ASSIGNMENT on

MAT211: Probability and Statistics

Class Assignment No. I
Section: 10

Date of Submission: July 10, 2021.

Submitted By Submitted to
Nazrul Islam Prof. M. Siddique
ID: 1810181 Hossain

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Contents
Part 1 ................................................................................................................................................................. 3
1.1 Meaning of statistics ................................................................................................................................... 3
1.2 Definition..................................................................................................................................................... 3
2.1 What is Data? ............................................................................................................................................. 3
2.2 Types of Data .............................................................................................................................................. 3
2.2.1 Categorical Data or Qualitative data ..................................................................................................... 4
2.2.2 Numerical Data or Quantitative Data .................................................................................................... 4
2.3 Sources of Data ........................................................................................................................................... 4
2.3.1 Existing Sources....................................................................................................................................... 5
2.3.2 Statistical Studies ..................................................................................................................................... 5
3. 1 Scope of Statistics ...................................................................................................................................... 5
4. 1 Importance of Statistics in Business and Economics .............................................................................. 6
5.1 Statistical Table .......................................................................................................................................... 9
5.1.1 Form ......................................................................................................................................................... 9
5.1.2 Types ........................................................................................................................................................ 9
5.1.3 Different types of table Example .......................................................................................................... 10
5.2 Statistical Graphs ..................................................................................................................................... 10
5.2.1 Types of Graphs in Statistics ................................................................................................................ 10
1. Bar Graph ................................................................................................................................................... 11
The three major attributes of bar graphs are: ............................................................................................. 11
Types of Bar Charts ....................................................................................................................................... 11
1. Vertical Bar Graphs ................................................................................................................................... 11
2. Horizontal Bar Graphs .............................................................................................................................. 12
3. Grouped Bar Graph ................................................................................................................................... 12
4. Stacked Bar Graph..................................................................................................................................... 12
Properties of Bar Graph ................................................................................................................................ 12
Uses of Bar Graphs ........................................................................................................................................ 12
2. Line Graph.................................................................................................................................................. 12
3. Histogram ................................................................................................................................................... 13
4. Pie Chart ..................................................................................................................................................... 13
5.2.2 Frequency Distribution Graph ............................................................................................................. 13
Frequency Polygons ....................................................................................................................................... 13
Cumulative Frequency Distribution Graphs................................................................................................ 14
Graphical Representation .............................................................................................................................. 14
Part 2 ............................................................................................................................................................... 15
Ungrouped Data ............................................................................................................................................. 15

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Grouped Data ................................................................................................................................................. 16
Frequency distribution................................................................................................................................... 16
2.11 SELF-TEST QUESTIONS .................................................................................................................... 16
Comparison of Mean Median and Mode ...................................................................................................... 17
3.16 SELF TEST QUESTIONS ..................................................................................................................... 22

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 Part 1
i. Meaning and definition of Statistics
ii. Types of data and data sources
iii. Scopes of Statistics
iv. Importance of Statistics in Business and Economics
v. Tables, Charts, and Graphs

Solution (i)

1.1 Meaning of statistics

Literal meaning
The literal meaning of the word statistics is numerical information or the science of research on
numbers. That is, the scientific method of collecting, analyzing and interpreting numerical data is
statistics.

Meaning of statistics in two senses

1) Plural sense: Collection of numerical facts (statistical data). This is only information.
2) Singular sense: It deals with collection, presentation, analysis, and interpretation of quantitative
information. (Statistical methods). Explain how to use that information collected from statistical data.

1.2 Definition
Statistics is the art and science that concerns the collection, organization, analysis, interpretation, and
presentation of data.

Solution (ii)

2.1 What is Data?

Data are the facts and figures collected, analyzed, and summarized for presentation and explanation.

2.2 Types of Data

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2.2.1 Categorical Data or Qualitative data
Definition: There are non-numerical data, that describes qualities, opinions, values and behaviour of
people in social context. Examples of categorical data are class (freshman, sophomore, etc), color
(blue, red, yellow, etc), and gender (male, female).
These categories are based on qualitative characteristics such as gender and colors or something else
that doesn’t have a number associated with it.
Use: Categorical data use either the nominal or ordinal scale of measurement.
 Nominal data: When the data for a variable consist of labels or names used to identify an attribute
(a quality or characteristic that someone or something has) of the element.
Nominal data may be nonnumeric or numeric.
 Ordinal data: This type data exhibit the properties of nominal data and the order or rank of the
data is meaningful.

2.2.2 Numerical Data or Quantitative Data

Definition: Numerical data is information that is something that is measurable. It is always collected
in number form. Examples of numerical data are height, weight, age, number of movies watched, IQ,
etc.
 Discrete data is information that can only take certain values.
 Continuous data is data that can take any value. Height, weight, temperature and length are all
examples of continuous data.

2.3 Sources of Data

The data are collected through the following ways. These are: 1. Primary Sources, and 2. Secondary
Sources. The data which are collected for the first time by an individual or the group of individuals,
institution/organizations are called Primary sources of the data. On the other hand, data collected
from any published or unpublished sources are called Secondary sources. Following figure shows the
different methods of data collection.

Fig. 1 Methods of Data collection

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2.3.1 Existing Sources
In some cases, data needed for a particular application already exist. Companies maintain a variety of
databases about their employees, customers, and business operations. Data on employee salaries, ages,
and years of experience can usually be obtained from internal personnel records. Other internal records
contain data on sales, advertising expenditures, distribution costs, inventory levels, and production
quantities. Most companies also maintain detailed data about their customers.

Data are also available from a variety of industry associations and special interest organizations.
For example, The Travel Industry Association of America maintains travel-related information such
as the number of tourists and travel expenditures by states. Such data would be of interest to firms and
individuals in the travel industry. The Graduate Management

The Internet continues to grow as an important source of data and statistical information. Almost
all companies maintain websites that provide general information about the company as well as data
on sales, number of employees, number of products, product prices, and product specifications. In
addition, a number of companies now specialize in making information available over the Internet. As
a result, one can obtain access to stock quotes, meal prices at restaurants, salary data, and an almost
infinite variety of information. Government agencies are another important source of existing data. For
instance, the U.S. Department of Labor maintains considerable data on employment rates, wage rates,
size of the labor force, and union membership.

2.3.2 Statistical Studies

Sometimes the data needed for a particular application are not available through existing sources. In
such cases, the data can often be obtained by conducting a statistical study. Statistical studies can be
classified as either experimental or observational.

