Definition and classification of statistics

Stages in Statistical Investigation

Types/classification of statistics
Basic Statistical Terms
Variables and Types of Data
Applications and Uses of Statistics

1 — INTRODUCTION TO STATISTICS

1.1 Definition and classification of statistics

Statistics is a branch of mathematics that has applications in almost every facet of our
daily life. It is a new and unfamiliar language for most people, however, and, like any
new language, statistics can seem overwhelming at first glance. We want you to “train
your brain” to understand this new language one step at a time. Once the language
of statistics is learned and understood, it provides a powerful tool for data analysis in
many different fields of application. Almost every day you are exposed to statistics. For
instance, consider the next four statements
(a) The avarage salary for a registered nurse was br. 3,145 per month.
(b) The national average price for regular gasoline reached br.21 per liter.
(c) The FBI reported that violent crimes were down by 6.4% in 2018.
(d) In 2018, the number of sales of smart phones sum sung galaxy is estimated to be
832.5 million units globally.
The numerical facts in the preceding statements (3,145, 21, 6.4 %, 832.5) are called
statistics.
Statistics is used in almost all fields of human endeavor. In sports, for example, a
statistician may keep records of the number of yards a running back gains during a
football game, or the number of hits a baseball player gets in a season. In other areas,
such as public health, an administrator might be concerned with the number of residents
who contract a new strain of flu virus during a certain year. In education, a researcher
might want to know if new methods of teaching are better than old ones. These are only
a few examples of how statistics can be used in various occupations.
Definition 1.1.1 Statistics is the science of collecting, organizing, analyzing, and
interpreting data in order to make decisions.

1.2 Stages in Statistical Investigation

Consider the following stages of statistical investigation.
2 INTRODUCTION TO STATISTICS

• Data Collection: This is a stage where we gather information for our purpose.
– If data are needed and if not readily available, then they have to be collected.
– Data may be collected by the investigator directly using methods like inter-
view, questionnaire, and observation or may be available from published or
unpublished sources.
– Data gathering is the basis (foundation) of any statistical work.
– Valid conclusions can only result from properly collected data.
• Data Organization: It is a stage where we edit our data. A large mass of figures
that are collected from surveys frequently need organization. The collected data
involve irrelevant figures, incorrect facts, omission and mistakes. Errors that may
have been included during collection will have to be edited. After editing, we
may classify (arrange) according to their common characteristics. Classification
or arrangement of data in some suitable order makes the information easier for
presentation.
• Data Presentation: The organized data can now be presented in the form of
tables and diagram. At this stage, large data will be presented in tables in a very
summarized and condensed manner. The main purpose of data presentation is to
facilitate statistical analysis. Graphs and diagrams may also be used to give the
data a vivid meaning and make the presentation attractive.
• Data Analysis: This is the stage where we critically study the data to draw
conclusions about the population parameter. The purpose of data analysis is to
dig out information useful for decision making. Analysis usually involves highly
complex and sophisticated mathematical techniques. However, in this material
only the most commonly used methods of statistical analysis are included. Such as
the calculations of averages, the computation of measures of dispersion, regression
and correlation analysis are covered.
• Data Interpretation: This is the stage where we draw valid conclusions from the
results obtained through data analysis. Interpretation means drawing conclusions
from the data which form the basis for decision making. The interpretation of data
is a difficult task and necessitates a high degree of skill and experience. If data
that have been analyzed are not properly interpreted, the whole purpose of the
investigation may be defected and fallacious conclusion be drawn. So that great
care is needed when making interpretation.

Some characteristics of statistics:

1. Statistics are aggregated facts.
Single and isolated figures are not statistics. Example: Meaza is 20 years old.
2. Statistics is affected by a number of factors
3. Statistics should be expressed numerically
Qualitative statements do not constitute statistics. For example, look at the follow-
ing statements.
i. Majority of Ethiopian population is illiterate.
ii. Production of teff is not sufficient
iii. 70 percent of rural population is illiterate
The first two statements are not statistics.

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 1.3 Types/classification of statistics 3

4. Statistics should be enumerated or estimated according to reasonable standards of

accuracy
5. Statistics should be collected in a systematic manner
6. Statistics should be collected for a predetermined purpose

1.3 Types/classification of statistics

Statistics is sometimes divided into two main areas, depending on how data are used.
The two areas are
1. Descriptive statistics
2. Inferential statistics
Definition 1.3.1 Descriptive statistics consists of procedures used to summarize and
describe the important characteristics of a set of measurements.
If a business analyst is using data gathered on a group to describe or reach conclusions
about that same group, the statistics are called descriptive statistics.

In descriptive statistics the statistician tries to describe a situation. For example, tables
or graphs are used to organize data, survey used to collect data, and descriptive values
such as the average score are used to summarize data. The following are some examples
of descriptive Statistics.
(a) The average age of athletes participated in London Marathon was 25 years.
(b) 80% of students in campus are female.
(c) In 2011, there were 34 deaths from the avian flu.
d If an instructor produces statistics to summarize a class’s examination effort and
uses those statistics to reach conclusions about that class only, the statistics are
descriptive.
Definition 1.3.2 Inferential statistics consists of procedures used to make inferences
about population characteristics from information contained in a sample drawn from
this population.
Inferential statistics is a procedure utilizes sample data to make estimates, decisions,
predictions, or other generalizations about a larger set of data. A basic tool in the
study of inferential statistics is probability.

The following Statistics are some examples of inferential Statistics:

(a) The result obtained from the analysis of the income of 1000 randomly selected
citizens in Ethiopia suggests that the average consumption income of a citizen in
Ethiopia per day is 30 Birr.
(b) In 2011, 79% of U.S. adults used the Internet. Since it is a generalization about
the population is being made.

1.4 Basic Statistical Terms

• Data consist of information coming from observations, counts, measurements, or
responses.. All the data collected in a particular study are referred to as the data
set for the study.

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 4 INTRODUCTION TO STATISTICS

There are two types of data sets you will use when studying statistics. These data
sets are called populations and samples.
* The data that reflects non-numerical features or qualities of the experimental
units is known as qualitative data.
* The data that possesses numerical properties is known as quantitative data.
• A population consists of all subjects (human or otherwise) that are being studied.
i.e It is the collection of all outcomes, responses, measurements, or counts that are
of interest.

* The total number of objects (individuals) in a population is known as the

size of the population. This may be finite or infinite.
• Survey or experiment is a device of obtaining the desired data.
* The process of conducting a survey to collect data for the entire population
is called a census.
* The process of conducting a survey to collect data for a sample is called a
sample survey.
• A sample is a group of subjects selected from a population.It is a subset, or part,
of a population. The total number of subjects in a sample is called the sample
size.
• Sampling: The process of selecting a sample from the population is called
sampling.
• A Parameter is a numerical description of a population characteristic.
• A statistic is a numerical description of a sample characteristic.

 Example 1.1 Determine whether the numerical value describes a population param-
eter or a sample statistic. Explain your reasoning
a A recent survey of approximately 400,000 employers reported that the average
starting salary for marketing majors is birr 3,400.
b The freshman class at a university has an average SAT math score of 54.
c In a random check of 400 retail stores, the Food and Drug Administration found
that 34% of the stores were not storing fish at the proper temperature


Solution
a Because the average of birr 3,400 is based on a subset of the population, it is a
sample statistic.
b Because the average SAT math score of 54 is based on the entire freshman class,
it is a population parameter.
c Because the percent, 34%, is based on a subset of the population, it is a sample
statistic.

1.5 Variables and Types of Data

A variable is a characteristic or property of an individual population unit.In statistics, a
variable matches up to some aspect of the thing being measured. For example, height of
person is variable. The value is the particular number resulting from the measurement
on this occasion. In this case, the value would be 1.62metres. Variables can be classified

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1.5 Variables and Types of Data 5

as qualitative or quantitative.
Definition 1.5.1 Qualitative variables are variables that have distinct categories ac-
cording to some characteristic or attribute.

For example, if subjects are classified according to gender (male or female), then the
variable gender is qualitative. Other examples of qualitative variables are religious
preference and geographic locations.
Qualitative variables take on values that are names or labels. The color of a ball (e.g.,
red, green, blue) or the breed of a dog (e.g., collie, shepherd, terrier) would be examples
of qualitative or categorical variables.
Definition 1.5.2 Quantitative variables are variables that can be counted or measured.

For example, the variable age is numerical, and people can be ranked in order according
to the value of their ages. Other examples of quantitative variables are heights, weights,
and body temperatures.
Quantitative variables can be further classified into two groups: discrete and continu-
ous.
Definition 1.5.3 Discrete variables assume values that can be counted. A discrete
variable takes always whole number values that are counted.

Examples of discrete variables are the number of children in a family, the number of
students in a classroom, and the number of calls received by a switchboard operator
each day for a month.
Definition 1.5.4 Continuous variables can assume an infinite number of values be-
tween any two specific values. They are obtained by measuring. They often include
fractions and decimals.
Temperature, for example, is a continuous variable, since the variable can assume an
infinite number of values between any two given temperatures.

 Example 1.2 — Discrete or Continuous Variables. .

Classify each variable as a discrete variable or a continuous variable.
1. The highest wind speed of a hurricane
2. The weight of baggage on an airplane
3. The number of pages in a statistics book
4. The amount of money a person spends per year for online purchases
SOLUTION:
1. Continuous, since wind speed must be measured
2. Continuous, since weight is measured
3. Discrete, since the number of pages is countable
4. Discrete, since the smallest value that money can assume is in cents


How variables are categorized, counted, or measured— uses measurement scales, and
The four levels of measurement, in order from lowest to highest are : nominal, ordinal,
interval, and ratio.

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6 INTRODUCTION TO STATISTICS

Definition 1.5.5 .
• The nominal level of measurement classifies data into mutually exclusive
(non overlapping) categories in which no order or ranking can be imposed on
the data.Data at the nominal level of measurement are qualitative only. Data at
this level are categorized using names, labels, or qualities. No mathematical
computations can be made at this level.
• The ordinal level of measurement classifies data into categories that can be
ranked; however, precise differences between the ranks do not exist. Data at the
ordinal level of measurement are qualitative or quantitative.
The two highest levels of measurement consist of quantitative data only.
• The interval level of measurement
Data at the interval level of measurement can be ordered, and meaningful
differences between data entries can be calculated. At the interval level, a zero
entry simply represents a position on a scale; the entry is not an inherent zero.
• The ratio level of measurement
Data at the ratio level of measurement are similar to data at the interval level,
with the added property that a zero entry is an inherent zero. A ratio of two data
entries can be formed so that one data entry can be meaningfully expressed as a
multiple of another.

An inherent zero is a zero that implies “none.” For instance, the amount of money you
have in a savings account could be zero dollars. In this case, the zero represents no
money; it is an inherent zero. On the other hand, a temperature of 0oCdoes not represent
a condition in which no heat is present. The 0oCtemperature is simply a position on
the Celsius scale; it is not an inherent zero. To distinguish between data at the interval
level and at the ratio level, determine whether the expression “twice as much” has any
meaning in the context of the data. For instance, $2 is twice as much as $1, so these data
are at the ratio level. On the other hand, 2oC is not twice as warm as 1oC, so these data
are at the interval level.
Nominal-level data Ordinal-level data Interval-level data Ratio-level data
Zip code Grade (A, B, C, D, F) SAT score Height
Gender (male, female) Judging (first place, IQ Weight
Eye color (blue, brown, second place, etc.) Temperature Time
green, hazel) Rating scale (poor, Salary
Political affiliation good, excellent) Age
Religious affiliation Ranking of tennis players
Major field (mathematics,
computers, etc.)
Nationality
Table 1.1: Examples of Measurement Scales

 Example 1.3 — Measurement Levels. . What level of measurement would be

used to measure each variable?
a. The ages of patients in a local hospital

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 1.6 Applications and Uses of Statistics 7

b. The ratings of movies released this month

c. Colors of athletic shirts sold by Oak Park Health Club
d. Temperatures of hot tubs in local health clubs
Solution: a. Ratio b. Ordinal c. Nominal d. Interval 

1.6 Applications and Uses of Statistics

Applications of Statistics
The scope of statistics is indeed very vast. Apart from helping elicit an intelligent
assessment from a body of figures and facts, statistics is indispensable tool for any
scientific enquiry-right from the stage of planning enquiry to the stage of conclusion.
It applies almost all sciences: pure and applied, physical, natural, biological, medical,
agricultural and engineering. It also finds applications in social and management
sciences, in commerce, business and industry.

