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Quantitative Aptitude

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© Amity University Press

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All Rights Reserved
No parts of this publication may be reproduced, stored in a retrieval system or transmitted

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in any form or by any means, electronic, mechanical, photocopying, recording or otherwise
without the prior permission of the publisher.

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Advisory Committee

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Chairman : Ms. Monica Agarwal
Members : Prof. Arun Bisaria
Dr. Priya Mary Mathew

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Prof. Aindril De
Mr. Alok Awtans
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Dr. Coral J Barboza
Dr. Monica Rose
Mr. Sachit Paliwal
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SLM Review Committee

Mr. Gaurav Agarwal
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Ms. Nitika Khanna

Ms. Rashmi Saxena
Ms. Renu Singh
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Ms. Mona Chaudhary

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Published by Amity University Press for exclusive use of Amity Directorate of Distance and Online Education,
Amity University, Noida-201313
 Contents
Page No.

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Module - 1: Algebra 01

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1.1 Algebra
1.1.1 Introduction to Indices, properties and applciation in real life
1.1.2 Introduction to Surds, properties and application in real life

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1.1.3 Introduction to Logarithms, properties and application of common logarithms
1.1.4 Introduction to equations - Linear and Quadratic, roots of quadratic equation
1.1.5 Methods to solve quadratic equations

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1.1.6 Introduction tosimultaneous equations and methods to solve them with two or three unknowns
1.1.7 Introduction to Inequalities with Graphs

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Module - 2: Data Arrangement 22
2.1 Arithmetic Progression
2.1.1 Definition of Arithmetic Progression and the nth term of AP.
2.1.2 Sum of n terms of AP
2.1.3 Representation of terms in AP
2.1.4 Arithmetic mean between a and b rs
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2.1.5 Arithmetic Progression and its applications in business
2.2 Geometric Progression
2.2.1 Definition of Geometric Progression, nth term of GP
2.2.2 Sum of n terms of GP
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2.2.3 Representation of terms in GP

2.2.4 Geometric mean between a and b
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2.2.5 Geometric Progression and its applications in business

2.3 Permutation and Combination
2.3.1 Introduction to Permutations and Combination and its applications in business
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Module - 3: Differential Calculus 49

3.1 Sets
3.1.1 Definition of Sets and Subsets.
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3.1.2 Representation of a Set - Roster form, Descriptive form and Set Builder form.
3.1.3 Types of Sets - Empty, Singleton, Finite, Infinte Sets, Equal, Power and Universal Sets..
3.2 Relations and Functions
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3.2.1 Relations and functions

3.2.2 Function - Definition and Types
3.3 Limit and Continuity
3.3.1 Limit of a function - Definition and Methods
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3.2.2 Methods to solve limit

3.2.3 Continuous and discontinuous functions - Introduction and Application
Module - 4: Data Analysis 105
4.1 Data interpretation
1.1.1 Data and Statistical Data, Frequency Distribution

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1.1.2 Graphical Representation
1.1.3 Histogram

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1.1.4 Frequency Polygon and Frequency Curve
1.1.5 Ogive- Part 1

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1.1.6 Ogive- Part 2
4.2 Descriptive Measures
2.1.1 Measure of the Central Tendency - I

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2.1.2 Measure of the Central Tendency - II
2.1.3 Measure of Dispersion
2.1.4 Kurtosis, skewness

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Module - 5: Forecasting Techniques 164
5.1 Correlation
1.1.1 Correlation-Coefficient_Introduction
1.1.2 Correlation_Coefficient_Application
1.1.3 Introduction_Rank_Correlation
1.1.4 Comparison_Pearson_Spearman_Correlation
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1.1.5 Application_Rank_Correlation
5.2 Regression
2.1.1 Introduction_Linear_Regression_model
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2.1.2 Population_sample_Regression
2.1.3 Method_Least_Square_Understanding
2.1.4 Maths_Behind_Least_Square
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Quantitative Aptitude 1

Module - 1: Algebra
Notes

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Structure:

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1.1 Algebra
1.1.1 Introduction to Indices, properties and applciation in real life

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1.1.2 Introduction to Surds, properties and application in real life
1.1.3 Introduction to Logarithms, properties and application of common
logarithms

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1.1.4 Introduction to equations - Linear and Quadratic, roots of quadratic
equation
1.1.5 Methods to solve quadratic equations

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1.1.6 Introduction tosimultaneous equations and methods to solve them with
two or three unknowns
1.1.7 Introduction to Inequalities with Graphs

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Unit - 1: Algebra
Notes

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Objectives:
At the end of this unit, you will be able to understand:

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●● Indices, Properties and Application in Real Life
●● Surds, Properties and Application in Real Life

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●● Logarithms, Properties and Application of Common Logarithms
●● Equations- Linear and Quadratic, Roots of Quadratic Equations