In an experimental study, a variable of interest is first identified. Then one or more other variables are
identified and controlled so that data can be obtained about how they influence the variable of interest.
For example, a pharmaceutical firm might be interested in conducting an experiment to learn about
how a new drug affects blood pressure. Blood pressure is the variable of interest in the study. The
dosage level of the new drug is another variable that is hoped to have a causal effect on blood pressure.
To obtain data about the effect of the

Solution (iii)

3. 1 Scope of Statistics
1. Statistics and planning: Statistics in indispensable into planning in the modern age which is termed
as “the age of planning”. Almost all over the world the govt. are re- storing to planning for economic
development.
2. Statistics and economics: Statistical data and techniques of statistical analysis have to immensely
useful involving economical problem. Such as wages, price, time series analysis, demand analysis.
3. Statistics and business: Statistics is an irresponsible tool of production control. Business executive
are relying more and more on statistical techniques for studying the much and desire of the valued
customers.
4. Statistics and industry: In industry statistics is widely used inequality control. In production
engineering to find out whether the product is confirming to the specifications or not. Statistical tools,
such as inspection plan, control chart etc.

5. Statistics and mathematics: Statistics are intimately related recent advancements in statistical
technique are the outcome of wide applications of mathematics.

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6. Statistics and modern science: In medical science the statistical tools for collection, presentation
and analysis of observed facts relating to causes and incidence of dieses and the result of application
various drugs and medicine are of great importance.

7. Statistics, psychology and education: In education and physiology statistics has found wide
application such as, determining or to determine the reliability and validity to a test, factor analysis etc.

8. Statistics and war: In war the theory of decision function can be a great assistance to the military
and personal to plan “maximum destruction with minimum effort.”
9. In banking: It play an important role in banking. The banks make use of statistics for a number of
purposes. The banks work on the principle that all the people who deposit their money with the banks
do not withdraw it at the same time. The bankers use statistical approaches based on probability to
estimate the numbers of depositors and their claims for a certain day.
10. In State Management (Administration): Statistics is essential for a country. Different policies
of the government are based on statistics. Statistical data are now widely used in taking all
administrative decisions. it helps in estimating the expected expenditures and revenue from different
sources. So statistics are the eyes of administration of the state.
11. In Accounting and Auditing: accounting is impossible without exactness. The correction of the
values of current asserts is made on the basis of the purchasing power of money or the current value
of it. In auditing sampling techniques are commonly used. An auditor determines the sample size of
the book to be audited on the basis of error.
12. In Natural and Social Sciences: it plays a vital role in almost all the natural and social sciences.
Statistical methods are commonly used for analyzing the experiments results, testing their significance
in Biology, Physics, Chemistry, Mathematics, Meteorology, Research chambers of commerce,
Sociology, Business, Public Administration, Communication and Information Technology etc…

13. In Astronomy: Astronomy is one of the oldest branches of statistical study; it deals with the
measurement of distance, sizes, masses and densities of heavenly bodies by means of observations.
During these measurements errors are unavoidable so most probable measurements are founded by
using statistical methods.
14. Statistics and Sociology: Sociology is one of the social sciences aiming to discover the basic
structure of human society, to identify the main forces that hold groups together. It highlights and
illuminate aspects of social life that otherwise might be only obscurely recognized and understood.
The sociologist may be called upon for help with a special problem such as social conflict, urban plight
or the war on poverty or crimes.
15. Statistics and Government: The functions of a government are more varied and complex. Various
depts. in the state are required to collect and record statistical data in a systematic manner for an
effective administration. Data pertaining to various fields namely population, natural resources,
production both agricultural and industrial, finance, trade, exports and imports etc. are the most
fundamental requirements of the state for its administration.

Solution (iv)

4. 1 Importance of Statistics in Business and Economics

In today’s global business and economic environment, anyone can access vast amounts of statistical
information. The most successful managers and decision makers understand the information and know
how to use it effectively. 1. Business: Accounting, Finance, Marketing, Production 2. Economics
Accounting
o Auditors: Accountants who perform audits benefit greatly from understanding and using statistical
analysis.

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o Benefit accountants: Accountants set premium adjustments to account for future risk and account
for artificial fluctuations in short-term interest rates using statistical models and methods.
o Forecasters: Accountants use statistics to forecast consumption, earnings, cash flow and book
value.
o Forensic accounting: The detectives of the accounting world, forensic accountants use accounting
and legal principles to search out financial fraud and dishonesty. With today’s incredibly
complicated financial instruments like credit default swaps and collateral debt obligations, forensic
accountants need to understand how statistical principles were used to value and anticipate risk in
those securitization products.
o Mortgage underwriter: Mortgage underwriters assess that risk, and, therefore, need to have a
thorough understanding of statistics in order to set a premium price that is rational for the borrower
and profitable for the lender.
o Risk managers: Hand in glove with predicting is risk management. Accountants are often required
to specify a premium that reflects the risk, or range of error, with any given prediction. Recognized
the discount rate, accountants frequently use statistical principles, such as correlation and
distribution, to get ahead this risk and account for it when setting a valuation. More newly,
accountants are using more sophisticated statistical techniques, such as co-variance and beta
models, to limit valuation error.
Finance
Financial statistics include all numerical data that summarizes past behavior or forecasts future
behavior of an individual financial security, a group of securities, or markets in a broad geographic
region.
o Economic indicators: One broad class of global or national statistics is the series of economic
indicators. These indicators assess where the economy is within the current business cycle and
provide information useful to forecast the likelihood of improvement or deterioration, or to confirm
the economy's current status.
o Gross domestic product: There are many other examples of global economic statistics that have
immediate relevance to financial analysis. One commonly followed statistic is the forecasted
growth rate in gross domestic product (GDP).
o Exchange rate statistics: A more universal and continuous source of financial information is
found in exchange rate statistics. An exchange rate is the price of one country's currency in terms
of another's.
o Interest rates: Another set of statistics that are largely followed in financial markets throughout
the world are those associated with interest rates. Interest rates represent the price of money in a
particular currency. This price includes a premium for expected inflation and another premium for
risk of default. One common method of reporting interest rates is the yield curve. (The yield curve
represents the relationship between the maturity of a debt instrument, typically bonds, and the rate
of return implied by its current price. A yield curve represents a relevant comparison of yields
between different securities with different maturities only if the securities have similar default risk.)
As a result, the most common yield curve statistics relate to government bonds within a particular
country. These statistics are frequently reported in tabular form with yields on various securities
sorted by maturity. The same information is also commonly depicted in a graph.
o Another uses in
- firm-specific financial statistics e.g. Historical statistics
- Financial ratios

Marketing
Marketing seeks to develop and retain a consumer base so products can be sold for a profit. Statistics
are an invaluable tool for marketing, because they can be used to make informed decisions about how

