1) Central tendency: the measure of values that refers to the center and represents the point in

which most of data collected in.

_ for collecting central tendency, we have three ways:

• Mean: the average of all data given in a set.

Χ = Σ𝜒 ∖ 𝑛

Which represent the sum of all data given / number of data

I I grouped data

Χ = Σ𝜒𝑖 𝐹𝑖 ∖ Σ𝐹
Which represents the sum of each number multiplied by its frequencies / the sum of frequency given.

• Median: the middle value that is arranged in scanting or descending way for any data given.
i. Ungrouped data: ordering numbers from lowest to highest then we will face two cases
a) Even number: n/2 and n+½
𝑛+1
b) Odd number: 2

Example: (5,3,3,4) find median

Arranged data from lower to upper (3,3,4,5)

N=4 even

= 4/2= 2 (second number)

And 4/2 +1= 3 (third number)

3+4 /2 = 3.5

Σ𝑓𝑖
−𝑐𝑓
2
ii. Grouped data: applying this rule 𝑀 = 𝐿 + [ ]×𝑐
𝑓

L= lower boundary of median class

Cf = cumulative frequency for class before median class

C= size (upper lower)

• Mode: is the most frequently value of our data

Example: find mode (5,4,5,5,3,4)

=3,4,4,5,5,5

Mode is 5
Importance of centeral tendency

The importance of central tendency is that can summarize simplify complex data and provides simplest
values which have benefits and may helps researchers and decisionmakers .

B) find mean, median and mode (12,15,17,19,20,21,22,25)

Mean is 12+15+17+19+20+21+22+25 /2 = 18.875

Median =

n=8 even 8/2= 4 and 8/2 +1= 5

=19+20/2 19.5

Data has NO mode.

c)

1mean

Advantage is that every data point is counting and will give different result if we forget one of them, also
it is easy to use in statistics world, and giving the correct and accurate measure of central tendency.

The disadvantage is that it is observant of exogenous outliers that may affect the mean.

2 median

Advantage is easy to understand and response to outliers as it is not affected by extreme values.

The disadvantage is ignoring the actual values of data and focus just on numbers that we need on the
equation, less accurate specially with small sets comparing to mean.

3 mode

Advantage is best way to use in categorical and nominal data, and very simple for calculate even with
large numbers and values

The disadvantage is not giving one solution (not unique) because two numbers might repeat same
degree which is the definition of mode, also if there is no repeating number means no solution which
means no solution which means no solution which means there is no solution.

2)data visualization:

A: It means using graphical methods such as graphs and charts for representing qualitative and
quantitative data which is easy to understand and less complex for understanding its patterns and
structures.
Importance

1 simplify the data that might be complex and difficult to understand, with visualization data will be
simpler and graphs will it super easy.

2 it is the eases way for business, researchers because visualization data lead to best decision making.

Interpreting this visualization involve finding central tendency and any patterns or treat in case of I
phone sold (as its in chart above) you might get insight into how people performed overall whether
there are outliers or if score follow normal distribution.

3 measures of variance

A) variation explains how each individual data point diverges from the central tendency and variance
caused by numerous variables, such as random chance and symmetric influence.

B) calculate the range, variance, and standard divination for following data (5,7,9,11,13,15,17)

1. range =maximum value_minimum value= 17-5= 12

2.
Σ×
Χ= = 77/7= 11
𝑛
 Data (𝑥 − 𝑋)2
5 (5 − 11)2 = 36
7 (7 − 11)2 = 16
9 (9 − 11)2 = 4
11 (11 − 11)2 = 0
13 (13 − 11)2 = 4
15 (15 − 11)2 = 16
17 (17 − 11)2 = 36
Σ(𝑥 − 𝑋)2 112
(× −Χ)2 = 112

𝑠2
Σ(𝑥 − Χ)2
=
𝑛−1
𝑠2
= 112/6 = 18.66 variance

1. S= √18.66 = 4.32 standard divination .

c)

1) range; A) Its ease of calculation and ability to provide spread data with a rapid summary are also
advantages. B) Weakness is prone to high value effects since it is sensitive to outliers. leaving out the
data distribution and calibration in the hallway as well. It.

2)variance; Strength of Difference (A). Weakness is a metric that is commonly used in statistical calls
analysis and by Prothesis testing, but it has a unit (the square) that makes it less reliable than other
measures and is 9150 influenced by outliers.

3) standard divination (A) Strengths share the same unit as the original data, which makes them more
relevant because they show the typical distance between the data points and the mean. B) We
acknowledge that it takes more work to compute than the range.

4 application and interprtation

A) (S.E) standard error is the measure of variability of values.

S.E) a= 10/√20= 2.24

S.E) b= 8/√25= 1.6

B) real life scenario involving financial data

Scenario: analyzing performance for Dimah company.

Central tendency measure= mean calculating mean of returns for dimah in specific time

Ex) Dimah company has return 5%, 8% 10% the mean is (5+8+10/2) = 1.67%
Data visualization techniques: representing by chart

Measure of variation: calculate standard divination

Implication: based on this scenario if the company has a high mean and high standard diveation might
have some problems with investors which are seeking high returns.