per acre for 10 districts of a state is as under:
District A B C D E F G H I J
Rice 23 18 12 22 29 12 24 18 12 15
Calculate Mean Deviation from Median.
X |𝑑 |= X –Median
12 12-18=6
12 12-18=6
12 12-18=6
15 15-18=3
18 18-18=0
18 18-18=0
22 22-18=4
 23 23-18=5
24 24-18=6
29 29-18=11
∑|𝑑|= 47
N+1 10+1 11
Median = = = = 5.5th 0b = 5th ob+0.5(6th ob-5th ob)
2 2 2
= 18+0.5(18-18)=18+0.5(0)=18+0=18
∑ |𝑑 | 47
𝑀. 𝐷𝑀 = = = 4.7
𝑛 10
3. Calculate the Mean Deviation using mean for the following distribution.
Classes 20-40 40-80 80-100 100-120 120-140
Frequencies 3 6 20 12 9

CI F m fm ̅
|𝒅| = m- 𝑿 f|𝒅|
20-40 3 30 90 30-94.8=64.8 194.4
40-80 6 60 360 60-94.8=34.8 208.8
80-100 20 90 1800 90-94.8=4.8 96.0
100-120 12 110 1320 110-94.8=15.2 182.4
120-140 9 130 1170 130-94.8=35.2 316.8
N=50 ∑fm=4740 ∑f|𝒅|=998.4
∑fm 4740
𝑋̅ = = = 94.8
𝑁 50
∑𝑓|𝑑 | 998.4
𝑀. 𝐷𝑋̅ = = = 19.97
𝑁 50
4. Calculate Q .D .and its coefficient for the following data.
78, 80, 80, 82, 82, 84, 84, 86, 86, 88, 88, 90
𝑄3 −𝑄1
Q.D. =
2
𝑁+1 12+1 13
Q1 = = = =3.25thob= 3rdob+ 0.25thob(4th ob – 3rd ob)= 80+0.25
4 4 4
(82-80)= 80+0.25(2) =80+0.5= 80.5
𝑵+𝟏 𝟏𝟐+𝟏 𝟏𝟑
Q3 = 3( ) = 3( ) = 3( ) = 3(3.25)thob= 9.75thob = 9th ob+ 0.75th ob
𝟒 𝟒 𝟒
th th
(10 ob – 9 ob)= 86+0.75(88-86)
= 86+0.75(2) =86+1.5= 87.5
 𝑄3 −𝑄1 87.5−80.5 7
Q.D. = = = = 3.5
2 2 2
𝑸𝟑 −𝑸𝟏 87.5−80.5 7
Coefficient of Q.D = 𝑸 = = = 0.042
𝟑 +𝑸𝟏 87.5+80.5 168
5. Find mean deviation from mean for the following distribution.
Height(inches) 60 61 62 63 64 65 66 67 68
No. of Persons 2 1 14 29 25 12 10 4 2

X f fx ̅
|𝒅| = m- 𝑿 f|𝒅|
60 2 120 60-63.8=3.8 7.6
61 1 61 61-63.8=2.8 2.8
62 14 868 62-63.8=1.8 25.2
63 29 1827 63-63.8=0.8 23.2
64 25 1600 64-63.8=0.2 5
65 12 780 65-63.8=1.2 14.4
66 10 660 66-63.8=2.2 22
67 4 268 67-63.8=3.2 12.8
68 2 136 68-63.8=4.2 8.4
N=99 ∑fx=6320 ∑f|𝒅|=121.4
∑fx 6320
𝑋̅ = = = 63.8
𝑁 99
∑𝑓|𝑑 | 121 .4
𝑀. 𝐷𝑋̅ = = = 1.22
𝑁 99
6. Calculate coefficient of M.D. from Median for the following frequency
distribution.
X 5 6 7 8 9 10
f 8 12 18 8 2 1