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to best sell any product. Intelligent use of statistics can make the difference between a wildly successful
marketing campaign, and one that alienates potential customers or has no noticeable effect.
o Developing a Target Market: The initial thing we need to sell any product is a base of potential
consumers. Statistics help us to identify the audience that we will be speaking to through our
marketing. Greater statistical detail can be examined depending on what we're offering. Getting to
know our target market through statistical analysis allows us to speak to them in a relatable and
understandable way.
o Picking The Venue: Where our advertise is just as important as the approach and tone that our
marketing takes. Statistics can help us to find out who is exposed to what cultural mediums. For
example, it might seem as though television is the gold standard for marketing venues, but if our
target market doesn't really watch TV, this approach would be a waste of time and money.
o Determining Consumer Motives: It’s important to study our target audience at a deep level. Some
of the most important things to understand are what our audience wants, what they believe they
need, how they relate to products and how they are influenced by prices. In short, we want to know
why they make economic decisions so that we can offer them something valuable. For example,
if our audience has a low income and is looking for a low price, we would take a very different
approach than if our audience is rich and not as concerned with pricing. Statistics can reveal the
needs and wants of consumers, and the motivations that cause them to make different purchases.
o Reactions to Advertising: Another good use of statistics is to determine the ways in which
consumers tend to react to advertising and what kind of marketing themes stimulate certain
responses. This can give us ideas on how to approach our audience. Statistics can show us what
kind of marketing campaigns have been successful and why, how marketing is perceived by
consumers and why it is sometimes ineffective. For example, some people find advertising to be
overbearing or condescending and are turned off from buying products they might otherwise want.
These consumers need to be addressed in a subtler tone. Our tone will create an emotional response
in our audience that will influence their decisions.
Production
Through statistical analysis, companies can make good use of big data for greater success. This is a
process that involves the collection, organization and critical examination of data to draw some
conclusions.
o Identifying Customer Base: A key benefit of statistical data analysis is that it plays a big role in
identifying a company’s customer base. When a business knows who their customers are, it
becomes easier to manufacture products that meet the specific needs of the target group.
o Identifying Production Quantities: Analyzing data can help in identifying the ideal production
quantity that will meet the demands of the target customer. When the production quantity is lower
than the demand, the company will end up missing out on sales and profits. Excess production
should also be avoided because it can cause a negative impact.
o Ability to Plan Production Based on Seasons: The demand for certain products fluctuates
depending on the season. Some products will have a high demand during the holiday seasons
whereas others will have a high demand during winter. Statistical analysis helps in identifying how
consumer preferences change with the seasons, and this aids in planning production based on
those preferences. By taking into account changing preferences and demand, manufacturing
companies can exhaust all opportunities throughout the year.
o Developing New Products: Introducing new products is one of the strategies that manufacturing
companies use to expand and increase profits. However, introducing new products is not easy and,
if not done right, the product will not sell. Statistical analysis can provide valuable information
needed to make decisions when introducing new products in the market. Analysis can be done to
establish the reliable markets for the product, and also to predict demand and sales. It can also help
in identifying the perfect launch timing.

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o Productivity Evaluation and Improvement: Profitability of manufacturing companies relies
largely on productivity. Statistical analysis can help in evaluating the productivity of team
members and departments and identifying measures you can take to boost productivity. This can
be achieved by analyzing factors such as units produced or tasks accomplished, input and output,
sales and number of customers, among many others.

Economics
Statistics for economics concerns itself with the collection, processing, and analysis of specific
economic data. It helps us understand and analyze economic theories and denote correlations between
variables such as demand, supply, price, output etc.
o Quantitative Expression: Statistics adds a touch of reliability and concreteness to economics by
quantitatively expressing data. For solving an economic problem is to gain an idea about its
magnitude using statistical data.
o Deduction of Economic Theories: A statistical agreement is a very significant step towards
establishing a general statement about economic entities. Therefore, statistics in economics helps
in establishing theoretical concepts and models by providing evidence.
o Identification of Patterns and forecasting Economic Events: Armed with statistical tools,
economists can easily study data for a particular purpose and identify patterns in the data. What it
does is puts them in a great position to predict future trends. Moreover, such knowledge can be
used for future planning.
o Formulation of Policies: The policies introduced can make or break the progress of a nation. Such
important decisions are made after a rigorous study of the nation’s statistical data. In fact, this is
done with the help of statistical tools.
o Economic Equilibrium: Economic equilibrium is the point of operation of both producers and
consumers. This is because, at this point, both of them are satisfied with the events in the market.
The market equilibrium id deduced with the help of statistics in economics.

Solution (v)

5.1 Statistical Table

a way of presenting statistical data through a systematic arrangement of the numbers describing some
mass phenomenon or process.

A statistical table may be regarded as representing a subject and predicate. The subject is the
phenomenon or group of phenomena treated in the table. The predicate consists of the characteristics
describing the subject.

5.1.1 Form
Statistical tables consist of horizontal rows and vertical columns. The subject of the table is generally
entered in the rows, and the characteristics making up the predicate are entered in the columns. The
intersections of the rows and columns form cells, in which the numerical data are arrayed. The meaning
of each number is indicated by the headings of the corresponding row and column.

5.1.2 Types
Three types of statistical tables are distinguished according to the structure of the subject. In simple
tables, the subject is a single phenomenon. In two-way tables, the subject exhibits classification with
respect to a single factor. In multiway tables, classifications with respect to two or more factors are
used in the subject.
Statistical tables should contain all the necessary information in compact form. The headings in the
tables should be precise and short. The units of measurement used should be indicated, as should the
place and time to which the information pertains.

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5.1.3 Different types of table Example
The marks secured by a batch of students in a class test are displayed in Table 1.
Table 1

This table 1 is based on a single characteristic namely marks and from this table one may observe the
number of students in each class of marks.
Table 2

Table 2 is an illustration for a two-way table, in which there are two characteristics, namely, marks
secured by the students in the test and the gender of the students. The table provides information
relating to two interrelated characteristics, such as marks and gender of students.

Table 3 is an example for a three – way table with three factors, namely, marks, gender and location.
TABLE 3

From this table 3, one may get information relating to the distribution of students according marks,
gender and geographical location from where they hail.

5.2 Statistical Graphs

A statistical graph or chart is defined as the pictorial representation of statistical data in graphical form. The
statistical graphs are used to represent a set of data to make it easier to understand and interpret statistical
information.

5.2.1 Types of Graphs in Statistics

The four basic graphs used in statistics include bar, line, histogram and pie charts. These are
explained here in brief.

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1. Bar Graph
The pictorial representation of a grouped data, in the form of vertical or horizontal rectangular bars,
where the lengths of the bars are equivalent to the measure of data, are known as bar graphs or bar
charts.

The bars drawn are of uniform width, and the variable quantity is represented on one of the axes. Also,
the measure of the variable is depicted on the other axes. The heights or the lengths of the bars denote
the value of the variable, and these graphs are also used to compare certain quantities. The frequency
distribution tables can be easily represented using bar charts which simplify the calculations and
understanding of data.

The three major attributes of bar graphs are:

1. The bar graph helps to compare the different sets of data among different groups easily.
2. It shows the relationship using two axes, in which the categories on one axis and the discrete
values on the other axis.
3. The graph shows the major changes in data over time.