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●● Methods to Solve Quadratic Equations
●● Simultaneous Equations and Methods to solve with 2 or 3 unknowns

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●● Inequalities with Graphs

Introduction
In this unit, we will discuss about indices, surds, logarithms and their properties and

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applications in real life; Linear and Quadratic equations; Simultaneous equations; and
Inequalities with graphs.
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Introduction to Indices, Properties and Application in Real Life
Index (indices) in Maths is the power or exponent which is raised to a number or
a variable. For example, in number 24, 4 is the index of 2. The plural form of index is
indices. In algebra, we come across constants and variables. The constant is a value
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which cannot be changed. Whereas a variable quantity can be assigned any number
or we can say its value can be changed. In algebra, we deal with indices in terms of
numbers. Let us learn the laws/rules of the indices along with formulas and solved
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examples.

Indices
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A number or a variable may have an index. Index of a variable (or a constant) is a

value that is raised to the power of the variable. The indices are also known as powers
or exponents. It shows the number of times a given number has to be multiplied. It is
represented in the form:
m

a˄m = a × a × a ×……× a (m times)

Here, a is the base and m is the index.

)A

The index says that a particular number (or base) is to be multiplied by itself, the
number of times equal to the index raised to it. It is a compressed method of writing big
numbers and calculations.

Example: 2˄3 = 2 × 2 × 2 = 8
(c

In the example, 2 is the base and 3 is the index.

If n is an positive integer, then means the continued product of factors, each equal
to a . Here is called the base and n is termed as the index or exponent or power of an.

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Notes

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Thus, 45,4,4,4 where 4 is the base and 5 is the index.

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Laws of indices (for positive integral exponents)

If m,n are positive integers and a,b are any two non-zero real numbers, then

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Note:
m
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Ex. 1.1: Simplify: (3x108)3.

Solution:
(3x108)3 = 33 x (108)3
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= 27 x 1024

= 2.7 x 101 x 1024

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4 Quantitative Aptitude

= 2.7 x 1025
Notes

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310 x108
Ex. Simplify:
36 x 105

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Laws of Indices

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There are some fundamental rules or laws of indices which are necessary to
understand before we start dealing with indices. These laws are used while performing
algebraic operations on indices and while solving the algebraic expressions, including it.

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Rule 1: If a constant or variable has index as ‘0’, then the result will be equal to
one, regardless of any base value.

a0 = 1

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Example: 50 = 1, 120 = 1, y0 = 1

Rule 2: If the index is a negative value, then it can be shown as the reciprocal of
the positive index raised to the same variable.

a-p = 1/ap

Example: 5-1 = 1/2, 8-3=1/83

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Rule 3: To multiply two variables with the same base, we need to add its powers
and raise them to that base.

ap.aq = ap+q
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Example: 52.53 = 52+3 = 55

Rule 4: To divide two variables with the same base, we need to subtract the power
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of denominator from the power of numerator and raise it to that base.

ap/aq = ap-q

Example: 104/102 = 104-2 = 102

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Rule 5: When a variable with some index is again raised with different index, then
both the indices are multiplied together raised to the power of the same base.

(ap)q = apq
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Example: (82)3 = 82.3 = 86

Rule 6: When two variables with different bases, but same indices are multiplied
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together, we have to multiply its base and raise the same index to multiplied variables.

ap.bp = (ab)p

Example: 32.52 = (3 x 5)2 = 152

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Rule 7: When two variables with different bases, but same indices are divided, we
are required to divide the bases and raise the same index to it.

ap/bp = (a/b)p

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Quantitative Aptitude 5

Example: 32/52 = (3/5)2

Notes
Rule 8: An index in the form of a fraction can be represented as the radical form.

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ap/q = q√ap

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Example: 61/2 = √6

Introduction to Surds, Properties and Application in Real Life

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In Mathematics, surds are the values in square root that cannot be further
simplified into whole numbers or integers. Surds are irrational numbers. The examples
of surds are √2, √3, √5, etc., as these values cannot be further simplified. If we further

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simply them, we get decimal values, such as:

√2 = 1.4142135…

√3 = 1.7320508…

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√5 = 2.2360679…

Surds Definition

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Surds are the square roots (√) of numbers that cannot be simplified into a whole or
rational number. It cannot be accurately represented in a fraction. In other words, a surd
is a root of the whole number that has an irrational value. Consider an example, √2 ≈
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1.414213. It is more accurate if we leave it as a surd √2.

In the set of irrational numbers some are algebraic (like 2 , 3 9 etc.) and these
numbers are termed as surds. Of course, non-algebraic irrational numbers, such as
π ,e etc. are not surds. Thus, all surds are irrational numbers, but all irrational numbers
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are not surds.

Let m and p respectively denote any positive rational number and any positive
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integer. Then any pth root of m (i.e., p m ) is known as a surd, if it is irrational.