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 every day activities. The following are some of the most
important uses of statistics.
• Statistics condenses and summarizes complex data. The original set of data
(raw data) is normally voluminous and disorganized unless it is summarized and
expressed in few numerical values.
• 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, etc., are the tools that can be used for the
purpose of comparing sets of data.
• Statistics helps in predicting future trends. Statistics is extremely useful for
analyzing the past and present data and predicting some future trends.
• Statistics influences the policies of government. Statistical study results in the
areas of taxation, on unemployment rate, on the performance of every sort of
military equipment, family planning, etc, may convince a government to review
its policies and plans with the view to meet national needs and aspirations.
• Statistical methods are very helpful in formulating and testing hypothesis and to
develop new theories.

Limitations of statistics
Even though, statistics is widely used in various fields of natural and social sciences,
which closely related with human inhabitant, it has its own limitations as far as its
application is concerned. Some of these limitations are:-
• Statistics doesn’t deal with single (individual) values. Statistics deals only with
aggregate values. But in some cases single individual is highly important to
consider in some situations. Example, the sun, a deriver of bus, president, etc.
• Statistics can’t deal with qualitative characteristics. It only deals with data which
can be quantified. Example, it does not deal with marital status (married, single,

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8 INTRODUCTION TO STATISTICS

divorced, widowed) but it deal with number of married, number of single, number
of divorced.
• Statistical conclusions are not universally true. Statistical conclusions are true
only under certain condition or true only on average. The conclusions drawn from
the analysis of the sample may, perhaps, differ from the conclusions that would
be drawn from the entire population. For this reason, statistics is not an exact
science.

 Example 1.4 Assume that in your class there are 50 numbers of students.

Take there CGPA for all 50 students and analyse mean CGPA; that is assumed
3.00. This value is on average, because all individual has not CGPA 3.00. There
is a student who has scored above 3.00 and below 3.00. 

• Statistical interpretations require a high degree of skill and understanding of the

subject. It requires extensive training to read and interpret statistics in its proper
context. It may lead to wrong conclusions if inexperienced people try to interpret
statistical results.
• Statistics can be misused. Some times statistical figures can be misleading unless
they are carefully interpreted.

 Example 1.5 Example, the report of head of the minister about Etio-Somalia
terrorist attack mission dismissed terrorists25% at first day, 50% at second day,
75% at third day. However, we doubt about the mechanisms how the mission is
measured and quantified. This leads miss use of statistical figures. 

Exercise 1.1 1. Classifying Data by Type Determine whether the data are quali-
tative or quantitative. Explain your reasoning.
(a) Heights of hot air balloons
(b) Carrying capacities of pickups
(c) Eye colors of models
(d) Student ID numbers
(e) Weights of infants at a hospital
(f) Species of trees in a forest
(g) Responses on an opinion poll
(h) Wait times at a grocery store
2. The items below appear on a physician’s intake form. Determine the level of
measurement of the data.
(a) Temperature (c) Allergies
(b) Weight (d) Pain level (scale of 0 to 10)
3. The items below appear on an employment application. Determine the level of
measurement of the data.
(a) Highest grade level completed (c) Gender
(b) Year of college graduation (d) Number of years at last job


Moybon W.@ ASTU 2020 Introduction to Statistics

Methods of data collection
Method of primary data collection
Methods of secondary data
collection
Methods of data presentation
Frequency Distribution
Bar Chart
The Pie Graph
Ungrouped Frequency Distribution
Grouped Frequency Distribution
Histograms, Frequency Polygons, and
Ogives
Histogram
Frequency Polygon
Ogive

2 — Methods of data collection and

2.1 Methods of data collection

The collection of data is the first step in any statistical investigation of the phenomenon.
Data can be obtained from existing sources or from surveys and experimental studies
designed to collect new data.
• The data termed as primary (first hand) data when the reference is to data
collected for the first time by the investigator and,
• The data termed as secondary (second hand) data when the data are taken from
records or data already available.

2.1.1 Method of primary data collection

In primary data collection, you collect the data yourself using methods such as interviews,
observations, laboratory experiments and questionnaires. The key point here is that
the data you collect is unique to you and your research and, until you publish, no one
else has access to it. There are many methods of collecting primary data and the main
methods include:
a) Self-administered Questionnaire: It is a popular means of collecting data, but
is difficult to design and often require many rewrites before an acceptable ques-
tionnaire is produced.
Advantages:
• Can be posted, e-mailed or faxed.
• Can cover a large number of people or organizations.
• Wide geographic coverage.
• Relatively cheap.
• No prior arrangements are needed.
• Avoids embarrassment on the part of the respondent..
• No interviewer bias.
Disadvantages:
• Historically low response rate (although inducements may help).
• Time delay whilst waiting for responses to be returned.
 10 Methods of data collection and presentation

• Assumes no literacy problems.

• No control over who completes it..
• Respondent can read all questions beforehand and then decide whether to
complete or not. For example, perhaps because it is too long, too complex,
uninteresting, or too personal.
b) Personal Interviewing is a technique that is primarily used to gain an understand-
ing of the underlying reasons and motivations for people’s attitudes, preferences
or behavior. Interviews can be undertaken on a personal one-to-one basis or in
a group. They can be conducted at work, at home, in the street or in a shopping
center, or some other agreed location.
Advantages:
• Serious approach by respondent resulting in accurate information.
• Good response rate.
• Completed and immediate.
• Possible in-depth questions.
• Interviewer in control and can give help if there is a problem.
• Can use recording equipment.
• Characteristics of respondent assessed – tone of voice, facial expression,
hesitation, etc.
Disadvantages:
• Need to set up interviews.
• Time consuming.
• Geographic limitations.
• Can be expensive.
• Embarrassment possible if personal questions.
• Transcription and analysis can present problems– subjectivity.
• If many interviewers, training required.
c) Observation: It involves recording the behavioral patterns of people, objects and
events in a systematicmanner.
d) Laboratory experiment: Conducting laboratory experiments on fields of chemi-
cal, biological, engineering, agricultural sciences and so on.

2.1.2 Methods of secondary data collection

Secondary data analysis can be literally defined as second-hand analysis and is the anal-
ysis of data or information that was either gathered by someone else (e.g., researchers,
institutions, other NGOs, etc.) or for some other purpose than the one currently being
considered, or often a combination of the two. Some of the sources of secondary data
are government document, official statistics, technical report, scholarly journals, trade
journals, review articles, reference books, research institutes, universities, hospitals,
libraries, library search engines, computerized data base and world wide web(www).
Advantage of secondary data
• Secondary data may help to clarify or redefine the definition of the problem as
part of the exploratory research process.
• Time saving
• Provides a larger database as compared to primary data
Disadvantage of secondary data

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 2.2 Methods of data presentation 11

• Lack of availability
• Lack of relevance
• Inaccurate data
• Insufficient data

 Example 2.1 Assume that a simple study is to be conducted to see the age distribu-
tion of HIV/AIDS victim citizens. Clearly, the variable of study is age. Data about
the age of HIV/AIDS victim citizens may be obtained by making direct interview
with the victims. Note, in this specific case, the victim citizens are primary sources.
Moreover, the data to be collected from them are primary data. Alternatively, one
may use records of hospitals and other related agencies to obtain age of the victim
citizens without the need of tracing the victims personally. Therefore, the records of
the hospitals, in our case, are secondary sources and the data copied from such records
are secondary data. 

2.2 Methods of data presentation

2.2.1 Frequency Distribution
After collecting relevant information (data) for the purpose of statistical investigation,
the next important task is classification and presentation of this data.
• Classification is the process of arranging thing in group or class according to
thier resemblance.
• When the data are in original form, they are called raw data. The collected
data (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.
• To describe situations, draw conclusions, or make inferences about events, the
researcher must organize the data in some meaningful way. The most convenient
method of organizing data is to construct a frequency distribution.
• After organizing the data, the researcher must present them so they can be under-
stood by those who will benefit from reading the study. The most useful method
of presenting the data is by constructing statistical charts and graphs. There are
many different types of charts and graphs, and each one has a specific purpose.
Definition 2.2.1 A frequency distribution is a table that shows classes or intervals of
data entries with a count of the number of entries in each class.
The frequency f of a class is the number of data entries in the class.

The reasons for constructing a frequency distribution are as follows:

• To organize the data in a meaningful, intelligible way.
• To enable the reader to determine the nature or shape of the distribution.
• To facilitate computational procedures for measures of average and spread
• To enable the researcher to draw charts and graphs for the presentation of data
• To enable the reader to take comparisons among different data sets.

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 12 Methods of data collection and presentation

Categorical Frequency, Relative Frequency and Percent Frequency Dis-

tribution
The categorical frequency, relative frequency and percent frequency distribution is used
for data which can be placed in specific categories such as nominal or ordinal level data.
For example, data such as political affiliation, religious affiliation, blood type, etc.

• The major components of categorical frequency distribution are class, tally,frequency.

A frequency distribution shows the number (frequency) of items in each of several
non overlapping classes. However, we are often interested in the proportion, or
percentage, of items in each class.
• The relative frequency of a class equals the fraction or proportion of items belong-
ing to a class. For a data set with n observations, the relative frequency of each
class can be determined as follows:
Frequency of the class f
Relative frequency of a class = =
Total number of values n
• The percent frequency of a class is the relative frequency multiplied by 100.
• A relative frequency distribution gives a tabular summary of data showing the
relative frequency for each class. A percent frequency distribution summarizes
the percent frequency of the data for each class.

 Example 2.2 Thirty students were given a blood test to determine their blood type.
The data set is given as follows:
A B B AB O O O B AB B
B B O A O A O O O AB
AB O A B A O A B AB O
Construct a frequency, relative frequency and percent frequency distribution for the
above data 

Solution:

Class Tally Frequency

A ///// / 6
B ///// /// 8
AB ///// 5
O ///// ///// / 11

2.2.2 Bar Chart

A bar chart is a graphical device for depicting categorical data summarized in a frequency,
relative frequency, or percent frequency distribution. On one axis of the graph (usually
the horizontal axis), we specify the labels that are used for the classes (categories). A
frequency, relative frequency, or percent frequency scale can be used for the other axis
of the chart(usually the vertical axis).Then, using a bar of fixed width drawn above

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 2.2 Methods of data presentation 13

each class label, we extend the length of the bar until we reach the frequency, relative
frequency, or percent frequency of the class. For categorical data, the bars should be
separated to emphasize the fact that each class is separate.
Definition 2.2.2 A bar graph represents the data by using vertical or horizontal bars
whose heights or lengths represent the frequencies of the data.

 Example 2.3 The table shows the average money spent by first year college students.
Draw a horizontal and vertical bar graph for the data.
Electronics $ 728, Dorm decor $ 344,

Clothing $ 141, and shoes $ 72

Figure 2.1: Bar Graphs for Example 2.3

Bar graphs can also be used to compare data for two or more groups. These types of bar
graphs are called compound bar graphs. Consider the following data for the number (in
millions) of never married adults in the United States.

Year 1960 1980 2000 2010

Males 15.3 24.2 32.3 40.2
Females 12.3 20.2 27.8 34.0

2.2.3 The Pie Graph

The pie chart provides another graphical device for presenting relative frequency and
percent frequency distributions for categorical data. To construct a pie chart, we first
draw a circle to represent all the data. Then we use the relative frequencies to subdivide

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14 Methods of data collection and presentation

the circle into sectors, or parts, that correspond to the relative frequency for each
class.
Definition 2.2.3 A pie graph is a circle that is divided into sections or wedges accord-
ing to the percentage of frequencies in each category of the distribution.

 Example 2.4 This frequency distribution shows the number of pounds of each
snack food eaten during the Super Bowl. Construct a pie graph for the data.

Snack Pounds (frequency)

Potato chips 11.2 million
Tortilla chips 8.2 million
Pretzels 4.3 million
Popcorn 3.8 million
Snack nuts 2.5 million
Totaln = 30.0 million


To draw a pie chart, the angle of each slice can be calculated as follows:
f
Angle = × 3600
n
The angle of the first slice, for example, is
11.2 8.2
Potato chips = × 3600 = 1340 , Tortilla chips = × 3600 = 980
30 30
4.3 3.8
Pretzels = × 3600 = 520 , Popcorn = × 3600 = 460
30 30
2.5 0 0
Snack nuts = × 360 = 30 ;
30
f
Total = 3600 Each frequency must also be converted to a percentage. i.e., % = × 100
n
For example,
11.2 8.2
Potato chips × 100 = 37.3% Tortilla chips = × 100 = 27.3%
30 30

Exercise 2.1 1. The response to a question has three alternatives: A, B, and C. A

sample of 120 responses provides 60 A, 24 B, and 36 C. Show the frequency
and relative frequency distributions.
2. A partial relative frequency distribution is given.

Class relative frequency

A 0.2
B 0.4
C 0.3
D
(a) What is the relative frequency of class D?
(b) The total sample size is 200. What is the frequency of class D?

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 2.2 Methods of data presentation 15

Figure 2.2: Pie chart for Example 2.4

(c) Show the frequency distribution.

