CHAPTER ONE: INTRODUCTION TO STATISTICS

At the end of this chapter students will be able to:

• Explain statistics
• make a distinction between descriptive statistics and inferential statistics
• identify applications and limitations of statistics
• identify types of level of measurement
1.1 Definition and classification of Statistics
The word statistics is defined in different ways depending on its use in the plural and singular
sense.

In the plural sense:- statistics is defined as the collection of numerical facts or figures (or the
raw data themselves).
Eg. 1. Vital statistics (numerical data on marriage, births, deaths, etc).

2. The average mark of statistics course for students is 70% would be considered as a
statistics whereas Abebe has got 90% in statistics course is not statistics.
Remark: statistics are aggregate of facts. Single and isolated figures are not statistics as they
cannot be compared and are unrelated.
In its singular sense:- the word Statistics is the subject that deals with the methods of
collecting, organizing, presenting, analyzing and interpreting statistical data.
Classification of Statistics
Statistics is broadly divided into two categories based on how the collected data are used.
Descriptive Statistics:- deals with describing the data collected without going further
conclusion.
Example 1.1: Suppose that the mark of 6 students in Statistics course for Mathematics is given
as 40, 45, 50, 60, 70 and 80. The average mark of the 6 students is 57.5 and it is considered
as descriptive statistics.
Inferential Statistics:- It deals with making inferences and/or conclusions about a population
based on data obtained from a sample of observations. It consists of performing hypothesis
testing, determining relationships among variables and making predictions.
Example 1.2: In the above example, if we say that the average mark in Statistics course for
Mathematics students is 57.5, then we talk about inferential statistics (draw conclusion based
on the sample observation).

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1.2 Stages of Statistical Investigation
The area of statistics points out the following five stages. These are collection, organization,
presentation, analysis and interpretation of data.
Collection of data: This is the process of obtaining measurements or counts or obtaining raw
data.
Data can be collected in a variety of ways; one of the most common methods is through the
use of sample or census survey. Survey can also be done in different methods, three of the
most common methods are:
• Telephone survey
• Mailed questionnaire
• Personal interview.
Organization of data: - Data collected from published sources are generally in organized form.
However if an investigator has collected data through a survey, it is necessary to edit these
data in order to correct any apparent inconsistencies, ambiguities, and recording errors.
This phase also includes correcting the data for errors, grouping data into classes and
tabulating.
Presentation of data:- After the data have been collected and organized they can be presented
in the form of tables, charts, diagrams and graphs. This presentation in an orderly manner
facilitates the understanding as well as analysis of data.
Analysis of data: - the basic purpose of data analysis is to dig out useful information for
decision making. This analysis may simply be a critical observation of data to draw some
meaningful conclusions about it or it may involve highly complex and sophisticated
mathematical techniques.
Interpretation of data: - Interpretation means drawing conclusions from the data collected and
analyzed. Correct interpretation will lead to a valid conclusion of the study & thus can aid in
decision making.
1.3 Definition of some statistical terms
Population: - It is the totality of objects under study. The population represents the target of an
investigation, and the objective of the investigation is to draw conclusions about the population
hence we sometimes call it target population. The word population doesn’t necessarily refer to
people. Examples:
• All clients of Telephone Company
• All students of Mekdela Amba University (MAU)
• Population of families, etc.

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The population could be finite or infinite (an imaginary collection of units).
Sample: - is part or subset of population under study.

Sampling frame:- is the list of all possible units of the population that the sample can be drawn
from it. Eg. List of all students of MAU, List of all residential houses in Gimba town, etc

Survey: - is an investigation of a certain population to assess its characteristics. It may be

census or sample.
Census survey: a complete enumeration of the population under study.
Sample survey: the process of collecting data covering a representative part or portion of a
population.
Parameter: - is a statistical measure of a population, or summary value calculated from a
population. Examples: Average, Range, proportion, variance, etc
Statistic: - is a descriptive measure of a sample, or it is a summary value calculated from a
sample.
Sampling: - The process or method of sample selection from the population.
Sample size: - The number of elements or observation to be included in the sample.
An element: - is a member of sample or population. It is specific subject or object (for example
a person, firm, item, etc.) about which the information is collected.
Variable: - It is an item of interest that can take numerical or non-numerical values for different
elements. It may be qualitative or quantitative. Example: age, weight, sex, marital status, etc.
Observation (measurement):- is the value of a variable for an element.
Qualitative variables: - are variables that assume non-numerical values. They can be
categorized and they are usually called attributes.Example: Sex, marital status, ID number, etc.

Quantitative variables: - are variables which assume numerical values. eg. Age, weight, etc.

1.4 Applications, uses and limitations of Statistics

Statistics can be applied in any field of study which seeks quantitative evidence. For instance,
engineering, economics, natural science, etc.
a) Engineering: Statistics have wide application in engineering.
• To compare the breaking strength of two types of materials.
• To determine the probability of reliability of a product.
• To control the quality of products in a given production process.
• To compare the improvement of yield due to certain additives such as fertilizer,
herbicides, e t c.

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b) Economics: Statistics are widely used in economics study and research.
• To measure and forecast Gross National Product (GNP)
• Statistical analyses of population growth, inflation rate, poverty, unemployment figures,
rural or urban population shifts and so on influence much of the economic policy making.
• Financial statistics are necessary in the fields of money and banking including consumer
savings and credit availability.
c) Statistics and research: there is hardly any advanced research going on without the use of
statistics in one form or another. Statistics are used extensively in medical, pharmaceutical and
agricultural research.
Function/Uses of Statistics
Today the field of statistics is recognized as a highly useful tool to making decision process by
managers of modern business, industry, frequently changing technology. It has a lot of functions
in everyday activities. The following are some uses of statistics:
• It condenses and summarizes a mass of data: the original set of data (raw data) is normally
voluminous and disorganized unless it is summarized and expressed in few presentable,
understandable & precise figures.
• Statistics facilitates comparison of data: measures obtained from different set of data can
be compared to draw conclusion about those sets. Statistical values such as averages,
percentages, ratios, rates, coefficients, etc, are the tools that can be used for the purpose of
comparing sets of data.
• Statistics helps to predict future trends: statistics is very useful for analyzing the past and
present data and forecasting future events.
• Statistics helps to formulate & review policies: Statistics provide the basic material for
framing suitable policies. Statistical study results in the areas of taxation, on unemployment
rate, on inflation, on the performance of every sort of military equipment, etc, may convince a
government to review its policies and plans with the view to meet national needs and
aspirations.
• Formulating and testing hypothesis: Statistical methods are extremely useful in formulating
and testing hypothesis and to develop new theories.
Limitations of Statistics

The field of statistics, though widely used in all areas of human knowledge and widely applied
in a variety of disciplines such as engineering, economics and research, has its own limitations.
Some of these limitations are:

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a) It does not deal with individual values: as discussed earlier, statistics deals with aggregate
of facts. For example, wage earned by an individual worker at any one time, taken by itself is
not a statistics.
b) It does not deal with qualitative characteristics directly: statistics is not applicable to
qualitative characteristics such as beauty, honesty, poverty, standard of living and so on since
these cannot be expressed in quantitative terms. These characteristics, however, can be
statistically dealt with if some quantitative values can be assigned to these with logical criterion.
For example, intelligence may be compared to some degree by comparing IQs or some other
scores in certain intelligence tests.
c) Statistical conclusions are not universally true: since statistics is not an exact science,
as is the case with natural sciences, the statistical conclusions are true only under certain
assumptions.
d) It can be misused: statistics cannot be used to full advantage in the absence of proper
understanding of the subject matter.
1.5 Levels of Measurement

Proper knowledge about the nature and type of data to be dealt with is essential in order to
specify and apply the proper statistical method for their analysis and inferences.
Scale Types
Measurement is the assignment of values to objects or events in a systematic fashion. Four
levels of measurement scales are commonly distinguished: nominal, ordinal, interval, and ratio
and each possessed different properties of measurement systems. The first two are qualitative
while the last two are quantitative.

Nominal scale: The values of a nominal attribute are just different names, i.e., nominal
attributes provide only enough information to distinguish one object from another. Qualities with
no ranking or ordering, no numerical or quantitative value. These types of data are consists of
names, labels and categories. This is a scale for grouping individuals into different categories.
Example 1.3: Eye color: brown, black, etc, sex: male, female.
• In this scale, one is different from the other
• Arithmetic operations (+, -, *, ÷) are not applicable, comparison (<, >, ≠, etc) is
impossible
Ordinal scale: - defined as nominal data that can be ordered or ranked.
• Can be arranged in some order, but the differences between the data values are
meaningless.
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 • Data consisting of an ordering of ranking of measurements are said to be on an ordinal
scale of measurements. That is, the values of an ordinal scale provide enough
information to order objects.
• One is different from and greater /better/ less than the other
• Arithmetic operations (+, -, *, ÷) are impossible, comparison (<, >, ≠, etc) is possible.
Example 1.4 -Letter grading (A, B, C, D, F), -Rating scales (excellent, very good, good, fair,
poor), military status (general, colonel, lieutenant, etc).

Interval Level: data are defined as ordinal data and the differences between data values are
meaningful. However, there is no true zero, or starting point, and the ratio of data values are
meaningless. Note: Celsius & Fahrenheit temperature readings have no meaningful zero and
ratios are meaningless.
In this measurement scale:-
• One is different, better/greater and by a certain amount of difference than another.
• Possible to add and subtract. For example; 800c – 500c = 300c, 700c – 400c = 300c.
• Multiplication and division are not possible. For example; 60 0c = 3(200c). But this does
not imply that an object which is 600c is three times as hot as an object which is 200c.
Most common examples are: IQ, temperature.
Ratio scale: Similar to interval, except there is a true zero (absolute absence), or starting point,
and the ratios of data values have meaning.
• Arithmetic operations (+, -, *, ÷) are applicable. For ratio variables, both differences and
ratios are meaningful.
• One is different/larger /taller/ better/ less by a certain amount of difference and so much
times than the other.
• This measurement scale provides better information than interval scale of
measurement.
Example 1.5: weight, age, number of students.

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CHAPTER TWO: METHODS OF DATA COLLECTION AND PRESENTATION

This unit will deal how to collect and present the data you have collected so that they can be
of use. Thus, the collected data also known as raw data are always in an unorganized form
and need to be organized and presented in a meaningful and readily comprehensible form in
order to facilitate further statistical analysis.
Objectives: At the end of this chapter students will be able to:
• Arrange raw data in an array and then classified data to construct a frequency table and
a cumulative frequency table.
• To organize data using frequency distribution.
• To present data using suitable graphs or diagrams.
2.1 Methods of Data Collection

Data:- is the raw material of statistics. It can be obtained either by measurement or counting.
When we determine that the appropriate approach to seeking an answer to a question will
require the use of statistics, we begin to search for suitable data to serve as the raw material
for our investigation.
Sources of data
The statistical data may be classified under two categories depending up on the sources.
1. Primary data: - Data collected by the investigator himself for the purpose of a specific
inquiry or study. Such data are original in character & are mostly generated by surveys
conducted by individuals or research institutions.
It is more reliable & accurate since the investigator can extract the correct information by
removing doubts, if any, in the minds of the respondents regarding certain questions.

2. Secondary data: - When an investigator uses data, which have already been collected by
others, such data are called secondary data. Such data are primary data for the agency
that collected them, and become secondary for some one else who uses these data for his
own purposes. Example of secondary data: books, reports, magazines, etc.
When our source is secondary data check that:
✓ The type and objective of the situations.
✓ The purpose for which the data are collected and compatible with the
present problem.
✓ The nature and classification of data is appropriate to our problem.
✓ There are no biases and misreporting in the published data.
Note: Data which are primary for one may be secondary for the other.

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2.2 Methods of Data Presentation

Having collected and edited the data, the next important step is to organize it. That is to present
it in a readily comprehensible condensed form that aids in order to draw inferences from it. It is
also necessary that the like be separated from the unlike ones.
The presentation of data is broadly classified in to the following two categories:
✓ Tabular presentation
✓ Diagrammatic and Graphic presentation.
The process of arranging data in to classes or categories according to similarities technically is
called classification. It eliminates inconsistency and also brings out the points of similarity and/or
dissimilarity of collected items/data.
Classification is necessary because it would not be possible to draw inferences and conclusions
if we have a large set of collected [raw] data.
2.2.1 Frequency distribution
Frequency: - is the number of times a certain value or class of values occurs.

Frequency distribution (FD):- is the organization of raw data in table from using classes and
frequency.
There are three types of FD and there are specific procedures for constructing each type.
The three types are:-
I. Categorical FD
II. Ungrouped FD and
III. Grouped FD
I. Categorical FD: Used for data that can be placed in specific categories; such as nominal,
ordinal level of data.
Example 2.1: Twenty five patients were given a blood test to determine their blood type. The
data is as shown below: A B B AB A O O B AB B B B O A O O O AB AB A O O B A.
Solution: since the data are categorical by taking the four blood types as classes we can
construct a FD as shown below.
Step 1: Make a table as shown below

CLASS TALLY FREQUANCY PERCENRT

A
B
AB
O
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 Step 2: Tally data and place the result under the column Tally
Step 3: Count the tallies and place the result under the column Frequency.
Step 4: find the percentage of values in each class by the formula (%= f/n * 100%; f=
frequency, n total number of observation.)

CLASS TALLY FREQUANCY PERCENRT

A //// 5 5/25* 100 = 20%
B //// // 7 28%
AB //// 4 16%
O //// //// 9 9/25*100 = 36%

II. Ungrouped Frequency Distribution (UFD)

Is a table of all potential raw score values each times each actually could possibly occur in the
data along with the number of times each actually could occurred?

Is often constructed for small set of data or data once discrete variable?

Constructing ungrouped frequency distribution:

✓ First find the smallest and largest raw score in the collected data.
✓ Arrange the data in order of magnitude and count the frequency.
✓ To facilitate counting one may include a column of tallies.

Example 2.2: The following data represent the mark of 20 students.

