Intro Stat Session 5
Intro Stat Session 5
Chapter Three
Measures of Central Tendency
Describing Data Numerically
Describing Data Numerically
Mode Variance
Coefficient of Variation
Geometric Mean
Chapter Three (Session 5)
Measures of Central Tendency
Chapter Four
Measures of Variation
Objectives of Measures of Central Tendency
• General Notation
• Some Properties
Measures of Central Tendency
i) Mean:
i) Arithmetic Mean
ii) Geometric Mean
(Appl.: growth rates; interest rates of
a financial investment over time, etc.)
iii) Harmonic Mean
ii) Median
iii) Mode
Arithmetic Mean
Definition:
x
x1 + x2 + + xn i =1 i
A.M = x = =
n n
Arithmetic Mean
Properties:
i) sum of the deviations of the items from their
arithmetic mean is zero.
ii)
Properties Cont’d
f1 x1 + f 2 x2 + + f n xn fx i i
A.M ( fd ) = = i =1
f1 + f 2 + + f n n
f
i =1
i
Application: Data on
❑ growth rates;
❑ interest rates of a financial investment over
time, etc.
Geometric Mean addresses the following
aspect:
"if all the quantities had the same value,
what would that value have to be in order
to obtain the same product?
Example
Suppose an investment group generated profit at the rate of 10% the
first year, 12% the second year, 14.8% the third year, 3.8% the fourth
year, and 16% the fifth year. What is the average profit over the
period of 5 years?
Geometric mean for frequency
Distribution
Drawbacks of Geometric Mean
Application:
Data on repeatedly applied fixed
quantity:
Example: average speed of
automobiles given in a duration of
various trips.
So Harmonic Mean gives averages of
rates and ratios
Definition: Harmonic Mean
Harmonic Mean (H.M) is the reciprocal of
the arithmetic mean of the reciprocal of
each observation
n n
H .M = = n
1 1 1 1
+ ++
x1 x2 xn
i =1 xi
Example: Harmonic Mean
Find the Harmonic mean of the speed per
hour of a car in three trips: 40, 60, 50
3 3
H .M = = = 48.65
1 1 1 1
+ +
40 60 50
x
i
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10
Median = 3 Median = 3
28
− 11
~
2 14 − 11 3
X = 35 + * 5 = 30 + * 5 = 30 + * 5 = 31.25
12 12 12
Mode
• A measure of central tendency
• Value that occurs most often
• Not affected by extreme values
• Used for either numerical or categorical data
• There may be no mode
• There may be several modes
Mode
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 0 1 2 3 4 5 6
No Mode
Mode = 10
MODE for Frequency Distribution
Formula
Let
l = the lower class boundary of the modal class,
fo = the frequency of the class just preceding the modal class,
f1 = frequency of the modal class,
F2 = frequency of the class just following the modal class, and
W is the class width.
The modal class is the class with the highest frequency.
MODE for Frequency Distribution Cont’d
1. Quartiles
2. Deciles and
3. Percentiles
Quartiles
• Quartiles divide a given set of data into four equal
parts.
• The corresponding values to these divisions, denoted
by Q1 , Q2 and Q3 are called the first (lower), second
and third (upper) quartile respectively.
• The second quartile is the median.
Quartile position:
- First quartile Q1 =0.25(n+1)
- Second quartile Q2 =0.5(n+1)
- Third quartile Q3 =0.75(n+1)
Example
• Compute first, second and third quartile for the
following series?
• Solution
Data in ascending order (a):
6, 12, 12, 14, 32, 32, 34
Pos-1 Pos-7
Positions: 0.25*8=2nd ;
0.5*8=4th ; 0.75*8=6th
Data in ascending order (b):
23, 23, 25, 27, 31, 34, 35, 38, 45, 46, 60
Pos-11
Pos-1
• Qk is the kth quartile, fQk is the frequency of the kth quartile class, l
is the lower class boundary of the kth quartile class, C is the sum of
frequencies of all classes lower than the kth quartile class
Deciles
• Deciles divide a given set of data in to ten equal
parts and the kth decile of a grouped frequency
distribution is computed by:
Percentiles