MTU Stat Dept Introduction to statistics for engineer's Chapter - 2

CHAPTER - 2
2. Summarization of Data
2.1 Measures of Central Tendency
The most important objective of a statistical analysis is to determine a single value for the entire
mass of data, which describes the overall level of the group of observations and can be called a
representative of the whole set of data. It tells us where the center of the distribution of data is
located. The most commonly used measures of central tendencies are :
 The Mean (Arithmetic mean, Weighted mean, Geometric mean and Harmonic means)
 The Mode
 The Median

The Summation Notation:

 Let , ,…, be the number of measurements where is the total number of
observation and , is the ith observation.
 Very often in statistics an algebraic expression of the form + + ⋯+ is used in
a formula to compute a statistic. It is tedious to write an expression like this very often,
so mathematicians have developed a shorthand notation to represent a sum of scores,
called the summation notation.
 The symbol ∑ is a mathematical shorthand for + + ⋯+ .
ℎ , ∑ = + + ⋯+ → ℎ .
∑ = + + ⋯+ → ℎ .
Example: Suppose the following were scores (marks) made on the first assignment for
five students in the class: 5, 7, 7, 6, 8. Write their marks using summation notation.
Solution: ∑ = + + ⋯+ = 5 + 7 + 7 + 6 + 8 = 33
Properties of summation
1. ∑ = .
2. ∑ = ∑
3. ∑ ( ± ) = ∑ ±
4. ∑ ( + )=∑ +∑
5. ∑ = + + ⋯+
( )
6. 1 + 2 + 3+ 4 + ⋯+ =
( )( )
7. 1 + 2 +3 + ⋯ + =

2.2 Types of Measure of Central Tendency

2.2.1 The Mean
2.2.1.1 Arithmetic mean
The arithmetic mean of a sample is the sum of all observations divided by the number of
observations in the sample. i.e.

=

Suppose that , ,…, are n observed values in a sample of size n taken from a population
of size N. Then the arithmetic mean of the sample, denoted by ̅ , is given by

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 MTU Stat Dept Introduction to statistics for engineer's Chapter - 2

⋯ ∑
= = → .

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

⋯ ∑
μ = = → .

In general, the sample arithmetic mean is calculated by

⎧ ∑ →
⎪
= ∑ ∑
→ ℎ ∑ = .
⎨
⎪∑ → ℎ ∑ = .
⎩ ∑

Example 1: The net weights of five perfume bottles selected at random from the production
line 85.4, 85.3, 84.9, 85.4 85. What is the arithmetic mean weight of the sample
observation?
Solution; = 5 = 85.4, = 85.3, = 84.9, = 85.4 = 85.
∑ . . . . .
= = = = 85.32.

Example 2: Calculate the mean of the marks of 46 students given below;

Marks ( ) 9 10 11 12 13 14 15 16 17 18
Frequency ( ) 1 2 3 6 10 11 7 3 2 1

Solution: ∑ = = 46 is the sum of the frequencies or total number of observations.

To calculate ∑ consider the following table.

9 10 11 12 13 14 15 16 17 18 Total
1 2 3 6 10 11 7 3 2 1 46
9 20 33 72 130 154 105 48 34 18 623

So =∑ ∑
= = 13.54.

Example 3: The net income of a sample of large importers of Urea was organized into the
following table. What is the arithmetic mean of net income?

Net income 2-4 5-7 8-10 11-13 14-16

Number of importers 1 4 10 3 2

Solution: ∑ = = 20 is the sum of the frequencies or total number of observations.

To calculate ∑ consider the following table.

Net income (CI) 2-4 5-7 8-10 11-13 14-16 Total

Number of importers ( ) 1 4 10 3 2 20
Class marks ( ) 3 6 9 12 15
3 24 90 36 30 183

So = ∑ ∑ = = . .

Example 4: From the following data, calculate the missing frequency? The mean number of
tablets to cure ever was 29.18.

Number of tablets 19 − 21 22 − 24 25 − 27 28 − 30 31 − 33 34 − 36 37 − 39
Number of persons cured 6 13 19 18 12 9

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 MTU Stat Dept Introduction to statistics for engineer's Chapter - 2

Solution; ∑ = = 77 + is the sum of the frequencies or total number of observations.

To calculate ∑ consider the following table.

