NORTHERN UNIVERSITY OF BUSINESS AND TECHNOLOGY

KHULNA

An Assignment on
Measures of Variation
Course Code: QNT0211
Course Title: Business Statistics

Submitted to,
Md Arif Hasan Khan
Lecturer, Department of
Business administration.
Northern University of
Business and Technology,
Khulna.
Submitted by,

Samia Rahman Piya

ID: 01170110048

Section: 6A
Illustration 27.
Solution: For determining in which market prices of shares are more stable,
we shall compare the coefficient of variation. Let price in Mumbai and Kolkata be
donated by X and Y respectively:

Calculation Of coefficient variation

X (X-X̅) x2 Y (Y-Y̅) y2
x y
105 -10 100 108 -11 121
120 +5 25 117 -2 4
115 0 0 120 +1 1
118 +3 9 130 +11 121
130 +15 225 100 -19 361
127 +12 144 125 +6 36
109 -6 36 125 +6 36
110 -5 25 120 +1 1
104 -11 121 110 -9 81
112 -3 9 135 +16 256
∑X=1150 ∑x=0 ∑x =694
2
∑Y=1190 ∑y=0 ∑y =1018
2

σ σ
Mumbai: C.V. = X ×100 Kolkata C.V. = Y ×100
∑X ∑Y
X̅ = N Y̅ = N
1150 1190
= 10 = 115 = 10 = 119

√
σ = ∑x2
N √
σ = ∑y2
N

√
= 694
10 √
= 1018
10
= 8.33 = 10.09
8.33 10.09
C.V = 115 ×100 = 7.24 C.V = 119 ×100 = 8.48

Since the coefficient of variation is less in Mumbai, hence the share price in
Mumbai market shows greater stability.
Illustration 28.
Solution: Calculation of X̅, S.D. AND C.V.
No of (X-22)
articles d f fd fd2
X
18 -4 3 -12 48
19 -3 7 -21 63
20 -2 11 -22 44
21 -1 14 -14 14
22 0 18 0 0
23 +1 17 +17 17
24 +2 13 +26 52
25 +3 8 +24 72
26 +4 5 +20 80
27 +5 4 +20 100
N=100 ∑fd=38 ∑fd2=490

∑fd
X̅ = A+ N
38
= 22+ 100
= 22+.38
= 22.38

√
σ = ∑ fd 2 −¿ ¿
N

√
= 490 −¿ ¿
100
= √ 4.9−.1444

= 2.18
2.18
C.V = 22.38 ×100 = 9.74
Illustration 29.
Solution: Calculation of coefficient of variation, semi-inter quartile range
and mode
 Annual m.p. (X-22.5)/5
tax paid X f d fd fd2 cf
5-10 7.5 18 -3 -54 162 18
10-15 12.5 30 -2 -60 120 48
15-20 17.5 46 -1 -46 46 94
20-25 22.5 28 0 0 0 122
25-30 27.5 20 +1 +20 20 142
30-35 32.5 12 +2 +24 48 154
35-40 37.5 6 +3 +18 54 160
N=160 ∑fd=98 ∑fd2=450

∑fd 98
X̅ = A+ N × i = 22.5 - 160 ×5 = 22.5 - 3.0625 = 19.4375
σ=
√ ∑ fd 2
N
−¿ ¿ =
√ 450
160
−¿ ¿

= √ 2.8125−0.3752 ×5 = 1.5612 × 5 = 7.806

σ 7.806
C.V. = X × 100 = 19.4375 × 100 = 40.1594

Semi-inter Quartile Range:

Semi-inter Quartile Range = Q3 – Q1
N 160
Q1 = Size of 4 th observation = 4 = 40th observation
 N
− pcf
Q1 lies in the class 10-15, Q1= L+ 4 ×i =10+ 40−18
30
×5 =10+3.67=13.67
f
3N 3× 160
Q3 = Size of 4 th observation = 4 = 120th observation
3N
− pcf
Q3 lies in the class 20-25, Q3= L+ 4 ×i =200+ 120−94
28
×5 =20+4.64=24.64
f
Semi-inter Quartile Range = Q3 – Q1 = 24.64-13.67 = 10.97

Mode: Since the highest frequency is 46, the mode lies in the class 15-20,
∆1 16
Mo= L+ ∆ +∆
1 2
× i = 15+ 16+18 ×5 = 15+ 2.35 = 17.35
Illustration 30.
Solution: Calculation of coefficient of variation

m.p. (X-35)/10
Profits X f d fd fd2
10-20 15 8 -2 -16 32
20-30 25 12 -1 -12 12
30-40 35 20 0 0 0
40-50 45 6 +1 +6 6
50-60 55 4 +2 +8 16
N=50 ∑fd=-14 ∑fd2=66