Types of Bar Charts

The bar graphs can be vertical or horizontal. The primary feature of any bar graph is its length or
height. If the length of the bar graph is more, then the values are greater than any given data.
Bar graphs normally show categorical and numeric variables arranged in class intervals. They consist
of an axis and a series of labelled horizontal or vertical bars. The bars represent frequencies of
distinctive values of a variable or commonly the distinct values themselves. The number of values on
the x-axis of a bar graph or the y-axis of a column graph is called the scale.
The types of bar charts are as follows:
1. Vertical bar chart
2. Horizontal bar chart
Even though the graph can be plotted using horizontally or vertically, the most usual type of bar graph
used is the vertical bar graph. The orientation of the x-axis and y-axis are changed depending on the
type of vertical and horizontal bar chart. Apart from the vertical and horizontal bar graph, the two
different types of bar charts are:
1. Grouped Bar Graph
2. Stacked Bar Graph

1. Vertical Bar Graphs

When the grouped data are represented vertically in a graph or chart with the help of bars, where the
bars denote the measure of data, such graphs are called vertical bar graphs. The data is represented
along the y-axis of the graph, and the height of the bars shows the values.

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2. Horizontal Bar Graphs
When the grouped data are represented horizontally in a chart with the help of bars, then such graphs
are called horizontal bar graphs, where the bars show the measure of data. The data is depicted here
along the x-axis of the graph, and the length of the bars denote the values.

3. Grouped Bar Graph

The grouped bar graph is also called the clustered bar graph, which is used to represent the discrete
value for more than one object that shares the same category.
In this type of bar chart, the total number of instances are combined into a single bar. In other words,
a grouped bar graph is a type of bar graph in which different sets of data items are compared. Here, a
single colour is used to represent the specific series across the set. The grouped bar graph can be
represented using both vertical and horizontal bar charts.

4. Stacked Bar Graph

The stacked bar graph is also called the composite bar chart, which divides the aggregate into
different parts. In this type of bar graph, each part can be represented using different colours, which
helps to easily identify the different categories. The stacked bar chart requires specific labelling to
show the different parts of the bar. In a stacked bar graph, each bar represents the whole and each
segment represents the different parts of the whole.

Properties of Bar Graph

Some of the important properties of a bar graph are as follows:
 All the bars should have a common base.
 Each column in the bar graph should have equal width.
 The height of the bar should correspond to the data value.
 The distance between each bar should be the same.

Uses of Bar Graphs

Bar graphs are used to match things between different groups or to trace changes over time. Yet, when
trying to estimate change over time, bar graphs are most suitable when the changes are bigger.

Bar charts possess a discrete domain of divisions and are normally scaled so that all the data can fit on
the graph. When there is no regular order of the divisions being matched, bars on the chart may be
organized in any order. Bar charts organized from the highest to the lowest number are called Pareto
charts.

2. Line Graph
A graph that utilizes points and lines to represent change over time is defined as a line graph. In other
words, it is a chart that shows a line joining several points or a line that shows the relation between the
points. The diagram depicts quantitative data between two changing variables with a straight line or
curve that joins a series of successive data points. Linear charts compare these two variables on a
vertical and horizontal axis.

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3. Histogram
A histogram chart displays the frequency of discrete and continuous data in a dataset using
connected rectangular bars. Here, the number of observations that fall into a predefined class interval
represented by a rectangular bar.

4. Pie Chart
A pie chart used to represent the numerical proportions of a dataset. This graph involves dividing a
circle into various sectors, where each sector represents the proportion of a particular element as a
whole. This is also called a circle chart or circle graph.

5.2.2 Frequency Distribution Graph

A frequency distribution graph is used to show the frequency of the outcomes in a particular sample.
For frequency distribution graphs, the table of values made by placing the outcomes in one column
and the number of times they appear (i.e. frequency) in the other column. This table is known as the
frequency distribution table from which the cumulative frequency graph or ogive can be plotted.
There are two commonly used frequency graphs which include:
1. Frequency Polygon
2. Cumulative Frequency Distribution Graphs

Frequency Polygons
A frequency polygon is almost identical to a histogram, which is used to compare sets of data or to
display a cumulative frequency distribution. It uses a line graph to represent quantitative data.

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Frequency polygons are a visually substantial method of representing quantitative data and its
frequencies.

Example: ABCDEF represents the given data graphically in form of frequency polygon as:

and Numerical

Cumulative Frequency Distribution Graphs

Representation of data in a tabular or graphical form which indicates the frequency (number of times an
observation occurs within a particular interval) is known as a frequency distribution of data.

In a set of data or observations, cumulative frequency is used to determine the number of observations which
lie above a specific observation. To calculate the cumulative frequency for a particular observation, frequency
of that observation is added to the sum of frequencies of its predecessors. The last observation’s cumulative
frequency is the sum of all the frequencies of the entire data set.

Graphical Representation
Representation of cumulative frequency graphically is easy and convenient as compared to representing it using
table, bar-graph, frequency polygon etc.

The cumulative frequency graph can be plotted in two ways:

1. Cumulative frequency distribution curve(or ogive) of less than type
2. Cumulative frequency distribution curve(or ogive) of more than type

Graph 1: Cumulative frequency distribution curve of less than type

Graph 2: Cumulative frequency distribution curve of more than type

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 Part 2
i. Ungrouped data and grouped data
ii. Frequency distribution
iii. Answer the Self-Test Questions 2:11on pages 52-53
iv. Answer the Self-Test Questions 3:16 on pages 92-93

Solution (i)

Ungrouped Data
Ungrouped data is the data you first gather from an experiment or study. The data is raw — that is,
it’s not sorted into categories, classified, or otherwise grouped. An ungrouped set of data is basically
a list of numbers.

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Grouped Data
Data formed by arranging individual observations of a variable into groups, so that a frequency
distribution table of these groups provides a convenient way of summarizing or analyzing the data is
termed as grouped data.

 Grouping of data plays a significant role when we have to deal with large data. This information can also
be displayed using a pictograph or a bar graph.
 Data formed by arranging individual observations of a variable into groups, so that a frequency distribution
table of these groups provides a convenient way of summarizing or analyzing the data is termed as grouped
data.

Solution (ii)

Frequency distribution
Frequency distribution in statistics is a representation that displays the number of observations within a
given interval.
o As a statistical tool, a frequency distribution provides a visual representation for the distribution of
observations within a particular test.
o The representation of a frequency distribution can be graphical or tabular so that it is easier to
understand.
o Frequency distributions are particularly useful for normal distributions, which show the observations
of probabilities divided among standard deviations.
o In finance, traders use frequency distributions to take note of price action and identify trends.