CI 19 − 21 22 − 24 25 − 27 28 − 30 31 − 33 34 − 36 37 − 39 Total
6 13 19 18 12 9 77+
20 23 26 29 32 35 38
120 299 494 29 576 420 342 2251 + 29

29.18 ℎ
2251 + 29
= =≫ 29.18 = =≫ 29.18 (77+ ) = 2251 + 29
∑ 77+
.
=≫ 29.18 − 29 = 2251 − 2246.86 =≫ 0.18 = 4.14 =≫ = = 23.
.
Combined mean
If we have an arithmetic means , ,…, of n groups having the same unit of measurement
of a variable, with sizes , ,…, observations respectively, we can compute the combined
mean of the variant values of the groups taken together from the individual means by
⋯ ∑
= = ∑
⋯

Example 1: Compute the combined mean for the following two sets.
: 1, 4, 12, 2, 8 6 ; : 3, 6, 2, 7 4.
∑ ∑
Solution: = 6, ̅ = = = 5.5 ; = 6, ̅ = = = 4.4.

̅ + ̅ 6 5.5 + 5 4.4 55
= = = = 5.
+ 6+5 11
Example 2: The mean weight of 150 students in a certain class is 60 kg. The mean
weight of boys in the class is 70 kg and that of girl’s is 55 kg . Find the number of boys
and girls in the class?
Solution; Let be the number of boys and be the number of girls in the class.
Also let , be the mean weights of boys, girls and the mean weights of all
students respectively. Then = 70, = 55 = 60. + = 150.
̅ ̅
= =≫ 60 = =≫ 60 =

=≫ 9000 = 70 + 55 … . … (1)
150 = + … … (2)
(1) (2) , = 50 = 100.
Disadvantages of the arithmetic mean
1. The mean is meaningless in the case of nominal or qualitative data.
2. In case of grouped data, if any class interval is open ended, arithmetic mean cannot be
calculated, since the class mark of this interval cannot be found.
2.2.1.2 Weighted mean
In the computation of arithmetic mean, we had given an equal importance to each observation.
Sometimes the individual values in the data may not have an equally importance. When this is
the case, we assigned to each weight which is proportional to its relative importance.
 The weighted mean of a set of values , ,…, with corresponding weights
, ,…, denoted by ̅ is computed by:

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 MTU Stat Dept Introduction to statistics for engineer's Chapter - 2

+ +⋯+ ∑
= =
+ + ⋯+ ∑
The calculation of cumulative grade point average (CGPA) in Colleges and Universities is a
good example of weighted mean.
Example: If a student scores "A" in a 3 EtCTS course, "B" in a 6 EtCTS course, "B" in
another 5 EtCTS course and "D" in a 2 EtCTS course. Compute his /her GPA for the semester.
Solution: Here the numerical values of the letter grades are the values (i.e. = 4, =
3, = 2 = 1) and the corresponding EtCTS of the course are their respective
weights. i.e.

Grade values ( ) 4 3 3 1
Weight ( ) 3 6 5 2

⋯ ∑
= = = ∑
= = = = 2.9375.
⋯

2.2.1.3 Geometric mean

In algebra geometric mean is calculated in the case of geometric progression, but in statistics we
need not bother about the progression, here it is particular type of data for which the geometric
mean is of great importance because it gives a good mean value. If the observed values are
measured as ratios, proportions or percentages, then the geometric mean gives a better measure
of central tendency than any other means.
 The Geometrical mean of a set of values , ,…, of n positive values is defined as the
nth root of their product . That is,
. = ∗ ∗…∗
Example: The G.M of 4, 8 and 6 is
. = √ 4 8 6 = √ 192 = 5.77.
In general, the sample geometric mean is calculated by
∗ ∗…∗ →
. = ∗ ∗, … ,∗ → ℎ = ∑ .
∗ ∗. , … ,∗ → ℎ =∑ .
Example1: The man gets three annual raises in his salary. At the end of first year, he
gets an increase of 4%, at the end of the second year, he gets an increase of 6% and at the
end of the third year, he gets an increase of 9% of his salary. What is the average
percentage increase in the three periods?
Solution: . = √1.04 ∗ 1.06 ∗ 1.09 = 1.0631 => 1.0631 − 1 = 0.0631.
ℎ , ℎ 6.31%.
Example 2: Compute the Geometric mean of the following data.