80 76 90 85 80
70 60 62 70 85
65 60 63 74 75
76 70 70 80 85
Construct a frequency distribution, which is ungrouped.
Solution:
Step 1: Find the range, Range=Max-Min=90-60=30.
Step 2: Make a table as shown
Step 3: Tally the data.
Step 4: Compute the frequency.
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 Mark Tally Frequency
60 // 2
62 / 1
63 / 1
65 / 1
70 //// 4
74 / 1
75 // 2
76 / 1
80 /// 3
85 /// 3
90 / 1

-Each individual value is presented separately, that is why it is named ungrouped frequency
distribution.
3. Grouped Frequency Distribution (GFD).
When the range of the data is large the data must be grouped in to classes that are more than
one unit in width.
Definition of some basic terms
• Grouped frequency distribution: is a FD when several numbers are grouped into one
class.
• Class limits (CL): It separates one class from another. The limits could actually appear in
the data and have gaps between the upper limits of one class and the lower limit of the
next class.
• Unit of measure (U): This is the possible difference between successive values. E.g. 1,
0.1, 0.01, 0.001……
• Class boundaries: Separate one class in a grouped frequency distribution from the other.
The boundary has one more decimal place than the raw data. There is no gap between
the upper boundaries of one class and the lower boundaries of the succeeding class.
Lower class boundary is found by subtracting half of the unit of measure from the lower
class limit and upper class boundary is found by adding half unit measure to the upper
class limit.
• Class width (W): The difference between the upper and lower boundaries of any
consecutive class. The class width is also the difference between the lower limit or upper
limits of two consecutive classes.

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 • Class mark (Mid point): It is found by adding the lower and upper class limit (Boundaries)
and divided the sum by two.
• Cumulative frequency (CF): It is the number of observation less than the upper class
boundary or greater than the lower class boundary of class.
• CF (Less than type): it is the number of values less than the upper class boundary of a
given class.
• CF (Greater than type): it is the number of values greater than the lower class boundary
of a given class.
• Relative frequency (Rf ):The frequency divided by the total frequency. This gives the
percent of values falling in that class.
Rfi = fi/n= fi/∑fi
• Relative cumulative frequency (RCf): The running total of the relative frequencies or
the cumulative frequency divided by the total frequency gives the percent of the values
which are less than the upper class boundary or the reverse.
CRfi = Cfi/n= Cfi/∑fi

STEPS IN CONSTRUCTING A GFD

1. Find the highest and the smallest value
2. compute the range; R = H – L
3. Select the number of class desired (K)
I. Choose arbitrary between 5 and 15.
II. Using sturgles formula
K= 1 + 3.322Log n; n= Total frequency
4. Find the class width (W) by dividing the range by the number of classes and round to
the nearest integer.
W = R/K
5. Identify the unit of measure usually as 1, 0.1, 0.01, …
6. Pick a suitable starting point less than or equal to the minimum value. Your starting
point is lower limit of the first class.
- Then continue to add the class width to get the rest lower class limits.
7. Find the upper class limits UCLi = LCLi-U. then continue to add width to get the rest
upper class limits
8. find class boundaries
LCBi = LCLi – ½ U, UCBi = UCLi + ½ U
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 9. Find class mark
CMi = (UCLi + LCLi) / 2 or CMi = (UCBi + LCBi) / 2.
10. Tally the data
11. Find the frequencies
12. Find the cumulative frequencies. Depending on what you are trying to accomplish, it may
be necessary to find the cumulative frequency.
13. If necessary find RF and RCF.
When grouping data the following rules are important:
❖ The groups must not overlap, otherwise there is confusion concerning in which group a
measurement belongs.
❖ There must be continuity from one group to the next, which means that there must be no
gaps. Otherwise some measurements may not fit in a group.
❖ The groups must range from the lowest measurement to the highest measurement so that
all of the measurements have a group to which they can be assigned.
❖ The groups should normally be of an equal width, so that the counts in different groups can
easily be compared.
Example 2.3: Construct FD for the following data.
11 29 33 22 27 19 22 21 18 17 22 38 26 39 27 6 34 13 20
Solution:-
1) Highest value = 39, Lowest value = 6
2) Range = 39 – 6 = 33
3) K = 1+ 3.322Log20 = 1 + 3.322(2.301) = 5.6 ≈ 6
4) W = R / K = 33/6 = 5.5 ≈ 6
5) U = 1
6) LCL1= 6
7) Find the upper class limits.
8) Find class boundaries
9) Find class mark
10) Tally the data

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 Class Class Class Tally Frequency CF(<) CF(>) RF RCF(>)
limit boundary Mark
6 – 11 5.5 – 11.5 8.5 // 2 2 20 2/20=0.1 1
12 – 17 11.5 – 17.5 14.5 // 2 4 18 2/20=0.1 0.9
18 – 23 17.5 – 23.5 20.5 ///// // 7 11 16 7/20=0.35 0.8
24 – 29 23.5 – 29.5 26.5 //// 4 15 9 4/20=0.2 0.45
30 – 35 29.5 – 35.5 32.5 /// 3 18 5 3/20=0.15 0.25
36 – 41 35.5 – 41.5 38.5 // 2 20 2 2/20=0.1 0.10

2.2.2 Diagrammatic presentation of data: Bar charts, Pie-chart, Cartograms

The most convenient and popular way of describing data is using graphical presentation. It is
easier to understand and interpret data when they are presented graphically than using words
or a frequency table. A graph can present data in a simple and clear way. Also it can illustrate
the important aspects of the data. This leads to better analysis and presentation of the data. In
this article, we discuss the approach for the most commonly used diagrammatic or graphical
methods such as bar chart, pie chart, histogram, frequency polygon and cumulative frequency
polygon.
The three most commonly used diagrammatic presentation for discrete as well as qualitative
data are:

➢ Pie chart
➢ Bar chart
➢ Pictogram
A) Pie chart

A pie chart is a circle that is divided in to sections or wedges according to the percentage of
frequencies in each category of the distribution. The angle of the sector is obtained using:

𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑎𝑟𝑡

𝐴𝑛𝑔𝑙𝑒 𝑜𝑓 𝑎 𝑠𝑒𝑐𝑡𝑜𝑟 = ∗ 3600
𝑇ℎ𝑒 𝑤ℎ𝑜𝑙𝑒 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦

Example 2.4: Draw a suitable diagram to represent the following population in a town.

Men Women Girls Boys

2500 2000 4000 1500

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Solutions:

Step 1: Find the percentage.

Step 2: Find the number of degrees for each class.

Step 3: Using a protractor and compass, graph each section and write its name with
corresponding percentage.

Class Frequency Percent Degree

Men 2500 25 90
Women 2000 20 72
Girls 4000 40 144
Boys 1500 15 54
Total 10000 100 360

Boys Men
15% 25%

Girls Women
40% 20%

B) Bar Charts
✓ Used to represent & compare the frequency distribution of discrete variables and
attributes or categorical series.
✓ Bars can be drawn either vertically or horizontally.

In presenting data using bar diagram,

✓ All bars must have equal width and the distance between bars must be equal.
✓ The height or length of each bar indicates the size (frequency) of the figure represented.

There are different types of bar charts. The most common being:

❖ Simple bar chart

❖ Component or sub divided bar chart.
❖ Multiple bar charts.

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 I. Simple bar chart
✓ Are used to display data on one variable.
✓ They are thick lines (narrow rectangles) having the same breadth. The magnitude of a
quantity is represented by the height /length of the bar.

Example 2.5: Number of students in the four department of Science College given as follows:

Department Physics Maths Chemistry Biology

Number of students 200 400 450 600

Male 170 350 250 200

Female 30 50 200 400

Draw a simple bar chart of the number of students by department.

Simple bar chart

800 600
Frequency

600 400 450

400 200
200
0
Phys Maths Chem Bio
De prtm e nt

Solution:

II. Component Bar chart

✓ When there is a desire to show how a total (or aggregate) is divided in to its component
parts, we use component bar chart.
✓ The bars represent total value of a variable with each total broken in to its component
parts and different colors or designs are used for identifications

Example 2.6: Draw a component (sub-divided) bar chart of the number of students by
department is given in the example 2.5.
Solution:

Sub-divided bar chart

800
600 Female
Frequency 400 Male
200
0
Phys Maths Chem Bio
Department

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 III. Multiple Bar charts
✓ These are used to display data on more than one variable.
✓ They are used for comparing different variables at the same time.

Example 2.7: The following data represent sales by product, 1957- 1959 of a given company
for three products A, B, C.

Product Sales in ($)

1957 1958 1959

A 12 14 18
B 24 21 18
C 24 35 54
Draw a multiple bar chart to represent the sales by product from 1957 to 1959.
Solution:

C) Pictograph

In this diagram, we represent data by means of some picture symbols. We decide about a
suitable picture to represent a definite number of units in which the variable is measured.

2.2.4 Graphical Presentation of data

The histogram, frequency polygon and cumulative frequency graph or ogive is most commonly
applied graphical representation for continuous data.

Procedures for constructing statistical graphs:

➢ Draw and label the X and Y axis.
➢ Choose a suitable scale for the frequencies or cumulative frequencies and label it on the Y
axis.

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➢ Represent the class boundaries for the histogram or ogive or the mid points for the frequency
polygon on the X axis.
➢ Plot the points.
➢ Draw the bars or lines to connect the points.
Histogram
A graph which displays the data by using vertical connected bars of various heights to represent
frequencies. Class boundaries are placed along the horizontal axis. Class marks and class
limits are some times used as quantity on the X axis.
Example 2.8: Construct a histogram to represent the following data.

Class 15-24 25-34 35-44 45-54 55-64 65-74 75-84

limits
Frequency 3 4 10 15 12 4 2
Solution:

Histogram
Frequency
20
15
15 12
10
10
4 4
5 3 2

0
Class boundaries

Frequency polygon

If we join the mid-points of the tops of the adjacent rectangles of the histogram with line
segments a frequency polygon is obtained. When the polygon is continued to the x-axis just
outside the range of the lengths the total area under the polygon will be equal to the total area
under the histogram.
Example 2.9: Construct a frequency polygon to represent the previous data in example 2.8.
Solution:

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 Class Frequency Class Class R.F. % R.F. Less than More than
limits marks boundaries C.F. C. F.
(percent)

15 - 24 3 19.5 14.5 - 24.5 0.06 6% 3 50

25 – 34 4 29.5 24.5 - 34.5 0.08 8% 7 47

35 - 44 10 39.5 34.5 - 44.5 0.20 20% 17 43

45 - 54 15 49.5 44.5 - 54.5 0.30 30% 32 33

55 - 64 12 59.5 54.5 - 64.5 0.24 24% 44 18

65 - 74 4 69.5 64.5 - 74.5 0.08 8% 48 6

75 - 84 2 79.5 74.5 - 84.5 0.04 4% 50 2

Total 50 1.00 100%

Adding two class marks with f i = 0 , we have 9.5 at the beginning, and 89.5 at the end, the

following frequency polygon is plotted:

Frequency Polygon
20
F
r
10
e
q
u
y 0
e 9.5 19.5 29.5 39.5 49.5 59.5 69.5 79.5 89.5
n
c Class mark

Ogive (cumulative frequency polygon)

An Ogive (pronounced as “oh-jive”) is a line that depicts cumulative frequencies, just as the cumulative
frequency distribution lists cumulative frequencies. Note that the Ogive uses class boundaries along the
horizontal scale, and graph begins with the lower boundary of the first class and ends with the upper
boundary of the last class. Ogive is useful for determining the number of values below or above some
particular value. There are two type of Ogive namely less than Ogive and more than Ogive. The
difference is that less than Ogive uses less than cumulative frequency and more than Ogive uses more
than cumulative frequency on y axis.

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 Example 2.10: Draw a both types of ogives for the F.D. of Example 2.8.
Solutions:

The Less than Ogive The More than Ogive

Cumulative Frequency
60 60
50 50
Cumulative
Frequency

40 40
30 30
20 20
10 10
0 0
14.5 24.5 34.5 44.5 54.5 64.5 74.5 84.5
14.5 24.5 34.5 44.5 54.5 64.5 74.5 84.5
Class Boundaries
Class Boundaries

Note: For both ogives, one class with frequency zero is added for similar reason with the frequency
polygon.

CHAPTER THREE: MEASURES OF CENTRAL TENDENCY

Objectives
At the end of this chapter students will be able to:
• Identify measure of central tendency.
• Understand properties of arithmetic mean.
• Summarize an aggregate of statistical data by using single measure.
• Define and calculate the mean, mode and median.
• Measure the position of data using quartiles, deciles and percentiles with their
interpretation.
3.1 The Summation Notation ()
Statistical Symbols: Let a data set consists of a number of observations, represents by 𝑥1 , 𝑥2
, … , 𝑥𝑛 where n (the last subscript) denotes the number of observations in the data and 𝑥𝑖 is the
ith observation. Then the sum of all numbers (𝑥𝑖 ′𝑠) where i goes from 1 up to n is symbolically
given by ∑𝑛𝑖=1 𝑥𝑖 𝑜𝑟 ∑ 𝑥𝑖 𝑜𝑟 ∑ 𝑥 that is,
∑ 𝑥𝑖 = 𝑥1 + 𝑥2 + … + 𝑥𝑛
x - whole set of numbers
𝑥𝑖 - specific score in a set of numbers
n - total number of observations

19
For instance a data set consisting of six measurements 2, 3, 9, 10, 8 and -2 is represented by
𝑥1 , 𝑥2 , … , 𝑥6 where 𝑥1 = 2, 𝑥2 =3, 𝑥3 =9, 𝑥4 = 10, 𝑥5 = 8 and 𝑥6 =-2 Their sum becomes
∑6𝑖=1 𝑥𝑖 = 𝑥1 + 𝑥2 + … + 𝑥6 = 2+3+9+10+8+ (-2) = 30
Some Properties of the Summation Notation
1. ∑𝑛𝑖=1 𝑐 = n.c, where c is a constant number.