(d) Show the percent frequency distribution.
3. A questionnaire provides 58 Yes, 42 No, and 20 no-opinion answers.
(a) In the construction of a pie chart, how many degrees would be in the
section of the pie showing the Yes answers?
(b) How many degrees would be in the section of the pie showing the No
answers?
(c) Construct a pie chart.
(d) Construct a bar chart.


2.2.4 Ungrouped Frequency Distribution

When the data are numerical instead of categorical, the range of data is small and each
class is only one unit, this distribution is called an ungrouped frequency distribution.
The major components of this type of frequency distributions are class, tally, frequency,
relative frequency and cumulative frequency.
A cumulative frequency distribution is a distribution that shows the number of data
values less than or equal to a specific value (usually an upper boundary). Cumulative
frequencies are used to show how many values are accumulated up to and including a
specific class. We have less than and more than cumulative frequencies.

 Example 2.5 The following data represent the number of days of sick leave taken

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 16 Methods of data collection and presentation

by each of 50 workers of a company over the last 6 weeks.

2 0 0 5 8 3 4 1 0 0
7 1 7 1 5 4 0 4 0 1
8 9 7 0 1 2 7 2 5 5
4 3 3 0 0 5 2 1 3 0
2 4 5 0 5 7 5 1 1 0
1. Construct ungrouped frequency distribution
2. How many workers had at least 1 day of sick leave?
3. How many workers had between 3 and 5 days of sick leave?


Solution:
1. Since this data set contains only a relatively small number (9) of distinct or
different values, it is convenient to represent it in a frequency table which presents
each distinct value along with its frequency of occurrence.

Class Frequency Cumulative frequency Relative frequency

0 12 12 12/50 = 0.24
1 8 20 8/50 = 0.16
2 5 25 5/50 = 0.1
3 4 29 4/50 = 0.08
4 5 34 5/50 = 0.1
5 8 42 8/50 = 0.16
7 5 47 5/50 = 0.1
8 2 49 2/50 = 0.04
9 1 50 1/50 = 0.02

2. Since 12 of the 50 workers had no days of sick leave, the answer is 50 − 12 = 38.
3. The answer is the sum of the frequencies for values 3, 4 and 5 that is 4+5+8 = 17.

2.2.5 Grouped Frequency Distribution

When the range of the data is large, the data must be grouped in which each class has
more than one unit in width. Some of basic terms that are most frequently used while
we deal with grouped frequency distribution are the following:
• Class limits: A class is formed within two values. The lower class limit is the
smallest data value whereas the upper class limit is the largest data value that can
be included in the class.
• Class boundaries are numbers used to separate the classes so that there are no
gaps in the frequency distribution.

R The class limits should have the same decimal place value as the data, but
the class boundaries should have one additional place value and end in a 5.

For example, if the values in the data set are whole numbers, such as 59, 68, and
82, the limits for a class might be 58 – 64, and the boundaries are 57.5 – 64.5.
Find the boundaries by subtracting 0.5 from 58 (the lower class limit) and adding

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 2.2 Methods of data presentation 17

0.5 to 64 (the upper class limit).

If the data are in tenths, such as 6.2, 7.8, and 12.6, the limits for a class hypothet-
ically might be 7.8–8.8, and the boundaries for that class would be 7.75 – 8.85.
Find these values by subtracting 0.05 from 7.8 and adding 0.05 to 8.8.
• Class width for a class in a frequency distribution is the difference beteween the
lower (or upper) class limit of one class and the lower (or upper) class limit of the
next class.
• The class midpoint Xm is obtained by adding the lower and upper boundaries and
dividing by 2, or adding the lower and upper limits and dividing by 2:
lower boundary + upper boundary
Xm =
2
or
lower limit + upper limit
Xm =
2

Procedure for constructing a Grouped Frequency Distribution

Step 1 Determine the classes.
• Find the highest and lowest values.
• Find the range. Range = Maximum − Minimum or R = H − L
• Select the number of classes desired. Here, we have two choices to get the
desired number of classes:
(a) A suitable number of classes can be obtained by using Struge’s rule.
i.e.,
K = 1 + 3.322 log n
up/down to the nearest whole number, where K is the number of class
and n is the number of observations. OR
(b) Select the number of classes arbitrarily between 5 and 20. This is a
conventional way. If you fail to calculate K by Struge’s rule, this method
is more appropriate.
• Find the width by dividing the range by the number of classes and rounding
up.
• Select a starting point (usually the lowest value or any convenient number
less than the lowest value); add the width to get the lower limits.
• Find the upper class limits: subtract unit of measurement(U) from the lower
class limit of the second class in order to get the upper class limit of the first
class. Then add the width to each upper class limit to get all upper class
limits. Take care of the last class to cover the maximum value of data.
Unit of measurement: Is the next expected value. For instance, 28, 23,
52, and then the unit of measurement of this data set is one. Because take
one datum arbitrarily, say 23, then the next value will be 24. Therefore,
U = 24 − 23 = 1. If the data set is 24.12, 30, 21.2, then give priority to the
datum with more decimal place. Take 24.12 and guess the next possible
value. It is 24.13. Therefore, U = 24.12 − 24.13 = 0.01

R U = 1 is the maximum value of unit of measurement and is the value

when we don’t have a clue about the data.

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 18 Methods of data collection and presentation

• Find the boundaries.

u
Lower class boundary(LCB) = Lower class limit(LCL) −
2
u
Upper class boundary(UCB) = Upper class limit(UCL) −
2
Step 2 Tally the data.
Step 3 Find the numerical frequencies from the tallies, and find the cumulative frequen-
cies.
We have two type of cumulative frequency namely less than cumulative frequency
and more than cumulative frequency. Less than cumulative frequency is ob-
tained by adding successively the frequencies of all the previous classes including
the class against which it is written. The cumulate is started from the lowest to
the highest size. More than cumulative frequency is obtained by finding the
cumulate total of frequencies starting from the highest to the lowest class.

To construct a frequency distribution, follow these rules:

• There should be between 5 and 20 classes.
• The classes must be mutually exclusive. Mutually exclusive classes have non
overlapping class limits so that values can’t be placed in to two classes.
• The classes must be continuous. Even if there are no values in a class, the class
must be included in the frequency distribution. There should be no gaps in a
frequency distribution. The only exception occurs when the class with a zero
frequency is the first or last. A class width with a zero frequency at either end can
be omitted without affecting the distribution.
• The classes must be equal in width. The reason for having classes with equal
width is so that there is not a distorted view of the data. One exception occurs
when a distribution is open-ended. i.e., it has no specific beginning or end values.

 Example 2.6 — Record High Temperatures. .

These data represent the record high temperatures in degrees Fahrenheit (0 F) for each
of the 50 states. Construct a grouped frequency distribution for the data, using 7
classes.
112 100 127 120 134 118 105 110 109 112
110 118 117 116 118 122 114 114 105 109
107 112 114 115 118 117 118 122 106 110
116 108 110 121 113 120 119 111 104 111
120 113 120 117 105 110 118 112 114 114


Solution:
Step 1 Determine the classes.
Highest value = 134 and lowest value = 100
The range R = highest value − lowest value = 134 − 100 = 34
Select the number of classes (usually between 5 and 20) (7 is arbitrarily chosen).
R 34
Class wideth = = = 4.9 ≈ 5
Number of classes 7
Step 2 Tally the data.

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 2.3 Histograms, Frequency Polygons, and Ogives 19

Step 3 Find the numerical frequencies from the tallies.

Class limits Class boundaries Tally Frequency

100 – 104 99.5 – 104.5 // 2
105 – 109 104.5 – 109.5 8
110 – 114 109.5 – 114.5 18
115 – 119 114.5 – 119.5 13
120 – 124 119.5 – 124.5 7
125 – 129 124.5 – 129.5 / 1
130 – 134 129.5 – 134.5 / 1
Total 50

The cumulative frequency distribution for the data in this example is as follows:

Cumulative frequency
Less than 99.5 0
Less than 104.5 2
Less than 109.5 10
Less than 114.5 28
Less than 119.5 41
Less than 124.5 48
Less than 129.5 49
Less than 134.5 50

Exercise 2.2 These data represent a machine produces number of rejects in each
successive period of five minutes
16 21 26 24 11 17 25 26 13 27
24 26 3 27 23 24 15 22 22 12
22 29 18 22 28 25 7 17 22 28
19 23 23 22 3 19 13 31 23 28
24 9 20 33 30 23 20 8 21 24
Construct frequency distribution 

2.3 Histograms, Frequency Polygons, and Ogives

Procedure for Constructing a Histogram, Frequency Polygon, and Ogive
Step 1. Draw and label the x and y axes.
Step 2. On the x axis, label the class boundaries of the frequency distribution for the
histogram and ogive. Label the midpoints for the frequency polygon.
Step 3. Plot the frequencies for each class, and draw the vertical bars for the histogram
and the lines for the frequency polygon and ogive.

R (Remember that the lines for the frequency polygon begin and end on the x
axis while the lines for the ogive begin on the x axis.)

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 20 Methods of data collection and presentation

2.3.1 Histogram
Definition 2.3.1 The histogram is a graph that displays the data by using contiguous
vertical bars (unless the frequency of a class is 0) of various heights to represent the
frequencies of the classes.

A frequency histogram is a bar graph that represents the frequency distribution of a data
set. A histogram has the following properties.

1. The horizontal scale is quantitative and measures the data entries.

2. The vertical scale measures the frequencies of the classes.
3. Consecutive bars must touch.

Class boundaries Frequency

99.5 – 104.5 2
104.5 – 109.5 8
109.5 – 114.5 18
114.5 – 119.5 13
119.5 – 124.5 7
124.5 – 129.5 1
129.5 – 134.5 1

Figure 2.3: Histogram for Example 2.6

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 2.3 Histograms, Frequency Polygons, and Ogives 21

2.3.2 Frequency Polygon

Definition 2.3.2 The frequency polygon is a graph that displays the data by using
lines that connect points plotted for the frequencies at the midpoints of the classes.
The frequencies are represented by the heights of the points.

Class limits Class boundaries Mid Point Frequency

100 – 104 99.5 – 104.5 102 2
105 – 109 104.5 – 109.5 107 8
110 – 114 109.5 – 114.5 112 18
115 – 119 114.5 – 119.5 117 13
120 – 124 119.5 – 124.5 122 7
125 – 129 124.5 – 129.5 127 1
130 – 134 129.5 – 134.5 132 1

Figure 2.4: Frequency Polygon for Example 2.6

2.3.3 Ogive
Definition 2.3.3 The ogive is a graph that represents the cumulative frequencies for
the classes in a frequency distribution.

Figure 2.5: Ogive for Example 2.6

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22 Methods of data collection and presentation

Cumulative frequency graphs are used to visually represent how many values are below
a certain upper class boundary.

Exercise 2.3 1. Use the data set, which represents the student-to-faculty ratios
for 20 public colleges.

13 15 15 8 16 20 28 19 18 15 21 23 30 17 10 16 15 16 20 15

(a) Construct a frequency distribution for the data set using five classes. In-
clude class limits, midpoints, boundaries, frequencies, relative frequencies,
and cumulative frequencies.
(b) Construct histogram , frequency polygon and ogive curve .


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Measures of central Tendency
The Mean
The Weighted Mean
The Median
The Mode
The Midrange
Measures of Dispersion or Variation
The Range
Percentiles
Quartiles and Deciles
The Variance and Standard
Deviation
Coefficient of Variation
Standard Scores
Skewness

3 — Measures of central Tendency an

3.1 Measures of central Tendency

In many real-life situations, it is helpful to describe data by a single number that is most
representative of the entire collection of numbers. Such a number is called a measure of
central tendency. The most commonly used measures are: Mean, Meadian and Mode.

3.1.1 The Mean

The mean, also known as the arithmetic average (mean), is found by adding the values
of the data and dividing by the total number of values. If the data are for a sample, the
mean is denoted by x̄; if the data are for a population, the mean is denoted by the Greek
letter µ.

Sample mean
x1 + x2 + x3 + · · · + xn ∑ xi
x̄ = = (3.1)
n n
where n represents the total number of values in the sample.

population mean
x1 + x2 + x3 + · · · + xN ∑ xi
µ = = (3.2)
N N
where N represents the total number of values in the population.

 Example 3.1 The monthly starting salaries for a sample of 12 Business school
graduates is shown. Find the mean.

3450, 3550, 3650, 3480, 3355, 3310,

3490, 3730, 3540, 3925, 3520, 3480


 24 Measures of central Tendency and Dispersion

Solution:
∑ xi x1 + x2 + x3 + · · · + x12
x̄ = =
n 12
3450 + 3550 + 3650 + · · · + 3480 42, 480
= = = 3540
12 12

 Example 3.2 The data show the number of patients in a sample of six hospitals
who acquired an infection while hospitalized. Find the mean.