∑fd 14
X̅ = A+ N × i = 35 - 50 ×10 = 35 – 2.8 = 32.2

√ √
σ = ∑ fd 2 −¿ ¿ ×i = 66 −¿ ¿ ×10
N 50

= √ 1.32−0.784 ×10 = 11.14

σ 11.14
C.V. = X × 100 = 32.2 × 100 = 34.6 Per cent
Illustration 35.
Solution: Calculation of X̅, Med. And Standard Deviation

Wt. in m.p. (X-227.5)/5

gms f X d fd fd2 cf
210-215 8 212.5 -3 -24 72 8
215-220 13 217.5 -2 -26 52 21
220-225 16 222.5 -1 -16 16 37
225-230 29 227.5 0 0 0 66
230-235 14 232.5 +1 +14 14 80
235-240 10 237.5 +2 +20 40 90
240-245 7 242.5 +3 +21 63 97
245-250 3 247.5 +4 +12 48 100
N=100 ∑fd=+1 ∑fd2=305

∑ fd 1
X̅ = A+ N × i = 227.5 + 100 ×5 = 227.55
N
− pcf
Med. = L+ 2 ×i
f
N 100
Med. = Size of 2 th observation = 2 = 50th observation
Median lies in the class 225-230,
N
− pcf
Med= L+ 2 ×i =227.5+ 5 0−37
29
×5 =227.5+2.24=229.74
f

σ=
√ ∑ fd 2
N
−¿ ¿ ×i = √ 3.05−.0001 ×5 = 1.7464×5 = 8.732
Illustration 36.
Solution: Calculation of Mean, Standard Deviation and Coefficient of
Variation

m.p. (X-35)/10
Profits X f d fd fd2
5-10 7.5 8 -3 -24 72
10-15 12.5 18 -2 -36 72
15-20 17.5 42 -1 -42 42
20-25 22.5 62 0 0 0
25-30 27.5 30 +1 +30 30
30-35 32.5 10 +2 +20 40
35-40 37.5 4 +3 +12 36
N=174 ∑fd=-40 ∑fd2=292

∑fd 40
Mean: X̅ = A+ N × i = 22.5 - 174 ×5 = 22.5 – 1.15 = 21.35

√ √
Standard Deviation: σ = ∑ fd 2 −¿ ¿ ×i = 292 −¿ ¿ ×5
N 174

= √ 1.678−0.53 ×5 = 1.275 × 5 = 6.375

σ 6.375
Coefficient of Variation: C.V. = X × 100 = 21.35 × 100 = 29.86 Per cent
Illustration 37.
Solution: i) For finding out which firm pays larger amount, we have to find
out ∑X
∑X
X̅ = N or ∑X = N X̅
Firm A: N= 100, X̅ = 4800, ∴ ∑X = 100 × 4800 = 480000
Firm B: N= 200, X̅ = 5100, ∴ ∑X = 200 × 5100 = 1020000
Hence firm B pays larger amount as monthly wages.
ii) For finding out which firm shows greater variability in the distribution of
wages, we have to calculate coefficient of variation.
σ 600
Firm A: C.V. = X × 100 = 4800 × 100 = 12.50
σ 540
Firm B: C.V. = X × 100
= 5700 × 100 = 10.59
since coefficient of variation is greater in case of firm A, hence it shows greater
variability in the distribution of wages.
iii) Combined average monthly wage:
N 1 X̅ 1+ N 2 X̅ 2
X̅12= N 1+ N 2
N 1 = 100, X̅ = 4800, N 2= 200, X̅ = 5100
( 100 )( 4800 ) +(200)(5100) 480000+1020000
Hence X̅12 =
100+200
= 300
=Rs 5000
Combined standard deviation:

σ12=
√ N 1 σ 21 + N 2 σ 22 + N 1 d 21+ N 2 d 22
N 1+ N 2
N 1 = 100, σ1 = 600, N 2 = 200, σ2 = 540
d 1 = │ X̅1- X̅12│= │4800-5000│= 200
d 2 = │ X̅2- X̅12│= │5100-5000│= 100

√
2 2 2 2
σ12 = 100 (600) +200(54 0) +100 (2 00) +2 00(1 00)
100+200

= √ 36000000+58320000+ 4000000+2000000
300
= √ 100320000
300
=578.27
Hence the combined standard deviation is Rs578.27