Values 2 4 6 8 10
Frequency 1 2 2 2 1

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: . = √ 2 ∗ 4 ∗ 6 ∗ 8 ∗ 10 = √2 ∗ 16 ∗ 36 ∗ 64 ∗ 100 = √737280 = 5.41.

Example 3: Suppose that the profits earned by a certain construction company in four projects
were 3%, 2%, 4% & 6% respectively. What is the Geometric mean profit?
: . = √3 ∗ 2 ∗ 4 ∗ 6 = √144 = 3.46.
ℎ ; ℎ 3.46 .
2.2.1.4 Harmonic mean
Another important mean is the harmonic mean, which is suitable measure of central tendency
when the data pertains to speed, rates and price.
 Let , ,…, be n variant values in a set of observations, then simple harmonic
mean is given by: . . = =
⋯ ∑

 Note: SHM is used for equal distances, equal costs and equal rates.

Example 1: A motorist travels for three days at a rate (speed) of 480 km/day. On the first day he
travels 10 hours at a rate of 48 km/h, on the second day 12 hours at a rate of 40 km/h, on the
third day 15 hours at a rate of 32 km/h. What is the average speed?
Solution: Since the distance covered by the motorist is equal ( . . = 480, = 480, =
480), so we use SHM.

. . = = 38.92 so the required average speed = 38.92 /ℎ.

/ / /

We can check this, by using the known formula for average speed in elementary physics.

Check; ( )= =

= = = 38.42 / h.

Example 2: A business man spent 20 Birr for milk at 40 cents per liter in Mizan-Aman town and
another 20 Birr at 60 cents per liter in Tepi town. What is the average price of milk at two towns.
Solution: Since the price on the two towns are equal (20 Birr), so we use SHM.

( )= . . = = 48 / .

Weighted harmonic mean (WHM)

 WHM is used for different distance, different cost and different rate.
∑
. . = w
∑
x
Example 1: A driver travel for 3 days. On the 1 st day he drives for 10h at a speed of 48 km/h, on
the 2nd day for 12h at 45 km/h and on the 3rd day for 15h at 40 km/h. What is the average speed?
Solution: since the distance covered by the driver is not equal, so we use WHM by taking
the distance as weights (wi).
∑ (480 + 540 + 600)
= . ℎ. = w = 480 540 600 = 43.32 /ℎ .
∑ + + ℎ
x 40 45 40

Example 2: A business man spent 20 Birr for milk at rate of 40 cents per liter in Mizan-Aman
town and 25 Birr at a price of 50 cents per liter in Tepi town. What is the average price ?

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 MTU Stat Dept Introduction to statistics for engineer's Chapter - 2

Solution: Since the price on the two towns are different , so we use WHM by taking the cost as
weights (wi).
∑ (20 + 25)
= . ℎ. = w = = 45 / .
∑ 20 25
40 + 50
x /

 (Finally If all the observations are positive) . ≥ . ≥ . .

Corrected mean
−
= + ℎ ℎ

 ℎ ℎ .
Example: The mean age of a group of 100 persons was found to be 32.02 years. Later on, it was
discovered that age of 57 was misread as 27. Find the corrected mean?
Solution: = 100, = 32.02 , = 57 = 27.
− 57 − 27
̅ = ̅ + = 32.02 + = 32.02 + 0.3 = 32.32 .
100
Median and mode
2.2.2 The Median
Suppose we sort all the observations in numerical order, ranging from smallest to largest or vice
versa. Then the median is the middle value in the sorted list. We denote it by x.
Let , ,…, be n ordered observations. Then the median is given by:
.
=

.
Example 1: Find the median for the following data.
23, 16, 31, 77, 21, 14, 32, 6, 155, 9, 36, 24, 5, 27, 19
Solution: First arrange the given data in increasing order. That is
5, 6, 9, 14, 16, 19, 21, 23, 24, 27, 31, 32, 36, 77, 155.
= 15 =≫ , = = = = 23

Example 2: Find the median for the following data.