X f cf |𝒅| = X- 𝑴 f|𝒅|
5 8 8 5-7=2 16
6 12 20 6-7=1 12
7 18 38 7-7=0 0
8 8 46 8-7=1 8
9 2 48 9-7=2 4
10 1 49 10-7=3 3
N=49 ∑f|𝒅|=43
 N+1 49+1 50
Median = = = = 25th 0b = 7
2 2 2
∑𝑓|𝑑 | 43
𝑀. 𝐷𝑀 = = = 0.87
𝑁 49
𝑀.𝐷𝑀 0.87
Coefficient of 𝑴. 𝑫𝑴 = = = 0.124
𝑀 7
7. Find the standard deviation for the following data:
8, 9, 15, 23, 5, 11, 19, 8, 10, 12.
X 𝑿𝟐
8 64
9 81
15 225
23 529
5 25
11 121
19 361
8 64
10 100
12 144
∑ X =120 ∑𝑿 =1714𝟐

∑X 120
𝑋̅ = = = 12
𝑛 10
∑𝑋2 1714
𝜎=√ − ( 𝑋̅ )2 = √ − ( 12 )2 = √171.4 − 144
𝑛 10

= √27.4 = 5.23
V. Answer the following in about twenty sentences (6 marks)
1. The yield of Sugar cane per acre for 10 districts of a state is as under:
District A B C D E F G H I J
Sugar 12 10 15 19 21 16 18 9 25 10
cane
Calculate Standard Deviation and Coefficient variation.
X 𝑿𝟐
12 144
10 100
 15 225
19 361
21 441
16 256
18 324
9 81
25 625
10 100
∑ X =155 𝟐
∑𝑿 =2657
∑X 155
𝑋̅ = = = 15.5
𝑛 10
∑𝑋2 2657
𝜎=√ − ( 𝑋̅ )2 = √ − ( 15.5 )2 = √265.7 − 240.25
𝑛 10
= √25.45 = 5.05
𝜎 5.05
C.V = ̅ x 100 = x 100 = 0.33 x 100 =33
𝑋 15.5
2. Calculate the Standard Deviation for the following distribution.
Classes 0-20 20-40 40-60 60-80 80-100
Frequencies 9 12 20 6 3

CI f M Fm 𝒅 = m- A fd f𝒅𝟐
0-20 9 10 90 10-50=-40 -360 14400
20-40 12 30 360 30-50=-20 -240 4800
40-60 20 50 A 1000 50-50=0 0 O
60-80 6 70 420 70-50=20 120 2400
80-100 3 90 270 90-50=40 120 4800
N= 50 ∑fm=2140 ∑f𝒅 = −𝟑𝟔0 𝟐
∑f𝒅 = 𝟐𝟔𝟒𝟎𝟎
∑fm 2140
𝑋̅ = = = 42.8
𝑁 50
∑𝑓𝑑 2 ∑𝑓𝑑 2 26400 −360 2
𝜎=√ −( ) =√ −( ) = √528 − (−7.2) 2
𝑁 𝑁 50 50
= √528 − 51.84 = √476.16 =21.82
3. Calculate Coefficient of Q.D for the following distribution.
Wages (Rs) 60-64 64-68 68-72 72-76 76-80 80-84 84-88
No. of Workers 12 18 16 14 12 8 8

CI 𝒇 LCF
60-64 12 12cf
64-68 18 f 30
68-72 16 46
72-76 14 60cf
76-80 12f 72
80-84 8 80
84-88 8 88
N=88
𝑁 88
Q1= Size of( 4 ) th Ob= = 22nd ob = 64-68
4
𝑁
−𝑐𝑓 22−12 10
4
Q1 = L + x h = 64+ 18
x 4 = 64+18 x4 = 64+2.22 =66.22
𝑓
𝑁 88
Q3= Size of 3 ( ) th Ob= 3 ( ) = 3(22)th ob = 66th ob=76-80
4 4
3𝑁
−𝑐𝑓 66−60 6
4
Q3 = L + x h = 76+ 12
x 4 = 76+12 x4 = 76+2=78
𝑓
𝑄3 −𝑄1 78−66.22 11.78
Q.D. = = = = 5.89
2 2 2
𝑸 −𝑸 78−66.22 11 .78
Coefficient of Q.D = 𝑸𝟑 +𝑸𝟏 = = = 0.0816
𝟑 𝟏 78+66.22 144.22
4. Calculate the standard deviation and variance for the following distribution
by deviation method
X 8 11 17 20 25 30 35
f 2 3 4 1 5 7 3