2. ∑𝑛𝑖=1 𝑏𝑥𝑖 = b∑𝑛𝑖=1 𝑥𝑖 where b is a constant number

3. ∑𝑛𝑖=1(𝑎 + 𝑏𝑥𝑖 ) = n.a + b∑𝑛𝑖=1 𝑥𝑖

4. ∑𝑛𝑖=1((𝑥𝑖 ± 𝑦𝑖 ) = ∑𝑛𝑖=1 𝑥𝑖 ± ∑𝑛𝑖=1 𝑦𝑖

5. ∑𝑛𝑖=1 𝑥𝑖 𝑦𝑖 ≠ ∑𝑛𝑖=1 𝑥𝑖 ∑𝑛𝑖=1 𝑦𝑖

Example 3.1: ∑7𝑖=1 𝑥𝑖 = 20 , ∑7𝑖=1 𝑦𝑖 = 30, ∑7𝑖=1 𝑥𝑖2 = 420, ∑7𝑖=1 𝑦𝑖2=280

Find i/ ∑7𝑖=1(6𝑥𝑖 + 4𝑦𝑖 ) = 6 ∑7𝑖=1 𝑥𝑖 + 4∑7𝑖=1 𝑦𝑖 = 6.20 + 4.30 = 240

ii/ 3∑7𝑖=1 𝑥𝑖2 − 2 ∑7𝑖=1 𝑦𝑖2 = 3.420 – 2.280 = 700
3.2 Properties of measures of central tendency

A good average should be:

1. Rigidly defined (unique).

2. Based on all observation under investigation.

3. Easily understood.

4. Simple to compute.

5. Suitable for further mathematical treatment.

6. Little affected by fluctuations of sampling.

7. Not highly affected by extreme values.

3.3 Types of Measures of Central Tendency

Measures of Central Tendency:- give us information about the location of the center of the
distribution of data values. A single value that approximately describes the characteristics of
the entire mass of data is called measures of central tendency. We will discuss briefly the three
measures of central tendency: Mean, Median and Mode in this unit.

20
 The following are types of Central Tendency which are suitable for a particular type of data.
These are
• Arithmetic Mean
- Weighted Arithmetic Mean
- Combined mean
• Geometric Mean
• Harmonic Mean
• Median
• Mode or modal value
3.3.1 Arithmetic Mean: - Arithmetic mean is defined as the sum of the measurements of the
items divided by the total number of items. It is usually denoted by 𝑥̅ .
Arithmetic Mean for individual series
Suppose 𝑥1 , 𝑥2 , … , 𝑥𝑛 are observed values in a sample of size n from a population of size N,
n<N then the arithmetic mean of the sample, denoted by 𝑥̅ is given by
𝑥1 + 𝑥2+ … +𝑥𝑛 ∑𝑛
𝑖=1 𝑥𝑖
𝑥̅ = =
𝑛 𝑛

If we take an entire population the mean is denoted by μ and is given by:

𝑋1 + 𝑋2+ … +𝑋𝑁 ∑𝑁
𝑖=1 𝑋𝑖
𝜇= =
𝑁 𝑁

Where N stands for the total number of observations in the population.

Example 3.2: Consider the samples given below:
i. 46 54 21 35
ii. 10.5 2.4 3.6 5.9 8.7
Find the arithmetic mean
Solution:
i. The sample values are: 46 54 21 35
∑𝑛
𝑖=1 𝑥𝑖 46+ 54+21+35 156
𝑥̅ = = = = 39
𝑛 4 4

The arithmetic mean for sample value is 39.

ii. The sample values are: 10.5 2.4 3.6 5.9 8.7
∑𝑛
𝑖=1 𝑥𝑖 10.5+ 2.4+3.6+ 5.9+ 8.7 31.1
𝑥̅ = = = = 6.22
𝑛 5 5

The arithmetic mean for sample value is 6.22.

Arithmetic mean for discrete data arranged in frequency distribution

21
When the numbers 𝑥1 , 𝑥2 , … , 𝑥𝑘 occur with frequencies 𝑓1 , 𝑓2 , … , 𝑓𝑘 , respectively, then the
mean can be expressed in a more compact form as:
𝑥1 𝑓1 +𝑥2 𝑓2 + …+𝑥𝑘 𝑓𝑘 ∑𝑘
𝑖=1 𝑥𝑖 𝑓𝑖
𝑥̅ = = ∑𝑘
𝑓1 +𝑓2 + …+ 𝑓𝑘 𝑖=1 𝑓𝑖

Example 3.3: Calculate the arithmetic mean of the sample of numbers of students in 10
classes:
50 42 48 60 58 54 50 42 50 42
∑𝑛
𝑖=1 𝑥𝑖 50+42+48+60+58+54+50+42+50+42 496
𝑥̅ = = = = = 49.6 ≈ 50
𝑛 10 10

In this case there are three 42’s, one 48, three 50’s, one 54, one 58 and one 60. The number
of times each number occurs is called its frequency and the frequency is usually denoted by f.
The information in the sentence above can be written in a table, as follows.
Value, xi 42 48 50 54 58 60

Frequency, fi 3 1 3 1 1 1

xifi 126 48 150 54 58 60

The formula for the arithmetic mean for data of this type is
𝑥1 𝑓1 +𝑥2 𝑓2 + …+𝑥𝑘 𝑓𝑘 ∑𝑘
𝑖=1 𝑥𝑖 𝑓𝑖
𝑥̅ = = ∑𝑘
𝑓1 +𝑓2 + …+ 𝑓𝑘 𝑖=1 𝑓𝑖

In this case we have:

42𝑥3 + 48𝑥1 + 50𝑥3 + 54𝑥1+58𝑥1+60𝑥1 126+48 + 150+54+58+60 496
𝑥̅ = = = = 49.6 ≈ 50
3+1+3+1+1+1 10 10

The mean numbers of students in ten classes is 50.

Arithmetic Mean for Grouped Continuous Frequency Distribution

If data are given in the form of continuous frequency distribution, the sample mean can be
computed as
∑𝑘
𝑖=1 𝑥𝑖 𝑓𝑖 𝑥1 𝑓1 +𝑥2 𝑓2 + …+𝑥𝑘 𝑓𝑘
𝑥̅ = ∑𝑘
= where 𝑥𝑖 is the class mark of the ith class; i=1, 2, . . . , k , 𝑓𝑖 is the
𝑖=1 𝑓𝑖 𝑓1 +𝑓2 + …+ 𝑓𝑘

frequency of the ith class and k is the number of classes

Note that ∑𝑘𝑖=1 𝑓𝑖 = n = the total number of observations.
Example 3.4: The following frequency table gives the height (in inches) of 100 students in a
college.
Class Interval (CI) 60- 62-64 64-66 66-68 68-70 70-72 Total
62

Frequency (f) 5 18 42 20 8 7 100

22
Calculate the mean

Solution:
The formula to be used for the mean is as follows:

∑𝑘
𝑖=1 𝑥𝑖 𝑓𝑖
𝑥̅ = ∑𝑘
𝑖=1 𝑓𝑖
Let us calculate these values and make a table for these values for the sake of convenience.

Class Interval (CI) 60-62 62-64 64-66 66-68 68-70 70-72 Total

Frequency (f) 5 18 42 20 8 7 100

Mid-Point (𝑥𝑖 ) 61 63 65 67 69 71

𝑓𝑖 𝑥𝑖 305 1134 2730 1340 552 497 6558

Substituting these values with ∑6𝑖=1 𝑓𝑖 = 100, we get

∑𝑘
𝑖=1 𝑥𝑖 𝑓𝑖 6558
𝑥̅ = ∑𝑘
= 𝑥̅ = = 65.58
𝑖=1 𝑓𝑖 100

The mean height of students is 65.58

Properties of the Arithmetic Mean

• The algebraic sum of the deviations of a set of numbers 𝑥1 , 𝑥2 , … , 𝑥𝑛 from their mean x is
n
always zero. i.e.  ( x − x) = 0
i =1
i

• The sum of squares of deviations from the mean is the least comparing to other measure of
n
central tendencies. That is,  ( x − A)
i =1
i
2
is minimum when A = x .

• If the mean of 𝑥1 , 𝑥2 , … , 𝑥𝑛 is 𝑥̅ , then

a) The mean of 𝑥1 ± k, 𝑥2 ± k ,..., 𝑥𝑛 ± k will be 𝑥̅ ± k
b) The mean of 𝑘𝑥1 , 𝑘𝑥2 , … , 𝑘𝑥𝑛 will be k 𝑥̅ .
Merits of Arithmetic Mean
• Arithmetic mean has a rigidly defined mathematical formula so that its value is always
definite or unique. It can be calculated for any set of numerical data.
• It is calculated based on all observations.
• Arithmetic mean is simple to calculate and easy to understand.
• It doesn’t need arrangement of data in increasing or decreasing order to calculate the
results.
• Arithmetic mean of many samples from the same population does not fluctuate
considerably.
23
 • It affords a good standard of comparison.
Demerits of Arithmetic Mean
• It can’t be calculated for data which are not quantifiable.
• It is highly affected by extreme (abnormal) values in the series.
• It can be a number which does not exist in the series.
• It can’t be calculated for grouped continuous open-ended classes.
Weighted Arithmetic Mean
While calculating simple arithmetic mean, all items were assumed to be of equally importance
(each value in the data set has equal weight). When the observations have different weight, we
use weighted average. Weights are assigned to each item in proportion to its relative
importance.
If 𝑥1 , 𝑥2 , … , 𝑥𝑛 represent values of the items and 𝑤1 , 𝑤2 , … , 𝑤𝑛 are the corresponding weights,
then the weighted mean, (𝑥̅ 𝑤 ) is given by

w1 x1 + w2 x2 +  + wn xn  wi xi
xw = =
w1 + w2 +  + wn  wi
Example 3.5: A student’s final mark in Mathematics, Physics, Chemistry and Biology are
respectively A, B, D and C. If the respective credits (weight) received for these courses are 4,
4, 3 and 2, determine the average grade the student has got for the course.
Solution
We use a weighted arithmetic mean, weight associated with each course being taken as the
number of credits received for the corresponding course.
𝑥𝑖 4 3 1 2 Total

𝑤𝑖 4 4 3 2 13

𝑥𝑖 𝑤𝑖 16 12 3 4 35

w1 x1 + w2 x2 +  + wn xn  wi xi
xw = =
w1 + w2 +  + wn  wi
16+12+3+4 35
= = = 2.69
13 13

Average grade of the student is approximately 2.69.

Combined mean: When a set of observations is divided into k groups and 𝑥̅1 is the mean of n1
observations of group 1, 𝑥̅2 is the mean of n2 observations of group2, …, 𝑥̅𝑘 is the mean of nk

24
observations of group k, then the combined mean, denoted by 𝑥̅ 𝑐 , of all observations taken
together is given by

𝑥̅1 𝑛1 + 𝑥̅2 𝑛2 + ⋯ + 𝑥̅𝑘 𝑛𝑘

𝑥̅𝑐 =
𝑛1 + 𝑛2 + ⋯ + 𝑛𝑘

This is a special case of the weighted mean. In this case the sample sizes are the weights.

Example 3.6: In the Previous year there were two sections taking Statistics course. At the end
of the semester, the two sections got average marks of 70 & 78. There were 45 and 50 students
in each section respectively. Find the mean mark for the entire students.
Solution:

𝑥̅ 1 𝑛1 +𝑥̅ 2 𝑛2 +⋯+𝑥̅ 𝑘 𝑛𝑘 𝑥̅ 1 𝑛1 +𝑥̅ 2 𝑛2 70𝑥45 +78𝑥50 7050

̅𝑥𝑐 = = = = = 74.21
𝑛1 +𝑛2 +⋯+𝑛𝑘 𝑛1 +𝑛2 45+50 95

The combined mean of the entire students will be 74.21.

3.3.2 Geometric Mean

The geometric mean like arithmetic mean is calculated an average. It is used when observed
values are measured as ratios, percentages, proportions, indices or growth rates.

Geometric mean for individual series: The geometric mean, G.M. of an individual series of
positive numbers (> 0) 𝑥1 , 𝑥2 , … , 𝑥𝑛 is defined as the nth root of their product.

G.M = n x1 .x2  xn = antilog ( 1 ∑ 𝑙𝑜𝑔𝑥𝑖 )

𝑛

Example 3.7: Find the G. M of (a) 3 and 12 b) 2, 4 and 8

3 3
Solution: a) GM = 3 12 = 36 = 6 ; b) GM= √2𝑥4𝑥8 = √64 = 4

Properties of geometric mean

• It is less affected by extreme values. E.g. x = 2, 5, 8, 72; Find compare for Arithmetic
and geometric mean?
• It takes each and every observation into consideration.
• If the value of one observation is zero its values becomes zero.
Geometric mean for discrete data arranged in FD: When the numbers 𝑥1 , 𝑥2 , … , 𝑥𝑘 occur
with frequencies 𝑓1 , 𝑓2 , … , 𝑓𝑚 , respectively, then the geometric mean is obtained by

1
G.M . = n x1f1 .x2f2 ..xmf m = antilog ( ∑ 𝑓𝑖 𝑙𝑜𝑔𝑥𝑖 ) where n is sum of 𝑓𝑖 for all i.
𝑛

25
Example 3.8: Compute the geometric mean of the following values: 3, 3, 4, 4, 4, 5, 6 and 6.
Solution
Values 3 4 5 6

Frequency 2 3 1 2

8
G.M. = √32 𝑋43 𝑋51 𝑋62 = 4.236

The geometric mean for the given data is 4.236.

Geometric mean for continuous grouped FD:- The above formula can also be used
whenever the frequency distribution is grouped continuous, class marks of the class intervals
are considered as xi.