110 76 29 38 105 31

Solution:
∑ xi 110 + 76 + 29 + 38 + 105 + 31 389
x̄ = = = = 64.8
n 6 6
The mean of the number of hospital infections for the six hospitals is 64.8.
Steps for finding the mean for grouped data are:
Step 1 Make a table as shown.

A B C D
class Frequency f Midpoint xm f .xm

Step 2 Find the midpoints of each class and place them in column C
Step 3 Multiply the frequency by the midpoint for each class, and place the product in
column D.
Step 4 Find the sum of column D
Step 5 Divide the sum obtained in column D by the sum of the frequencies obtained in
column B.

 Example 3.3 The data represent the number of miles run during one week for a
sample of 20 runners. Find the mean.

Class boundaries Frequency

5.5 – 10.5 1
10.5 – 15.5 2
15.5 – 20.5 3
20.5 – 25.5 5
25.5 – 30.5 4
30.5 – 35.5 3
35.5 – 40.5 2
20


Solution:

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 3.1 Measures of central Tendency 25

A B C D
Class Frequency Midpoint xm f .xm
5.5 – 10.5 1
10.5 – 15.5 2
15.5 – 20.5 3
20.5 – 25.5 5
25.5 – 30.5 4
30.5 – 35.5 3
35.5 – 40.5 2
n = 20

∑ f .xm 490
∴ x̄ = = = 24.5
n 20

3.1.2 The Weighted Mean

Definition 3.1.1 The weighted mean of a variable X is multiplying each value by its
corresponding weight and dividing the sum of the products by the sum of the weights.
∑ wX ∑ w1 X1 + w2 X2 + · · · + wn Xn
X̄ = =
∑w ∑ w1 + w2 + · · · + wn
where w1 + w2 + · · · + wn are the weights and X1 , X2 , . . . , Xn are the values.

 Example 3.4 A student received an A in Management (3 credits), a C in Introduction

to Psychology (3 credits), a B in Accounting (4 credits), and a D in Physical Education
(2 credits). Assuming A = 4 grade points, B = 3 grade points, C = 2 grade points,
D = 1 grade point, and F = 0 grade points, find the student’s grade point average. 

Solution:
∑ wX 3.4 + 3.2 + 4.3 + 2.1 32
X̄ = = = ≈ 2.7
∑w 3+3+4+2 12
The grade point average is 2.7.

Exercise 3.1 You are taking a class in which your grade is determined from five
sources: 50% from your test mean, 15% from your midterm, 20% from your final
exam, 10% from your computer lab work, and 5% from your homework. Your
scores are 86 (test mean), 96 (midterm), 82 (final exam), 98 (computer lab), and 100
(homework). What is the weighted mean of your scores? The minimum average for
an A is 90. Did you get an A? 

3.1.3 The Median

The median of n numbers is the middle number when the numbers are written in order.
If n is even, the median is the average of the two middle numbers.
Procedure for finding the Median:
Step 1 Arrange the data values in ascending order.
Step 2 Determine the number of values in the data set.

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 26 Measures of central Tendency and Dispersion

n + 1 th
 
Step 3 a. If n is odd, select the middle data value as the median. i.e. Median =
2
observation
b. If n is even, find the mean of the two middle values.

 
1  n th n th
Median = observation + + 1 observation
2 2 2

 Example 3.5 The number of police officers killed in the line of duty over the last
11 years is shown. Find the median.
177 153 122 141 189 155 162 165 149 157 240 

Solution: The median number of police officers killed for the 11-year period is
157.

 Example 3.6 Find the median for the following data

684, 764, 656, 702, 856, 1133, 1132, 1303 

Solution: The median number is 810

Median for grouped data:
Step 1 Construct the cumulative frequency distribution.
Step 2 Decide the class that contain the median. Class Median is the first class with the
value of cumulative frequency equal at least n/2.
Step 3 Find the median by using nthe following formula:
−F

Median = Lm + 2 i (3.3)
fm
where:
n = the total frequency
F = the cumulative frequency before class median
fm = the frequency of the class median
i = the class width
Lm = the lower boundary of the class median

 Example 3.7 Based on the grouped data below, find the median:

Time to travel to work Frequency

1 – 10 8
11 – 20 14
21 – 30 12
31 – 40 9
41 – 50 7


Solution: Construct the cumulative frequency distribution

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 3.1 Measures of central Tendency 27

Time to travel to work Frequency Cumulative Frequency

1 – 10 8 8
11 – 20 14 22
21 – 30 12 34
31 – 40 9 43
41 – 50 7 50
n 50
= = 25 −→ class median is the 3rd class
2 2
So, F = 22, fm = 12, Lm = 20.5 and i = 10 ∴ Median = 23
Thus, 25 persons take less than 23 minutes to travel to work and another 25 persons take
more than 23 minutes to travel to work.

3.1.4 The Mode

The value that occurs most often in a data set is called the mode.
A data set that has only one value that occurs with the greatest frequency is said to be
unimodal.
If two numbers tie for most frequent occurrence, the collection has two modes and is
called bimodal.

 Example 3.8 Find the mode

18.0, 14.0, 34.5, 10, 11.3, 10, 12.4, 10 

Solution: Since 10 occurred 3 times—a frequency larger than any other number—the
mode is 10

 Example 3.9 The data show the number of licensed nuclear reactors in the United
States for a recent 15-year period. Find the mode.
104, 107, 109, 104, 109, 111, 104, 109, 112, 104, 109, 111, 104, 110, 109 

Solution: Since the values 104 and 109 both occur 5 times, the modes are 104 and 109.
The data set is said to be bimodal.

 Example 3.10 The number of accidental deaths due to firearms for a six-year period
is shown. Find the mode.
649, 789, 642, 613, 610, 600 

Solution: Since each value occurs only once, there is no mode.

To find mode for grouped data, use the following formula:
 
∆1
Mode = Lm0 + i (3.4)
∆1 + ∆2
where :
i is the class width
∆1 is the difference between the frequency of class mode and the frequency of the
class before the class mode i.e., ∆1 = fcm − fcm−1
∆2 is the difference between the frequency of class mode and the frequency of the
class after the class mode ∆2 = fcm − fcm+1

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 28 Measures of central Tendency and Dispersion

Lm0 is the lower boundary of class mode

 Example 3.11 Find the modal class for the frequency distribution of miles that 20
runners ran in one week,
Class boundaries Frequency
5.5 – 10.5 1
10.5 – 15.5 2
15.5 – 20.5 3
20.5 – 25.5 5 ←− Modal class
25.5 – 30.5 4
30.5 – 35.5 3
35.5 – 40.5 2


Solution: The modal class is 20.5 – 25.5, ∆1 = 5 − 3 = 2, ∆2 = 5 − 4 = 1

   
∆1 2
Mode = Lm0 + i = 20.5 + 5 = 20.8
∆1 + ∆2 2+1

R The mode is the only measure of central tendency that can be used in finding the
most typical case when the data are nominal or categorical.

3.1.5 The Midrange

The midrange is a rough estimate of the middle.
Definition 3.1.2 The midrange is defined as the sum of the lowest and highest values
in the data set, divided by 2. The symbol MR is used for the midrange.
lowest value + highest value
MR =
2

 Example 3.12 The number of bank failures for a recent five-year period is shown.
Find the midrange.
3, 30, 148, 157, 71 

Solution: The lowest data value is 3, and the highest data value is 157.
3 + 157
MR = = 80
2
The midrange for the number of bank failures is 80.

3.2 Measures of Dispersion or Variation

The measures of central tendencies indicate the general magnitude of the data and
locate only the center of a distribution of measures. They do not establish the degree of
variability or the spread out or scatter of the individual items and their deviation from

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 3.2 Measures of Dispersion or Variation 29

(or the difference with) the mean.

From this discussion we now focus our attention on the scatter or variability which is
known as dispersion (it is the state of being spread over a wide area). In other words
the degree to which numerical data tend to spread about an average value is called
dispersion or variation of the data.
The degree of variation is evaluated by various measures of dispersion. Small dispersion
indicates high uniformity of the items, while large dispersion indicates less uniformity.
Consider the following marks of two students.

Student 1 Student 2
68 85
75 90
65 80
67 25
70 65
Both have got a total of 345 and an average of 69 each. The fact is that the second
student has failed in one paper. When the averages alone are considered, the two students
are equal. But first student has less variation than second student. Less variation is a
desirable characteristic.

Significance of Measuring variation

The following are some of the advantages of measure of dispersion. It can be applied in
varies situations in order to check the reliability of the data on hand.
1. To determine (test) the reliability of an average: measures of variation are used
to test to what extent an average represents the characteristic of a data set. If the
dispersion or variation is small, the average will closely represent the individual
values and it is highly representative. On the other hand, if the dispersion or
variation is large, the average will be quite unreliable.
2. To control the variability: helps to identify the nature and causes of variation,
such information is useful in controlling the variations.
3. To compare the variability of two or more sets of data: The measures of
dispersion help in comparing the variability of two or more series. It is also useful
to determine the uniformity or consistency of two or more series. A high degree
of variation would mean less consistency or less uniformity as compared to the
data having less variation.
4. To facilitate the use of other statistical techniques such as correlation and
regression analysis, hypothesis testing, forecasting, quality control, and so on.
Like measures of central tendency, measures of variations can be classified in varies
types. Some of them are: range, Inter Quartile Range or Deviation, Mean Deviation, and
standard Deviation.

3.2.1 The Range

Definition 3.2.1 The range is the highest value minus the lowest value. The symbol

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30 Measures of central Tendency and Dispersion

R is used for the range.

Range = highest value − lowest value

 Example 3.13 A testing lab wishes to test two experimental brands of outdoor paint
to see how long each will last before fading. The testing lab makes 6 gallons of each
paint to test. Since different chemical agents are added to each group and only six
cans are involved, these two groups constitute two small populations. The results (in
months) are shown. Find the range of each group.

Brand A 10 60 50 30 40 20
Brand B 35 45 30 35 40 25

Solution: For brand A, the range is

R = 60 − 10 = 50 months

For brand B, the range is

R = 45 − 25 = 20 months

Make sure the range is given as a single number.

The range for brand A shows that 50 months separate the largest data value from the
smallest data value. For brand B, 20 months separate the largest data value from the
smallest data value, which is less than one-half of brand A’s range.
For grouped frequency distribution of values in the data set, the range is the difference
between the upper limit of the highest class and the lower limit of the lowest class. Note
that the range is not influenced by the frequencies.

 Example 3.14 Find the range for the following frequency distribution; which shows
the distribution of the maximum loads supported by a certain number of cables.

Maximum load Number

(in kilo-Newton) of cables
93 – 97 2
98 – 102 5
103 – 107 12
108 – 112 17
113 – 117 14
118 – 122 6
123 – 127 3
128 – 132 1


Solution: R = ucllast − lcl f irst = 132 − 93 = 39

ucllast − lcl f irst 39
RR = = = 0.173
ucllast + lcl f irst 225

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 3.2 Measures of Dispersion or Variation 31

Properties of Range and Relative Range

• Range and relative range are easy to calculate and simple to understand.
• Both cannot be computed for grouped data with open ended classes.
• They do not tell us anything about the distribution of values in the series.
• It is not based on all observation of the series.
• It is affected by sampling fluctuation.
• It is affected by extreme values in the series.

3.2.2 Percentiles
A percentile provides information about how the data are spread over the interval from
the smallest value to the largest value.
Definition 3.2.2 Percentiles divide the data set into 100 equal groups.

Percentiles are symbolized by

P1 , P2 , P3 , ..., P99
and divide the distribution into 100 groups.

R Percentiles are not the same as percentages.

The percentile corresponding to a given value X is computed by using the following

formula:
(number of values below X) + 0.5
Percentile = × 100 (3.5)
total number of values

 Example 3.15 A teacher gives a 20-point test to 10 students. The scores are shown
here. Find the percentile rank of a score of 12.

18, 15, 12, 6, 8, 2, 3, 5, 20, 10

Solution: Arrange the data in order from lowest to highest.

2, 3, 5, 6, 8, 10, 12, 15, 18, 20

Then substitute into the formula.

(number of values below X) + 0.5
Percentile = × 100
total number of values
6 + 0.5
Since there are six values below a score of 12, the solution is: Percentile = ×
10
100 = 65th
Thus, a student whose score was 12 did better than 65% of the class.
Note: One assumes that a score of 12 in Example 3.15, for instance, means theoretically
any value between 11.5 and 12.5.