Table 1: Grouped Frequency Distribution Table

Solution (iii)

2.11 SELF-TEST QUESTIONS

1. What are the desiderata (requirements) of a good average? Compare the mean, the median
and the mode in the light of these desiderata? Why averages are called measures of central
tendency?
Solution:
Requirement of a good average
According to Professor Yule, the following are the characteristics to be satisfied by an ideal measure
of central tendency:
 It should be rigidly defined – The definition of an average should be clear and rigid so that there
must be uniformity in its interpretation by different decision- makers or investigators. There should
not be chance for applying discretion; rather it should be defined by an algebraic formula.
 It should be based on all observations – To ensure that it should represent the entire data set, its
value should be calculated by taking into consideration the entire data set.

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 It should be easy to understand and calculate – The value of an average should be computed by
using a simple method without reducing its accuracy and other advantages.
 It should have sampling stability – The value of an average calculated from various independent
random samples of the sample size from a given population should not vary much from another.
The least amount of difference (if any) in the values is considered to be the sampling error.
 It should be capable of further algebraic treatment – The nature of the average should be such
that it could be used for statistical analysis of the data set. For example, it should be possible to
determine the average production in a particular year by the use of average production in each
month of that year.
 It should not be unduly affected by extreme observations – The value of an average should not
be unduly affected by very large observations in the given data. Otherwise the average value may
not truly represent characteristics of the entire set of data.

Comparison of Mean Median and Mode

There’s a relationship between mean, median and mode and is called an empirical relationship
between them.

Sl.
Mean Median Mode
No.
The average was taken for a The number that occurs the most in a
The middle value in the
1. set of numbers is called a given list of numbers is called a
data set is called Median.
mean. mode.
Add all of the numbers
Place all the given
together and divide this sum
2. of all numbers by a total
numbers in an ascending It shows the frequency of occurrence.
order
number of numbers.
The next step is to find the
The result is the mean or We can have more than one mode or
3. middle number on the list.
average score. no mode at all.
It is called as the median.
Example: To find the
Example: If the given list Example: In the given series
average of the four numbers
is 4, 2, 8, 10, 19. 3,3,5,6,7,7,8,1,1,1,4,5,6
2, 4, 6, 8, we need to add the
1. Arrange the numbers 1. Find the frequency of each
number first.
in ascending order i.e. number.
1. 2 + 4 + 6+ 8 = 20
4. 2, 4, 8, 10, 19. 2. For number 3 it’s 2, for 5 it’s 2,
2. Divide the sum by the
2. As the total numbers for 6 it’s 2, for 7 it’s 2, for 8 it’s
total number of numbers,
are 5, so the middle one, for 1 it’s 3, for 4 it’s 1.
i. e 4.
number 8 is the 3. The number with the highest
3. 20/4 = 5 is the average or
median here. frequency is the mode.
mean

**2. "Every average has its own peculiar characteristics. It is difficult to say which average is
the best." Explain with examples.

3. What do you understand .by 'Central Tendency'? Under what conditions is the median more
suitable than other measures of central tendency?

The median is usually preferred to other measures of central tendency when data set is skewed (i.e.,
forms a skewed distribution) or you are dealing with ordinal data. However, the mode can also be
appropriate in these situations, but is not as commonly used as the median.

Nazrul Islam_1810181
17
4. The average monthly salary paid to all employees in a company was Rs 8,000. The average monthly
salaries paid to male and female employees of the company were Rs 10,600 and Rs 7,500 respectively.
Find out the percentages of males and females employed by the company.
Solution: Given, X ̅̅̅1 = 10600, X
̅̅̅2 = 7500, 𝑎𝑛𝑑 X
̅̅̅̅̅
12 = 8000

Let the number of male employees = n1 and the number of female employees = n2

𝑛1 ̅̅̅
𝑋1 + 𝑛2 ̅̅̅
𝑋2 10600𝑛1 + 7500𝑛2
𝑇ℎ𝑒𝑛, ̅̅̅̅̅
𝑋12 = 𝑜𝑟, 8000 =
𝑛1 + 𝑛2 𝑛1 + 𝑛2

𝑜𝑟, 8000𝑛2 − 7500𝑛2 = 10600𝑛1 − 8000𝑛1 𝑜𝑟, 500𝑛2 = 2600𝑛1 ∴ 𝑛1 : 𝑛2 = 5: 26

5
% of Male employees = 31 × 100 = 16.129%
26
% of Female employees = 31 × 100 = 83.870%

5. Calculate the arithmetic mean from the following data:

Class 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89
Frequency 2 4 9 11 12 6 4 2
Solution:
Class Mid-point(𝒙) Frequency(𝒇) 𝒇𝒙
10-19 14.5 2 29
20-29 24.5 4 98
30-39 34.5 9 310.5
40-49 44.5 11 489.5
50-59 54.5 12 654
60-69 64.5 6 387
70-79 74.5 4 298
80-89 84.5 2 169
Total n= 50 ∑ 𝑓𝑥 = 2435

∑ 𝑓𝑥 2435
Now, Mean 𝑥̅ = = = 48.7
𝑛 50

6. Calculate the mean, median and mode from the following data:

Height
in 62-63 63-64 64-65 65-66 66-67 67-68 68-69
Inches
Number
of 2 6 14 16 8 3 1
Persons
Solution:
Height in Inches Number of Person (f) CF Mid-point(x) fx
62-63 2 2 62.5 125
63-64 6 8 63.5 381
64-65 14 22 64.5 903
65-66 16 38 65.5 1048
66-67 8 46 66.5 532
67-68 3 49 67.5 202.5
68-69 1 50 68.5 68.5
Total n = 50 ∑ 𝑓𝑥 = 3260

Nazrul Islam_1810181
18
 ∑ 𝑓𝑥 3260
̅=
Mean 𝐌𝐞𝐚𝐧, 𝒙 = = 65.2
𝑛 50

Median
𝑛 50
Here, n= 50 and = = 25
2 2

median is the value of 25th term that lies in the class (65-66). Hence, the median class is (65-66).

Here, the lower limit of the median class, L = 65

𝒏
= 𝟐𝟓
𝟐
the cumulative frequency of previous class to median class, F = 22
the class interval, 𝐡 = 𝟔𝟔 − 𝟔𝟓 = 𝟏
the frequency of the median class, 𝒇𝒎 = 16
𝑛 ℎ 1
So, Median = 𝐿 + ( − 𝐹) × = 65 + (25 − 22) × = 65.1875
2 𝑓𝑚 16

Required median 65.1875

𝒇𝟏
Mode 𝐖𝐞 𝐤𝐧𝐨𝐰, 𝐌𝐨𝐝𝐞 = 𝑳 + (𝒇 )𝒉
𝟏 +𝒇𝟐
Where, L is the lower limit of the mode-class i.e. the class where the mode lies,
𝑓1 = frequency of mode-class – frequency of the class previous
𝑓2 = frequency of mode-class – frequency of the next class of mode
and ℎ = class interval

Here, Class with the highest frequency is 16. So, mode-class is (65-66)
𝐋 = 𝟔𝟓, 𝒇𝟏 = 𝟏𝟔 − 𝟏𝟒 = 𝟐, 𝒇𝟐 = 𝟏𝟔 − 𝟖 = 𝟖 𝒂𝒏𝒅 𝒉 = 𝟏