3.3.3 Harmonic Mean

It is a suitable measure of central tendency when the data pertains to speed, rate and time. The
harmonic Mean of n values is defined as n divided by the sum of their reciprocal.
Harmonic mean for individual series: If 𝑥1 , 𝑥2 , … , 𝑥𝑛 are n observations, then harmonic
mean can be represented by the following formula:
n
H .M =
1 1 1
+ ++
x1 x2 xn

Example 3.9 A car travels 25 miles at 25 mph, 25 miles at 50 mph, and 25 miles at 75 mph.
Find average mean ( the harmonic mean) of the three velocities.
Solution
3
H .M =
n = 1 1 1 = 40.9
+ +
1 1 1 25 50 75
+ ++
x1 x2 xn

Harmonic mean for discrete data arranged in FD: If the data is arranged in the form of
frequency distribution
n
H .M = , where n =  f k
m

f1 f 2 f
+ ++ m k =1

x1 x 2 xm
Harmonic mean for continuous grouped FD: Whenever the frequency distribution are
grouped continuous, class marks of the class intervals are considered as 𝑥𝑖 and the above
formula can be used as
𝑛 m
H.M. = 𝑓𝑖 where n =  f k
∑𝑛
𝑖=1 k =1
𝑥𝑖

𝑥𝑖 is the class mark of ith class

26
Properties of harmonic mean
• It is unique for a given set of data.
• It takes each and every observation into consideration.
• Difficult to calculate and understand.
• Appropriate measure of central tendency in situations where data is in time, speed or rate.
Relations among different means
i. If all the observations are positive we have the relationship among the three means given as:
𝑥̅ ≥ GM ≥HM
ii. For two observations √𝑥̅ ∗ HM = GM
iii. 𝑥̅ = GM = HM if all observation are positive and have equal value.
3.3.4 Median
The median is as its name indicates the middle most value in the arrangement which divides
the data into two equal parts. It is obtained by arranging the data in an increasing or decreasing
order of magnitude and denoted by 𝑥̃.
Median for individual series
We arrange the sample in ascending order of the variable of interest. Then the median is the
middle value (if the sample size n is odd) or the average of the two middle values (if the sample
size n is even).
For individual series the median is obtained by
𝑛+1 𝑡ℎ
a/ 𝑥̃ = ( ) value if n is odd, and
2
𝑛 𝑛
( )𝑡ℎ 𝑣𝑎𝑙𝑢𝑒 + ( +1)𝑡ℎ 𝑣𝑎𝑙𝑢𝑒
2 2
b/ 𝑥̃ = if n is even
2

Example 3.10: Find the median for the following data.

a/ -5 15 10 5 0 2 1 4 6 and 8
b/ 5 2 2 3 1 8 4

Solution;
i. The data in ascending order is given by:

-5 0 1 2 4 5 6 8 10 15
n=10 ➔n is even. The two middle values are 5th and 6th observations. So the median is,
10 10
( )𝑡ℎ +( +1)𝑡ℎ 5𝑡ℎ +6𝑡ℎ 4+5
2 2
𝑥̃ = value = = = 4.5
2 2 2

ii. The data in ascending order is given by:

1 2 2 3 4 5 8
The middle value is the 4th observation. So the median is 3.
Note: The median is easy to calculate for small samples and is not affected by an "outlier".

27
 Median for Discrete data arranged in a frequency distribution:- In this case also, the
median is obtained by the above formula. After arranging the values in an increasing order find
the smallest CF greater than or equal to the rank/position of the median value (i.e., that value
obtained by a & b above formula) and the corresponding value is the median.

Median for grouped continuous data:-For continuous data, the median is obtained by the
following formula.

w n 
Median = L +  − CF  = ~
x
f med  2 

Where: L= the lower class boundary of the median class;

w = the class width of the median class;

f med = the frequency of the median class; and CF = the cum. freq. corresponding to the

class preceding the median class. That is, the sums of the frequencies of all classes lower than the
median class. Where the median class is the class which contains the (n/2)th observation whether n
is odd or even, since the items have already lost their originality once they are grouped in to
continuous classes.

Example 3.11: Calculate the median for the following frequency distribution.

C.I 1 - 5 6 - 10 11 – 15 16 – 20 21 - 25 26 - 30 31 – 35 Total

Freq. 4 8 12 6 3 4 3 40

Solution: Construct the less than cumulative frequency distribution, then:

C.I 1 - 5 6 - 10 11 – 15 16 – 20 21 - 25 26 - 30 31 – 35 Total

Freq. 4 8 12 6 3 4 3 40

Cuml. Freq. 4 12 24 30 33 37 40

Since n = 40, 40/2 = 20, and the smallest CF greater than or equal to 20 is 24; thus, the median
class

is the third class. And for this class, L = 10.5, w = 5, f med =12, CF = 12. Then applying the formula,

we get:
~
x =10.5+(20-12)*5/12=13.8

28
Merits of median
• It is less affected by extreme values.
• Median can be calculated even in case of open-ended intervals.
• It can be computed for ratio, interval, and ordinal level of data.
Demerits of median
• Its value is not determined by each & every observation.
• It is not a good representative of the data if the number of items (data) is small.
• The arrangement of items in order of magnitude is sometimes very tedious process if
the number of items is very large.
3.3.5 The Mode or modal value
The mode or the modal value is the value with the highest frequency and denoted by 𝑥̂. A data
set may not have a mode or may have more than one mode. A distribution is called a bimodal
distribution if it has two data values that appear with the greatest frequency. If a distribution has
more than two modes, then the distribution is multimodal. If a distribution has no modes, then
the distribution is no modal.

Mode of individual series:- The mode or the modal value of individual series (raw data) is simply
obtained by locating the observation with the maximum frequency.

Example 3.12: Consider the following data:

a. 30 45 69 70 32 18 32. The mode (𝑥̂ ) = 32.
b. 10 20 30 10 40 30. The mode (𝑥̂ ) = 10 and 30.
c. 10 40 30 20 50 60. No mode.
Note that in some samples there may be more than one mode or there may not be a mode. The
mode is not a suitable measure of central tendency in these cases. We use the mode as a
measure of central tendency if we require a measure that takes on one of the sample values.
The mode can be used for variables that are measured on a category (nominal) scale, e.g. the
most popular computer type.

Mode for discrete data arranged in a frequency distribution:-In the case of discrete grouped
data, the mode is determined just by looking to that value (s) having the highest frequency.

Mode for Grouped Continuous Frequency Distribution

For grouped data, the mode is found by the following formula:

29
In such cases, one can only determine the modal class easily: the class with the highest frequency.

After locating this class, the mode is interpolated using:

1
Mode = L +  w , where L = the lower class boundary of the modal class; 1 = f mod − f 1 ,
1 +  2

 2 = f mod − f 2 , w = the common class width, f 1 = frequency of the class immediately

preceding the modal class; f 2 = frequency of the class immediately succeeding the modal class;
and fmode = frequency of the modal class.
Example 3.13: Calculate the mode for the frequency distribution of data of example 3.11.

Solution: By inspection, the mode lies in the third class, where L =10.5, fmod = 12, f1=8, f2=6, w =
5

Using the formula, the mode is:

1
Mode = L +  w = 10.5 + (12-8)*5/(12-8)+(12-5) = 12.5
1 +  2

Merits of mode

• Mode is not affected by extreme values.

• We can change the size of the observations without changing the mode.
• It can be computed for all level of data i.e. ratio, interval, ordinal or nominal.
Demerits of mode
• It may not exist.
• It does not take every value into consideration.
• Mode may not exist in the series and if it exists it may not be unique.
3.4 The Relationship of the Mean, Median and Mode
Comparing the Mean, Median, and the Mode
• If the data is skewed –avoid the mean.
• If there is high gap around the middle- avoid the median.
• A measure is a resistant measure if its value is not affected by an outlier or an extreme
data value.
• The mean is not a resistant measure of central tendency because it is not resistant to
the influence of the extreme data values or outliers.

30
 • The median is resistant to the influence of extreme data values or outliers and its value
does not respond strongly to the changes of a few extreme data values regardless of
how large the change may be.
• The mode has an advantage over both the mean and the median when the data is
categorical since it is not possible to calculate the mean or median for this type of data.
Also, the mode usually indicates the location within a large distribution where the data
values are concentrated. However, the mode can not always be calculated because if a
distribution has all different data values, then the distribution is non modal.
• In the case of symmetrical distribution; mean, median and mode coincide. That is
mean=median = mode. However, for a moderately asymmetrical (non symmetrical)
distribution, mean and mode lie on the two ends and median lies between them and they
have the following important empirical relationship, which is
Mean – Mode = 3(Mean - Median)
Example 3.14: In a moderately asymmetrical distribution, the mean and the mode are 30 and
42 respectively. What is the median of the distribution?
Solution:
Median = (2mean + Mode)/2 = (2*30 + 42)/3 = 34
Hence the median of the distribution is 34.
Which of the Three Measures is the Best?
At this stage, one may ask as to which of these three measure of central tendency is the best.
There is no simple answer to this question. It is because these three measures are based upon
different concepts. The arithmetic mean is the sum of the values divided by the total number of
observations in the series. The median is the value of the middle observations tend to
concentrate. As such; the use of a particular measure will largely depend on the purpose of the
study and the nature of the data. For example, when we are interested in knowing the
consumers’ preferences for different brands of television sets or kinds of advertising, the choice
should go in favor of mode. The use of mean and median would not be proper. However, the
median can sometimes be used in the case of qualitative data when such data can be arranged
in an ascending or descending order. Let us take another example. Suppose we invite
applications for a certain vacancy in our company. A large number of candidates apply for that
post. We are now interested to know as to which age or age group has the largest concentration
of applicants. Here, obviously the mode will be the most appropriate choice. The arithmetic
mean may not be appropriate as it may be influenced by some extreme values.

31
3.5 Measures of Non-central Locations
Median is the value of the middle item which divides the data in to two equal parts and found
by arranging the data in an increasing or decreasing order of magnitude, where as quintiles are
measures which divides a given set of data in to approximately equal subdivision and are
obtained by the same procedure to that of median. They are averages of position (non-central
tendency). Some of these are quartiles, deciles and percentiles.
Quartiles: are values which divide the data set in to approximately four equal parts, denoted
by 𝑄1 , 𝑄2 𝑎𝑛𝑑 𝑄3 . The first quartile (𝑄1) is also called the lower quartile and the third quartile
(𝑄3 ) is the upper quartile. The second quartile ( 𝑄2 ) is the median.
• Quartiles for Individual series:

Let x1 , x 2 , , x n be n ordered observations. The ith quartile (Qi ) is the value of the item

corresponding

with the [i(n+1)/4]th position, i = 1, 2, 3.

That is, after arranging the data in ascending order, Q 1, Q2, & Q3 are, obtained by:

1(𝑛+1) 𝑡ℎ 2(𝑛+1) 𝑡ℎ 3(𝑛+1) 𝑡ℎ

𝑄1 = ( ) 𝑣𝑎𝑙𝑢𝑒, 𝑄2 = ( ) 𝑣𝑎𝑙𝑢𝑒 and 𝑄3 = ( ) 𝑣𝑎𝑙𝑢𝑒.
4 4 4

• Quartiles for discrete data arranged in a frequency distribution:-Arranged in a frequency

distribution this case also, we will follow the same procedure as the median. That is, we construct
the less than cumulative frequency distribution and apply the formula of quartile for individual
series.

• Quartiles in continuous data:- For continuous data, use the following formula:

w  in 
Qi = L +  − CF 
f Qi  4 

Where i = 1,2, 3, and L, w ,fQi and CF are defined in the same way as the median.
𝑤 𝑛 𝑤 2𝑛 𝑤 3𝑛
i.e. Q1 = L +𝑓 (4 − 𝐶𝐹) , Q2 = L + 𝑓 ( 4 − 𝐶𝐹) 𝑎𝑛𝑑 Q3 = L + 𝑓 ( 4 − 𝐶𝐹)
𝑄1 𝑄2 𝑄3

The class under question is the one including (ixn/4)th value. That is, the class with the minimum

frequency greater than or equal to (ixn/4) th is the class of the ith quartile.

Deciles: are values dividing the data approximately in to ten equal parts, denoted by 𝐷1 , 𝐷2,…, 𝐷9 .
• Deciles for Individual Series:

32
Let x1 , x 2 , , x n be n ordered observations. The ith deciles (𝐷𝑖 ) is the value of the item

corresponding

with the [i(n+1)/10]th position, i = 1, 2, . . . ,9.

That is, after arranging the data in ascending order, D1, D2, . . . & D9 are, obtained by:

1(𝑛+1) 𝑡ℎ 2(𝑛+1) 𝑡ℎ 9(𝑛+1) 𝑡ℎ

𝐷1 = ( ) 𝑣𝑎𝑙𝑢𝑒, 𝐷2 = ( ) 𝑣𝑎𝑙𝑢𝑒 . . . and 𝐷9 = ( ) 𝑣𝑎𝑙𝑢𝑒.
10 10 10

• Deciles for Discrete data arranged in a frequency distribution:-Arranged in a frequency

distribution this case also, we will follow the same procedure as the median. That is, we
construct the less than cumulative frequency distribution and apply the formula of deciles for
individual series.

• Deciles for continuous data: Apply the following formula and follow the procedures of
quartile for continuous data.
𝑤 𝑖𝑛
𝐷𝑖 = 𝐿 + (10 − 𝐶𝐹) ,i = 1, 2,...,9 . Then
𝑓𝐷𝑖

Define the symbols in similar ways as we did in the case of quartiles for continuous data.
Percentiles: are values which divide the data approximately in to one hundred equal parts,
and
denoted by 𝑃1 , 𝑃2,…, 𝑃99 .
• Percentiles for Individual Series:

Let x1 , x 2 , , x n be n ordered observations. The ith percentile (𝑃𝑖 ) is the value of the item

corresponding with the [i(n+1)/100]th position, i = 1, 2, . . . ,99.

That is, after arranging the data in ascending order, P 1, P2, . . . & P99 are, obtained by:

1(𝑛+1) 𝑡ℎ 2(𝑛+1) 𝑡ℎ 99(𝑛+1) 𝑡ℎ

𝑃1 = ( ) 𝑣𝑎𝑙𝑢𝑒, 𝑃2 = ( ) 𝑣𝑎𝑙𝑢𝑒 . . . and 𝑃99 = ( ) 𝑣𝑎𝑙𝑢𝑒.
100 100 100

• Percentiles for Discrete data arranged in a frequency distribution:-Arranged in a frequency

distribution this case also, we will follow the same procedure as the median. That is, we
construct the less than cumulative frequency distribution and apply the formula of percentile for
individual series.

• Percentiles for continuous data: Apply the following formula

𝑤 𝑖𝑛
𝑃𝑖 = 𝐿 + ( − 𝐶𝐹) ,i = 1, 2,...,99 . Then
𝑓𝑃𝑖 100
⬚⬚

33
Define the symbols similar ways as we did in the case of quartiles or deciles for continuous
data.
Interpretations
1. 𝑄𝑖 is the value below which ( i × 25) percent of the observations in the series are found
(where i = 1, 2,3). For instance 𝑄3 means the value below which 75 percent of observations
in the given series are found.
2. 𝐷𝑖 is the value below which ( i ×10) percent of the observations in the series are found
(where i = 1, 2,...,9 ). For instance 𝐷4 is the value below which 40 percent of the values are
found in the series.
3. 𝑃𝑖 is the value below which i percent of the total observations are found (where i = 1,
2,3,...,99 ). For example 60 percent of the observations in a given series are below 𝑃60 .
Example 3.15: Calculate 𝑄1 , 𝑄2 , 𝑄3, 𝐷4, 𝐷9, 𝑃40 & 𝑃90 for the following data given on the table
below.
X 10 11 12 13 14 15 16 17 18

F 2 8 25 48 65 40 20 9 2

Solution: The data is arranged in an increasing order. So we need to construct only the
cumulative frequency table before calculating the required values.
X 10 11 12 13 14 15 16 17 18

F 2 8 25 48 65 40 20 9 2

Cum. 2 10 35 83 148 188 208 217 219

Freq.