61, 62, 63, 64, 64, 60, 65, 61, 63, 64, 65, 66, 64, 63
Solution: First arrange the given data in increasing order. that is
60, 61, 61, 62, 63, 63, 63, 64, 64, 64, 65, 65 & 66.
+ +
+ 63 + 64 127
= 14 =≫ , = = = = = = 63.5
2 2 2 2 2

Median for ungrouped data

 Let , ,…, have their corresponding frequencies , ,…, then to find the median:

 First sort the data in ascending order.

 Construct the less than cumulative frequency (lcf) .
 If =∑ f is odd, find and search the smallest lcf which is ≥ . Then

the variant value corresponding to this lcf is the median.

 If n is even, find & + 1 and search the smallest lcf which is ≥ & +1 .

Then the average of the variant values corresponding to these lcf is the median.

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 MTU Stat Dept Introduction to statistics for engineer's Chapter - 2

Example 1: Find the median for the following data.

Values (xi) 3 5 4 2 7 6
Frequency (fi) 2 1 3 2 1 1

Solution: First arrange the data in increasing order and construct the lcf table for this data.

Values (xi) 2 3 4 5 6 7
Frequency (fi) 2 2 3 1 1 1
Lcf 2 4 7 8 9 10

= 10 =≫ . = = 5 + 1 = + 1 = 5 + 1 = 6.

Then the smallest LCF which is ≥ 5 & 6 7 and the variant value corresponding to this LCF

is 4. Thus the median is x = = 4.

Example 2: Calculate the median of the marks of 46 students given below.

Values (xi) 10 9 11 12 14 13 15 16 17 18
Frequency (fi) 2 1 3 6 10 11 7 3 2 1

Solution: First arrange the data in ascending order and construct the LCF table for this data.

Values (xi) 9 10 11 12 13 14 15 16 17 18
Frequency (fi) 1 2 3 6 11 10 7 3 2 1
LCF 1 3 6 12 23 33 40 43 45 46

46 46
= 46 =≫ . = = 23 + 1 = + 1 = 23 + 1 = 24.
2 2 2 2
ℎ ≥ 23 & 24 23 & 33 the variant values

corresponding to these LCF are 13 & 14 respectively. Thus the median x = = 13.5.
Median for grouped data
The formula for computing the median for grouped data is given by

−
= = +

ℎ : − ℎ ℎ .
 − ℎ .
 ℎ ℎ .
 ℎ ℎ ℎ . ∶ = − .
 ℎ ℎ ℎ .

 Note: The class corresponding to the smallest LCF which is ≥ is called the median
class. So that the median lies in this class.
Steps to calculate the median for grouped data
1. First construct the LCF table.
2. Determine the median class. To determine the median class, find and search the

smallest LCF which is ≥ . Then the class corresponding to this lcf is the median

class.

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 MTU Stat Dept Introduction to statistics for engineer's Chapter - 2

Example 1: Find the median for the following data.

Daily production 80 − 89 90 − 99 100 − 109 110 − 119 120 − 129 130 − 139
Frequency 5 9 20 8 6 2

Solution: First construct the LCF table.

Daily production(CI) 80 − 89 90 − 99 100 − 109 110 − 119 120 − 129 130 − 139
Frequency(fi) 5 9 20 8 6 2
Lcf 5 14 34 42 48 50

To obtain the median class , calculate = = 25. Thus the smallest lcf which is ≥ is 34. So

the class corresponding to this lcf is 100 − 109, ℎ .

ℎ , = 99.5, = 10, = 20, = 14.

− (25 − 14) 10
= x = lcb + 2 = 99.5 + = 105.
20
Properties of the median
1. The median is unique.
2. It can be computed for an open ended frequency distribution if the median does not lie in
an open ended class.
3. It is not affected by extremely large or small values .
4. It is not so suitable for algebraic manipulations.
5. It can be computed for ratio level, interval level and ordinal level data.
2.2.3 The mode
In every day speech, something is “in the mode” if it is fashionable or popular. In statistics this
“popularity” refers to frequency of observations.
Therefore, mode is the `most frequently observed value in a set of observations.
: : 10, 10, 9, 8, 5, 4, 5, 12, 10 = 10 → .
: 10, 10, 9, 9, 8, 12, 15, 5 = 9 &10 → .
: 4, 6, 7, 15, 12, 9 .
Remark: In a set of observed values, all values occur once or equal number of times, there is no
mode. (See set C above).