𝟐
𝐌𝐨𝐝𝐞 = 𝟔𝟓 + ( ) 𝟏 = 𝟔𝟓. 𝟐
𝟐+𝟖

7. A number of particular articles have been classified according to their weights. After drying for two
weeks, the same articles have again been weighed and similarly classified. It is known that the median
weight in the first weighing was 20.83 gm while in the second weighing it was 17.35 gm. Some
frequencies a and b in the first weighing and x and y in the second are missing. It is known that a =
1/3 x and b = 1/2 y. Find out the values of the missing frequencies.
Frequencies
Class
First weighing Second weighing
0-5 a x
5-10 b y
10-15 11 40
15-20 52 50
20-25 75 30
25-30 22 28

Solution:
For first weighing For second weighing
Class
Frequency (f) CF Frequency (f) CF
0-5 a a x x
5-10 b a+b y x+y
10-15 11 a + b + 11 40 x + y + 40
15-20 52 a + b + 63 50 x + y + 90
20-25 75 a + b + 138 30 x + y + 120
25-30 22 a + b + 160 28 x + y + 148
Total n = a + b + 160 n = x + y + 148

Nazrul Islam_1810181
19
 1 1
Given, 𝑎 = 3 𝑥 and 𝑏 = 2 𝑦.
Median weight 1 = 20.83 gm
Median weight 2 = 17.35 gm
𝑛 ℎ
We know, Median = 𝐿 + ( − 𝐹) ×
2 𝑓𝑚
Since median is given as 20.83 in the first weighing, it is clear that it lies in the 20-25 class.
𝑛 𝑎 + 𝑏 + 160
𝐿 = 20, = , 𝐹 = 𝑎 + 𝑏 + 63, ℎ = 5, 𝑎𝑛𝑑 𝑓𝑚 = 75
2 2

𝒏 𝑎 + 𝑏 + 160 34 − 𝑎 − 𝑏
𝑁𝑜𝑤, − 𝑭 = [ ] − [63 + 𝑎 + 𝑏] =
𝟐 2 2

Applying the formula given above,

34 − 𝑎 − 𝑏 5
20.83 = 20 + ( )×
2 75

34 − 𝑎 − 𝑏 634 − 𝑎 − 𝑏
or, 20.83 = 20 + =
30 30

or, 624.9 = 634 − 𝑎 − 𝑏

or, a + b = 9.1

x 𝑦
or, + = 9.1
3 2

or, 2x + 3y = 54.6

𝟓𝟒. 𝟔 − 𝟑𝒚
𝐨𝐫, 𝐱 = … … (𝒊)
𝟐

Now, we take the second weighing and proceed the same manner,
Since median is given as 17.35 in the second weighing, it is clear that it lies in the 15-20 class.
𝑛 𝑥 + 𝑦 + 138
𝐿 = 15, = , 𝐹 = 𝑥 + 𝑦 + 40, ℎ = 5, 𝑎𝑛𝑑 𝑓𝑚 = 50
2 2

𝒏 𝑥 + 𝑦 + 148 68 − 𝑥 − 𝑦
𝑁𝑜𝑤, − 𝑭 = [ ] − [𝑥 + 𝑦 + 40] =
𝟐 2 2

Applying the formula given above,

68 − 𝑥 − 𝑦 5
17.35 = 15 + ( )×
2 50
68 − 𝑥 − 𝑦 368 − 𝑥 − 𝑦
or, 17.35 = 15 + =
20 20

or, 347 = 368 − 𝑥 − 𝑦

or, x + y = 21

54.6 − 3y
or, + y = 21 [𝑭𝒓𝒐𝒎 𝒆𝒒𝒏. (𝒊)]
2

or, 54.6 − y = 42 ∴ 𝐲 = 𝟏𝟐. 𝟔

Nazrul Islam_1810181
20
 54.6 − 37.8
𝑁𝑜𝑤, 𝑓𝑟𝑜𝑚 𝑒𝑞𝑛. (𝑖 )𝑏𝑦 𝑝𝑢𝑡𝑡𝑖𝑛𝑔 𝑡ℎ𝑒 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑦 𝑤𝑒 𝑔𝑒𝑡, 𝑥 = ∴ 𝒙 = 𝟖. 𝟒
2
8.4 12.6
Hence, 𝑎 = = 2.8 and 𝑏 = = 6.3
3 2

Rounding them off to the nearest integer, we get

a = 3, b = 6 and x = 9, y = 12

8. Cities A, B and C are equidistant from each other. A motorist travels from A to B at 30 km/h;
from B to C at 40 km/h and from C to A at 50 km/h. Determine his average speed for the entire
trip.

Solution:
From A to B: 𝑆𝑝𝑒𝑒𝑑 = 30𝑘𝑚ℎ−1
From B to C: 𝑆𝑝𝑒𝑒𝑑 = 40𝑘𝑚ℎ−1
From C to A: 𝑆𝑝𝑒𝑒𝑑 = 50𝑘𝑚ℎ−1

Number of observation = 3
n 3 3 600
𝑁𝑜𝑤, 𝐻𝑀 = = = =3× = 𝟑𝟖. 𝟐𝟗𝟕𝟖 𝒌𝒎𝒉−𝟏
1 1 1 1 47 47
∑( )
x 30 + 40 + 50 600

9. Calculate the harmonic mean from the following data:

Class-Interval: 𝟐 − 𝟒 𝟒 − 𝟔 𝟔−𝟖 𝟖 − 𝟏𝟎
Frequency: 𝟐𝟎 𝟒𝟎 𝟑𝟎 𝟏𝟎

Solution
𝒇
Class-Interval Frequency (f) Mid-point(x)
𝒙
2-4 20 3 6.666
4-6 40 5 8
6-8 30 7 4.285
8-10 10 9 1.111
𝑓
Total n = 100 ∑ = 20.061
𝑥

n 100
𝐇. 𝐌. = = = 𝟒. 𝟗𝟖𝟒
𝑓 20.061
∑( )
𝑥

10. A vehicle when climbing up a gradient, consumes petrol @ 8 km per litre. While coming down
it runs 12 km per litre. Find its average consumption for to and fro travel between two places situated
at the two ends of 25 Ian long gradient.

25
When we climbing up: 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 1 = 𝑙𝑡𝑟.
8

25
When we coming down: 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 2 = 𝑙𝑡𝑟.
12

25 25
Average consumption: ( 8 + 12) ÷ 2 = 2.60 𝑙𝑡𝑟.

Nazrul Islam_1810181
21
 Solution (iv)

3.16 SELF TEST QUESTIONS

1. What do you mean by dispersion? What are the different measures of dispersion?

Definition
Dispersion is the state of getting dispersed or spread. Statistical dispersion means the extent to which
a numerical data is likely to vary about an average value. In other words, dispersion helps to understand
the distribution of the data.