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 32 Measures of central Tendency and Dispersion

Finding a Data Value Corresponding to a Given Percentile

step 1 Arrange the data in order from lowest to highest.
step 2 Substitute into the formula
n.p
c=
100
where n = total number of values
p = percentile
step 3A If c is not a whole number, round up to the next whole number. Starting at the
lowest value, count over to the number that corresponds to the rounded-up value.
Step 3B If c is a whole number, use the value halfway between the cth and (c + 1)st values
when counting up from the lowest value.

 Example 3.16 Using the scores in Example 3.15, find the value corresponding to
the 25th percentile. 

Solution: Arrange the data in order from lowest to highest: 2, 3, 5, 6, 8, 10, 12, 15, 18,
20
n.p 10 × 25
=⇒ c = = = 2.5
100 100
Since c is not a whole number, round it up to the next whole number; in this case, c = 3.
Start at the lowest value and count over to the third value, which is 5. Hence, the value 5
corresponds to the 25th percentile.

 Example 3.17 Using the scores in Example 3.15, find the value corresponding to
the 60th percentile. 

Solution: Here c = 6
Since c is a whole number, use the value halfway between the c and c + 1 values when
counting up from the lowest value—in this case, the 6th and 7th values. Find it by
10 + 12
adding the two values and dividing by 2. = 11
2
Hence, 11 corresponds to the 60th percentile. Anyone scoring 11 would have done better
than 60% of the class.

3.2.3 Quartiles and Deciles

Quartiles divide the distribution into four equal groups, denoted by Q1 , Q2 , Q3 .

Notation 3.1. Note that Q1 is the same as the 25th percentile; Q2 is the same as the
50th percentile, or the median; Q3 corresponds to the 75th percentile.

Finding Data Values Corresponding to Q1 , Q2 and Q3

Step 1 Arrange the data in order from lowest to highest.
Step 2 Find the median of the data values. This is the value for Q2 .
Step 3 Find the median of the data values that fall below Q2 . This is the value for Q1 .
Step 4 Find the median of the data values that fall above Q2 . This is the value for Q3 .

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 3.2 Measures of Dispersion or Variation 33

 Example 3.18 Find Q1 , Q2 and Q3 for the data set 15, 13, 6, 5, 12, 50, 22, 18. 

Solution: Q1 = 9, Q2 = 14, and Q3 = 20.

In addition to dividing the data set into four groups, quartiles can be used as a rough
measure of variability. This measure of variability which uses quartiles is called the in-
terquartile range and is the range of the middle 50% of the data values.
Definition 3.2.3 The interquartile range (IQR) is the difference between the third and
first quartiles.

IQR = Q3 − Q1

 Example 3.19 Find the interquartile range for the data set in Example 3.18 

Solution: The interquartile range is IQR = Q3 − Q1 = 20 − 9 = 11

R Deciles divide the distribution into 10 groups. They are denoted by D1 , D2 , etc.

Outliers
Definition 3.2.4 An outlier is an extremely high or an extremely low data value when
compared with the rest of the data values.

An outlier can strongly affect the mean and standard deviation of a variable. For example,
suppose a researcher mistakenly recorded an extremely high data value. This value
would then make the mean and standard deviation of the variable much larger than they
really were.
Procedure for Identifying Outliers
Step 1 Arrange the data in order from lowest to highest and find Q1 and Q3 .
Step 2 Find the interquartile range: IQR = Q3 − Q1 .
Step 3 Multiply the IQR by 1.5.
Step 4 Subtract the value obtained in step 3 from Q1 and add the value obtained in step 3
to Q3 .
Step 5 Check the data set for any data value that is smaller than Q1 − 1.5(IQR)or larger
than Q3 + 1.5(IQR).

 Example 3.20 Check the following data set for outliers.

5, 6, 12, 13, 15, 18, 22, 50

Solution: The data value 50 is extremely suspect. These are the steps in checking for an
outlier.
IQR = Q3 − Q1 = 9 − 20 = 11 =⇒ Q1 − 1.5IQR = −7.5 and Q3 + 1.5IQR =
20 + 16.5 = 36.5
Check the data set for any data values that fall outside the interval from −7.5 to 36.5.
The value 50 is outside this interval; hence, it can be considered an outlier.

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 34 Measures of central Tendency and Dispersion

3.2.4 The Variance and Standard Deviation

Definition 3.2.5 The population variance is the average of the squares of the distance
each value is from the mean. The symbol for the population variance is σ 2 ( σ is the
Greek lower- case letter sigma).

The formula for the population variance is

∑(X − µ)2
σ2 = (3.6)
N
where X = individual value, µ = population mean , N = population size

The population standard deviation is the square root of the variance. The symbol
for the population standard deviation is σ .

The corresponding formula for the population standard deviation is

s
∑(X − µ)2
σ= (3.7)
N

Finding the Population Variance and Population Standard Deviation

Step 1 Find the mean for the data.
∑X
µ=
N
Step 2 Find the deviation for each data value. X − µ
Step 3 Square each of the deviations. (X − µ)2
Step 4 Find the sum of the squares. ∑(X − µ)2
Step 5 Divide by N to get the variance.
Step 6 Take the square root of the variance to get the standard deviation.
Definition 3.2.6 Sample variance

∑(X − X̄)2
s2 = (3.8)
n−1
Sample standard deviation
s
∑(X − X̄)2
s= (3.9)
n−1

Example 3.21 Find the variance and standard deviation for brand B paint data in
Example 3.13. The months brand B lasted before fading were

35, 45, 30, 35, 40, 25

Solution: Find the mean. =⇒ µ = 35

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3.2 Measures of Dispersion or Variation 35

A B C
X X −µ (X − µ)2
35 0 0
45 10 100
30 -5 25
35 0 0
40 5 25
25 -10 100
∑ = 250
∑(X − µ)2 250
σ2 = = = 41.7
√ N √ 6
σ = σ 2 = 41.7 ≈ 6.5
Hence, the standard deviation is 6.5.
Variance and Standard Deviation for Grouped Data
Definition 3.2.7

∑ fi (Xmi − µ)2
σ2 =
N
∑ i mi − X̄)2
f (X
s2 =
n−1

 Example 3.22 The following are the frequency distribution of the time in days
required to complete year-end audits:

Audit Time (days) Frequency

10 – 14 4
15 – 19 8
20 – 24 5
25 – 29 2
30 – 34 1
What is the mean and the variance of the audit time? 

Solution:
A B C D
Xm (class mid point) f .Xm Xm − x̄ f .(Xm − x̄)2
12 48 -7 196
17 136 -2 32
22 110 3 45
27 54 8 128
32 32 13 169
n = 20 ∑ f xm = 380 ∑ f .(Xm − x̄)2 = 570
2 ∑ f .(Xm − x̄)2 570 √
s = = = 30 =⇒ s = 30 ≈ 5.5
n−1 19

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 36 Measures of central Tendency and Dispersion

3.2.5 Coefficient of Variation

The standard deviation is an absolute measure of dispersion. The corresponding relative
measure is known as the coefficient of variation (CVar ).
Coefficient of variation is used in such problems where we want to compare the variabil-
ity 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 Devation
cvar = × 100
mean
A distribution having less coefficient of variation is said to be less variable or more
consistent or more uniform or more homogeneous.

 Example 3.23 The mean of the number of sales of cars over a 3-month period is
87, and the standard deviation is 5. The mean of the commissions is br. 5225, and the
standard deviation is br. 773. Compare the variations of the two. 

Solution: The coefficients of variation are

Standard Devation 5
cvar = × 100 = .100 = 5.7%
mean 87
Standard Devation 773
cvar = × 100 = .100 = 14.8%
mean 5225
Since the coefficient of variation is larger for commissions, the commissions are more
variable than the sales.

Mean Devaition and Coefficient of Mean Devaition

The mean deviation (MD) measures the average deviation of a set of observations about
their central value, generally the mean or the median. The mean deviation of a sample
of n observations x1 , x2 , . . . , xn is given as
∑ |xi − A|
MD = (3.10)
n
where A is a centeral measure.
For grouped data,
∑ fi |xm − A|
MD = (3.11)
n
where xm the class mid point (class mark), n = ∑ fi
The coefficient of mean deviation (CMD) is the ratio of the mean deviation of the
observations to their appropriate measure of central tendency: the arithmetic mean or
the median.
In generL,
MD
CMD = (3.12)
A
where A is a measure of central tendency.

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 3.2 Measures of Dispersion or Variation 37

 Example 3.24 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: x̄ = 6, median = 5.5, mode = 5 Thus,

∑ |xi − A|
MD =
n
|8 − 6| + |6 − 6 + |5 − 6| + |5 − 6| + |7 − 6| + |4 − 6| + |5 − 6| + |9 − 6| + |7 − 6| + |4
=⇒ MD(x̄) =
10
14
= = 1.4
10
=⇒ MD(med) = 1.4 MD(mode) = 1.4

 Example 3.25 Find mean deviation about mean, and median for the following
distributions.
Item Frequency
2–4 20
4–6 40
6–8 30
8 – 10 10


Solution: x̄ = 5.6, MD(x̄) = 1.52

3.2.6 Standard Scores

A standard score or z score tells how many standard deviations a data value is above or
below the mean for a specific distribution of values. If a standard score is zero, then the
data value is the same as the mean.
Definition 3.2.8 A z score or standard score for a value is obtained by subtracting the
mean from the value and dividing the result by the standard deviation. The symbol
for a standard score is z. The formula is
value − mean
z=
standard deviation
For samples, the formula is
x − x̄
z= (3.13)
s

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 38 Measures of central Tendency and Dispersion

For populations, the formula is

x−µ
z= (3.14)
σ
The z score represents the number of standard deviations that a data value falls above
or below the mean.

 Example 3.26 A student scored 65 on a Maths for management test that had a mean
of 50 and a standard deviation of 10; she scored 30 on a Civic test with a mean of 25
and a standard deviation of 5. Compare her relative positions on the two tests. 

Solution: First, find the z scores. For Maths for management the z score is
x − x̄ 65 − 50
z= = = 1.5
s 10
For Civic the z score is
x − x̄ 30 − 25
z= = = 1.0
s 5
Since the z score for Maths for management is larger, her relative position in the
mathematics class is higher than her relative position in the Civic class.

R Note that if the z score is positive, the score is above the mean. If the z score is 0,
the score is the same as the mean. And if the z score is negative, the score is below
the mean.

 Example 3.27 Find the z score for each test, and state which is higher.

Test A X = 38, x̄ = 40 and s = 5

Test B X = 94, x̄ = 100 and s = 10

Solution: The score for test A is relatively higher than the score for test B. 

3.2.7 Skewness
Skewness is the degree of asymmetry or departure from symmetry of a distribution.
A skewed frequency distribution is one that is not symmetrical.
Skewness is concerned with the shape of the curve not size.
Test of skewness
1. If Mean = Median = Mode, then there is no skewness in the distribution. In
other words, the curve of the frequency distribution would be symmetrical or bell
shaped.
2. If arthimetic mean is less than the values of the mode, the tail of a symmetrical
distribution is on the left side, i.e., the distribution is negatively skewed.
3. If arthimetic mean is greater than the values of the mode, the tail of a symmetrical
distribution is on the right side, i.e., the distribution is posetively skewed.

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3.2 Measures of Dispersion or Variation 39

Figure 3.1:

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 Basic Definitions of probability
Definitions of Some Probability Terms
Fundamental Principles of Counting
Techniques
Different Approaches to probability

dist.png dist.png
4 — Introduction to Probability

4.1 Basic Definitions of probability

Because there is uncertainty in decision making, it is important that all the known risks
involved be scientifically evaluated. Helpful in this evaluation is probability theory,
which has often been referred to as the science of uncertainty. The use of probability
theory allows the decision maker with only limited information to analyze the risks and
minimize the gamble inherent, for example, in marketing a new product or accepting an
incoming shipment possibly containing defective parts.
Managers often base their decisions on an analysis of uncertainties such as the
following:
1. What are the chances that sales will decrease if we increase prices?
2. What is the likelihood a new assembly method will increase productivity?
3. How likely is it that the project will be finished on time?
4. What is the chance that a new investment will be profitable?
Definition 4.1.1 Probability is a numerical measure of the likelihood that an event
will occur. Or it is a science of decision making with calculated risk in face of
uncertainty.
Note that the probability of 1 represents something that is certain to happen, and the
probability of 0 represents something that cannot happen.
The closer a probability is to 0, the more improbable it is the event will happen. The
closer the probability is to 1, the more sure we are it will happen.

4.1.1 Definitions of Some Probability Terms

1. Experiment: An experiment is any activity that generates outcome(s).
2. Outcome: is the result of an experiment.

 Example 4.1 .
42 Introduction to Probability

Experiment Outcomes
Tossing of a fair coin Head, tail
Rolling a die 1, 2, 3, 4, 5, 6
Selecting an item from a production lot defective (faulty), non-defective (good)
Introducing a new product Success, failure
Play a football game Win, lose, tie


3. Sample space: A sample space is the collection of all possible outcomes of an

experiment.
Each possible outcome in the sample space is called sample point.