The total number of observations is 219 which is odd. Clearly then the median is 14. i.e.
𝑛+1 𝑡ℎ 219+1 𝑡ℎ
𝑥̃ = ( ) =( ) value = 110th value = 14
2 2

1(𝑛+1) 𝑡ℎ 1(219+1) 𝑡ℎ
𝑄1 = ( ) 𝑣𝑎𝑙𝑢𝑒 = ( ) 𝑣𝑎𝑙𝑢𝑒 = 55th value = 13
4 4

2(𝑛+1) 𝑡ℎ 2(219+1) 𝑡ℎ
𝑄2 = ( ) 𝑣𝑎𝑙𝑢𝑒 = ( ) 𝑣𝑎𝑙𝑢𝑒 = 110th value = 14 = 𝑥̃
4 4

3(𝑛+1) 𝑡ℎ 3(219+1) 𝑡ℎ
𝑄3 = ( ) 𝑣𝑎𝑙𝑢𝑒 = ( ) 𝑣𝑎𝑙𝑢𝑒 = 165th value = 15
4 4

4(𝑛+1) 𝑡ℎ 4(219+1) 𝑡ℎ
𝐷4 = ( ) 𝑣𝑎𝑙𝑢𝑒 = ( ) 𝑣𝑎𝑙𝑢𝑒 = 88th value = 14
10 10

34
 9(𝑛+1) 𝑡ℎ 9(219+1) 𝑡ℎ
𝐷9 = ( ) 𝑣𝑎𝑙𝑢𝑒 = ( ) 𝑣𝑎𝑙𝑢𝑒 = 198th value = 16
10 10

40(𝑛+1) 𝑡ℎ 40(219+1) 𝑡ℎ
𝑃40 = ( ) 𝑣𝑎𝑙𝑢𝑒 = ( ) 𝑣𝑎𝑙𝑢𝑒 = 88th value = 14
100 100

90(𝑛+1) 𝑡ℎ 90(219+1) 𝑡ℎ
𝑃90 = ( ) 𝑣𝑎𝑙𝑢𝑒 = ( ) 𝑣𝑎𝑙𝑢𝑒 = 198th value = 16
100 100

Example 3.16: Marks of 50 students out of 85 is given below. Based on the data find 𝑄1,
𝐷4 𝑎𝑛𝑑 𝑃7.
Marks 46-50 51-55 56-60 61-65 66-70 71-75 76-80

fi 4 8 15 5 9 5 4

Solution:- first find the class boundaries and cumulative frequency distributions.
Marks 46-50 51-55 56-60 61-65 66-70 71-75 76-80

class 45.5- 50.5- 55.5-60.5 60.5-65.5 65.5-70.5 70.5-75.5 75.5-

boundary 50.5 55.5 80.5

fi 4 8 15 5 9 5 4

Cum. 4 12 27 32 41 46 50
Frequency

Q1 Measure of (n/4)th value = 12.5th value which lies in group 55.5 – 60.5
𝑤 𝑛 5
Q1 = L +𝑓 (4 − 𝐶𝐹) = 55.5 +15 (12.5 − 12) = 55.7
𝑄1

D4 Measure of (4n/10)th value = 20th value which lies in group 55.5 – 60.5.
𝑤 4𝑛 5
D4 = L +𝑓 (10 − 𝐶𝐹) = 55.5 +15 (20 − 12) = 58.2
𝐷4

P7 Measure of (7n/100)th value = 3.5th value which lies in group 45.5 – 50.5
𝑤 7𝑛 5
P7 = L +𝑓 (100 − 𝐶𝐹) = 45.5 +4 (3.5 − 0) = 49.875.
𝑃7

35
CHAPTER FOUR: MEASURES OF DISPERSION (VARIATION)

4.1 Introduction

Just as central tendency can be measured by a number in the form of an average, the amount
of variation (dispersion, spread, or scatter) among the values in the data set can also be
measured. The measures of central tendency describe that the major part of values in the data
set appears to concentrate around a central value called average with the remaining values
scattered (distributed) on either sides of that value. But these measures do not reveal how these
values are dispersed (spread or scatter) on each side of the central value. The dispersion of
values is indicated by the extent to which these values tend to spread over an interval rather
than cluster closely around an average.
The term dispersion is generally used in two senses. Firstly, dispersion refers to the variations
of the items among themselves. If the value of all the items of a series is the same, there will
be no variation among different items of a series. Secondly, dispersion refers to the variation
of the items around an average. If the difference between the value of items and the average
is large, the dispersion will be high and on the other hand if the difference between the value of
the items and averaging is small, the dispersion will be low. Thus, dispersion is defined as
scatteredness or spreadness of the individual items in a given series.

After studying this chapter, you should be able to:

✓ Explain the meaning of measures of dispersion

✓ Compare two or more sets of data using relative measures of dispersion.

✓ Apply the Z-score to find out the relative standing of values.
✓ Explain measures of skewness and kurtosis.
Objectives of measuring Variation:
✓ To judge the reliability of measures of central tendency
✓ To control variability itself.
✓ To compare two or more groups of numbers in terms of their variability.
✓ To make further statistical analysis.
4.2 Absolute and Relative Measures of Dispersion
Absolute measures of dispersion: Absolute measure is expressed in the same
statistical unit in which the original data are given such as kilograms, tones etc.
These measures are suitable for comparing the variability in two distributions
having variables expressed in the same units and of the same averaging size.

36
These measures are not suitable for comparing the variability in two distributions
having variables expressed in different units.

Relative measures of dispersion: A relative measure of dispersion is the ratio of a measure

of absolute dispersion to an appropriate average or the selected items of the data.

Relative measure
of dispersion

Based on Based on all

selected items
items

Coefficient of Coefficient of mean

range and deviation &coefficient of
coefficient of standard deviation or
quartile coefficient of variation
deviation

4.3 Types of Measures of Variation

4.3.1 The Range and Relative Range

Range is the simplest measures of dispersion. It is defined as the difference between the
largest and smallest value in a given set of data. Its formula is:

𝑅 =𝐿−𝑆

Where R=Range, L= Largest value in a given set of data, S= smallest value in a given set of
data.

For a continuous grouped distribution, the range may be obtained as:

37
 • The difference between upper class limit of the last class and the lower class limit of the
first class, or

• The difference between the largest class mark and the smallest class mark, or

• The difference between the upper class boundary of the last class and the lower class
boundary of the first class.

The range is used in describing like the maximum change in daily temperature, rainfall, etc.
When the sample size is small, it can be an adequate measure of variation. It is commonly used
in quality control.

The relative measures of range, also called coefficient of range, is defined as

L−S
𝑅𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑅𝑎𝑛𝑔𝑒(𝑅𝑅) =
L+S

Example 4.1: Five students obtained the following marks in statistics: 20, 35, 25, 30, 15. Find the
range and relative range

Solution: Here, 𝐿 = 35, 𝑎𝑛𝑑 𝑆 = 15

𝑅𝑎𝑛𝑔𝑒 = 𝐿 − 𝑆 = 35 − 15 = 20

L−S 35 − 15
𝑅𝑅 = = = 0.4
L+S 35 + 15

Example 4.2: Find out range and relative range of the following given data.

Size 5-10 11-15 16-20 21-25 26-30

Frequency 4 9 15 30 40

Solution: Here,

L = Upper class limit of the largest class = 30

L = lower class limit of the smallest class = 5

30 − 5
Range = 30 – 5 = 25, 𝑅𝑅 = = 0.7143 .
30 + 5

Merits of the Range

➢ It is well-defined, easy to compute and simple to understand.

➢ It helps in giving an idea about the variation, just by giving the lowest value and the
greatest value of variable.
38
Demerits of the Range

➢ It is not based on all observations of the series.

➢ It can’t be calculated in case of open-ended distribution.
➢ It is affected by sampling fluctuation.
➢ It is affected by extreme values in the series.

4.3.2 The Quartile Deviation and Coefficient of Quartile Deviation

Inter-quartile range and quartile deviation are other measures of dispersion. The difference
between the upper quartile (𝑄3 ) and lower quartile (𝑄1 ) is called inter-quartile range.
Symbolically,

𝑰𝑛𝑡𝑒𝑟 𝑸𝑢𝑎𝑟𝑡𝑖𝑙𝑒 𝑹𝑎𝑛𝑔𝑒 (𝐼𝑄𝐷) = 𝑄3 − 𝑄1

The inter-quartile ranges covers dispersion of middle 50% of the items of the series. Quartile
deviation, also called semi-inter-quartile range, is half of the difference between the upper and
lower quartile. That is, half of the inter-quartile range. Its formula is

𝑄3 − 𝑄1
𝑄𝑢𝑎𝑟𝑡𝑖𝑙𝑒 𝐷𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 (𝑄𝐷) =
2

The relative measure of quartile deviation also called the coefficient of quartile deviation (CQD)
𝑄 −𝑄
is defined as: 𝐶𝑄𝐷 = 𝑄3+𝑄1
3 1

Example 4.3: Find inter-quartile range, quartile deviation and coefficient of quartile deviation
from the following data.

28, 18, 20, 24, 27, 30, 15

Solution: First arrange the data in ascending order. 15, 18, 20, 24, 27, 28, 30

𝑛 + 1 𝑡ℎ 7 + 1 𝑡ℎ
𝑄1 = 𝑠𝑖𝑧𝑒 𝑜𝑓 ( ) 𝑖𝑡𝑒𝑚 = 𝑠𝑖𝑧𝑒 𝑜𝑓 ( ) 𝑖𝑡𝑒𝑚
4 4

= 𝑠𝑖𝑧𝑒 𝑜𝑓 2𝑛𝑑 𝑖𝑡𝑒𝑚 = 18 𝑚𝑎𝑟𝑘𝑠

𝑛 + 1 𝑡ℎ 7 + 1 𝑡ℎ
𝑄3 = 𝑠𝑖𝑧𝑒 𝑜𝑓 3 ( ) 𝑖𝑡𝑒𝑚 𝑠𝑖𝑧𝑒 𝑜𝑓 3 ( ) 𝑖𝑡𝑒𝑚
4 4

= 𝑠𝑖𝑧𝑒 𝑜𝑓 6𝑡ℎ 𝑖𝑡𝑒𝑚 = 28 𝑚𝑎𝑟𝑘𝑠

39
 𝐼𝑄𝑅 = 𝑄3 − 𝑄1 = 28 − 18 = 10

𝑄3 − 𝑄1 28 − 18
𝑄𝐷 = = =5
2 2

𝑄3 − 𝑄1 28 − 18
𝐶𝑄𝐷 = = = 0.217
𝑄3 + 𝑄1 28 + 18

Example 4.4: Find inter-quartile range, quartile deviation and coefficient of quartile deviation
from the following data

Marks 2 3 4 5 6 7 8 9

No. Of students 10 11 12 13 5 12 7 5

Solution:

Marks 2 3 4 5 6 7 8 9

No. of students 10 11 12 13 5 12 7 5

CF 10 21 33 46 51 63 70 75=N

𝑁+1 75 + 1
𝑄1 = ( )= = 19𝑡ℎ 𝑖𝑡𝑒𝑚 = 3
4 4

𝑁+1 75+1
𝑄3 = 3 ( ) = 3( ) = 57th item = 7
4 4

𝐼𝑄𝑅 = 𝑄3 − 𝑄1 = 7 − 3 = 4

𝑄3 − 𝑄1 7 − 3
𝑄𝐷 = = =2
2 2

𝑄3 − 𝑄1 7 − 3
𝐶𝑄𝐷 = = = 0.4
𝑄3 + 𝑄1 7 + 3

Remark: Q.D or CQD includes only the middle 50% of the observation.

Merits of QD

➢ It is well-defined, easy to compute and simple to understand.

➢ It helps in studying the middle 50% item in the series.
➢ It is not affected by the extreme items.
➢ It is useful in measuring variations in the case of open-ended distributions.

40
Demerits of QD

➢ It is not based on all the items (it ignores 50% items, i.e., the first 25% and the last
25%).
➢ It is greatly influenced by sampling fluctuations.
➢ It is not amenable to algebraic manipulations.

4.3.3 The Mean Deviation and Coefficient of Mean Deviation

The mean deviation (MD) measures the average deviation of a set of observations about their
central value, generally the mean or the median, ignoring the plus/minus sign of the deviations.
In other words the mean deviation of a set of items is defined as the arithmetic mean of the
values of the absolute deviations from a given average. Depending up on the type of averages
used we have different mean deviations.
❖ The mean deviation of a sample of n observations x1, x2, . . .,xn (individual series)is givenas
∑|𝑋𝑖 − 𝐴|
𝑀𝐷 =
𝑛
Where |𝑋𝑖 − 𝐴| denotes the absolute value of the deviation. Generally, arithmetic mean and
median are used in calculating mean deviation. So, 𝐴 stands for the average used for
calculating 𝑀𝐷. That is, 𝐴 = 𝑚𝑒𝑑𝑖𝑎𝑛(𝑋̃ ) 𝑜𝑟 𝐴 = 𝑚𝑒𝑎𝑛(𝑋̅).
❖ In case of discrete data arranged in FD and continuous grouped data, the formula for MD
becomes
∑ 𝑓𝑖 |𝑋𝑖 −𝐴|
𝑀𝐷 = , where 𝑋𝑖 is the class mark of the ith class, 𝑓𝑖 is the frequency of the ith
𝑛

class and n = ∑ 𝑓𝑖 .
1. The mean deviation about the arithmetic mean is, therefore, given by

∑|𝑋 −𝑋| ̅
𝑀𝐷(𝑋̅) = 𝑛𝑖 … for ungrouped data (individual series).
∑ 𝑓𝑖 |𝑋𝑖 −𝑋̅|
𝑀𝐷 (𝑋̅) = 𝑛
. . . for discrete data arranged in FD and a grouped continuous frequency distribution;

where 𝑋𝑖 is the value for discrete data arranged in FD and class mark of the ith class for continuous
grouped data, 𝑓𝑖 is the frequency of the ith class and n = ∑ 𝑓𝑖 .

Steps to calculate M.D for (𝑋̅)

▪ Find the arithmetic mean, 𝑋̅
▪ Find the deviations of each reading from 𝑋̅
▪ Find the arithmetic mean of the deviations, ignoring sign.

