AVERAGES

An average is a single value selected from a

group of values to represent them in some
way, a value which is supposed to stand for
whole group of which it is part, as typical of
all the values of the group.
A GOOD AVERAGE MEASURES

• It should be rigidly defined

• Easy to understand
• Based on all observations
• Suitable for further mathematical treatment
• Affected as little as by fluctuations of samplings
• Should not be affected much by extreme observations
ARITHMETIC MEAN

Individual Continuous
Discrete

Mid value
ARITHMETIC MEAN

Direct Method:

Individual Continuous
Discrete Step Deviation Method:

Mid value
h = difference in class intervals
A = Assumed mean or arbitrary value
 MarksMarks MarksNo. of students No. of students
0 – 10 10 10 6 6
10 – 20 20 20 5 5
20 – 30 30 30 8 8
30 – 40 40 40 15 15
40 – 50 50 50 7 7
50 – 60 60 60 6 6
60 – 70 70 70 3 3
PROPERTIES

•
Merits Demerits
Rigidly defined Affected by extreme observations
Easy to calculate and understand It cannot be determined by inspection or location
Based on all observations Cannot be used if we have qualitative
characteristics of data
Suitable for further mathematical treatment In extremely asymmetrical (skewed) distribution,
usually arithmetic mean is not representative of
the distribution
Arithmetic mean is least affected by fluctuations In the presence of outliers AM become unreliable
of sampling
• The mean salary paid to 1,000 employees of an establishment was found
to be Rs. 180.40. Later on, after disbursement of salary, it was discovered
that the salary of two employees was wrongly entered as Rs. 297 and Rs.
165. Their correct salaries were Rs. 197 and Rs. 185.
• Find the correct Arithmetic Mean (A.M.)
• The mean of marks of Statistics of 100 students in a class was 72. The
mean of marks of boys was 75, while their number was 70. Find out the
mean marks of girls in the class.
WEIGHTED ARITHMETIC MEAN

•
 MEDIAN

Ungrouped Data Frequency Distribution Continuous Frequency Distri.

1. Set data in either ascending or 1. Prepare “less than” c.f.
descending order 2. Find N/2
2. M = N/2 3. See the c.f. just greater than
3. See the location N/2
4. The corresponding value of
the value gives median
X f • Create cumulative frequency (c.f.)
0 1
• N/2 = 128
1 9
2 26 • C.f. just greater than 128 is 167 and
3 59 value of X corresponding to 167 is 4.
4 72 • Median = 4
5 52
6 29
7 7
8 1
 X f •
0-10 2
10-20 3
20-30 4
30-40 3
40-50 2
50-60 1
60-70 0.5
70 and above 0.1
Source: Live Mint, Dec. 2016, https://www.livemint.com/Home-Page/QxSmwS3bn5alaoRMKexoKJ/How-much-the-richest-1-earn-and-
spend.html
PARTITION VALUES

• Quartiles
• Deciles
• Percentiles
QUARTILES

• Quartiles are the values that divide a list of numbers into quarters.
• Q1, Q2 and Q3
PERCENTILES
DECILES
For individual and Discrete For continuous series
Marks Students Obtain the values of quartiles, 6th
0-10 5 decile and 70th percentaile

10-20 8
20-30 7
30-40 12
40-50 28
50-60 20
60-70 10
70-80 10
Marks Students The limits of marks of middle 30 %
0-20 10 students.

20-40 30
40-60 36
60-80 30
80-100 14
MODE
• l = lower limit of modal class
• f1 = frequency of model class
• f0 = frequency of preceding model class
• f2 = frequency of succeeding model class
• h = magnitude of modal class
Marks Students
0-20 10
Find Mode
20-40 30
Inspection method
40-60 36
60-80 30 Analysis method
80-100 14
ANALYSIS METHOD (FOR PRACTICE)

• Also practice bi-model frequency related sums.

CONNECTION

In case of symmetrical distribution

It is not always
granted to the
sower to live to
see the harvest.
All work that is
worth anything is
done in faith.
DISPERSION OR MEASURE OF VARIATION

The degree to which numerical

data tend to spread about an
average value is called the variation
or dispersion of the data.

or

Dispersion or spread is the degree

of the scatter or variation of the
variable about the central value.
SIGNIFICANCE OF MEASURING VARIATION

• To determine the reliability of an average.

• To serve as a basis for the control of the variability.
• To compare two or more series with regard to their variability.
• To facilitate the use of other statistical measures.
METHODS

Standard
Average Deviation
Quartile or Mean
Range Deviation Deviation
 RANGE

Absolute Maximum Value – Minimum Value

For
Grouped and
Range Ungrouped Data

Relative
QUARTILE DEVIATION
 MEAN DEVIATION (MDA*)

Mean Deviation Type Data Formula

Absolute Ungrouped

Relative Ungrouped

Absolute Grouped

Relative Grouped

* A = mean or median or mode

 MEAN DEVIATION (MDA*)

Mean Deviation Type Data Formula

Absolute Ungrouped

MDM Relative Ungrouped MDM / M

Absolute Grouped
(Mean Deviation
from Median)
Relative Grouped MDM / M

* A = mean or median or mode

 MEAN DEVIATION (MDA*)

Mean Deviation Type Data Formula

Absolute Ungrouped

MDZ Relative Ungrouped MDZ / Z

Absolute Grouped
(Mean Deviation
from Mode)
Relative Grouped MDZ / Z

* A = mean or median or mode

STANDARD DEVIATION

  X    2

 
2

  
2
CHARACTERISTICS OF STANDARD DEVIATION:

• SD is very satisfactory and most widely used measure of dispersion

• Amenable for mathematical manipulation
• It is independent of origin, but not of scale
• If SD is small, there is a high probability for getting a value close to the mean and if it is
large, the value is father away from the mean.
• Does not ignore the algebraic signs and it is less affected by fluctuations of sampling
USES OF STANDARD DEVIATION

• Indicator of financial risk

• Quality Control
• construction of quality control charts
• process capability studies

• Comparing populations
• household incomes in two cities
• employee absenteeism at two plants
COEFFICIENT OF VARIATION

• Ratio of the standard deviation to the mean, expressed as a percentage

• Measurement of relative dispersion


C.V . 100

COEFFICIENT OF VARIATION
  29
1
  84
2

 1
 4.6  2
 10
 100  100
C.V .  
1
1
C.V .  
2
2

1 2

4.6 10
 100  100
29 84
 15.86  11.90
 “ After settlement the average weekly wage in a factory increased from Rs.
8000 to Rs. 12,000 and standard deviation had increased from Rs. 100 to Rs.
150. After settlement the wage has become higher and more uniform”.

Do you agree?
=
COMBINED S.D.
Since C.V. of factory B > C.V. of factory A

Therefore, Factory B has more variability which

means bulbs of factory A are more consistent.