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11 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western

Chapter 3 Chapter 3
Descriptive Statistics: umerical !easures Descriptive Statistics: umerical !easures
"art # "art #
!easures o$ %ocation !easures o$ %ocation
!easures o$ &aria'ilit( !easures o$ &aria'ilit(
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!easures o$ %ocation !easures o$ %ocation
)$ the measures are computed )$ the measures are computed
$or data $rom a sample* $or data $rom a sample*
the( are called the( are called sample statistics sample statistics++
)$ the measures are computed )$ the measures are computed
$or data $rom a population* $or data $rom a population*
the( are called the( are called population parameters population parameters++
# sample statistic is re$erred to # sample statistic is re$erred to
as the as the point estimator point estimator o$ the o$ the
correspondin, population parameter+ correspondin, population parameter+
!ean !ean
!edian !edian
!ode !ode
"ercentiles "ercentiles
-uartiles -uartiles
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!ean !ean
The The mean mean o$ a data set is the avera,e o$ all the data o$ a data set is the avera,e o$ all the data
values+ values+
The sample mean is the point estimator o$ the The sample mean is the point estimator o$ the
population mean population mean + +
x
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Sample !ean Sample !ean x
um'er o$ um'er o$
o'servations o'servations
in the sample in the sample
Sum o$ the values Sum o$ the values
o$ the o$ the n n o'servations o'servations
i
x
x
n
=

3
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"opulation !ean "opulation !ean
um'er o$ um'er o$
o'servations in o'servations in
the population the population
Sum o$ the values Sum o$ the values
o$ the o$ the NN o'servations o'servations
i
x
N
=

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Sevent( e$$icienc( apartments Sevent( e$$icienc( apartments
0ere randoml( sampled in 0ere randoml( sampled in
a small colle,e to0n+ The a small colle,e to0n+ The
monthl( rent prices $or monthl( rent prices $or
these apartments are listed these apartments are listed
in ascendin, order on the ne1t slide+ in ascendin, order on the ne1t slide+
Sample !ean Sample !ean
21ample: #partment 3ents 21ample: #partment 3ents
.
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.25 .30 .30 .35 .35 .35 .35 .35 ..0 ..0
..0 ..0 ..0 ..5 ..5 ..5 ..5 ..5 .50 .50
.50 .50 .50 .50 .50 ./0 ./0 ./0 ./5 ./5
./5 .40 .40 .42 .45 .45 .45 .50 .50 .50
.50 .55 .60 .60 .60 500 500 500 500 510
510 515 525 525 525 535 5.6 550 540 540
545 545 550 560 /00 /00 /00 /00 /15 /15
Sample !ean Sample !ean
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Sample !ean Sample !ean
3.* 35/
.60+50
40
i
x
x
n
= = =