 Example 4.2 Find the sample space for tossing a coin. 

Solution: S = {H, T }

 Example 4.3 Find the sample space for the gender of the children if a family
has three children. Use B for boy and G for girl. 

Solution: S = {BBB BBG BGB GBB GGG GGB GBG BGG}

4. Event is a subset of the sample space or it is a set containing sample points of a
certain sample space under consideration. They are denoted by capital letters. For
examples, getting two heads in the trial of tossing three fair coins simultaneously
would be an event.

 Example 4.4 Considering the experiment of rolling a die, let A be the event
of odd numbers, B be the event of even numbers, and C be the event of number
8.
=⇒ A = {1, 3, 5} B = {2, 4, 6} C = 0/ or impossible event


5. Elementary event (simple event) is a single possible outcome of an experiment.

6. Complement of an Event: the complement of an event A means non-occurrence
of A and is denoted by A0 or Ac contains those points of the sample space which
don’t belong to A.
7. Composite (compound) event is an event having two or more elementary events
in it. For example, rolling a die sample space = {1, 2, 3, 4, 5, 6} an event hav-
ing {5} is simple event where as having even number= {2, 4, 6} is compound
(composite)event.
8. Mutually exclusive or Disjoint events: Two events are said to be mutually
exclusive, if both events cannot occur at the same time as outcome of a single
experiment. In other word two events E1 and E2 said to be mutually exclusive
evens if there is no sample point in common to both events E1 and E2 . For
example, if we roll a fair dice, then the experiment is rolling the die and Sample
space (S) is

S = {1, 2, 3, 4, 5, 6}

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 4.1 Basic Definitions of probability 43

If we are interested the outcome of event E1 getting even numbers andE2 odd
numbers E1 = {2, 4, 6}, E2 = {1, 3, 5} Clearly E1 ∩ E2 = 0. / Thus E1 and E2 are
mutually exclusive events.
9. Exhaustive Events: Events are said to be exhaustive if their union equals the
sample space. For instance, when a die is rolled, the event of getting even numbers
{2, 4, 6} and the event of getting odd numbers {1, 3, 5} are exhaustive events as
the union of the events are equal to the sample space S = {1, 2, 3, 4, 5, 6} .
When two coins are tossed the event that at least one head will come up {HH, HT, T H}
and the event that at least one tail will come up {T T, T H, HT } are exhaustive
events as the union of the events are equal to the sample space {HH, HT, T H, T T }.
10. Favorable Event: Favorable event is an event about which the experimenter is
concerned or interested.
A favorable outcome is the outcome of interest. For instance, one can define a
favorable outcome in the flip of a coin as a tail.
11. Independent Events: are not affected by previous events. Two events A and B
are said to be independent events if the occurrence of event A has no influence
(bearing) on the occurrence of event B. For example, if two fair coins are tossed,
then the result of one toss is totally independent of the result of the other toss. i.e.,
What it did in the past will not affect the current toss! The probability that a head
1
will be the outcome of any one toss will always be , irrespective of whatever
2
the outcome is of the other toss. Hence, these two events are independent. On
the other hand, consider drawing two cards from a pack of 52 playing cards. The
probability that the second card will be an ace would depend up on whether the
first card was an ace or not. Hence these two events are not independent events.
Another example A bag contains balls of two different colours say yellow and
white. Two balls are drawn successively .First ball is drawn from a bag and
replaced after notes its colour. Let us assume that it is yellow and denote this
event by A. Another ball is drawn from the same bag and its colour is noted let
this event denoted by B. Clearly, the result of first draw has no effect on the result
of the second draw. Hence, the events A and B are independent events.
12. Equally likely outcomes: In a certain experiment, if each outcome in the sample
space has the same chance to occur, then we say that the outcomes are equally
likely outcomes.

4.1.2 Fundamental Principles of Counting Techniques

If the number of possible outcomes in an experiment is small, it is relatively easy to list
and count all possible events. When there are large numbers of possible outcomes an
enumeration of cases is often difficult, tedious, or both. Therefore, to overcome such
problems one can use various counting techniques or rules.
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 outcomes (possibilities), one can use several rules of counting

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44 Introduction to Probability

• The addition rule • Permutation rule

• The multiplication rule • Combination rule

Addition rule
Suppose that a procedure designated by 1, can be performed in n1 ways. Assume that
second procedure designated by 2 can be performed in n2 ways. Suppose further more
that it is not possible both procedures 1 and 2 are performed together. The number of
ways in which we can perform 1 or 2 procedures is n1 + n2 ways.

 Example 4.5 A student can choose a computer project from one of three lists. The
three lists contain 16, 21, and 13 possible projects, respectively. No project is on more
than one list. How many possible projects are there to choose from? 

Solution: The student can choose a project by selecting a project from the first list, the
second list, or the third list. Because no project is on more than one list, by the sum rule
there are 16 + 21 + 13 = 50 ways to choose a project.

 Example 4.6 Suppose that we are planning a trip and are deciding between bus and
train transportation. If there are 3 bus routes and 2 train routes to go from A to B, find
the available routes for the trip. There are 3 + 2 = 5 possible routes for someone to go
from A to B. 

Multiplication Rule
If one event can occur in m ways and a second event can occur in n ways, then the
number of ways the two events can occur in sequence ism × n. This rule can be extended
to any number of events occurring in sequence.
In words, the number of ways that events can occur in sequence is found by multiplying
the number of ways one event can occur by the number of ways the other event(s) can
occur.

 Example 4.7 A coin is tossed and a die is rolled. Find the number of outcomes for
the sequence of events. 

Solution: Since the coin can land either heads up or tails up and since the die can
land with any one of six numbers showing face up, there are 2 × 6 = 12 possibili-
ties.

 Example 4.8 There are four blood types, A, B, AB, and O. Blood can also be Rh+
and Rh−. Finally, a blood donor can be classified as either male or female. How many
different ways can a donor have his or her blood labeled? 

Solution: Since there are 4 possibilities for blood type, 2 possibilities for Rh factor, and
2 possibilities for the gender of the donor, there are 4 × 2 × 2 = 16 different classification
categories.

 Example 4.9 Assume that a license plate contains two letters followed by three

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4.1 Basic Definitions of probability 45

digits. How many different license plates can be printed? 

Solution: Each letter can be printed in 26 ways, and each digit can be printed in 10
ways, so 26.26.10.10.10 = 676000 different plates can be printed.

Exercise 4.1 The access code for a car’s security system consists of four digits. Each
digit can be any number from 0 through 9. How many access codes are possible when
1. each digit can be used only once and not repeated?
2. each digit can be repeated?
3. each digit can be repeated but the first digit cannot be 0 or 1?


Permutation Rule
A permutation is an arrangement of n objects in a specific order.
1. The number of permutations of n objects taken r at a time is given by
n!
n Pr = = n(n − 1)(n − 2) . . . (n − r + 1)
(n − r)!

 Example 4.10 Find the number of permutations of letters a, b, c & d taken

three at a time 

4!
Solution: 4 P3 = = 24
(4 − 3)!
2. The number of permutations of n distinct objects taken all together is n! Or In
particular, the number of permutations of n objects taken n at a time is
n!
n Pn = = n!
(n − n)!

 Example 4.11 In how many ways 4 people are lined up to get on a bus (or to
sit for photo graph)? 

Solution: In 4! = 4 ∗ 3 ∗ 2 ∗ 1 = 24 ways.
3. The number of permutation of n objects taken all at a time, when n1 objects are
alike of one kind, n2 objects are alike of second kind, ..., nk objects are alike of
kth kind is given by:
n!
n1 !.n2 !. . . . .nk !

 Example 4.12 Find the number of permutations of the letter for the word
"statistics". 

Solution: There are 10 letters in the word "statistics" out of which there are 3s’s,
3t’s, 2i’s and 1a’s. So the number of permutiations of the letters of the word
statistics is:
10!
= 50, 400
3!3!2!1!

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46 Introduction to Probability

Exercise 4.2 An artist has created 20 original paintings, and she will exhibit
some of them in three galleries. Four paintings will be sent to gallery A, four to
gallery B, and three to gallery C. In how many ways can this be done? 

R The number of arrangements of n distinct objects around circular object

(table) is (n − 1)!. And when the method of selection or arrangement of r
objects from n objects with repetition the possible numbers of arrangements
are nr .

 Example 4.13 RVU Registrar Office want to give identity number for students
by using 4 digits. The number should be considered by the following numbers
only: {0, 1, 2, 3, 4, 5, and 6}. Hence, how many different ID Numbers could be
preferred by the Registrar
(a) Without repeating the number? (b) With repetition of numbers?


Solution: (a) The possible number of ID numbers given for students with out
repeating the digit is
7!
n Pr =7 P4 = = 840 (b) The possible number of ID
(7 − 4)!
numbers given for students with repeating the digit is
nr = 74 = 2401

Exercise 4.3 In how many different ways can a quiz be answered under each of the
following conditions?
1. The quiz consists of three multiple-choice questions with four choices for each.
2. The quiz consists of three multiple-choice questions (with four choices for each)
and five true–false questions.


Combinations Rule
Combination is the selection of objects without regarding order of arrangement. A
combination of n different objects taken r at a time is a selection of r out of n objects,
with no attention given to the order of arrangement.
 The
 number of combinations of n
n
objects taken r at a time is denoted by the symbol or nCr is given by
r
 
n n!
=
r r!(n − r)!

 Example
 4.14 The number of combinations of letter a, b, & c taken two at a time
3 3!
is nCr = = =3
2 2!(3 − 2)!


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 4.1 Basic Definitions of probability 47

 Example 4.15 The manager of an accounting department wants to form a three-

person advisory committee from the 20 employees in the department. In how many
ways can the manager form this committee selected? 

Exercise 4.4 Suppose in the box 3 red, 3 white and 5 black equal sized balls are
there. We want to draw 3 balls at a time. How many ways do we have from each
type? 

4.1.3 Different Approaches to probability

Basic requirements for assigning probabilities
1. The probability assigned to each experimental outcome must be between 0 and
1, inclusively. If we let Ei denote the ith experimental outcome and P(Ei ) its
probability, then this requirement can be written as
0 ≤ P(Ei ) ≤ 1 (4.1)
2. The sum of the probabilities for all the experimental outcomes must equal 1.0.
For n experimental outcomes, this requirement can be written as
P(E1 ) + P(E2 ) + · · · + P(En ) = 1 (4.2)
3. If an event E cannot occur (i.e., the event contains no members in the sample
space), its probability is 0
4. If an event E is certain, then the probability of E is 1.

Events on set
If A and B are two events then
• A ∪ B the happening of at least event A or B.
• A ∩ B the simultaneously happening of both events A and B.
• A0 or Ac A does not happen (complement of event A)
• Ac ∩ Bc neither A nor B happens

R
• Complementary event P(E c ) = 1 − P(E)
• Addition Law P(A or B) = P(A ∪ B) = P(A) + P(B) − P(A ∩ B)
If A and B are mutually exclusive events, then P(A ∪ B) = P(A) + P(B)
• Multiplication law P(A ∩ B) = P(B)P(A\B) or P(A ∩ B) = P(A)P(B\A)

Classical or Mathematical Approach

If a random experiment results in N exhaustive, mutually exclusive and equally likely
outcomes; out of which M are favorable to the happening of an event E, then the
probability of occurrence of E, usually denoted by P(E) is given by:
favorable cases to E n(E) M
P(E) = = = (4.3)
No. of sample space n(s) N
where n(E) is the number of outcomes in E and n(S) is the number of outcomes in the
sample space S.

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48 Introduction to Probability

 Example 4.16 Assume there are 2 blue candies, 5 red candies and 3 yellow candy.
Find the probability of the blue candies. 

Solution: There are a total of 10 candies. Thus the probability of the blue candies is:
n(B) 2
P(B) = = = 0.2
n(s) 10

 Example 4.17 From a production run of 5000 light bulbs, 2% of which are defective,
1 bulb is selected at random. What is the probability that the bulb is defective? What
is the probability that it is not defective? 

Solution: The number of outcomes in E is (0.02)(5000) = 100. Thus, P(E) = 0.02

and P(E c ) = 1 − P(E) = 0.98

Exercise 4.5 A fair die is rolling once. What is the probability of getting
(a) Number 4? (b) An odd number?
(c) An even number? (d) Number 8?


Empirical or frequency approach

Empirical probability, or estimated probability, of an event is taken to be the relative
frequency of occurrence of the event when the number of observations is very large.
Empirical (or statistical) probability is based on observations obtained from probability
experiments. The empirical probability of an event E is the relative frequency of event
E.
In the classical interpretation, probabilities are determined before any experiments are
done. In the relative frequency interpretation, probabilities are determined from the
results of previous experiments.