41
 2. The mean deviation about the median is also given by
∑|𝑋 −x̃|
𝑀𝐷(𝑋̃) = 𝑛𝑖 … for ungrouped data (individual series).

∑ 𝑓 |𝑋 −x̃|
𝑀𝐷(𝑋̃) = 𝑖 𝑛 𝑖 . . . for discrete data arranged in FD and a grouped continuous frequency distribution;

where 𝑋𝑖 is the value for discrete data arranged in FD and class mark of the ith class for continuous
grouped data , 𝑓𝑖 is the frequency of the ith class and n = ∑ 𝑓𝑖 .

Steps to calculate M.D (𝑋̃ )

▪ Find the median, 𝑋̃
▪ Find the deviations of each reading from 𝑋̃
▪ Find the arithmetic mean of the deviations, ignoring sign.
3. The mean deviation about the mode is also given by
∑|𝑋𝑖 −x̂|
𝑀𝐷(x̂) = 𝑛
… for ungrouped data (individual series).

∑ 𝑓𝑖 |𝑋𝑖 −x̂|
𝑀𝐷(x̂) = 𝑛
. . for discrete data arranged in FD and a grouped continuous frequency distribution;

where 𝑋𝑖 is the value for discrete data arranged in FD and class mark of the ith class for continuous
grouped data, 𝑓𝑖 is the frequency of the ith class and n = ∑ 𝑓𝑖 .

Steps to calculate M.D (x̂)

▪ Find the mode, x̂
▪ Find the deviations of each reading from x̂
▪ Find the arithmetic mean of the deviations, ignoring sign.
Example 4.5
The following are the number of visit made by ten mothers to the local doctor’s surgery. 8, 6, 5,
5, 7, 4, 5, 9, 7, 4. Find mean deviation about mean, median and mode.
Solution:
First calculate the three averages
𝑋̅ = 6, 𝑋̃ = 5.5, x̂ = 5
Then take the deviations of each observation from these averages.
xi 4 4 5 5 5 6 7 7 8 9 Total
|𝑋𝑖 − 𝑋̅| 2 2 1 1 1 0 1 1 2 3 14

|𝑋𝑖 − x̃| 1.5 1.5 0.5 0.5 0.5 0.5 1.5 1.5 2.5 3.5 14

|𝑋𝑖 − 𝑋̂| 1 1 0 0 0 1 2 2 3 4 14

42
Since the distribution is ungrouped the mean deviation about mean, median and mode:
∑|𝑋𝑖 − 𝑋̅| 14
𝑀𝐷(𝑋̅) = = = 1.4
𝑛 10
∑|𝑋𝑖 − x̃| 14
𝑀𝐷(𝑋̃) = = = 1.4
𝑛 10
∑|𝑋𝑖 −x̂| 14
𝑀𝐷(x̂) = = 10 = 1.4
𝑛

Merits of 𝑴𝑫

➢ It is well-defined, easy to compute and simple to understand.

➢ It is based on all observations.
➢ It is not greatly affected by the extreme items.
➢ It can be calculated by using any average.

Demerit of 𝑴𝑫

➢ It does not take in to account the signs of the deviations of items from the average.

Remark: Of all the mean deviations taken about different averages or any arbitrary value, the
mean deviation about the median has the smallest value.

Coefficient of mean deviation (CMD):

The relative measure of mean deviation, also called the coefficient of mean deviation is obtained
by dividing mean deviation by the particular average used in computing mean deviation. Thus,

➢ CMD about the arithmetic mean is given by:

𝑀𝐷(𝑋 ) ̅
𝐶𝑀𝐷(𝑋̅) = 𝑋̅ where MD is the mean deviation calculated about the arithmetic mean.
➢ CMD about the median is given by:

𝑀𝐷(𝑋 ) ̃
𝐶𝑀𝐷(𝑋̃) = 𝑋̃ in which case MD is calculated about the median of the observations.

➢ CMD about the mode is given by:

𝑀𝐷(x̂)
𝐶𝑀𝐷(x̂) = in which case MD is calculated about the mode of the observations.
x̂

Example 4.6: Calculate the coefficient of mean deviation about the mean, median and mode
for the data in Example 4.5 above.
Solution:
𝑀𝐷(𝑋̅) 1.4
𝐶𝑀𝐷(𝑋̅) = = = 0.23
𝑋̅ 6
43
 𝑀𝐷(𝑋̃) 1.4
𝐶𝑀𝐷(𝑋̃) = = = 0.25
𝑋̃ 5.5
𝑀𝐷(x̂) 1.4
𝐶𝑀𝐷(x̂) = = = 0.28
x̂ 5
4.3.4 The Variance, Standard Deviation and Coefficient of Variation

Variance and Standard Deviation

Like the mean deviation, the variance is also based on all observations in a set of data.
But the variance is the average of squared deviations from the mean. Recall that the sum of
squared deviations is minimum only when taken from the mean. Squared deviations are
mathematically manipulated than absolute deviations. Thus, if we averaged the squared
deviations from the mean and take the square root of the result (to compensate for the fact that
the deviations were squared), we obtain the standard deviation. This overcomes the limitation
of the mean deviation.

Population Variance (𝝈𝟐 )

If we divide the variation by the number of values in the population, we get something called
the population variance. This variance is the "average squared deviation from the mean".
• For ungrouped data (individual series )
∑𝑵
𝒊=𝟏(𝑿𝒊 −𝝁)
𝟐 𝟏 2
𝝈𝟐 = = 𝑵 [∑N 𝟐
i=1 X i − 𝑵𝝁 ] where 𝝁 is the population arithmetic mean and N is
𝑵

the total number of observations in the population.

• For discrete data arranged in FD & for continuous grouped data

∑ 𝒇𝒊 (𝑿𝒊 −𝝁)𝟐 𝟏
𝝈𝟐 = = 𝑵 [∑ fi Xi 2 − 𝑵𝝁𝟐 ] where 𝝁 is the population arithmetic mean, 𝑿𝒊 is the class
𝑵

mark of the ith class, fi is the frequency of the ithclass and N=∑ fi
Sample Variance (𝑺𝟐 )
One would expect the sample variance to simply be the population variance with the population
mean replaced by the sample mean. However, one of the major uses of statistics is to estimate
the corresponding parameter. This formula has the problem that the estimated value isn't the
same as the parameter. To offset this, the sum of the squares of the deviations is divided by
one less than the sample size.
• For ungrouped data
∑𝑛
𝑖=1(𝑥𝑖 −𝑥̅ )
2 1
𝑆2 = = 𝑛−1 [∑ni=1 xi 2 − 𝑛𝑥̅ 2 ] where 𝒙
̅ is the sample arithmetic mean and n is the
𝑛−1

total number of observations in the sample.

44
 • For discrete data arranged in FD
If the values xi have frequencies fi (i=1, 2,…,m), then the sample variance is given by:

1 m
or S =  fi ( xi − x )
∑ 𝑓𝑖 (𝑥𝑖 −𝑥̅ )2 1 2 2
2 2 2
𝑆 = = 𝑛−1 [∑ fi xi − 𝑛𝑥̅ ]
𝑛−1 n − 1 i =1

• For continuous grouped data

∑ 𝑓𝑖 (𝑥𝑖 −𝑥̅ )2 1
𝑆2 = = 𝑛−1 [∑ fi xi 2 − 𝑛𝑥̅ 2 ] where 𝒙
̅ is the sample arithmetic mean, 𝒙𝒊 is the class mark
𝑛−1

of the ith class, fi is the frequency of the ith class and n=∑ fi .
The Standard Deviation
There is a problem with variances. Recall that the deviations were squared. That means that
the units were also squared. To get the units back the same as the original data values, the
square root must be taken.
➢ Population Standard Deviation (s )
𝜎 = √𝝈𝟐 where 𝜎 2 is the population variance.
➢ Sample Standard Deviation ( S )
𝑆 = √𝑆 2 where 𝑆 2 is the sample variance.

Example 4.7: Find the sample variance and standard deviation of:

xi 2 4 5 6 8

fi 2 2 3 1 2

Solution: Prepare the following table:

xi fi fixi xi2 fixi2

2 2 4 4 8
4 2 8 16 32
5 3 15 25 75
6 1 6 36 36
8 2 16 64 128
Sum 10 49 279
Thus, n=∑ fi = 10, ∑ fi xi = 49, ∑ fi xi 2 = 279.

1 1 49 1
𝑆 2 = 𝑛−1 [∑ fi xi 2 − 𝑛𝑥̅ 2 ] = 9 [279 − 10(10)2 ] = 9 (38.9) = 4.32, 𝑎𝑛𝑑 𝑆 = √4.32 = 2.08.

45
Example 4.8: Find the sample variance and standard deviation for the distribution:

C.I 1-5 6-10 11-15 16-20

Freq. 4 1 2 3

Solution: In a continuous F.D., xi is the class mark representing the ith class.

C.I xi fi f i xi f i xi
2

1-5 3 4 12 36

6-10 8 1 8 64

11-15 13 2 26 338

16.20 18 3 54 972

Total 10 100 1410

∑ fi xi 100
Where, n=∑ fi = 10, x̅ = = = 10, ∑ fi xi 2 = 1410, so that
𝑛 10

1 1
𝑆 2 = 𝑛−1 [∑ fi xi 2 − 𝑛𝑥̅ 2 ] = 9 [1410 − 10(10)2 ]

410
= = 45.56,
9

𝑆 = √45.56 = 6.75.

Properties of Variance & Standard Deviation

1. If a constant is added to (or subtracted from) all the values, the variance remains the
same; i.e., for any constant k, V ( xi  k ) = V ( xi ) .

Example 4.9 Consider the 6 sample values xi: 54,52,53,50,51, and 52.

The sample variance is 2 = V (xi ) . Now, subtract 50 from each value to get:

yi : 4, 2, 3, 0, 1, 2; and, the variance of this new series is 2. i.e., V (x) = V ( y ) = 2 .

2. If each and every value is multiplied by a non-zero constant (k), the standard deviation
is multiplied by |𝑘| and the variance is multiplied by k2; i.e., V (kxi ) = k 2V ( xi ) .

3. Both the variance and the standard deviation give more weight to extreme values and
less to those which are near to the mean.

46
Coefficient of Variation
The standard deviation is an absolute measure of dispersion. The corresponding relative
measure is known as the coefficient of variation (CV).
Of course, standard deviation is an absolute measure of dispersion that expresses the variation
in the same unit as the original data but it cannot be the sole basis for comparing two
distributions. For instance, if we have a standard deviation of 10 and a mean of 5, the values
vary by an amount twice as large as the mean itself. If, on the other hand, we have a standard
deviation of 10 and a mean of 5000, the variation relative to the mean is significant. Therefore,
we cannot know the dispersion of a set of data until we know the standard deviation, the mean,
and how the standard deviation compares with the mean.
Coefficient of variation is used in such problems where we want to compare the variability of
two or more different series. Coefficient of variation is the ratio of the standard deviation to the
arithmetic mean, usually expressed in percent.
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
CV = × 100%
𝑚𝑒𝑎𝑛

For population data:

𝜎
CV = 𝜇 × 100

Where 𝜎 is the population standard deviation and 𝜇 is population mean.

For sample data:
𝑆
CV = x̅ × 100

Where 𝑆 is the sample standard deviation and x̅ is sample mean.

Remark: A distribution having less coefficient of variation is said to be less variable or more
consistent or more uniform or more homogeneous.
Example 4.10: Last semester, the students of Mathematics and Chemistry Departments took
Introduction to Statistics course. At the end of the semester, the following information was
recorded.
Department Mathematics Chemistry

Mean score 85 65

Standard deviation 25 12

Compare the relative dispersions of the two departments’ scores using the appropriate way.
Solution:

47
Mathematics Departments Chemistry Departments
𝑆 𝑆
CV = ̅ × 100 CV = ̅ × 100
x x
25 12
= 85 × 100 = 65 × 100

= 29.41% = 18.46%
Interpretation: Since the CV of Mathematics Department students is greater than that of
Chemistry Department students, we can say that there is more dispersion relative to the mean
in the distribution of Mathematics students’ scores compared with that of Chemistry students.
4.4 Standard Scores (Z-Scores)

A standard score for sample value in a data set is obtained by subtracting the mean of the data
set from the value and dividing the result by the standard deviation of the data set. Basically,
the standard score (z-score) tells us how many standard deviations a specific value is above or
below the mean value of the data set. That is, the z-score is the number of standard deviations
the data value falls above (positive z-score) or below (negative z-score) the mean for the data
set.

Z-score computed from the population

𝑋−𝜇
𝑍 𝑠𝑐𝑜𝑟𝑒 =
𝜎
Z-score computed from the sample

𝑋 − 𝑋̅
𝑍 𝑠𝑐𝑜𝑟𝑒 =
𝑆
Example 4.11: What is the Z-score for the value of 14 in the following sample data set?

3 8 6 14 4 12 7 10

Solution:
14−8
𝑋̅ = 8, SD = 3.8173 thus, Z =3.8173 ≈ 1.57.

 The data value of 14 is located 1.57 standard deviations above the mean 8 because the z-
score is positive.

Example 4.12: Suppose that a student scored 66 in Statistics and 80 in Mathematics. The
score of the summary of the courses is given below.
Course Average score Standard deviation of the score

Statistics 51 12

Mathematics 72 16

48
In which course did the student scored better as compared to his classmates?
Solution:
𝑋−𝜇 66−51 15
Z-score of student in Statistics: 𝑍 = = = 12 = 1.25
𝜎 12

𝑋−𝜇 80−72 8
Z-score of student in Mathematics: 𝑍 = = = 16 = 0.5
𝜎 16

From these two standard scores, we can conclude that the student has scored better in
Statistics course relative to his classmates than in Mathematics course.

4.5 Moments, Skewness and Kurtosis

The measures of central tendency and variation discussed in previous one do not reveal the
entire story about a frequency distribution. Two distributions may have the same mean and
standard deviation but may differ in their shape of the distribution. Further description of their
characteristics is necessary that is provided by measures of skewness and kurtosis.

4.5.1 Moments

Moments are statistical tools used in statistical investigation. The moments of a distribution are
the arithmetic mean of the various powers of the deviations of items from some number. In our
course, we shall use it in the study of Skewness and Kurtosis of statistical distribution.