.25 .30 .30 .35 .35 .35 .35 .35 ..0 ..0
..0 ..0 ..0 ..5 ..5 ..5 ..5 ..5 .50 .50
.50 .50 .50 .50 .50 ./0 ./0 ./0 ./5 ./5
./5 .40 .40 .42 .45 .45 .45 .50 .50 .50
.50 .55 .60 .60 .60 500 500 500 500 510
510 515 525 525 525 535 5.6 550 540 540
545 545 550 560 /00 /00 /00 /00 /15 /15
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66 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
!edian !edian
Whenever a data set has e1treme values* the median Whenever a data set has e1treme values* the median
is the pre$erred measure o$ central location+ is the pre$erred measure o$ central location+
# $e0 e1tremel( lar,e incomes or propert( values # $e0 e1tremel( lar,e incomes or propert( values
can in$late the mean+ can in$late the mean+
The median is the measure o$ location most o$ten The median is the measure o$ location most o$ten
reported $or annual income and propert( value data+ reported $or annual income and propert( value data+
The The median median o$ a data set is the value in the middle o$ a data set is the value in the middle
0hen the data items are arran,ed in ascendin, order+ 0hen the data items are arran,ed in ascendin, order+
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!edian !edian
12 12 1. 1. 16 16 2/ 2/ 24 24 15 15 24 24
7or an 7or an odd num'er odd num'er o$ o'servations: o$ o'servations:
in ascendin, order in ascendin, order
2/ 2/ 15 15 24 24 12 12 1. 1. 24 24 16 16 4 o'servations 4 o'servations
the median is the middle value+ the median is the middle value+
!edian 8 16 !edian 8 16
/
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12 12 1. 1. 16 16 2/ 2/ 24 24 15 15 24 24
!edian !edian
7or an 7or an even num'er even num'er o$ o'servations: o$ o'servations:
in ascendin, order in ascendin, order
2/ 2/ 15 15 24 24 12 12 1. 1. 24 24 30 30 5 o'servations 5 o'servations
the median is the avera,e o$ the middle t0o values+ the median is the avera,e o$ the middle t0o values+
!edian 8 916 : 2/;/2 8 22+5 !edian 8 916 : 2/;/2 8 22+5
16 16
30 30
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!edian !edian
.25 .30 .30 .35 .35 .35 .35 .35 ..0 ..0
..0 ..0 ..0 ..5 ..5 ..5 ..5 ..5 .50 .50
.50 .50 .50 .50 .50 ./0 ./0 ./0 ./5 ./5
./5 .40 .40 .42 .45 .45 .45 .50 .50 .50
.50 .55 .60 .60 .60 500 500 500 500 510
510 515 525 525 525 535 5.6 550 540 540
545 545 550 560 /00 /00 /00 /00 /15 /15
#vera,in, the 35th and 3/th data values: #vera,in, the 35th and 3/th data values:
!edian 8 9.45 : .45;/2 8 .45 !edian 8 9.45 : .45;/2 8 .45
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!ode !ode
The The mode mode o$ a data set is the value that occurs 0ith o$ a data set is the value that occurs 0ith
,reatest $re<uenc(+ ,reatest $re<uenc(+
The ,reatest $re<uenc( can occur at t0o or more The ,reatest $re<uenc( can occur at t0o or more
di$$erent values+ di$$erent values+
)$ the data have e1actl( t0o modes* the data are )$ the data have e1actl( t0o modes* the data are
'imodal 'imodal++
)$ the data have more than t0o modes* the data are )$ the data have more than t0o modes* the data are
multimodal multimodal++
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!ode !ode
.25 .30 .30 .35 .35 .35 .35 .35 ..0 ..0
..0 ..0 ..0 ..5 ..5 ..5 ..5 ..5 .50 .50
.50 .50 .50 .50 .50 ./0 ./0 ./0 ./5 ./5
./5 .40 .40 .42 .45 .45 .45 .50 .50 .50
.50 .55 .60 .60 .60 500 500 500 500 510
510 515 525 525 525 535 5.6 550 540 540
545 545 550 560 /00 /00 /00 /00 /15 /15
.50 occurred most $re<uentl( 94 times; .50 occurred most $re<uentl( 94 times;
!ode 8 .50 !ode 8 .50
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"ercentiles "ercentiles
# percentile provides in$ormation a'out ho0 the # percentile provides in$ormation a'out ho0 the
data are spread over the interval $rom the smallest data are spread over the interval $rom the smallest
value to the lar,est value+ value to the lar,est value+
#dmission test scores $or colle,es and universities #dmission test scores $or colle,es and universities
are $re<uentl( reported in terms o$ percentiles+ are $re<uentl( reported in terms o$ percentiles+
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The The ppth percentile th percentile o$ a data set is a value such that at o$ a data set is a value such that at
least least pp percent o$ the items ta=e on this value or less percent o$ the items ta=e on this value or less
and at least 9100 and at least 9100 - - pp; percent o$ the items ta=e on this ; percent o$ the items ta=e on this
value or more+ value or more+
"ercentiles "ercentiles
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"ercentiles "ercentiles
#rran,e the data in ascendin, order+ #rran,e the data in ascendin, order+
Compute inde1 Compute inde1 ii* the position o$ the * the position o$ the ppth percentile+ th percentile+
ii 8 9 8 9pp/100; /100;n n
)$ )$ ii is not an inte,er* round up+ The is not an inte,er* round up+ The ppth percentile th percentile
is the value in the is the value in the iith position+ th position+
)$ )$ ii is an inte,er* the is an inte,er* the ppth percentile is the avera,e th percentile is the avera,e
o$ the values in positions o$ the values in positions i i and and ii:1+ :1+
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60 60
th th
"ercentile "ercentile
.25 .30 .30 .35 .35 .35 .35 .35 ..0 ..0
..0 ..0 ..0 ..5 ..5 ..5 ..5 ..5 .50 .50
.50 .50 .50 .50 .50 ./0 ./0 ./0 ./5 ./5
./5 .40 .40 .42 .45 .45 .45 .50 .50 .50
.50 .55 .60 .60 .60 500 500 500 500 510
510 515 525 525 525 535 5.6 550 540 540
545 545 550 560 /00 /00 /00 /00 /15 /15