 Example 4.18 If 1000 tosses of a coin result in 529 heads, the relative frequency of
heads is 529/1000 = 0.529. If another 1000 tosses results in 493 heads, the relative
frequency in the total of 2000 tosses is
529 + 493
= 0.511
2000
According to the statistical definition, by counting in this manner we should
ultimately get closer and closer to a number that represents the probability of a head
in a single toss of the coin. From the results so far presented, this should be 0.5 to one
significant figure. 

Exercise 4.6 In a sample of 50 people, 21 had type O blood, 22 had type A blood, 5
had type B blood, and 2 had type AB blood. Find the following probabilities.
(a) A person has type O blood. (c) A person has neither type A nor type
O blood.
(b) A person has type A or type B blood. (d) A person does not have type AB
blood.

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4.1 Basic Definitions of probability 49

Solution:
21 22 5
(a) P(O) = = 0.42 (b) P(A or B) = P(A) + P(B) = + = 0.44 + 0.1 =
50 50 50
0.54
5 2 7
(c) P( neither A nor O) = + = = 0.14
50 50 50
(Neither A nor O means that a person has either type B or type AB blood.)
2 24
(d) P(not AB) = 1 − P(AB) = 1 − = = 0.96
50 25
SUBJECTIVE CONCEPT OF PROBABILITY
If there is little or no experience or information on which to base a probability, it may
be arrived at subjectively. Essentially, this means an individual evaluates the available
opinions and information and then estimates or assigns the probability.
The likelihood (probability) of a particular event happening that is assigned by an
individual based on whatever information is available.

 Example 4.19 For a given patient’s health and extent of injuries, a doctor may feel
that the patient has a 90% chance of a full recovery.
Or a business analyst may predict that the chance of the employees of a certain
company going on strike is 0.25.
Estimating the likelihood you will be married before the age of 30.


Conditional Probability
Let there be two events A and B. Then the probability of event A given that the outcome
of event B is given by:

P(A ∩ B) P(A ∩ B)
P(A|B) = or P(B|A) =
P(B) P(A)

where P(A|B) is interpreted as the probability of event A on the condition that event B
has occurred. In this case P(A ∩ B) is the joint probability of event A and B, and P(B) is
not equal to zero.

 Example 4.20 120 employees of a certain factory are given a performance test and
are divided in to two groups as those with good performance (G) and those with poor
performance (P) the result is given below

Good performance (G) Poor performance(P) Total

Male (M) 60 20 80
Female (F) 25 15 40
Total 85 35 120


Solution: The probability of a person to be male given that it has a good performance is

P(M ∩ G) 60/120 60
P(M|G) = = = = 0.71
P(G) 85/120 85

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50 Introduction to Probability

Ex. Find the probability of a person to be female given that it has a poor perfor-
mance.

 Example 4.21 A jar contains black and white marbles. Two marbles are chosen

without replacement. The probability of selecting a black marble and a white marble
is 0.34, and the probability of selecting a black marble on the first draw is 0.47. What
is the probability of selecting white marble on the second draw, given that the first
marble drawn is black? 

P( White and Black) 0.34

Solution: P( White| Black) = = = 0.72
P(White) 0.47

Exercise 4.7 1. The probability that it is Friday and that a student is absent is
0.03. Since there are 5 schooldays in a week, the probability that it is Friday is
0.2. What is the probability that a student is absent given that today is Friday?
2. Suppose that an office has 100 calculating machines. Some of them use electric
power (E) while others are manual (M) and some machines are well known (N)
while others are used (U). The table below gives numbers of machines in each
category. A person enter the office picks a machine at random and discovers
that it is new. What is the probability that it is used with electric power?

E M Total
N 40 30 70
U 20 10 30
Total 60 40 100
3. In a firm 20% of the employees have an accounting background, while 5%
of the employees are excutives and have an accounting backgrounds. If an
employee has accounting background, what is the probability taht the employee
is an excutive?


Probability of Independent Events

Two events A and B are independent if
P(A|B) = P(A) or P(B|A) = P(B).
Otherwise, the events are dependent.
Multiplication Law
Whereas the addition law of probability is used to compute the probability of a union of
two events, the multiplication law is used to compute the probability of the intersection
of two events.
P(A ∩ B) = P(B)P(A|B) or P(A ∩ B) = P(A)P(B|A)

 Example 4.22 Consider a newspaper circulation department where it is known that

84% of the households in a particular neighborhood subscribe to the daily edition of
the paper. In addition, it is known that the probability that a household that already

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4.1 Basic Definitions of probability 51

holds a daily subscription also subscribes to the Sunday edition (event S) is 0.75. What
is the probability that a household subscribes to both the Sunday and daily editions of
the newspaper? 

Solution: Let D denote the event that a household subscribes to the daily edition, then
. P(D) = 0.84, and P(S|D) = 0.75. Thus,

P(S ∩ D) = P(D)P(S|D) = 0.84 × 0.75 = 0.63

Hence, 63% of the households subscribe to both the Sunday and daily editions.
Multiplication Law for independent Event: P(A ∩ B) = P(A)P(B)

 Example 4.23 A coin is flipped and a die is rolled. Find the probability of getting a
head on the coin and a 4 on the die. 

Solution: The sample space for the coin is H, T ; and for the die it is 1, 2, 3, 4, 5, 6.
1 1 1
P(H ∩ 4) = P(H)P(4) = . = = 0.083
2 6 12

 Example 4.24 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 replaced
b. The first ball drawn is not replaced 

Solution: Let A = first drawn ball is black, B = second drawn is black

4 4 4
a. P(A ∩ B) = P(A)P(B) = . =
10 10 25
4 3 2
b. P(A ∩ B) = P(A)P(A|B) = . =
10 9 15

Exercise 4.8 A contractor is bidding for two projects with company A and company
B. The contractor estimates that the probability of obtaining the project with company
A is 0.45. He also fells that if he should get the project with company A then there
is a 0.90 probability that company B will also give him the project. What are the
contractor’s chances of getting both projects? 

Moybon W.@ ASTU 2020 Introduction to Statistics

 Random Variables
Discrete Probability Distributions
Expected Value and Variance
Continuous Probability Distributions
Normal Probability Distribution

5 — Probability Distributions

5.0.1 Random Variables

The outcome of a probability experiment is often a count or a measure. When this
occurs, the outcome is called a random variable
Definition 5.0.1 A random variable is a numerical description of the outcome of an
experiment.
A variable that takes on different numerical values based on chance.
A random variable x represents a numerical value associated with each outcome of a
probability experiment.
The word random indicates that x is determined by chance.

 Example 5.1 Suppose a die is rolled.

S = {1, 2, 3, 4, 5, 6}
Let the random variable X denotes the outcomes ’ a number greater than 2 occurs’.
Then the random variable can assume the values 3, 4, 5 or 6 

A random variable can be classified as being either discrete or continuous depending

on the numerical values it assumes.

Discrete Random Variables

A random variable that may assume either a finite number of values or an infinite
sequence of values such as 0, 1, 2, ... is referred to as a discrete random variable.
For example
(a) The number of employees absent in a given day.
(b) Toss two coins and count the number of tails.
(c) The number of phone calls received after a TV commercial airs.
(d) Number of customers entering to a bank in an hour time
(e) Number of defactive products produced in a factory at a given shift or day
are examples of discrete variables, since they can be counted.
 54 Probability Distributions

Continuous Random Variables

A random variable that may assume any numerical value in an interval or collection of
intervals is called a continuous random variable.
Experimental outcomes based on measurement scales such as time, weight, distance,
and temperature can be described by continuous random variables.
For example
(a) The distance between two cities
(b) The weight of a person
(c) The rate of return on investment
(d) The time that a customer must wait to receive his changes

5.1 Discrete Probability Distributions

Each value of a discrete random variable can be assigned a probability. By listing each
value of the random variable with its corresponding probability, you are forming a
discrete probability distribution.
The probability distribution for a random variable describes how probabilities are
distributed over the values of the random variable.
A discrete probability distribution lists each possible value the random variable can
assume, together with its probability. For a discrete random variable x, the probability
distribution is defined by a probability function, denoted by P(x). The probability
function provides the probability for each value of the random variable.

In the development of a probability function for any discrete random variable, the
following two conditions must be satisfied.

P(x) ≥ 0 (5.1)
∑ P(x) = 1 (5.2)

 Example 5.2 Construct a probability distribution for rolling a single die. 

Solution: Since the sample space is 1, 2, 3, 4, 5, 6 and each outcome has a probability of
1
, the distribution is as shown.
6

Outcomes X 1 2 3 4 5 6
1 1 1 1 1 1
Probability P(X)
6 6 6 6 6 6
When probability distributions are shown graphically, the values of X are placed on the
x axis and the probabilities P(X) on the y axis. These graphs are helpful in determining
the shape of the distribution (right-skewed, left-skewed, or symmetric).

 Example 5.3 Represent graphically the probability distribution for the sample space
for tossing three coins. 

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 5.1 Discrete Probability Distributions 55

Solution: S = {T T T, T T H, T HT, HT T, HHT, HT H, T HH, HHH}

Let X is the random variable for the number of heads, then X assumes the value
0, 1, 2, or 3. Probabilities for the values of X can be determined as follows:
No heads One heads Two heads Three heads
T T T}
| {z T
| T H T {z
HT HT T} HHT| HT
{zH T HH} HHH
| {z }
1 3 3 1
8 8 8 8
1 3 3
Hence, the probability of getting no heads is , one head is , two heads is , and
8 8 8
1
three heads is .
8
Number of heads X 0 1 2 3
1 3 3 1
Probability P(X)
8 8 8 8

dist.png dist.png

Figure 5.1: Probability Distribution for Example 5.3

Note that for visual appearances, it is not necessary to start with 0 at the origin.

Exercise 5.1 Determine whether each distribution is a probability distribution.

X 5 8 11 14
(a)
P(X) 0.2 0.6 0.1 0.3
X 1 2 3 4 5
(b)
P(X) 0.25 0.125 0.375 0.125 0.125
X 1 2 3 4
(c)
P(X) 0.25 0.25 025 0.25
X 4 8 12
(d)
P(X) -0.5 0.6 0.4


5.1.1 Expected Value and Variance

Expected Value
The mean of a random variable represents what you would expect to happen over
thousands of trials. It is also called the expected value. The expected value, or mean,
of a random variable is a measure of the central location for the random variable. The
formula for the expected value of a discrete random variable x follows.
E(x) = µ = ∑ xP(x)

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56 Probability Distributions

Variance
The mean does not describe the amount of spread or variation of a distribuition. The
variance and standard devation allows us to compare the variation in two distribuitions
having the same mean but different spread.
The formula for the variance of a discrete random variable follows.

Var(x) = σ 2 = ∑(x − µ)2P(x)

= ∑[X 2P(x)] − µ 2

 Example 5.4 A car dealer has established the following probability distribution for
the number of cars he expects to sell on a particular Saturday. Find the variance and
standard devation.
Number of car sold X 0 1 2 3 4

Probability P(X) 0.1 0.2 0.3 0.3 0.1

Solution: µ = ∑ xP(x) = 0(0.1) + 1(0.2) + 2(0.3) + 3(0.3) + 4(0.1) = 2.1

X P(X) X − µ (X − µ)2 P(x)(X − µ)2
0 0.1 0-2.1 4.41 0.441
1 0.2 1-2.1 1.21 0.224
2 0.3 2.2.1 0.01 0.003
3 0.3 3-2.1 0.81 0.243
4 0.1 4-2.1 3.61 0.361
2 2
√
σ = ∑ P(x)(X − µ) = 1.29 =⇒ σ = 1.29 = 1.136 or
σ = ∑[X 2 P(x)]− µ 2 = [0(0.1)+1(0.2)+22 (0.3)+32 (0.3)+42 (0.1)]−(2.1)2 = 1.29
2

There are three types of discrete probability distribuition. They are

1. Binomial Probability Distribution
2. Poisson Probability Distribution
3. Hypergeometric Probability Distribution

1. Binomial Probability Distribution

A binomial experiment is a probability experiment that satisfies the following four
requirements:
(a) There must be a fixed number of trials.
(b) Each trial can have only two outcomes or outcomes that can be reduced
to two outcomes. These outcomes can be considered as either success or
failure.
(c) The outcomes of each trial must be independent of one another.
(d) The probability of a success must remain the same for each trial. So does
the probability of a failure. This implies that the probability of failure of any
trial is q = 1 − probability of sucesses = 1 − p.
The word success does not imply that something good or positive has occurred. For
example, in a probability experiment, we might want to select 10 people and let S
represent the number of people who were in an automobile accident in the last six
months. In this case, a success would not be a positive or good thing.