A surd is called a pure surd if no rational number (except 1) can be extracted out of
its radical (e.g. 5 , 3 6 etc.). Any surd which is not pure is known as a mixed surd. Two
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mixed surds are called similar if their irrational factors are same.

The order of a surd is indicated by the index of the radical present in the surd. Thus
5 , 6 7
2 3

are respectively surds of the second, third and fourth order. A given surd is called a
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quadratic, cubic, quadratic according as the order of the surd is respectively 2, 3, 4.

Types of Surds
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The different types of surds are as follows:

Simple Surds – A surd that has only one term is called a simple surd. Example:
√2, √5, …
(c

Pure Surds – Surds which are completely irrational. Example: √3

Similar Surds – The surds having the same common surds factor

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Mixed Surds – Surds that are not completely irrational and can be expressed as a
Notes product of a rational number and an irrational number

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Compound Surds – An expression which is the addition or subtraction of two or
more surds

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Binomial Surds – A surd that is made of two other surds

Understanding the Forms of Surds

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1. Mixed Surds: A surd of the form kn a where k is a rational number, k1 0 and
k 1 1 is called a mixed surd.

23 7 , 83 7

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etc are mixed surds. For

Note: A surd can be expressed as a pure surd. For e.g. 5 2= 25 × 2= 50

2. Pure Surds: A surd of the form k a where k is a rational number,
n
k = ±1 is

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called a pure surd. For e.g. 3, 5 and 3 2 etc are pure surd.

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Rules of Surds:
Given below are some rules that one needs to follow:
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Any rational number cannot be a surd.

All irrational numbers are surds.

Root of a positive real quantity can be called a surd, if its value remains
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undetermined.

√a × √a = a ⇒ √5 × √5 = 5
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The sum along with the difference of two quadratic surds will be called
complementary or conjugate surds to each other.
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Notes

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1.1.3 Introduction to Logarithms, Properties and Applications of
Common Logarithms

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Meaning of logarithm

If a x = n , a and n are positive real number such that a ≠ 1 , then x is said to be the
logarithm of the number n to the base ' a ' symbolically it can be expressed as follows:
log a n = x

For example
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1. 43 =
64 ⇒ log 4 64 =
3
2. 33 =
27 ⇒ log 3 27 =
3
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Example 1 Find the value of log2 8 + log2 4 .

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8 Quantitative Aptitude

Solution:
Notes
log2 8 + log2 4 = log2 23 + log2 22

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= 3log2 2 + 2log2 2
3+2
= ( log 1)
=

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Example 2 Find the value of log 3 162 − log 3 2 .

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Solution:

 162 
log 3 162 − log 3 2 = log 3  

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 2 
= log 3 81
= log 3 34

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= 4log
= 33 (log x x 1)
=4
Example 3 If log 6 ( 2 x − 4 ) + log 6 4 =log 6 40 , then find the value of x.
Solution:

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log 6 ( 2 x − 4 ) + log 6 4 =
log 6 40
log 6 4 ( 2 x − 4 ) =
log 6 40
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8 x − 16 = 40
8 x = 56
x =7
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Two types of logarithm are used:

1. Natural logarithm: Logarithm of numbers to base e are known as nature
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logarithm.
Common Logarithm: Logarithms of numbers to the base 10 are known as
common logarithm.
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Applications of Common Logarithms:

The base of a common logarithm is always 10. The common log of a number N is
written as follows:
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log N or log 10 N: Decadic logarithms and decimal logarithms are other names for
common logarithms.

If log N = x, then this logarithmic form can be represented in exponential form, i.e.,
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10 x = N.

Common logarithms are widely used in science and engineering.

The Richter scale, which is used to measure earthquakes, and the decibel scale,
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which is used to measure sound, are both usually expressed in logarithmic form. It is so
common that if you find no base written, you can assume it is log x or common log.

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Quantitative Aptitude 9

Laws of Logarithm
Notes
( mn ) loga m + loga n
log a =

e
m
log a =
  log a m − log a n
n

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log a ( mn ) = n (log a m )
1
log a m =

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log m a
log b m
log a m =
log b a

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1.1.4. Introduction to Equations- Linear and Quadratic, Roots of
Quadratic Equation

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An equation having the form ax + b = 0 where a ≠ 0 , a and b are arbitrary
constants, is called a linear equation in x. This equation is also called first degree
equation, the highest power of the unknown factor x being 1. Again, two linear
equations of the form a1 x + b1 y + c1 =
0 , a2 x + b2 y + c2 =
0 are known as simultaneous
x
equations in and y .

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Linear equations are widely used in different places in Physics, Engineering and
Mathematics. It is partly due to the fact that it can help to approximate non-linear
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equations. Linear equations are equations for a straight line and are of the first order

Equation:

An equation is a statement where two algebraic expressions are equal.