X f Fx 𝒅 = x- A fd f𝒅𝟐
8 2 16 8-20=-12 -24 288
11 3 33 11-20=-9 -27 243
17 4 68 17-20=-3 -12 36
20A 1 20 20-20=0 0 0
 25 5 125 25-20=5 25 125
30 7 210 30-20=10 70 700
35 3 105 35-20=15 45 675
N= 25 ∑fx=577 ∑f𝒅 =77 𝟐
∑f𝒅 = 𝟐𝟎𝟔𝟕
∑fx 577
𝑋̅ = = = 23.08
𝑁 25
∑𝑓𝑑 2 ∑𝑓𝑑 2 2067 77 2
𝜎=√ −( ) =√ − ( ) = √82.68 − (3.08) 2
𝑁 𝑁 25 25

= √82.68 − 9.4864 = √73.19 =8.55

𝜎 8.55
C.V = ̅ x 100 = x 100 = 0.3704 x 100 =37.04
𝑋 23.08
CHAPTER – 7 CORRELATION
I. Answer the following questions in a word / sentence (1 mark).
1. What is correlation?
Correlation is a method which measures direction and intensity of
relationship among variables.
2. What is Scatter diagram?
Scatter diagram is graphical presentation of relationship without calculating
any numerical value.
3. Write the formula for Spearman’s rank correlation
𝟑
𝒎 −𝒎 𝟑
𝒎 −𝒎
𝟔∑𝑫𝟐 𝟔(∑𝑫𝟐 + 𝟏𝟏𝟐 𝟏+ 𝟐𝟏𝟐 𝟐 +⋯ )
ra = 1 - and rs= 1-
𝒏𝟑 −𝒏 𝒏(𝒏𝟐 −𝟏)
II. Answer the following questions in about four sentences (2 marks)
1. Mention types of correlation.
Perfect positive, perfect negative, positive, negative and non-correlation
2. What is negative correlation? Give an example.
Negative correlation means the variables move in opposite direction. E.g: price
and demand.
3. What is positive correlation? Give an example.
Positive correlation means the variables move in the same direction. E.g: price
and supply.
4. Mention which type of correlation is associated with
a) Production and price of vegetable - Negative correlation
b) Temperature and sale of ice-creams - Positive correlation
5. Interpret the values of r as 1, -1 and 0
r=1(perfect positive), r=-1(perfect negative), r=0(nonlinear correlation)
III. Answer the following questions in about twelve sentences (4 marks)
1. Calculate the correlation between the heights of fathers in inches (x) and
their sons (y)
X 65 66 57 67 68 69 70 72
Y 67 56 65 68 72 72 69 71

X Y 𝒙𝟐 𝒚𝟐 XY
65 67 4225 4489 4355
66 56 4356 3139 3696
57 65 3249 4225 3705
67 68 4489 4624 4556
68 72 4624 5184 4896
69 72 4761 5184 4968
70 69 4900 4761 4830
72 71 5184 5041 5112
∑X=534 ∑Y=540 𝟐 𝟐 ∑XY= 36118
∑𝒙 = 35788 ∑𝒚 = 36644

( ∑𝑋)(∑𝑌)
∑𝑋𝑌−
𝑁
r =
2 2
√∑𝑋 2 −∑(𝑋) √∑𝑌 2 −∑(𝑌)
𝑁 𝑁
(534)(540)
36118−
8
r =
(534) 2 (540) 2
√35788− √36644−
8 8
288360
36118−
8
r =
285156 291600
√35788− 8 √36644− 8
 36118− 36045
r =
√35788−35644.5 √36644−36450
73
r =
√143.5 √194
73
r =
(11.9791)(13.9283)
73
r =
166.62
r = 0.438
2. Calculate the correlation coefficient between X and Y and comment on their
relationship
X 1 3 4 5 7 8
Y 2 6 8 10 14 16