ii 8 9 8 9pp/100; /100;n n 8 960/100;40 8 /3 8 960/100;40 8 /3
#vera,in, the /3rd and /.th data values: #vera,in, the /3rd and /.th data values:
60th "ercentile 8 9550 : 560;/2 8 555 60th "ercentile 8 9550 : 560;/2 8 555
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60 60
th th
"ercentile "ercentile
.25 .30 .30 .35 .35 .35 .35 .35 ..0 ..0
..0 ..0 ..0 ..5 ..5 ..5 ..5 ..5 .50 .50
.50 .50 .50 .50 .50 ./0 ./0 ./0 ./5 ./5
./5 .40 .40 .42 .45 .45 .45 .50 .50 .50
.50 .55 .60 .60 .60 500 500 500 500 510
510 515 525 525 525 535 5.6 550 540 540
545 545 550 560 /00 /00 /00 /00 /15 /15
>#t least 60? >#t least 60?
o$ the items o$ the items
ta=e on a value ta=e on a value
o$ 555 or less+@ o$ 555 or less+@
>#t least 10? >#t least 10?
o$ the items o$ the items
ta=e on a value ta=e on a value
o$ 555 or more+@ o$ 555 or more+@
/3/40 8 +6 or 60? /3/40 8 +6 or 60? 4/40 8 +1 or 10? 4/40 8 +1 or 10?
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-uartiles -uartiles
-uartiles are speci$ic percentiles+ -uartiles are speci$ic percentiles+
7irst -uartile 8 25th "ercentile 7irst -uartile 8 25th "ercentile
Second -uartile 8 50th "ercentile 8 !edian Second -uartile 8 50th "ercentile 8 !edian
Third -uartile 8 45th "ercentile Third -uartile 8 45th "ercentile
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Third -uartile Third -uartile
.25 .30 .30 .35 .35 .35 .35 .35 ..0 ..0
..0 ..0 ..0 ..5 ..5 ..5 ..5 ..5 .50 .50
.50 .50 .50 .50 .50 ./0 ./0 ./0 ./5 ./5
./5 .40 .40 .42 .45 .45 .45 .50 .50 .50
.50 .55 .60 .60 .60 500 500 500 500 510
510 515 525 525 525 535 5.6 550 540 540
545 545 550 560 /00 /00 /00 /00 /15 /15
Third <uartile 8 45th percentile Third <uartile 8 45th percentile
i i 8 9 8 9pp/100; /100;n n 8 945/100;40 8 52+5 8 53 8 945/100;40 8 52+5 8 53
Third <uartile 8 525 Third <uartile 8 525
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!easures o$ &aria'ilit( !easures o$ &aria'ilit(
)t is o$ten desira'le to consider measures o$ varia'ilit( )t is o$ten desira'le to consider measures o$ varia'ilit(
9dispersion;* as 0ell as measures o$ location+ 9dispersion;* as 0ell as measures o$ location+
7or e1ample* in choosin, supplier # or supplier A 0e 7or e1ample* in choosin, supplier # or supplier A 0e
mi,ht consider not onl( the avera,e deliver( time $or mi,ht consider not onl( the avera,e deliver( time $or
each* 'ut also the varia'ilit( in deliver( time $or each+ each* 'ut also the varia'ilit( in deliver( time $or each+
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!easures o$ &aria'ilit( !easures o$ &aria'ilit(
3an,e 3an,e
)nter<uartile 3an,e )nter<uartile 3an,e
&ariance &ariance
Standard Deviation Standard Deviation
Coe$$icient o$ &ariation Coe$$icient o$ &ariation
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3an,e 3an,e
The The ran,e ran,e o$ a data set is the di$$erence 'et0een the o$ a data set is the di$$erence 'et0een the
lar,est and smallest data values+ lar,est and smallest data values+
)t is the )t is the simplest measure simplest measure o$ varia'ilit(+ o$ varia'ilit(+
)t is )t is ver( sensitive ver( sensitive to the smallest and lar,est data to the smallest and lar,est data
values+ values+
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3an,e 3an,e
.25 .30 .30 .35 .35 .35 .35 .35 ..0 ..0
..0 ..0 ..0 ..5 ..5 ..5 ..5 ..5 .50 .50
.50 .50 .50 .50 .50 ./0 ./0 ./0 ./5 ./5
./5 .40 .40 .42 .45 .45 .45 .50 .50 .50
.50 .55 .60 .60 .60 500 500 500 500 510
510 515 525 525 525 535 5.6 550 540 540
545 545 550 560 /00 /00 /00 /00 /15 /15
3an,e 8 lar,est value 3an,e 8 lar,est value - - smallest value smallest value
3an,e 8 /15 3an,e 8 /15 - - .25 8 160 .25 8 160
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)nter<uartile 3an,e )nter<uartile 3an,e
The The inter<uartile ran,e inter<uartile ran,e o$ a data set is the di$$erence o$ a data set is the di$$erence
'et0een the third <uartile and the $irst <uartile+ 'et0een the third <uartile and the $irst <uartile+
)t is the ran,e $or the )t is the ran,e $or the middle 50? middle 50?o$ the data+ o$ the data+
)t overcomes the sensitivit( to e1treme data values+ )t overcomes the sensitivit( to e1treme data values+
1.
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)nter<uartile 3an,e )nter<uartile 3an,e
.25 .30 .30 .35 .35 .35 .35 .35 ..0 ..0
..0 ..0 ..0 ..5 ..5 ..5 ..5 ..5 .50 .50
.50 .50 .50 .50 .50 ./0 ./0 ./0 ./5 ./5
./5 .40 .40 .42 .45 .45 .45 .50 .50 .50
.50 .55 .60 .60 .60 500 500 500 500 510
510 515 525 525 525 535 5.6 550 540 540
545 545 550 560 /00 /00 /00 /00 /15 /15
3rd -uartile 9 3rd -uartile 9QQ3; 8 525 3; 8 525
1st -uartile 9 1st -uartile 9QQ1; 8 ..5 1; 8 ..5
)nter<uartile 3an,e 8 )nter<uartile 3an,e 8 QQ3 3 - - QQ1 8 525 1 8 525 - - ..5 8 50 ..5 8 50
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The The variance variance is a measure o$ varia'ilit( that utiliBes is a measure o$ varia'ilit( that utiliBes
all the data+ all the data+
&ariance &ariance
)t is 'ased on the di$$erence 'et0een the value o$ )t is 'ased on the di$$erence 'et0een the value o$
each o'servation 9 each o'servation 9xx
ii
; and the mean 9 $or a sample* ; and the mean 9 $or a sample*
$or a population;+ $or a population;+
x
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&ariance &ariance
The variance is computed as $ollo0s: The variance is computed as $ollo0s:
The variance is the The variance is the avera,e o$ the s<uared avera,e o$ the s<uared
di$$erences di$$erences 'et0een each data value and the mean+ 'et0een each data value and the mean+
$or a $or a
sample sample
$or a $or a
population population