Illustration 38.
Solution: Calculation of X̅, Q.D. and C.V.
 m.p. (X-143)/5
Height X f d fd fd2 cf
126-130 128 31 -3 -93 279 31
131-135 133 44 -2 -88 176 75
136-140 138 48 -1 -48 48 123
141-145 143 51 0 0 0 174
146-150 148 60 +1 +60 60 234
151-155 153 55 +2 +110 220 289
156-160 158 43 +3 +129 387 332
161-165 163 28 +4 +112 448 360
N=360 ∑fd=182 ∑fd2=1618
∑fd
i) X̅ = A+ N × i = 143 + 182
360
×5 = 143 +2.53 = 145.53
σ= √ ∑ fd 2
N
−¿ ¿ ×i = √ 1618
360
−¿¿ ×5

= √ 4.494−0.256 ×5 = 2.059 × 5 = 10.295

σ 10.295
ii) C.V. = X × 100 = 145.53 × 100 = 7.074 Per cent
Q3 – Q1
iii) Q.D. = 2
N 360
Q1 = Size of 4 th observation = 4 = 90th observation
Q1 lies in the class 160-140, But the real limit of this class is 135.5-140.5
N
− pcf
Q1= L+ 4 ×i =135.5+ 9 0−75
48
×5 =135.5+1.56=137.06
f
3N 3× 3 60
Q3 = Size of 4 th observation = 4 = 270th observation
Q3 lies in the class 151-155, But the real limit of this class is 150.5-155.5
3N
− pcf
Q3= L+ 4 ×i =150.5+ 270−234
55
×5 =150.5+3.27=153.77
f
153.77−137.06
Q.D. = 22
= 8.355

Problem 28.
Solution:
a) finding out which firm pays larger amount below:
 Firm A pays = N X̅ = 550 ×100 = 55000
Firm B Pays = N X̅ = 650 × 95 = 61750
Hence, firm B pays larger amount as daily wages

b) Firm A, C.V. = √
90
100
× 100 = 9.49
Firm B, C.V. = √
120
95
× 100 = 11.53
since CV of firm B is greater than firm A, hence it shows greater
variability in the individual wages.
c) i) Combined average daily wages:
N 1 X̅ 1+ N 2 X̅ 2
X̅12= N 1+ N 2
N 1 = 550, X̅ = 100, N 2= 650, X̅ = 95
( 550 )( 100 ) +(650)(95) 55000+61750
Hence X̅12 =
550+ 650
= 1200
=97.29
Combined average daily wages is Rs 97.29
Combined standard deviation:

√
2 2 2 2
N 1 σ 1 + N 2 σ 2 + N 1 d 1+ N 2 d 2
σ12=
N 1+ N 2
N 1 = 550, σ1 =√ 90 , N 2 = 650 , σ2 = √ 120
d 1 = │ X̅1- X̅12│= │100 - 97.29│= 2.71
d 2 = │ X̅2- X̅12│= │ 95- 97.29│= -2.29

√
2 2
σ12 = 550 (√ 90) +650( √120) +550(2.71) +650 (−2.29)
2 2

550+650

= √ 49500+78000+ 4039.255+ 3408.665

1200
= √ 134947.92
1200
=10.60
Hence the combined standard deviation is Rs 10.60

Problem 57.
Solution: a) finding out which firm pays larger amount below:
Firm A pays = N X̅ = 100 ×2400 = 240000
Firm B Pays = N X̅ = 200 ×1800 = 360000
Hence, firm B pays larger amount as daily wages
 60
b) Firm A, C.V. = 2400 × 100 = 2.5
80
Firm B, C.V. = 1800 × 100 = 4.44
since CV of firm B is greater than firm A, hence it shows greater
variability in distribution of wages.
c) i) Combined average daily wages:
N 1 X̅ 1+ N 2 X̅ 2
X̅12= N 1+ N 2
N 1 = 100, X̅ = 2400, N 2= 200, X̅ = 1800
( 100 )( 2400 )+(200)(1800) 240000+360000
Hence X̅12 =
100+ 200
= 300
=2000
Combined average daily wages is Rs 2000
Combined standard deviation:

√
2 2 2 2
N 1 σ 1 + N 2 σ 2 + N 1 d 1+ N 2 d 2
σ12=
N 1+ N 2
N 1 = 100, σ1 =60 , N 2 = 200 , σ2 = 80
d 1 = │ X̅1- X̅12│= │2400 - 2000│= 400
d 2 = │ X̅2- X̅12│= │1800 - 2000│= 200

σ12 =
√ 100 (60)2 +200( 80)2+100( 400)2+ 200(200)2
100+200

= √ 360000+1280000+16000000+ 8000000
300
= √ 25640000
300
=292.35
Hence the combined standard deviation is Rs 292.35