X Y 𝒙𝟐 𝒚𝟐 XY
1 2 1 4 2
3 6 9 36 18
4 8 16 64 32
5 10 25 100 50
7 14 49 196 98
8 16 64 256 128
𝟐
∑X=28 ∑Y=56 ∑𝒙 = 164 ∑𝒚𝟐 = 656 ∑XY= 328

( ∑𝑋)(∑𝑌)
∑𝑋𝑌−
𝑁
r =
2 2
√∑𝑋 2 −∑(𝑋) √∑𝑌 2 −∑(𝑌)
𝑁 𝑁
(28)(56)
328−
6
r =
(28) 2 (56) 2
√164− √656−
6 6
 1568
328−
6
r =
784 3136
√164− 6 √656− 6
328− 261.33
r =
√164−130.66 √656−522.66
66.67
r =
√33.34 √133.34
66.67
r =
(5.7740) (11.5472)
66.67
r =
66.67
r =1
3. Mention the properties of correlation coefficient (any four)
Properties of correlation coefficient
• ‘ r ’ is a pure number because it doesn’t have unit of measurement.
• If ‘r’ is negative it indicates inverse relationship between the variables.
Changes occur in opposite direction. E.g: price increases and demand
decreases.
• If ‘r’ is positive it indicates direct relationship between the variables. A
change occurs in opposite direction. E.g: price increases and supply
increases.
• The value of r lies between minus one and plus one, -1 ≤ r ≤ 1. If any value
outside this range shows error in calculation.
• If r= 0, it indicates non-linear relationship among the variables. However
other types of relation may be there.
• If r=1 or r= -1, it indicates perfect positive or perfect negative correlation.
Here relationship is exact between the variables.
• If value of r is close to 1 or -1 is called high degree of correlation.
• If value of r is close to 0 is called low degree of correlation.
• The magnitude of r is unaffected by change of origin and scale.
4. Draw scatter diagram and conclude about correlation
X 10 20 30 40 50 60 70 80
Y 25 20 25 35 40 35 50 45

Y-Values
60

50

40

30
Y-Values
20

10

0
0 10 20 30 40 50 60 70 80 90

Conclusion: positive correlation between X and Y

5. Draw scatter diagram and interpret.
X 1 2 3 4 5 6
Y 2 4 6 8 10 12

Y-Values
14

12

10

6 Y-Values

0
0 1 2 3 4 5 6 7

Conclusion: perfect positive correlation between X and Y

IV. Answer the following in about twenty sentences (6 marks)
1. Calculate Karl Pearson’s coefficient of correlation from the following data
using step deviation method and comment on the result.
X 12 14 16 18 20 22 24 28 30
Y 36 33 30 27 24 21 18 15 12

𝑿−𝟏𝟎 𝒀−𝟏𝟓
X Y U= V= 𝑼𝟐 𝑽𝟐 UV
𝟐 𝟑
12 36 1 7 1 49 7
14 33 2 6 4 36 12
16 30 3 5 9 25 15
18 27 4 4 16 16 16
20 24 5 3 25 9 15
22 21 6 2 36 4 12
24 18 7 1 49 1 7
28 15 9 0 81 0 0
30 12 10 -1 100 1 -10
∑U=47 ∑V=27 ∑𝑼𝟐 = 321 𝟐
∑𝑽 = 141 ∑UV= 74

(∑𝑈)(∑𝑉)
∑𝑈𝑉−
𝑁
r =
2 2
√∑𝑈2 −∑(𝑈) √∑𝑉 2 −∑(𝑉)
𝑁 𝑁
(47)(27)
74−
9
r =
(47) 2 (27) 2
√321− √141−
9 9
1269
74−
9
r =
2209 729
√321− 9 √141− 9
74− 141
r =
√321−245.44 √141−81
−67
r =
√75.56 √60
 −67
r =
(8.6925)(7.7459)
−67
r =
67
r = −1
There is a perfect negative correlation between X and Y.
2. Calculate the coefficient of rank correlation.
X 18 28 35 44 35 26 37 48
Y 83 51 34 34 34 28 46 47