Mode for a grouped data

If the data is grouped such that we are given frequency distribution of finite class intervals, we
do not know the value of every item, but we easily determine the class with highest frequency.
Therefore, the modal class is the class with the highest frequency. So that the mode of the
distribution lies in this class.
 To compute the mode for a grouped data we use the formula:
∆
= = +
∆ +∆
ℎ ; ∆ = − , ∆ = −

ℎ : – ℎ ℎ .
− ℎ ℎ .

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 MTU Stat Dept Introduction to statistics for engineer's Chapter - 2

− ℎ ℎ ℎ .
− ℎ ℎ ℎ .
− ℎ ℎ ℎ .
Example 1: The ages of newly hired, unskilled employees are grouped into the following
distribution. Then compute the modal age?

Ages 18 − 20 21 − 23 24 − 26 27 − 29 30 − 32
Number 4 8 11 20 7

Solution: First we determine the modal class. The modal class is 27 − 29, since it has the highest
frequency. ℎ , = 26.5, = 3, ∆ = 20 − 11 = 9, ∆ = 20 − 7 = 13.
∆ 9 27
= + = 26.5 + 3 = 26.5 + = 26.5 + 1.2 = .
∆ +∆ 9 + 13 22
Interpretation: The age of most of these newly hired employees is 27.7 (27 years and 7 months).
Example 2: The following table shows the distribution of a group of families according to their
expenditure per week. The median and the mode of the following distribution are known to be
25.50 Birr and 24.50 Birr respectively. Two frequency values are however missing from the
table. Find the missing frequencies.

Class interval 1 − 10 11 − 20 21 − 30 31 − 40 41 − 50
Frequency 14 27 15

Solution: The LCF table of the given distribution can be formed as follows.

Expenditure (CI) 1 − 10 11 − 20 21 − 30 31 − 40 41 − 50
Number of families (fi) 14 27 15
LCF 14 14 + 41 + 41 + + 56 + +

Here: = 56 + + . Since the median and the mode are Birr 25.5 & 24.5 respectively then
the class 21 − 30 is the median class as well as the modal class.
56+ 2 + 4
(14+ 2 )
25.5 = 20.5 + ()

2
24.5 = 20.5 + ( ( )
2) ( 4 )

. ( ) . ( )
56+ 2+ 4 (14+ 2) 2
5 = & 4 =
2 4

Further simplifying the above we get

− = 1. ( ) &
3 2
−2 4
= 27. ( )
( ) & ( ), ℎ 2 & 4 2
= 25 & 4
= 24.
Properties of mode
1. it is not affected by extreme values.
2. It can be calculated for distribution with open ended classes.
3. It can be computed for all levels of data i.e. nominal, ordinal, interval and ratio.

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 MTU Stat Dept Introduction to statistics for engineer's Chapter - 2

4. The main drawback of mode is that often it does not exist.

5. Often its values are not unique.
2.3 Measure of non - central location (Quintiles’)
There are three types of quintiles. These are:
1. Quartiles
The quartiles are the three points, which divide a given order data into four equal parts. These
( )
= , = 1, 2, 3. → .

Q1 is the value corresponding to ( ) ordered observation.

Q2 is the value corresponding to 2 ( ) ordered observation.

Q3 is the value corresponding to 3 ( ) ordered observation.

Example: Consider the age data given below and calculate Q1, Q2, and Q3.
19, 20, 22, 22, 17, 22, 20, 23, 17, 18
Solution: First arrange the data in ascending order, n=10.
17, 17, 18, 19, 20, 20, 22, 22, 22, 23
Q1 = ( ) =( ) = (2.75)th observation = 2nd observation + 0.75 (3rd - 2nd)

observation = 17 + 0.75(18 − 17) = 17.75

Therefore 25% of the observations are below 17.75
Q2 = 2 ( ) =2 ( ) = (5.5)th observation = 5 ℎ + 0.5(6 ℎ − 5 ℎ) = 20 +

0.5(20 − 20) = 20.

Q3 = 3 ( ) = 3 ( ) = (8.25)th observation = 8th + 0.25x(9th - 8th) = 22+0.25x(22-

22)= 22

Calculation of quartiles for grouped data

 For the grouped data, the computations of the three quartiles can be done as follows:
 Calculate and search the minimum lcf which is ≥ , = 1, 2, 3.

