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Chapter 3 - Descriptive Statistics (Grouped Data)

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43 views23 pages

Chapter 3 - Descriptive Statistics (Grouped Data)

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maizon.darus
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Chapter 3

(Part 2)

Grouped Data
Numerical Descriptive Measures of
Data
• When the amount of raw data is large, it is better
presented in a table of frequency distribution.
Computing measures of central tendency for
grouped data is different from computing raw data.
(a) Mean

Mean = X =
 fx
i

f
Where 𝑓 = 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛
𝑥𝑖 = 𝑚𝑖𝑑𝑝𝑜𝑖𝑛𝑡 𝑜𝑓 𝑐𝑙𝑎𝑠𝑠 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙
(b) Median
n 
 2 −  f m −1 
Median = Lm +  c
 fm 
 
Where n = sample size
Lm = lower limit of the median class
∑fm-1 = cumulative frequency before the median class
fm = frequency of median class
c = median class size
class size = lower limit of 2nd class interval – lower limit of
1st class interval
(c) Mode
 f 0 − f1 
Mode = L+ c
 ( f 0 − f1 ) + ( f 0 − f 2 ) 

Where L = lower limit of the class containing mode,


c = size of the class containing mode,
f0 = frequency of the class containing mode,
f1 = frequency of the class before the class
containing mode, and
f2 = frequency of the class after the class
containing mode.
d) Variance and Standard Deviation.

1 σ 𝑓𝑥 2
2
Variance; s = 2
෍ 𝑓𝑥 −
𝑛−1 𝑛

𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝐷𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛; 𝑠 = 𝑉𝑎𝑟𝑖𝑎𝑛𝑐𝑒


e) Quartiles

First Quartile, n 
 4 − F1 
Q1 = L1 +    c1
 f1 
 
Where
L1 = lower limit of the first quartile class,
n = number of observations,
F1 = cumulative frequency before the first quartile class,
f1 = frequency of the first quartile class, and
c1 = first quartile class size.
Third Quartile,

 3n 
 4 − F3 
Q3 = L3 +    c3
 f3 
 
Where
L3 = lower limit of the third quartile class,
n = number of observations,
F3 = cumulative frequency before the third quartile class,
f3 = frequency of the third quartile class, and
c3 = third quartile class size.
Example
• Table 4.3 shows the years of working experience for one-
hundred-and-twenty employees of Jimmy’s company.

Calculate the following statistics for the data:


a) Mean, median and mode.
b) Variance and standard deviation.
c) First and third quartiles.
Solution: (a) Mean
First, we construct a column for the mid-point (xi) (for
example column 3 in Table 4.4).
Next, we construct a column for fixi (product of frequency
where xi is the mid-point) and obtain the sum of fixi.
Finally, we compute the arithmetic mean.
 fi xi
X=
n
=
1, 488
120
= 12.4

This means, that on an average, the employees in


Jimmy’s company have 12.4 years of working experience
each.
Solution: a) Median
Step 1: Obtain the cumulative frequency
Step 2: Identify the class that contains the
median and obtain the median location.

𝑛 120
= = 60
2 2

Position 60 lies between 37-64. This means that


the class interval 9-12 is the median class.
Step 3: Apply the formula.
n 
 2 −  f m −1 
Median = Lm +  c
 f m 
 
60 − 36
𝑀𝑒𝑑𝑖𝑎𝑛 = 9 + × 4 = 12. 428 𝑦𝑒𝑎𝑟𝑠
28

( c = lower limit of 2nd class interval – lower limit of 1st


class interval = 5 – 1 = 4 )
This means that 50% of employees have a working
experience of less than 12.428 years and the other 50%
have a working experience of more than 12.428 years.
Solution: a) Mode
The mode class is 9-12 since the frequency is the
highest. Thus, 𝑓0 = 28, 𝑓1 = 20, 𝑓2 = 24, 𝑐 =
12.5 − 8.5 = 4.0 𝑎𝑛𝑑 𝐿 = 9.

 f 0 − f1 
Mode = L +  c
 ( f 0 − f1 ) + ( f 0 − f 2 ) 
 28 − 20 
=9+   4.0 = 11.67
 (28 − 20) + (28 − 24) 
Solution: b) Variance and Standard Deviation
Create the column 𝑓𝑖 𝑥𝑖2 ∶
Years of Number of Mid-point 𝒙𝒊 𝑓𝑖 𝑥𝑖 𝑓𝑖 𝑥𝑖2
Experience Employees
𝒇𝒊
1-4 16 2.5 40 100
5-8 20 6.5 130 845
9-12 28 10.5 294 3087
13-16 24 14.5 348 5046
17-20 16 18.5 296 5476
21-24 11 22.5 247.5 5568.75
25-28 5 26.5 132.5 3511.25
Total 120 ෍ 𝑓𝑖 𝑥𝑖 = 1,488 23,634
Variance;
1 σ 𝑓𝑥 2
2
s = 2
෍ 𝑓𝑥 −
𝑛−1 𝑛
2
1 1488 5182.8
= 23,634 − = = 43.5529
120 − 1 120 119

Standard Deviation;

𝑠 = 𝑉𝑎𝑟𝑖𝑎𝑛𝑐𝑒 = 43.5529 = 6.5995


Solution: c) Quartiles
Step 1: Create the cumulative frequency
Step 2: Identify the location or position of the first and third
quartiles.
Step 3: Determine the values of Q1 and Q3 using their formulae.
Solution: c) Quartiles
Step 1: Obtain the cumulative frequency
Step 2: Identify the location or position of the first and third
quartiles.

𝑛 120
Location of 𝑄1 = = = 30; (so, interval 5-8).
4 4

𝑛 120
Location of 𝑄3 = 3 =3 = 90; (so, interval 17-20).
4 4
Step 3: Determine the values of Q1 and Q3 using their formulae.

n   3n 
− F  4 − F3
4 1 Q3 = L3 + 
Q1 = L1 +    c1   c3
 f   f3 
   
= =
End of Chapter 3

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