X Y 𝑹𝟏 𝑹𝟐 D= R1-R2 𝑫𝟐
18 83 8 1 7 49
28 51 6 2 4 16
35 34 4.5 6 -1.5 2.25
44 34 2 6 -4 16
35 34 4.5 6 -1.5 2.25
26 28 7 8 -1 1
37 46 3 4 -1 1
48 47 1 3 -2 4
𝟐
∑𝑫 = 𝟗𝟏. 𝟓
4+5 9
In X series 35 repeated twice, correction factor is = =4.5
2 2
5+6+7 18
In Y series 34 repeated thrice, correction factor is 3
= 3 =6
𝑚3 𝑚1 𝑚3 𝑚
2
6[∑𝐷 + 1− + 2− 2 ]
12 12
rk = 1 - 𝑛3 − 𝑛
23− 2 33− 3
[
6 91.5+ + ]
12 12
rk = 1 - 83 − 8
8−2 27−3
6[91.5+ + ]
12 12
rk = 1 - 512− 8
6 24
6[91.5+ + ]
12 12
rk = 1 - 504
 6[91.5+ 0.5+2]
rk = 1 - 504
6[94]
rk = 1 - 504
564
rk = 1 - 504
rk = 1 - 1.1190
rk = -0.119
CHAPTER – 8 INDEX NUMBERS
I. Choose the correct answers (1 mark).
∑𝑃1 𝑄0
1. The formula P01 = × 100 is given by
∑𝑃0 𝑄0
a) Laspeyre b) Paasche c) Marshal d) Fisher
2. In index number of which year price is assumed to be 100
a) Current year b) Base year c) Selection of prices d) none of these
3. Laspeyre’s index is based on
a) Base year quantity b) Current year quantity
c) Both of them d) Average of current and base
4. Paasche’s index is based on
a) Current year quantity b) Base year quantity
c) Both of them d) None of these
II. Fill in the blanks (1 mark).
1. Index numbers are expressed in percentage.
2. Inflation affects the value of money of common people.
3. Using current year quantities as weights is known as Paasche’s index number
4. P1 and P0 indicate the price of the commodity in the current and base period
respectively.
III. Match the following: (total 5 marks)
A B
1.CPI a) Producer Price Index (5)
2.WPI b) Agriculture Price Index (4)
3.IPI c) Consumer Price Index (1)
4.API d) Wholesale Price Index (2)
5.PPI e) Industrial Production Index(3)

IV. Answer the following questions in a word / sentence (1 mark).

1. What is an index number?
Index number measures average change in a group of related variables over
two different situations.
2. What is price relative?
Price relative is a percentage change in current year price due to change in
the base year price.
3. What is inflation?
Inflation means a general rise in the prices of all goods and services.
4. Write the formula to calculating index of industrial production.
∑𝑞1 ×𝑊
IIP01 = × 100
∑𝑊
5. What is SENSEX
SENSEX is a sensitive index of Bombay stock exchange.
V. Answer the following questions in about four sentences (2 marks)
1. Mention some important index numbers?
Consumer Price Index, Wholesale Price Index, Industrial Production Index,
Agricultural Price Index, SENSEX, Producer Price Index.
2. What is consumer price index number? How do you calculate it?
Consumer price index means an average change in retail price and cost of
living.
∑𝑾𝑹
CPI=
∑𝑾
3. What is wholesale price index? Write its drawbacks.
Wholesale price index means changes in the general price level.
Limitations: i. No references of the consumer category
ii. It does not include items related to services like barber
charges, repairing etc.
4. What is industrial production index? Which year as the base for their index on
India?
Industrial production index refers to the Index number which is measuring
industrial production. 2004-05 as the base year in India.
VI. Answer the following questions in about twelve sentences (4 marks)
1.Calculate weighted average of price relative index from the following data.
Items Weight in % Base year Current year Price
Price (Rs) Price(Rs) relative
(𝑷𝟎 ) (𝑷𝟏 ) 𝑷𝟏
X 100
𝑷𝟎
A 40 2 4 200
B 30 5 6 120
C 20 4 5 125
D 10 2 3 150
𝛴𝑊 = 100