Moments about the origin

∑ 𝑋𝑖 𝑟
𝑀𝑟 = , Where 𝑟 = 0, 1, 2, 3, …
𝑛

Moments about the origin for grouped frequency distribution and for ungrouped frequency
∑ 𝑓 𝑖 𝑋𝑖 𝑟
distribution is 𝑀𝑟 = 𝑛

Where 𝑓𝑖 is the frequency of 𝑋𝑖 . 𝑋𝑖 is the midpoint in the case of grouped frequency distribution
or class value in the case of ungrouped frequency distribution.

Note that: 𝑀1 = 𝑋̅, 𝑀0 = 1

Moments about the Mean (Central Moments)

∑(𝑋𝑖 − 𝑋̅)𝑟
𝑀𝑟′ =
𝑛

49
Moments about the mean for grouped frequency distribution and for ungrouped frequency
∑ 𝑓𝑖 (𝑋𝑖 −𝑋̅ )𝑟
distribution. 𝑀𝑟′ =
𝑛

Where 𝑓𝑖 is the frequency of 𝑋𝑖 . 𝑋𝑖 is the midpoint in the case of grouped frequency distribution
or class value in the case of ungrouped frequency distribution.

Note that: 𝑀2′ = 𝑆𝐷2 if it is assumed𝑛 = 𝑛 − 1.

Moments about any arbitrary constant 𝑨

∑(𝑋𝑖 − 𝐴)𝑟
𝑀𝑟′ =
𝑛

Moments about any arbitrary constant 𝐴 for grouped frequency distribution and for ungrouped
∑ 𝑓𝑖 (𝑋𝑖 −𝐴)𝑟
frequency distribution 𝑀𝑟′ = .
𝑛

Example 4.13: Find the first four moments about the mean for the following individual
series 𝑋𝑖 : 3 6 8 10 18

Solution: n=5,

S.No 𝑿𝒊 ̅)
(𝑿𝒊 − 𝑿 ̅ )𝟐
(𝑿𝒊 − 𝑿 ̅ )𝟑
(𝑿𝒊 − 𝑿 ̅ )𝟒
(𝑿𝒊 − 𝑿

1 3 -6 36 -216 1296

2 6 -3 9 -27 81

3 8 -1 1 -1 1

4 10 1 1 1 1

5 18 9 81 729 6561

Total ∑ 𝑋 = 45 ∑(𝑋 − 𝑋̅) = 0 ∑(𝑋 − 𝑋̅)2 ∑(𝑋 − 𝑋̅)3 ∑(𝑋 − 𝑋̅)4

= 128 = 486 = 7940

Thus,

45 ∑(𝑋𝑖 −9)1 ∑(𝑋𝑖 −9) 128 2 ∑(𝑋𝑖 −9) 486 3

𝑋̅ = 5 = 9, 𝑀1′ = = 0, 𝑀2′ = = 5 = 25.6, 𝑀3′ = = 5 = 97.2
5 5 5

∑(𝑋𝑖 − 9)4 7940

𝑀4′ = = = 1588
5 5
50
4.5.2 Skewness

Skewness refers to lack of symmetry (or departure from symmetry) in a distribution.

➢ A skewed frequency distribution is one that is not symmetrical.

➢ Skewness is concerned with the shape of the curve not size.
A distribution is said to be symmetrical when the value is uniformly distributed around the mean
(distribution of the data below the mean and above the mean are equal). In a symmetrical
distribution, the mean, median and mode coincide (i.e., mean = median = mode).
Positively skewed distribution: if the value of mean is greater than the mode, skewness is
said to be positive. In a positively skewed distribution mean is greater than the mode and the
median lies somewhere in between mean and mode. A positively skewed distribution contains
some values that are much larger than the majority of other observations.
Negatively Skewed distribution: if the value of mode is greater than the mean, skewness is
said to be negative. In a negatively skewed distribution mode is greater than the mean and the
median lies in between mean and mode. The mean is pulled towards the low-valued item (that
is, to the left). A negatively skewed distribution contains some values that are much smaller
than the majority of observations.
Note that: In moderately skewed distributions the averages have the following
relationship.

(Mean – mode) = 3(mean - median)

51
How to check the presence of skewness in a distribution?

Skewness present in the data if:

i) the graph is not symmetrical.

ii) the mean, median and mode do not coincide.
iii) the sum of positive and negative deviations from the median is not zero.
iv) the frequencies are not similarly distributed on either side of the mode.

Measures of skewness (𝜶𝟑 )

A measure of skewness gives a numerical expression for and the direction of asymmetry in a
distribution. It gives information about the shape of the distribution and the degree of variation
on either side of the central value. The three most commonly used measures of skewness are
Pearson’s coefficient of skewness, Bowley’s coefficient of skewness and coefficient of
skewness based on moments.

1. Pearson’s coefficient skewness (Pearsonian coefficient of skewness)

The skewness of the distribution can be measured by Pearson’s Coefficient of Skewness
(𝜶𝟑 ), for which the formula is given below:
𝑀𝑒𝑎𝑛−𝑀𝑜𝑑𝑒
𝛼3 = 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛

2. Bowley’s Coefficient of Skewness

Bowley’s coefficient of skewness is based on quartiles. The formula for calculating
coefficient of skewness is:
(𝑄3 −𝑄2 )−(𝑄2 − 𝑄1 ) 𝑄3 +𝑄1 − 2𝑄2
𝛼3 = =
𝑄3 −𝑄1 𝑄3 −𝑄1

3. Moment Coefficient of Skewness

Moment coefficient of skewness is based on moments. The formula for calculating
coefficient of skewness is:
𝑀′3 𝑀′3
𝛼3 = 3/2 =
𝑀′2 𝜎3

Where, M'r = ∑𝑛𝑖=1(𝑥𝑖 − 𝑥̅ )𝑟 /𝑛

The shape of the curve is determined by the value of 𝛼3

𝛼3 > 0,➔ the distribution is positively skewed/skewed to the right, i.e mode < median <mean

➔smaller observations are more frequent than larger observations.

i.e., the majority of the observations have a value below an average.

α3 = 0,➔ the distribution is symmetric, i.e. mean = mode = median

52
 α3 < 0,➔ the distribution is negatively skewed/skewed to the left. i.e., mean < median <
mode

➔smaller observations are less frequent than larger observations. i.e., the majority of

the observations have a value above an average.

4.5.3 Kurtosis

Kurtosis is a measure of peakedness of a distribution. The degree of kurtosis of a distribution

is measured relative to the peakedness of a normal curve. If a curve is more peaked than the
normal curve it is called ‘leptokurtic’; if it is more or flate-topped than the normal curve it is called
‘platykurtic’ or flat-topped. The normal curve itself is known as ‘mesokurtic’.

Measures of Kurtosis (𝜶𝟒 )

The moment coefficient of kurtosis:

𝑀′4 𝑀′4
α4 = =
𝑀′22 𝜎4

The peakedness depends on the value of 𝛼4

• 𝛼4 > 3 ➔ the curve is leptokurtic,
• 𝛼4 = 3 ➔ the curve is mesokurtic,
• 𝛼4 < 3 ➔ the curve is platykurtic.

Example: Based on the following data:

𝑀′0 = 1, 𝑀′1 = -0.6, 𝑀′2 = 1.6, 𝑀′3 = -2.4, 𝑀′4 = 5.8
a/ Find the coefficient of skewness and discuss the distribution type.
b/ Find the coefficient of kurtosis and discuss the distribution type.
Solution:
𝑀′3 −2.4
a/ 𝛼3 = 3/2 = 1.63/2 = -1.19 < 0, ➔the distribution is negatively skewed.
𝑀′2

53
 𝑀′4 5.8
b/ 𝛼4 = = 1.62 = 2.26 < 3, ➔the curve is platykurtic.
𝑀′22

Example 4.14: Find the coefficient of skewness and the coefficient of kurtosis for the
above example 4.13.
Solution:
𝑀′3 97.2 97.2
i) 𝛼3 = 3/2 = 3 = 129.527 = 0.75
𝑀′2 (25.6)2

➔the distribution is positively skewed.

𝑀′4 1588
ii) 𝛼4 = 𝑀′22
= 25.62 = 2.42

➔the curve is platykurtic.

CHAPTER FIVE: ELEMENTARY PROBABLITY

Objectives
After studying this chapter, you should be able to:
• Understand the fundamental concepts of probability.
• Apply the principle of counting techniques to solve real problem.
• Define some basic terms of probability.
5.1 Definition of some probability terms
• Experiment: Any process of observation or measurement or any process which generates
well defined outcome.
• Random experiment: it is an experiment which can be repeated any number of times under
the same conditions, but does not give unique results. The result will be any one of several
possible outcomes, but for each trial, the result will not be known in advance. A Random
experiment is also called a trial & the outcomes are called events.
• Sample space: - is the collection of all possible outcomes or sample points of a random
experiment.
• Sample point: -Each element of sample space is called Sample point.
• Event: - is a subset of a sample space i.e. an event is a collection of sample points.
• Impossible event:- this is an event which will never occur.

Example 5.1: In an experiment of rolling a fair die, S = {1, 2, 3, 4, 5, 6}, each sample point is
an equally likely outcome. It is possible to define many events on this sample space as follows:

A = {1, 4} - the event of getting a perfect square number.

B = {2, 4, 6} - the event of getting an even number.

54
C = {1, 3, 5} - the event of getting an odd number.

D = the event of getting number 8 is an impossible event.

Example 5.2
If we toss a coin the sample space (S) of this experiment S = {head, tail} where head and tail
are two faces of a coin. If we are interested the outcome of head will turn up then the event E=
{head}.
Example 5.3: Find the sample space of tossing a coin three times.
S= {HHH, HHT, HTH, HTT, THH, THT, TTH, TTT}
• Mutually exclusive event: - two events A and B are said to be mutually exclusive if there
is no sample point which is common to A and B. i.e. A ∩ B = ∅
• Independent event: two or more events are said to be independent if the occurrence or
non-occurrence of an event does not affect the occurrence or non-occurrence of the other.
• Dependent Events: Two events are dependent if the first event affects the outcome or
occurrence of the second event in a way the probability is changed.
• Complement of an Event: the complement of an event A means nonoccurrence of A and
is denoted by A', or Ac contains those points of the sample space which don’t belong to A.
• Equally likely outcomes: if each outcome in a sample space has the same chance to be
occurred.
Example 5.4: Casting a fair die all possible outcomes are equally likely.
5.2 Counting rules: addition, multiplication, Permutation & Combination rule
In order to calculate probabilities, we have to know
• The number of elements of an event.
• The number of elements of the sample space.
That is in order to judge what is probable, we have to know what is possible.
In order to determine the number of out comes one can use several rules of counting:
1. The addition rule
2. The multiplication rule
3. Permutation rule
4. Combination rule
1. The addition Rule
Suppose that a procedure, designated by 1, can be done in n 1 ways. Assume that a second
procedure designated by 2, can be done in n2 ways. Suppose furthermore, that it is not possible
that both 1 and 2 done together. Then, the number of ways in which we can do1 or 2 is 𝑛1 + 𝑛2
ways.
55
Example 5.5: suppose we are planning a trip to some place. If there are 3 bus routes & two
train routs that we can take, then there are 3+2=5 different routs that we can take.
2. Multiplication rule: If an operation consists of k steps and the 1st step can be done in n1
ways, the 2nd step can be done in n2 ways (regardless of how the 1st step was performed), the
kth step can be done in nk ways, (regardless of how the preceding steps were performed), then
the entire operation can be performed in n1 · n2 ·… · nk ways.
Example 5.6: Suppose that a person has 2 different pairs of trousers and 3 shirts. In how many
ways can he wear his trousers and shirts?
Solution: He can choose the trousers in n1 = 2 ways, and shirts in n2 = 3 ways. Therefore, he

can wear in n1  n2 = 2  3 = 6 possible ways.

3. Permutation:-An arrangement of objects with attention given to order of arrangement is
called permutation. The number of permutation of n different objects taken r at a time is obtained
by:
n!
Pr = for r = 0, 1, 2,  , n
(n − r )!
n

Permutation Rule:
a) The number of permutations of n objects taken all together is n!
n! n!
i.e. n!= n*(n-1)*(n-2)*…*3*2*1 = Pn = = = n!
(n − n)! 0!
n

Note: By definition 0! = 1
b) The arrangement of n distinct objects in a specific order using r objects at a time is called the
permutation of n objects taken r objects at a time. It is written as nPr and the formula is
n!
Pr =
(n − r )!
n

c) The number of distinct permutation of n objects in which n 1 are alike, n2 are alike, ..., nk are
alike is
n! for n = n1 + n2 +  + nk
n1 !.n 2 !. .n k !

Example 5.7: Find number of permutations of the letters in the word ‘‘statistics’’.
Solution:
There are 3 s’s, 3t’s, 1a’s, 2i’s and 1c’s. i.e. 𝑛1 = 3, 𝑛2 = 3, 𝑛3 = 1, 𝑛4 = 2 𝑎𝑛𝑑 𝑛5 = 1
Therefore 10! = 50,400.
3!.3!.1!.2!1!

Example 5.8: A photographer wants to arrange 3 persons in a row for photograph. How many
different types of photographs are possible?
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Solution:
Assume 3 persons Aster (A), lemma (L), Yared (Y) and n=3
Since n! =3! = 3*2! = 6, there are 6 possible arrangement ALY, AYL, LAY, LYA,YLA and YAL.
Example 5.9: Suppose we have a letters A,B, C, D & E
a) How many permutations are there taking all the four?
b) How many permutations are there taking two letters at a time?
Solution:
a) Here n = 5, there are four distinct object.
There are 5! = 120 permutations.
b) Here n = 5, r = 2
There are 5P2 = 5!/(5-2)! = 120/6 = 20 permutations.
Example 5.10: Fifteen Ethiopian athletes were entered to the race. In how many different ways
could prizes for the first, the second and the third place be awarded?
Solution
15 objects taken 3 at a time 15P3=15!/(15-3)! = 2730 ways.
4. Combination-A selection of objects considered without regard to order in which they occur
is called Combination. The number of combination of n different objects taking r of them at a
n n!
time is C r =   = , for r = 0,1,2,, n .
 r  r!(n − r )!
n

Example 5.11: Given the letters A, B, C, and D list the permutation and combination for
selecting two letters.
Solution:
Permutation Combination
AB BA CA DA AB BC
AC BC CB DB AC BD
AD BD CD DC AD DC
Note that in permutation AB is different from BA but in combination AB is the same as BA.
Example 5.12: In a club containing 7 members a committee of 3 people is to be formed. In how
many ways can the committee be formed?
n n! 7 7!
Solution: 7C3 = n C r =   = ➔ 7 C3 =   = = 35
 r  r!(n − r )!  3  3!(7 − 3)!
Example 5.13: How many four-digit numbers can be formed with the 10 digits 0,1,2, . . ,9 if
a/ repetitions are allowed
b/ repetitions are allowed, and

57
c/ the last digit must be zero & repetitions are not allowed.
Solution:
a/ the first digit can be any one of 9 (since 0 is not allowed). The second, third and fourth digits
can be any one of 10. Then 9.10.10.10=9000 numbers can be formed.
b/ the first digit can be any one of 9 & the remaining three can be chosen in 9 P3 ways. Thus 9.