The class corresponding to this lcf is called the ith quartile class. This is the class where Qi lies.
The unique value of the ith quartile (Qi) is then calculated by the formula

−
= + , = , , .

ℎ : lcb − ℎ ℎ ℎ .
 − ℎ ℎ ℎ .
 ℎ ℎ ℎ ℎ .
: 2 =

2. Percentiles (P)
Percentiles are 99 points, which divide a given ordered data into 100 equal parts. These
( + 1)
= , = 1, 2, … ,99. → .
100

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Calculation of percentiles for grouped data

For the grouped data, the computations of the 99 percentiles can be done as follows:
 Calculate and search the minimum lcf which is ≥ , = 1, 2, … ,99.

The class corresponding to this lcf is called the mth percentile class. This is the class where P m
lies.
The unique value of the mth percentile (Pm)) is then calculated by the formula

−
= + , = , ,…, .

ℎ : , ℎ .
3. Deciles (D)
Deciles are the nine points, which divide the given ordered data into 10 equal parts.
( + 1)
, =
= 1, 2, … ,9.
10
For the grouped data, the computations of the 9 deciles can be done as follows:

 Calculate and search the minimum lcf which is ≥ , = 1, 2, … ,9.

The class corresponding to this lcf is called the kth decile class. This is the class where Dk lies.
The unique value of the kth decile ( ) is calculated by the formula

−
= + , = , , … , .

ℎ : , ℎ .
Note that: =Q =D =P and , ,…, , ,…,

, , .

Example: For the following FD data , find

a) , b) , , c) , ,

interval 21 − 22 23 − 24 25 − 26 27 − 28 29 − 30
F 10 22 20 14 14

Solution: First find the lcf table

interval 21 − 22 23 − 24 25 − 26 27 − 28 29 − 30 total
F 10 22 20 14 14 80
Lcf 10 32 52 66 80

a) =? = = 20. Thus, the minimum lcf just ≥ 20 is 32 so the class corresponding to

this 23 − 24, is the first quartile class. lcb = 22.5, = 2, = 22, = 10.
( )
Q = lcb + = 22.5 + = 23.41.

=? = = 40. Thus, the minimum lcf just ≥ 40 is 52 so the class corresponding to

this 25 − 26, is the second quartile class. lcb = 24.5, = 2, = 20, = 32.
( )
Q = lcb + = 24.5 + = 25.3.

= 27.64.

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b) =? = = 20. Thus, the minimum lcf just ≥ 20 is 32 so the class

corresponding to this 23 − 24, is the 25th percentile class.
ℎ , lcb = 22.5, = 2, = 22, = 10.
25
− (20 − 10) 2
p = lcb + 100 = 22.5 + = 23.41.
22
p = 23.045.
p = 23.77.
p = 25.3.
p = 27.64.
C) =? = = 8. Thus, the minimum lcf just ≥ 8 is 10 so the class corresponding to

this 21 − 22, is the first decile class. ℎ , lcb = 20.5, = 2, = 10, = 0.

1
− (8 − 0) 2
D = lcb + 10 = 20.5 + = 22.1 =≫ .
10
D = 23.045.
D = 23.77.
D = 25.3.
:. Q = P , Q = P and Q = P D1 = P10, D2 = P20, D3 = P30 and D5 = P50
and median = Q2 = D5 = P50

2.4. Measures of variation (dispersion)

Measures of central tendency locate the center of the distribution. But they do not tell how
individual observations are scattered on either side of the center. The spread of observations
around the center is known as dispersion or variability. In other words; the degree to which
numerical data tend to spread about an average value is called dispersion or variation of the data.
 Small dispersion indicates high uniformity of the observation while larger dispersion
indicates less uniformity.
Types of Measures of Dispersion
The most commonly used measures of dispersions are:
1. The Range (R)
The Range is the difference b/n the highest and the smallest observation. That is;
− → .
=
− → .
It is a quick and dirty measure of variability. Because of the range is greatly affected by extreme
values, it may give a distorted picture of the scores.
Range is a measure of absolute dispersion and as such cannot be used for comparing variability
of two distributions expressed in different units.
4. Variance and Standard Deviation
Variance: is the average of the squares of the deviations taken from the mean.
Suppose that , ,…, be the set of observations on N populations. Then,
∑ ( ) ∑
= = = . → .
∑ ( ̅) ∑ ̅
= = = . → .