𝑷
𝛴𝑊 [ 𝟏 𝐗 𝟏𝟎𝟎] 40×200+30×120+20×125+10×150
𝑷𝟎
P01= = =
𝛴𝑊 100
8000+3600+2500+1500 15600
= = 156- 100 = 56%
100 100
2. Compute the cost of living index number for the following data.
Commodities Q0 P0 P1 𝑷 WR
R= 𝟏 X 100
(W) 𝑷𝟎
Wheat 20 10 12 120 2400
Rice 5 30 35 116.66 583.3
Ghee 2 20 30 150 300
Sugar 4 25 40 160 640
𝜮𝑾 = 𝟑𝟏 𝜮𝑾𝑹 = 𝟑𝟗𝟐𝟑. 𝟑

𝛴𝑊𝑅 3923.3
CPI = = =126.6 −100=26.6%
𝛴𝑊 31
3. Calculate index numbers from the following data by Laspeyre’s method.
Commodity P0 Q0 P1 Q1 P1q0 P 0 q0
A 8.0 5 10 11 50 40
B 8.5 6 9 9 54 51
C 9.0 4 12 6 48 36
Σ P1q0 =152 Σ P0q0=127

𝚺𝐏𝟏 𝐪𝟎 𝟏𝟓𝟐
P01= × 𝟏𝟎𝟎 = × 𝟏𝟎𝟎= 𝟏. 𝟐 × 𝟏𝟎𝟎 =120 – 𝟏𝟎𝟎 = 𝟐𝟎%
𝚺𝐏𝟎 𝐪𝟎 𝟏𝟐𝟕
VII. Answer the following in about twenty sentences (6 marks)
1. Explain the difficulties in Construction of consumer price index number.
• Purpose of the index number: it is required to clearly define the purpose of
the index numbers. E.g: calculation of value index based on values not on
volume index.
• Selection of items: items to be included in the index numbers are selected
carefully. E.g: rise in petrol price will not affect the poor agricultural
labourers.
• Selection of base year: normal base year is selected for measuring index
numbers. Extreme values should be avoided. The base period should not be
too far in the past. E.g: comparison between 1993 and 2005 is better than
between 1960 and 2005.
• Selection of formulas: choices of the formulas are based on the nature of
questions to be studied. E.g: the difference between Laspeyre’s and
Paasche’s index is weights assigned in the formulas.
• Selection of data: choice of the data is based on reliability. Poor reliable
data will give misleading results. E.g: if primary data is not used then the
reliable secondary data can be used.
2. Write a short note on CPI, WPI and IIP.
Consumer Price Index (CPI)
• It means an index number of the cost met by a specified class of consumers
in buying a basket of goods and services.
• It estimates real cost of living and purchasing power of money so it is called
as cost of living index.
 • It is the real price index for the common people.
• It measures the average change in retail price.
• There are 3 CPI constructed in India
1. CPI for industrial workers –2001 base year, published by Labour Bureau
of Shimla
2. CPI for agricultural workers – 1986-87 base year, published by Labour
Bureau of Shimla
3. CPI for new series (rural and urban) – 2011 base year, published by
Central Statistical Organisation
𝜮𝑾𝑹
• CPI =
𝜮𝑾
Major Group Weights (%)
Food and beverages 45.86
Pan, supari, tobacco etc 2.38
Fuel and light 6.84
Housing 10.07
Clothing and footwear 6.53
Misc. group 20.82
general 100.00

Wholesale Price Index (WPI)