9 P3 = 4536 numbers can be formed.

c/ the first digit can be chosen in 9 ways & the next two digits in 9 P2 ways. Thus 9. 8 P2 = 504

numbers can be formed.

5.3 Probability of an event
Definition: Probability is a numerical measure of the chance or likelihood that a particular event
will occur & it lies in the range from 0-1, inclusive. Probability is a building block of inferential
statistics.
Definition: Let E be an experiment. Let S be a sample space associated with E. With each
event A in S we associate a real number designated by P (A) and called the probability of A.
Generally probability can be divided into two
i) Subjective probability: - probability determined based on individual’s own judgment,
experience, information, belief . . . is called Subjective probability.
ii) Objective probability: - the probability of an event in a certain experiment based on
experimental evidence.
Basic approaches to probability
There are three different conceptual approaches to the study of probability theory.
These are:
1. The classical approach.
2. The frequentist approach.
3. The axiomatic approach.

1. Classical approach:
Definition: If there are n equally likely outcomes of an experiment, and out of the n outcomes
event A occur only k times the probability of the event A is denoted by P (A) is defined as
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑢𝑡𝑐𝑜𝑚𝑒𝑠 𝑓𝑎𝑣𝑜𝑟𝑎𝑏𝑙𝑒 𝑡𝑜 𝑒𝑣𝑒𝑛𝑡 𝐴 𝑛(𝐴) 𝑘
p(A) = = 𝑛(𝑆) = 𝑛
𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑢𝑡𝑐𝑜𝑚𝑒𝑠

Note: Classical approach of measuring probability fails to answer for the following conditions:
• If total number of outcomes is infinite or if it is not possible to enumerate all elements of the
sample space.

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• If each outcome is not equally likely.
Example 5.14: Compute a/ the probability of having two boys & one girl is a three child family
using the classical method, assuming boys & girls are equally likely.
b/ using (a) compute the probability of having three boys in a three-child family.
c/ using (a) compute the probability of having three girls in a three –child family.
d/ using (a) compute the probability of having two girls & one boy in three child family.
Solution

The sample space S or the experiment is

S= {BBB, BBG, BGB, BGG, GBB, GBG, GGB, GGG}
So n(S)=8
a/ For the event A= ‘'two boys & a girl'' = {BBG,BGB,GBB} , we have n(A)=3,Since the
outcome are equally likely , the probability of A is P(A)= n(A)/n(S)=3/8 =0.375
b/ Compute the probability of having three boys in a three-child family.
For the event B= ''three boys'' = {BBB} , we have n(B)=1,Since the outcome are
equally likely , the probability of B is P(B)= n(B)/n(S)=1/8 = 0.125
c/ compute the probability of having three girls in a three –child family.
For the event C= ''three girls'' = {GGG} , we have n(C)=1,Since the outcome are equally
likely , the probability of C is P(C)= n(C)/n(S)=1/8 = 0.125
d/ Compute the probability of having two girls & one boy in three child family.
For the event D= ''two girls & one boy'' = {BGG, GBG,GGB}, we have n(A)=3,Since the
outcome are equally likely, the probability of D is P(D)= n(D)/n(S)=3/8 =0.375.
Example 5.15: A box of 80 candles consists of 30 defective and 50 non defective candles. If
10 of these candles are selected at random with out replacement, what is the probability
a) all will be defective?
b) 6 will be non-defective?
c) all will be non-defective?
Solution
 80 
Total Selection:   = N = n( S )
 10 
a) Let A be the event that all will be defective.
 30   50 
Total way in which A occur =   *   = NA=n (A)
 10  0
𝑛(𝐴)  30   50   80 
P (A) ) =𝑛(𝑆) =   *   /   = 0.00001825
 10   0   10 

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b) Let A be the event that 6 will be non defective.
 30   50 
Total way in which A occur =   *   = NA=n (A)
4 6
𝑛(𝐴)  30   50   80 
P (A) ) =𝑛(𝑆) =   *   /   = 0.265
4 6  10 
c) Let A be the event that all will be non defective.
 30   50 
Total way in which A occur =   *   = NA=n (A)
 0   10 
𝑛(𝐴)  30   50   80 
P (A) =𝑛(𝑆) =   *   /   = 0.00624.
 0   10   10 
2. The Frequentist Approach (Empirical Probability): This approach to probability is based
on relative frequencies.
Definition: Suppose we do again and again a certain experiment n times and let A be an event
of the experiment and let k be the number of times that event A occurs. Therefore the probability
of the event A happening in the long run is given by:
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑡𝑖𝑚𝑒𝑠 𝑒𝑣𝑒𝑛𝑡 𝐴 ℎ𝑎𝑠 𝑜𝑐𝑐𝑢𝑟𝑒𝑑 𝑘
P(A) = =
𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛𝑠 𝑛

In other words given a frequency distribution, the probability of an event (A) being
𝐹𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦 𝑜𝑓 𝑐𝑙𝑎𝑠𝑠 𝐴
in a given class is P(A) =
𝑇𝑜𝑡𝑎𝑙 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦 𝑖𝑛 𝑡ℎ𝑒 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛

Example 5.16: The national center for health statistics reported that of every 539 deaths in
recent years, 24 resulted that from automobile accident, 182 from cancer, and 353 from other
disease. What is the probability that particular death is due to an automobile accident?
Solution
P (automobile) = death due to automobile /total death =24/539 = 0.445
The probability that particular death is due to an automobile accident is 0.445.
3. The axiomatic approach.
Let E be a random experiment and S be a sample space associated with E. With each event A
a real number called the probability of A satisfies the following properties called axioms of
probability or postulates of probability.
1. 0≤ P (A) ≤ 1
2. P(S) =1, S is the sure/certain event.
3. If A1 and A2 are mutually exclusive events, the probability that one or the other occur equals
the sum of the two probabilities. i. e. P(A1∪A2)=P(A1)+P(A2)
Similarly P(A1∪A2∪ . . . An) = P(A1)+P(A2) +. . . +P(An) = ∑𝑛𝑖=1 𝐴𝑖
4. P (A') =1-P (A)
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5. P (ø) =0, ø is the impossible event.
5.4 Some probability rules
Rule l: let A be an event and A' be the complement of A with respect to a given sample space
of an experiment, then P(A')=1-P(A)
Proof: let S be a sample space S=AUA' and, A and A' are mutually exclusive
A∩A' = ø
P(S) = P (AUA') = P (A') + P (A) and P(S) = 1
1= P (A') + P (A) => P (A') = 1-P (A)
Rule 2: let A and B are events of a sample space S, then
P (A' ∩ B) = P (B) - P (A ∩ B)
Proof: B =S ∩ B = (AUA') ∩ B = (A∩ B) U (A'∩ B)
If A∩B ≠ ø , then P(B) =P (A∩ B) +P (A' ∩ B)
P (A' ∩ B) = P(B) – P(A ∩ B).
Rule 3: Suppose A and B are two events of a sample space, then
P(AUB) = P(A) + P(B) – P(A ∩ B)
Proof:
(AUB) = AU(A' ∩ B), A and A' ∩ B are disjoint sets
∴ P(AU B) = p(A) + p(A' ∩ B) . . . .*
But we have already proved that P (A’ n B) = P (B) – P (A ∩ B)
Put this in equation *
P(A U B) = P(A) + P (B) – P (A ∩ B)
Example 5.17: A fair die is thrown twice. Calculate the probability that the sum of spots on the
face of the die that turn up is divisible by 2 or 3.
Solution
S={(1,1),(1,2),(1,3),(1,4),(1,5),(1,6),(2,1),(2,2),(2,3),(2,4),(2,5),(2,6),(3,1),(3,2),(3,3),(3,4),(3,5),
(3,6),(4,1),(4,2),(4,3),(4,4),(4,5),(4,6),(5,1),(5,2),(5,3),(5,4),(5,4),(5,5),(5,6),(6,1),(6,2),(6,3),(6,4
),(6,5),(6,6)}
This sample space has 6*6 =36 elements let A be the event that the sum of the spots on the
die is divisible by 2 and B be the event that the sum of the spots on the die is divisible by three,
then
A = {(1,1), (1,3), (1,5), (2,2), (2,4), (2,6), (3,1), (3,3), (3,5), (4,2), (4,4), (4,6), (5,1), (5,3), (5,5),
(6,2), (6,4), (6,6)}
B = {(1,2), (1,5), (2,1), (2,4), (3,3), (3,6), (4,2), (4,5), (5,1), (5,4), (6,3), (6,6)}
A∩B = {(1, 5), (2,4), (3,3), (4,2), (5,1), (6,6)}

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P (A or B) = P (A U B)
= P (A) +P (B) – P (A∩B)
= 18/36 + 12/36 -6/36 = 24/36 = 2/3
5.5 Conditional Probability and Independence
5.5.1 Conditional Probability
If A and B are events. Conditional probability of A given B means the probability of occurrence
of A when the event B has already happened.
It is denoted by P (A/B) and is defined by
P (A/B) = P(A ∩ B)/P (B), if P (B)≠0
Conditional probability of B given A means the probability of occurrence of B when the event A
has already happened. It is denoted by P (B/A) and is defined
P (B/A) = P(A ∩ B)/P (A), if P (A)≠0
P (A ∩ B) = P (A) P (B/A) = P (B) P (A/B).
5.5.2 Multiplication Law of Probability
If A and B are events in a sample space S, then
P (A ∩ B) = P (A) P (B/A), P (A) ≠ 0
P (A ∩ B) = P (B) P (A/B), P (B) ≠ 0
Where P (B/A) represents the conditional probability of B given A and P (A/B) represents the
conditional probability of A given B.
Note: Extension of multiplication law of probability for ‘n’ events A1, A2, …, An we have
P (A1 ∩ A2 ∩ …∩An) = P (A1) P (A2/A1) p (A3/A1 ∩ A2)…P(An/A1∩ A2 ∩ …∩An-1)
Example 5.18: A coin is tossed twice. If it is already known that the first coin has thrown a head,
what is the probability of getting two heads?
Solution:
S = {HH, HT, TH, TT}, A = the first shows a head = {HH, HT}, B= two heads occur ={HH}
P (B/A) = P(A ∩ B)/ P(A)
But A ∩ B ={HH}, P(A ∩ B) =1/4, P(A)=1/2, therefore, P (B/A) = P(A ∩ B)/ P(A) = 1/2
Example 5.19: Let A and B are events such that P (A U B) = ¾, P (A ∩ B) = ¼ and P(A' ) = 2/3.
Find P (A'/B)
Solution:
P(A') = 2/3 ➔ P (A) = 1- P(A') = 1-2/3 = 1/3
Now, P (A U B) = P (A) + P (B) - P (A ∩ B)
➔3/4 = 1/3 + P (B) – ¼
➔P(B) = 3/4 - 1/3 + ¼ = 2/3

62
 Therefore, P (A/B) = P (A ∩ B)/P(B) = 3/8 ➔ P(A'/B) =1-P (A/B) = 1-3/8 =5/8.
5.5.3 Probability of Independent Event
Two events A and B are said to be independent if the occurrence of A has no bearing on
occurrence of B. That means knowledge of A has occurred given no information about the
occurrence of B. Two events, A and B, are said to be independent if P(A∩B) = P(A)P(B).
Suppose A and B are independent events with 0<P (A) <1 and 0<P (B) <1. The following
statements true:
i. A' and B' are independent, ii. A and B' are independent, iii. A' and B are independent
iv. P(B|A) = P(B), v. P(B|A') = P(B)
Example 5.20: A box contains four black and six white balls. What is the probability of getting
two black balls in drawing one after the other under the following conditions?
a. The first ball drawn is not replaced
b. The first ball drawn is replaced
Solution: Let A= first drawn ball is black
B= second drawn is black
Required P (A n B)
a. P (A ∩ B) = P (B/A) P(A) = (4/10) (3/9) = 2/15
b. P (A ∩ B) = P (A) P (B) = (4/10) (4/10) = 16/100 = 4/25.
5.6 Total probability and Bayes’ Theorem

Total probability:-If events B1, B2, …,& Bk constitute a partition of the sample space S &

p(Bi) ≠ 0 for i = 1,2,…,k, then for any event A in S, P(A)= ∑ p(Bi)p(A/Bi).

Example 5.21: In a factory, machines A1, A2, A3 manufactures 25%, 35%, 40% of the total
output respectively. Out of their products 5%, 4% & 2% are, respectively defective. An item is
drawn at random from the products is found to be defective. What is the probability that
defective item is produced by all machines?

So/n: p(A1)=0.25, p(A2) = 0.35, p(A3) = 0.40, P(D/A1)= 0.05, P(D/A2) = 0.04, P(D/A3) =0.02

P(D)= ∑ p(Ai)p(D/Ai) = p(A1) P(D/A1) + p(A2) P(D/A2) + p(A3) P(D/A3)

= (0.25) (0.05) + (0.35) (0.04)+ (0.40) (0.020) = 0.0345

63
Bayes’ Theorem:- If B1, B2, …,& Bk are events which make an exhaustive partition of the
sample space S, if A is any event in S, then the conditional probability of Bi given that A has
P( Bi )  P( A / Bi )
already occurred is: P( Bi / A) = k

 P( B )  P( A / B )
i
i i

Note: the denominator is the total probability

Example 5.22: Based on the above example, what is the probability that it was manufactured
by machine A1?

P( A1 )  P( D / A1 )
Sol/n:- P( A1 / D) = k
= (0.25)(0.05)/0.0345 = 0.3623
 P( A )  P( D / A )
i
i i

64