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5.1 Discrete Probability Distributions 57

 Example 5.5 Decide whether each experiment is a binomial experiment. If not,

state the reason why.
a. Selecting 20 university students and recording their class rank
b. Selecting 20 students from a university and recording their gender
c. Drawing five cards from a deck without replacement and recording whether
they are red or black cards
d. Selecting five students from a large school and asking them if they are on the
dean’s list
e. Recording the number of children in 50 randomly selected families


Solution:
a. No. There are five possible outcomes: freshman, sophomore, junior, senior, and
graduate student.
b. Yes. All four requirements are met.
c. No. Since the cards are not replaced, the events are not independent.
d. Yes. All four requirements are met.
e. No. There can be more than two categories for the answers.

In binomial experiments, the outcomes are usually classified as successes or failures.

For example, the correct answer to a multiple-choice item can be classified as a
success, but any of the other choices would be incorrect and hence classified as a
failure. The notation that is commonly used for binomial experiments and the binomial
distribution is defined now.
Definition 5.1.1 The outcomes of a binomial experiment and the corresponding
probabilities of these outcomes are called a binomial distribution.

Binomial Probability Formula

In a binomial experiment, the probability of exactly r successes in n trials is
n!
P(r) = pr qn−r
(n − r)!r!
where
• P(r) = The probability of success
• p = The numerical probability of success
• q = The numerical probability of a failure
• n = The number of trials
• r = The number of successes in n trials
In binomial experiments, the outcomes are usually classified as successes or failures.
For example, the correct answer to a multiple-choice item can be classified as a
success, but any of the other choices would be incorrect and hence classified as a
failure. The notation that is commonly used for binomial experiments and the binomial
distribution is defined now.

Example 5.6 Suppose that 40% of all customers who enter a department store
make a purchase. What is the probability that 2 of the next 3 customers will make a

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58 Probability Distributions

purchase? 

Solution: This problem meets the four requirements a binomial experiment

(a) There are a fixed number of trials (three).
(b) There are only two outcomes for each trial, purchase (success) or not pur-
chase (failure).
(c) The outcomes are independent of one another (the three customer will either
purchase or not purchase).
(d) The probability of a success (purchase) is the same 0.4 for each of the three
customers. And probability of failure (not purchase) will be 1 − 0.4 = 0.6
In this case, n = 3, r = 2, p = 0.4, q = 1 − p = 0.6. Hence,
3!
P(2 purchase) = P(2) = 0.42 0.63−2 = 3(0.16)(0.6) = 0.288
(3 − 2)!2!

 Example 5.7 An examination consists of four true or false question and

student has no knowledge of the subject matter. The chance that student will
guess the correct answer to the first question is 0.5. What is the probability of
getting exactly
1
a. none out of four correct? P(0) = = 0.0625
16
4
b. one out of four correct? P(1) = = 0.25
16


 Example 5.8 A survey from Teenage Research Unlimited found that 30%
of teenage consumers receive their spending money from part-time jobs. If 5
teenagers are selected at random, find the probability that at least 3 of them will
have part-time jobs. 

Solution: To find the probability that at least 3 have part-time jobs, it is necessary
to find the individual probabilities for 3, or 4, or 5 and then add them to get the
total probability.
5!
P(3) = (0.3)3 (0.7)2 ≈ 0.132
3!(5 − 3)!
5!
P(4) = (0.3)4 (0.7)1 ≈ 0.028
4!(5 − 4)!
5!
P(3) = (0.3)5 (0.7)0 ≈ 0.002
5!(5 − 5)!
Hence, P(at least three teenagers have part-time jobs) = P(r ≥ 3)
P(r ≥ 3) = P(3) + P(4) + P(5) = 0.132 + 0.028 + 0.002 = 0.162
For binomial probability distribution, the mean (expected value) and variance can
be calculated as:
µ = np and σ 2 = npq

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5.1 Discrete Probability Distributions 59

 Example 5.9 Suppose that 40% of the people entering a store make a pur-
chase. If 10 people enter the store, find the expected number of people making
a purchase? 

Solution: µ = np = 10(0.4) = 4

Exercise 5.2 A given mid-exam contains 10 multiple choice questions, and each
question has four alternatives with one exact answer. Find the probability that the
student exactly answered
(a) 3 questions Ans. P(3) = 0.25
(b) 8 questions Ans. P(8) = 0.00386
(c) At least 3 questions Ans. P(r ≥ 3) = 0.4744
(d) Mean Ans. µ = 2.5, σ 2 = 1.875


2. Poisson Probability Distribution

The Poisson distribution is also used to represent the probability distribution of a discrete
random variable.
The Poisson distribution describes a process that extends over space, time, or any
well defined interval or unit of inspection in which the outcomes of interest occur at
random and the number of outcomes that occur in any given interval are counted. The
Poisson distribution, rather than the binomial distribution, is used when the total number
of possible outcomes cannot be determined.
• It describes the number of occurences of a specific event in a specified interval
• The interval may be time, distance, area, volume
properties of a poisson Experiment:
(a) The probability of an occurrence is the same for any two intervals of equal
length.
(b) The occurrence or nonoccurrence in any interval is independent of the
occurrence or nonoccurrence in any other interval.
The Poisson probability function is defined by equation (5.3).
µ r e−µ
P(x) = (5.3)
r!
where P(r) = the probability of r occurrences in an interval
µ = expected value or mean number of occurrences in an interval
e = 2.71828

 Example 5.10 If approximately 2% of the people in a room of 200 people are

left-handed, find the probability that exactly 5 people there are left-handed. 

Solution: Since µ = np, then µ = (200)(0.02) = 4. Hence,

µ r e−µ 45 (2.71828)−4
P(r = 5) = = = 0.1563
r! 5!

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60 Probability Distributions

 Example 5.11 Suppose in Tekure Ambessa Hospital, the average new born female
baby in every 24 hour is 7. What is the probability that
text (a) No female babies are born in a day?
(b) Only three female babies are born per day?
(c) 2 female babies are born in 12 hours?


Solution: In this case µ = 7 per day.

70 e−7
(a) No female babies are born in a day: =⇒ P(r = 0) = = e−7 =
0!
0.0138189
73 e−7
(b) Only three female babies are born per day: =⇒ P(r = 3) = =
3!
0.78998
(c) 2 female babies are born in 12 hours: In this case µ = 7/2 = 3.5
(3.5)2 e−3.5
=⇒ P(r = 2) = = 0.184959
2!

 Example 5.12 The avarage number of traffic accidents in Addis Ababa city is 2 per

week. Find the probability of

(a) No accident during the first week period?
(b) At most three during a 2 week period?


20 e−2
Solution: (a). µ = 2 =⇒ P(r = 0) = = e−2 = 0.135335283
0!
(b) µ = 4. “At most 3 accidents” means 0, 1, 2, or 3 accidents. Hence
P(r = 0) + P(r = 1) + P(r = 2) + P(r = 3) = 0.0183 + 0.0732 + 0.1464 + 0.1952 =
0.4331

3. Hypergeometric Probability Distribution

The hypergeometric probability distribution is closely related to the binomial distribution.
The two probability distributions differ in two key ways. With the hypergeometric
distribution,
• the trials are not independent; (trials are dependent)
• the probability of success changes from trial to trial.
The hypergeometric distribution is formed by the ratio of the number of ways an event
of interest can occur over the total number of ways any event can occur.
  
R N −R
r n−r
RC (N−R)C r n−r
P(r) = n
=  
NC N
n
where
r = the number of successes
n = the number of trials
P(r) = the probability of x successes in n trials

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 5.2 Continuous Probability Distributions 61

N = the number of elements in the population

R = the number of elements in the population labeled success

 Example 5.13 Ten people apply for a job as assistant manager of a restaurant. Five
have completed college and five have not. If the manager selects 3 applicants at
random, find the probability that all 3 are college graduates. 

Solution: Assigning the values to the variables gives

R = 5 college graduates n=3 N = 10 r=3

Substituting in the formula gives

     
R N −R 5 10 − 5
r n−r 3 3−3 10 1
P(r) =   =   = =
N 10 120 12
n 3

Example 5.14 A recent study found that 2 out of every 10 houses in a neighborhood
have no insurance. If 5 houses are selected from 10 houses, find the probability that
exactly 1 will be uninsured. 

5
Solution:P(r) =
9

5.2 Continuous Probability Distributions

• A discrete probability distribution is based on discrete random variable which can
be assumed only certain clearly separated values.
• Continuous probability distributions are based on continuous random variable.
• Continuous probability distribution describes the likelihood that a continuous
random variable that has an infinite number possible values will fall within a
specified range.
There are three types of Continuous probability distributions:
(a) Normal Probability Distribution
(b) Uniform Probability Distribution
(c) Exponential Probability Distribution

5.2.1 Normal Probability Distribution

Definition 5.2.1 A normal distribution is a continuous, symmetric, bell-shaped
distribution of a variable.
The mathematical equation for a normal distribution is
2 2)
e−(x−µ) /(2σ
y= √
σ 2π
where e ≈ 2.71828, π ≈ 3.14

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 62 Probability Distributions

µ = population mean
σ = population standard deviation
Characteristics
1. It is bell-shaped and has a single peak at the center of the distribution.
2. The arthimetic mean, median, and mode are equal and located in the center of
distribution.
3. A normal distribution curve is unimodal (i.e., it has only one mode).
4. It is symmetrical about the mean, if we cut the normal curve vertically at the
center value the two halves will be mirror images.
5. The curve is continuous; that is, there are no gaps or holes. For each value of X,
there is a corresponding value of Y.
6. The curve never touches the x axis. Theoretically, no matter how far in either
direction the curve extends, it never meets the x axis—but it gets increasingly
closer.
7. The normal distribution is specified by its mean (µ) and standard devation (σ ).
8. The total area under the curve equals to 1, irrespective of the value of the mean
and the standard devation.
9. The propability that a random variable will have a value between two points is
equal to the area under the curve between these two points.

Figure 5.2: Bell-shaped for the normal distribution

Definition 5.2.2 The standard normal distribution is a normal distribution with a

mean of 0 and a standard deviation of 1.
All normally distributed variables can be transformed into the standard normally dis-
tributed variable by using the formula for the standard score:
x−µ
z=
σ
Emperical: The area under the part of a normal curve that lies
1. within 1 standard deviation of the mean is approximately 0.68, or 68%;
2. within 2 standard deviations, about 0.95, or 95%; and
3. within 3 standard deviations, about 0.997, or 99.7%;
See Figure 6–5, which also shows the area in each region.

Finding Areas Under the Standard Normal Distribution Curve

Step 1 Draw the normal distribution curve and shade the area.

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 5.2 Continuous Probability Distributions 63

nd.png nd.png

Figure 5.3: Areas Under a Normal Distribution Curve

Step 2 Find the appropriate figure in the Procedure Table and follow the directions given.
Areas under the standard normal distribution curve have been tabulated in various ways.
The most common ones are the areas between Z = 0 and a positive value of Z Given a
normal distributed random variable X with Mean µ and standard deviation σ
 
a−µ x−µ b−µ
P(a < x < b) = P < <
σ σ σ 
a−µ b−µ
=⇒ P(a < x < b) = P <z<
σ σ

R P(a < x < b) = P(a ≤ x < b) = P(a < x ≤ b) = P(a ≤ x ≤ b) =

 Example 5.15 1. The life time of a certain kind of electronic devices have a
mean of 300hr and standard deviation of 25hr. Assuming that the distribution is
normally distributed, what percentages of the electronic device will have life of
;
(a) Between 300hrs and 310hrs.
(b) Between 290hrs and 300hrs.
(c) Less than 310hrs.
(d) Less than 290hrs.
(e) Between 290hrs and 310hrs.
(f) Between 250hrs and 290hrs.
2. A life test on large number of batteries revealed that the mean life time of
batteries before failure is 19hrs, The useful life of the battery follows normal
distribution with a standard deviation of 1.2hrs.
Required
(a) About what two values that 68% of the batteries fail?
(b) About what two values that 95% of the batteries fail?
(c) About what two values that all of the batteries fail?
3. The daily demand for coca-cola in a certain cafeteria is normally distributed
with mean of 200 and standard deviation of 20.
Required
(a) What is the probability that the daily demand on the given day is
i. 200 and 230 bottles?
ii. 190 and 200 bottles?

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64 Probability Distributions

iii. Greater than 230 bottles?

iv. Fewer than 190 bottles?
v. Between 190 and 230 bottles?
(b) About what two values that 68% of daily demand lie?
(c) About what two values that 95% of daily demand lie?
(d) About what two values that all of the daily demands expects to lie?
4. Find the value of Z if
a) The normal curve area between 0 and z(positive) is 0.4726
b) The area to the left of z is 0.9868


Moybon W.@ ASTU 2020 Introduction to Statistics