• It indicates the changes in the general wholesale price level of a
representative basket of goods.
• It also called as producer’s price index
• It measures commodity value of domestic production and the value of
imports with import duty during the base year.
• It has 2004-05 as a base year
• It measures inflation, value of money and analyses the market.
• WPI weights are divided into 3 broad categories
Category Weights (%) No. of items
Primary articles 20.1% 102
Manufactured 65% 555
products
Fuel and power 14.9% 19
Index of Industrial Production (IIP)
• IIP measures changes in the level of industrial production of many
industries.
• It includes the production of public and private sector.
• It is a weighted average of quantity relatives.
𝜮𝒒𝟏 ×𝑾
• IIP01 = × 𝟏𝟎𝟎
𝜮𝑾
• Base year is 2004-05
• Broad industrial grouping and their weights
Broad grouping Weights (%) Index no(2013-14)
Mining and quarrying 14.2 124.7
Manufacturing 75.5 181.9
Electricity 10.3 164.7
General index 172.0

3. Calculate price index number by a) Laspeyre’s method b) Paasche’s method

Commodity 1990 1995 P 1 q0 P0 q0 P1q1 P 0 q1
Price Quantity Price Quantity
(P0) (q0) (P1) (q1)
A 20 15 30 20 450 300 600 400
B 15 10 20 15 200 150 300 225
C 30 20 25 10 500 600 250 300
D 10 5 12 10 60 50 120 100
ΣP1q0= ΣP0q0= ΣP1q1= ΣP0q1=
1210 1100 1270 1025

a) Laspeyre’s method
𝚺𝐏𝟏 𝐪𝟎 𝟏𝟐𝟏𝟎
P01= × 𝟏𝟎𝟎 = × 𝟏𝟎𝟎= 𝟏. 𝟏 × 𝟏𝟎𝟎 =110 – 𝟏𝟎𝟎 = 𝟏𝟎%
𝚺𝐏𝟎 𝐪𝟎 𝟏𝟏𝟎𝟎
b) Paasche’s method
𝚺𝐏𝟏 𝐪𝟏 𝟏𝟐𝟕𝟎
P01= × 𝟏𝟎𝟎 = × 𝟏𝟎𝟎= 𝟏. 𝟐𝟒 × 𝟏𝟎𝟎 =124 – 𝟏𝟎𝟎 = 𝟐𝟒%
𝚺𝐏𝟎 𝐪𝟏 𝟏𝟎𝟐𝟓
VII. Project Oriented Question (5 Marks)
1. Write a note on SENSEX.
• It is a SENSitive indEX of Bombay stock exchange, formed on 1st January
1986.
• It means a free float market capitalization, weighted stock market index of
30 well established and financially sound companies listed on Bombay
Stock Exchange (BSE).
• The BSE was established in the year 1875
• It is regarded as the pulse of the domestic stock markets in India.
• It checks the changes in the share prices and value of the wealth of
shareholders or investors.
• Rise in the SENSEX indicates rise in the share prices and also value of wealth
of shareholders and vice versa.
• Rise in the SENSEX reflects the good health of the economy
• Base year is 1978-79
CHAPTER – 9 USE OF STATISTICAL TOOLS
I. Choose the correct answers (1 mark)
1. Use of statistical tools helps to
a) Developing a project b) Determining a project
c) Marketing d) production
2. The first step in making a project
a) Analysis and interpretation b) Collection of data
c) Identifying a problem d) Organization of data.
II. Fill in the blanks (1 mark)
1. Survey helps to determine the method of collection of data
2. The choice of target groups is very important while preparing the appropriate
questionnaire
III. Answer the following questions in a word / sentence (1 mark)
1. Mention the last step in developing a project.
Conclusion
2. What is consumer awareness?
Consumer awareness is awareness about consumer’s rights.
IV. Answer the following questions in about four sentences (2 marks)
1. Mention the name of any four statistical tools.
Collection of data, Organization of data, Presentation of data, Measures of central
tendency, Measures of dispersion, Correlation and Index numbers.
2. Write the first four steps in developing a project.
• Identifying a problem or an area of study
• Choice of target group
• Collection of data
• Organisation and presentation of data
• Analysis and interpretation
• Conclusion

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