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In general, the sample variance is computed by:

∑ ( − ̅) ∑ − ̅
⎧ = . → .
⎪ −1 −1
⎪ ∑ ( − ̅ ) ∑ − ̅
= = . → .
⎨ ∑ −1 −1
⎪ ∑ ( − ̅ ) ∑ − ̅
⎪ = . → .
⎩ ∑ −1 −1
Standard Deviation: it is the square root of variance. Its advantage over the variance is that it is
in the same units as the variable under the consideration. It is a measure of the average variation
in a set of data. It is a measure of how far, on the average, an individual measurements is from
the mean. . =√ =√ = .
Example 1: Compute the variance for the sample: 5, 14, 2, 2 and 17.
Solution: = 5 , ∑ = 40, ̅ = 8 , ∑ = 518 .
− ̅ 518 − 5 8 ∑

= =
= 49.5. , = √49.5 = 7.04.
−1 5−1
Example 2: Suppose the data given below indicates time in minute required for a laboratory
experiment to compute a certain laboratory test. Calculate the mean, variance and standard
deviation for the following data.
32 36 40 44 48 Total
2 5 8 4 1 20
64 180 320 176 48 788
2048 6480 12800 7744 2304 31376

∑ ∑ ̅ ( . )
̅= = = 39.4 , = = = 17.31. , = √17.31 = 4.16.

Properties of Variance
1. The variance is always non-negative ( ≥ 0).
2. If every element of the data is multiplied by a constant "c", then the new variance
= .
3. When a constant is added to all elements of the data, then the variance does not change.
4. The variance of a constant (c) measured in n times is zero. i.e. (var(c) = 0).
Exercise: Verify the above properties.
Uses of the Variance and Standard Deviation
1. They can be used to determine the spread of the data. If the variance or S.D is large, then
the data are more dispersed.
2. They are used to measure the consistency of a variable.
3. They are used quit often in inferential statistics.
5. Coefficient of Variation (C.V)
Whenever the two groups have the same units of measurement, the variance and S.D for each
can be compared directly. A statistics that allows one to compare two groups when the units of
measurement are different is called coefficient of variation. It is computed by:

. = 100% → .

. = 100% → .
̅

By Belete M. Lecture Notes Page 13

 MTU Stat Dept Introduction to statistics for engineer's Chapter - 2

Example: The following data refers to the hemoglobin level for 5 males and 5 female students.
In which case , the hemoglobin level has high variability (less consistency).

For males (xi) 13 13.8 14.6 15.6 17

For females (xi) 12 12.5 13.8 14.6 15.6

. . . . . . .
Solution: ̅ = = = 14.8 , ̅ = = = 13.7.

∑ ̅
= = 2.44. , = √2.44 = 1.56205.,

∑ − ̅
= = 2.19. , = √2.19 = 1.479865.
−1
.
. = 100% = 100% = . %,
̅ .

1.479865
. = 100% = 100% = . %.
̅ 13.7

Therefore, the variability in hemoglobin level is higher for females than for males.

6. Standard Scores (Z-Scores)

 It is used for describing the relative position of a single score in the entire set of data in
terms of the mean and standard deviation.
 It is used to compare two observations coming from different groups.
 If X is a measurement (an observation) from a distribution with mean ̅ and
standard deviation S, then its value in standard units is

= → .
− ̅
= → .

Z gives the number of standard deviation a particular observation lie above
or below the mean.
 A positive Z-score indicates that the observation is above the mean.
 A negative Z-score indicates that the observation is below the mean.
Example: Two sections were given an examination on a certain course. For section 1, the
average mark (score) was 72 with standard deviation of 6 and for section 2, the average mark
(score) was 85 with standard deviation of 7. If student A from section 1 scored 84 and student B
from section 2 scored 90, then who perform a better relative to the group?
̅
Solution: = = = 2.
̅
= = = 0.71.

Since ZA > ZB i.e. 2 > 0.71, student A performed better relative to his group than student B.
Therefore, student A has performed better relative to his group because the score's of student A
is two standard deviation above the mean score of section 1 while the score of student B is only
0.71 standard deviation above the mean score of students in section 2.

By Belete M. Lecture Notes Page 14