2
2
=
( ) x
N
i
s
x
i
x
n
2
2
1
=

( )
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Standard Deviation Standard Deviation
The The standard deviation standard deviation o$ a data set is the positive o$ a data set is the positive
s<uare root o$ the variance+ s<uare root o$ the variance+
)t is measured in the )t is measured in the same units as the data same units as the data* ma=in, * ma=in,
it more easil( interpreted than the variance+ it more easil( interpreted than the variance+
1/
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The standard deviation is computed as $ollo0s: The standard deviation is computed as $ollo0s:
$or a $or a
sample sample
$or a $or a
population population
Standard Deviation Standard Deviation
s s =
2
=
2
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The coe$$icient o$ variation is computed as $ollo0s: The coe$$icient o$ variation is computed as $ollo0s:
Coe$$icient o$ &ariation Coe$$icient o$ &ariation
100 %
s
x

The The coe$$icient o$ variation coe$$icient o$ variation indicates ho0 lar,e the indicates ho0 lar,e the
standard deviation is in relation to the mean+ standard deviation is in relation to the mean+
$or a $or a
sample sample
$or a $or a
population population
100 %

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33 33 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western

= =


5.+4.
100 ? 100 ? 11+15?
.60+50
s
x
2
2
9 ;
2* 66/+1/
1
i
x x
s
n

= =

2
266/+.4 5.+4. s s = = =
the standard the standard
deviation is deviation is
a'out 11? o$ a'out 11? o$
o$ the mean o$ the mean
&ariance &ariance
Standard Deviation Standard Deviation
Coe$$icient o$ &ariation Coe$$icient o$ &ariation
&ariance* Standard Deviation* &ariance* Standard Deviation*
#nd Coe$$icient o$ &ariation #nd Coe$$icient o$ &ariation
3. 3. Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
2nd o$ Chapter 3* "art # 2nd o$ Chapter 3* "art #