Measures of Dispersion
In statistics, the measures of dispersion help to interpret the variability of data i.e. to know how much
homogenous or heterogeneous the data is. In simple terms, it shows how squeezed or scattered the
variable is.

Types of Measures of Dispersion

There are two main types of dispersion methods in statistics which are:
1. Absolute Measure of Dispersion
2. Relative Measure of Dispersion

Absolute Measure of Dispersion

An absolute measure of dispersion contains the same unit as the original data set. Absolute dispersion
method expresses the variations in terms of the average of deviations of observations like standard or
means deviations.

The types of absolute measures of dispersion are:

1. Range: It is simply the difference between the maximum value and the minimum value given in a data set.
Example: 1, 3,5, 6, 7 => Range = 7 -1= 6
2. Variance: Deduct the mean from each data in the set then squaring each of them and adding each square and
finally dividing them by the total no of values in the data set is the variance. Variance (σ 2)=∑(X−μ)2/N
3. Standard Deviation: The square root of the variance is known as the standard deviation i.e. S.D. = √σ.
4. Quartiles and Quartile Deviation: The quartiles are values that divide a list of numbers into quarters. The
quartile deviation is half of the distance between the third and the first quartile.
5. Mean and Mean Deviation: The average of numbers is known as the mean and the arithmetic mean of the
absolute deviations of the observations from a measure of central tendency is known as the mean deviation (also
called mean absolute deviation).

Relative Measure of Dispersion

The relative measures of dispersion are used to compare the distribution of two or more data sets. This measure
compares values without units. Common relative dispersion methods include:

1. Co-efficient of Range
2. Co-efficient of Variation
3. Co-efficient of Standard Deviation
4. Co-efficient of Quartile Deviation
5. Co-efficient of Mean Deviation

2. “Variability is not an important factor because even though the outcome is more certain, you
still have an equal chance of falling either above or below the median. Therefore, on an average,
the outcome will be the same.” Do you agree with this statement? Give reasons for your answer.

Two data sets can have the same mean but they can be entirely different. Thus to describe data, one
needs to know the extent of variability. This is given by the measures of dispersion. Range,
interquartile range, and standard deviation are the three commonly used measures of dispersion.

Nazrul Islam_1810181
22
3. Why is the standard deviation the most widely used measure of dispersion? Explain.
Reason behind why standard deviation used most widely:
(i) It is based on all values and thus, provides information about the complete series. Because of this
reason, a change in even one value affects the value of standard deviation.
(ii) It is independent of origin but not of scale.
(iii) It is useful in advance statistical calculations like comparison of variability in two data sets.
(iv) It can be used in testing of hypothesis.
(v) It is capable of further algebraic treatment.

4. Define skewness and Dispersion.

Dispersion
Dispersion is the state of getting dispersed or spread. Statistical dispersion means the extent to which
a numerical data is likely to vary about an average value. In other words, dispersion helps to understand
the distribution of the data.

Skewness
Skewness is a measure of the symmetry of a distribution. The highest point of a distribution is its mode.
The mode marks the response value on the x-axis that occurs with the highest probability.

A distribution is skewed if the tail on one side of the mode is fatter or longer than on the other: it is
asymmetrical.

In an asymmetrical distribution a negative skew indicates that the tail on the left side is longer than on
the right side (left-skewed), conversely a positive skew indicates the tail on the right side is longer than
on the left (right-skewed). Asymmetric distributions occur when extreme values lead to a distortion of
the normal distribution.

5. Define Kurtosis and Moments.

Moments
Moments are a set of statistical parameters to measure a distribution. Four moments are commonly
used:
• 1st moment - Mean (describes central value)
• 2nd moment - Variance (describes dispersion)
• 3rd moment - Skewness (describes asymmetry)
• 4th moment - Kurtosis (describes peakedness)

Kurtosis
Kurtosis refers to the degree of peakedness of a frequency curve. It tells how tall and sharp the
central peak is, relative to a standard bell curve of a distribution.

Kurtosis can be described in the following ways:

• Platykurtic– When the kurtosis < 0, the frequencies throughout the curve are closer to be equal (i.e.,
the curve is more flat and wide)
• Leptokurtic– When the kurtosis > 0, there are high frequencies in only a small part of the curve (i.e,
the curve is more peaked)
• Mesokurtic- When the kurtosis = 0

Nazrul Islam_1810181
23
6. What are the different measures of skewness? Which one is repeatedly used?
Answer: There are four measures of skewness, each divided into absolute and relative measures. The
relative measure is known as the coefficient of skewness and is more frequently used than the absolute
measure of skewness. Further, when a comparison between two or more distributions is involved, it is
the relative measure of skewness, which is used.
The measures of skewness are:
(i) Karl Pearson's measure
(ii) Bowley’s measure
(iii) Kelly’s measure
(iv) Moment’s measure.

***7. Measures of dispersion and skewness are complimentary to one another in understanding
a frequency distribution." Elucidate the statement.

8. Calculate Karl Pearson's coefficient of skewness from the following data

Weekly Sales (Rs lakh) Number of Companies

10-12 12
12 – 14 18
14 – 16 35
16 - 18 42
18 – 20 50
22-24 30
24-26 8

Solution
Here, Class interval, h = 2
Approximate mean, a = 17
Mid-value 𝑥 − 17 cf
Class(x) Frequency (𝒇) 𝒅 = 𝒇𝒅 𝒇𝒅𝟐
x 2
10 – 12 12 11 -3 -36 108 12
12 – 14 18 13 -2 -36 72 30
14 – 16 35 15 -1 -35 35 65
16 – 18 42 17a -0 0 0 107
18 – 20 50 19 1 50 50 157
22 – 24 30 21 2 60 120 187
24 – 26 8 23 3 24 72 195
Total n = 195 ∑ 𝑓𝑑 = 27 ∑ 𝑓𝑑 2 = 457

∑ 𝑓𝑑 27
̅= 𝑎+(
∴ 𝑴𝒆𝒂𝒏 𝒙 ) ℎ = 17 + (195) 2 = 𝟏𝟕. 𝟐𝟕𝟔
𝑛

Median
𝑛 195
Here, n =195 and = = 97.5
2 2

median is the value of 97th term that lies in the class (16-18). Hence, the median class is (16-18).

Here, the lower limit of the median class, L = 16

𝒏
= 𝟗𝟕. 𝟓
𝟐
the cumulative frequency of previous class to median class, F = 65
the class interval, 𝐡 = 𝟏𝟖 − 𝟏𝟔 = 𝟐
the frequency of the median class, 𝒇𝒎 = 42

Nazrul Islam_1810181
24
 𝑛 ℎ 2
So, Median = 𝐿 + ( − 𝐹) × = 16 + (97.5 − 65) × = 𝟏𝟕. 𝟓𝟒𝟕𝟔
2 𝑓𝑚 42

Required median 17.547

(∑ 𝑓𝑑 )2
∑ 𝑓𝑑 2 −
∴ 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛, 𝝈 = √( 𝑛 )×ℎ
𝑛

(27)2
457 −
= √( 195 ) × 2 = √(457 − 3.7384) × 2 = 𝟑. 𝟎𝟒
195 50

𝑁𝑜𝑤, 𝑆𝑘𝑒𝑤𝑛𝑒𝑠𝑠 = 3 (𝑀𝑒𝑎𝑛 − 𝑀𝑒𝑑𝑖𝑎𝑛)

= 3 (17.276 − 17.547) = −𝟎. 𝟖𝟏𝟐𝟏

𝑆𝑘𝑒𝑤𝑛𝑒𝑠𝑠 .8121
Coefficient of skewness = 𝑆𝐷
=− 3.04
= −. 𝟐𝟔𝟕𝟏

9. For a distribution, the first four moments about zero are 1,7,38 and 155 respectively. (i)
Compute the moment coefficients of skewness and kurtosis. (ii) Is the distribution mesokurtic?
Give reason.

Solution
Given that, 𝜇1′ = 1, 𝜇2′ = 7, 𝜇3′ = 38 𝑎𝑛𝑑 𝜇4′ = 155

∴ 𝜇1 = 𝜇1′ − 𝜇1′ = 0

∴ 𝜇2 = 𝜇2′ − (𝜇1′ )2 = 7 − 12 = 6
3
∴ 𝜇3 = 𝜇3′ − 3𝜇2′ 𝜇1′ + 2𝜇1′

= 38 − (3 × 7 × 1) + 2(1)3 = 19
2 4
∴ 𝜇4 = 𝜇4′ − 4𝜇1′ 𝜇3′ + 6𝜇2′ 𝜇1′ − 3𝜇1′

= 155 − (4 × 1 × 38) + (6 × 7 × 12 ) − 3 × 14 = 42

𝜇2 (19)2
Skewness, 𝛽1 = 𝜇33 = (6)3
= 1.671
2

𝜇 42
Kurtosis, 𝛽2 = 𝜇42 = (6)2 = 1.666 ≠ 3. 𝐻𝑒𝑛𝑐𝑒, 𝑖𝑡 𝑖𝑠 𝑛𝑜𝑡 𝑚𝑒𝑠𝑜𝑘𝑢𝑟𝑡𝑖𝑐
2

Nazrul Islam_1810181
25
10. The first four moments of a distribution about the value 4 are 1,4, 10 and 45. Obtain various
characteristics of the distribution on the basis of the information given. Comment upon the
nature of the distribution.

Solution
Given that, 𝜇1′ = 1, 𝜇2′ = 4, 𝜇3′ = 10 𝑎𝑛𝑑 𝜇4′ = 45

∴ 𝜇1 = 𝜇1′ − 𝜇1′ = 0

∴ 𝜇2 = 𝜇2′ − (𝜇1′ )2 = 4 − 12 = 3
3
∴ 𝜇3 = 𝜇3′ − 3𝜇2′ 𝜇1′ + 2𝜇1′

= 10 − (3 × 4 × 1) + 2(1)3 = 0
2 4
∴ 𝜇4 = 𝜇4′ − 4𝜇1′ 𝜇3′ + 6𝜇2′ 𝜇1′ − 3𝜇1′

= 45 − (4 × 1 × 10) + (6 × 4 × 12 ) − 3 × 14 = 26

𝜇2 (0)2
Skewness, 𝛽1 = 𝜇33 = (3)3 = 0 that indicates symmetry.
2

𝜇4 26
Kurtosis, 𝛽2 = = (3)2 = 2.888 < 3. 𝐻𝑒𝑛𝑐𝑒, 𝑖𝑡 𝑖𝑛𝑑𝑖𝑐𝑎𝑡𝑒𝑠 𝑎 𝑝𝑙𝑎𝑡𝑦𝑘𝑢𝑟𝑡𝑖𝑐 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛
𝜇22

β1 β2 β3 β4

β1 β2

β3 β4

β2

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Here, Class interval, h = 10
Approximate mean, a = 35
Mid- 𝒅
Frequency
Class(x) value 𝑥 − 35 𝒇𝒅 𝒇𝒅𝟐 𝒇𝒅𝟑 𝒇𝒅𝟒
(𝒇) =
x 10
0 – 10 5 5 -3 -15 45 -135 405
10 – 20 12 15 -2 -24 48 -196 392
20 – 30 18 25 -1 -18 18 -18 18
30 – 40 40 35a -0 0 0 0 0
40 – 50 15 45 1 15 15 15 15
50 – 60 7 55 2 14 28 56 112
60 – 70 3 65 3 9 27 81 243
∑ 𝑓𝑑 = ∑ 𝑓𝑑 2 = ∑ 𝑓𝑑 3 = ∑ 𝑓𝑑 4 =
Total n = 100
−19 181 −197 1185

∑ 𝑓𝑑 −19 ∑ 𝑓𝑑2 181

𝝁′𝟏 = ×ℎ= × 10 = −𝟏. 𝟗 𝝁′𝟐 = × ℎ = 100 × 10 = 𝟏𝟖. 𝟏
𝑛 100 𝑛

∑ 𝑓𝑑3 −197 ∑ 𝑓𝑑4 1185

𝝁′𝟑 = ×ℎ= × 10 = −𝟏𝟗. 𝟒 𝝁′𝟒 = ×ℎ = × 10 = 𝟏𝟏𝟖. 𝟓
𝑛 100 𝑛 100

∴ 𝜇1 = 𝜇1′ − 𝜇1′ = 0

∴ 𝜇2 = 𝜇2′ − (𝜇1′ )2 = 18.1 − (−1.9)2 = 14.49

3
∴ 𝜇3 = 𝜇3′ − 3𝜇2′ 𝜇1′ + 2𝜇1′ = −19.4 − (3 × 18.1 × −1.9) + 2(−1.9)3 = 70.052
2 4
∴ 𝜇4 = 𝜇4′ − 4𝜇1′ 𝜇3′ + 6𝜇2′ 𝜇1′ − 3𝜇1′

= 118.5 − (4 × −1.9 × −19.4) + (6 × 18.1 × 1.92 ) − 3 × (−1.9)4 = 324.0097

𝜇2 (70.052)2
Skewness, 𝛽1 = 𝜇33 = (14.49)3
= 1.613
2

𝜇 324.0097
Kurtosis, 𝛽2 = 𝜇42 = (14.49)2
= 1.543 < 3. 𝐻𝑒𝑛𝑐𝑒, 𝑖𝑡 𝑖𝑛𝑑𝑖𝑐𝑎𝑡𝑒𝑠 𝑎 𝑝𝑙𝑎𝑡𝑦𝑘𝑢𝑟𝑡𝑖𝑐 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛
2

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