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For Example,
3x + 4 =
16
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x 2 − 7 x + 12 =
0
x − y =−1
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2x − y =7
In each of the above equations the parts separated by the sign = are termed as
sides of the equation.
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Quadratic equation

( ) ( )
If f x is a quadratic polynomial. Then f x = 0 is known as quadratic equation.
The general form of a quadratic equation is ax 2 + bx + c =0 , a, b, c ∈ R and a ≠ 0 .
)A

Following image is an example of quadratic equation:

(c

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Notes

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Roots of an equation

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The value of a variable in an equation which satisfied the given equation are known
( ) ( )
as roots of an equation i.e., if f x = 0 is a polynomial equation and f a = 0 , then a
( )
is a root of f x = 0 .

Roots of a quadratic equation

2
b − 4ac is known as discriminant and itrs
Roots of the quadratic equation ax 2 + bx + c =
is denoted by
0 are
D.
−b ± b 2 − 4ac , where
2a
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If the value of discriminant is negative, then the solution of the quadratic equation is
not possible.

If the value of discriminant is positive, then the solution of the quadratic equation is
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possible.

Nature of roots
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If D > 0 , then the roots are real and distinct.

If D = 0 , then the roots are real and equal.
If D < 0 , then the roots are complex with non-zero imaginary part.
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The roots are rational, if a, b, c are rational and D is perfect square.

The roots are irrational, if a, b, c are rational and D is not a perfect square.
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Relation between coefficients and roots of an equation

If a and b are the roots of the quadratic equation ax 2 + bx + c =0 , then
b
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Sum of the roots a + b =− and

a
c
Products of the roots ab =
a
(c

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Quantitative Aptitude 11

1.1.5. Methods to Solve Quadratic Equation-

Notes
If f ( x ) is a quadratic polynomial. Then f ( x ) = 0 is known as quadratic equation. The

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general form of a quadratic equation is ax 2 + bx + c =0 , a, b, c ∈ R and a ≠ 0 .

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For Ex. 3x 2 + 2 x + 4 , 5x 2 + 8 x + 9 and 2 x 2 + 8 x + 13 .

Roots of quadratic equation

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Roots of the quadratic equation ax2 + bx + c = 0 are where b2 –
4oc is known as discriminant and it is denoted by D.

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If the vale of discriminant is negati ve, then the solution of the quadratic equation is
not possible.

It the value of discriminant is positive, then the solution of the quadratic equation is

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possible.

How to Sove quadratic equations?

We have two methnods b y which a quadratic equation can be solved.

1. Solving quadratic equations by factor using:

To solve a quadratic equation, we have to follow following steps
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Step 1: Express the given equation in the form ax2 + bx + c = 0.

Step 2: Factorise ax2 + bx + c = 0.

Step 3: Put each factor equals to 0.

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Step 4; Sove each resulting equation.

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2. Solving quadratic equations by using formula:

Let the given quadratic equation be ax2 + bx + c = 0, a ≠ 0.

So, the roots of the given equation are

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Ex.1.15: Solve the equation x 2 + 6 x + 8 .

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Solution:

x2 + 6 x + 8 = x2 + 2x + 4 x + 8
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= ( x2 + 2x ) + ( 4 x + 8 )
= x ( x + 2) + 4 ( x + 2)
( x + 2 )( x + 4 )
=
(c

⇒ x =−2, −4
2
Ex.1.16: Solve the equation x + 4 x − 21 .

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Solution:
Notes
x 2 + 4 x − 21 = x 2 + 7 x − 3x − 21

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= ( x 2 + 7 x ) − ( 3x + 21)
= x ( x + 7) − 3( x + 7)

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( x + 7 )( x − 3)
=
⇒x=−7,3

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Ex. 1.17: Solve the equation 3x 2 − 10 x + 3 =0.
Solution: Here, a = 3, b = -10, c = 3

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So, the roots are

−b ± b 2 − 4ac
x=

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2a
10 ± 100 − 36
=
6
10 ± 64

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=
6
10 ± 8
=
6
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10 + 8 10 − 8
= or
6 6
1
=3 or
3
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Ex. 1.18: Solve the equation 2 x 2 + 2 x − 3 =0.

Solution: Here, a = 2, b = 2, c = -3
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So, the roots are

−b ± b 2 − 4ac
x=
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2a
−2 ± 4 + 24
=
4
−2 ± 28
m

=
4
−2 ± 2 7
=
)A

4
−1 + 7 −1 − 7
= or
2 2
(c

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Quantitative Aptitude 13

1.1.6. Introduction to Simultaneous Equations and Methods to Solve

them with Two or Three Unknowns- Notes

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Simultaneous (linear equation) equation

An equation having the form ax + b = 0 where a ≠ 0 , a and b are arbitrary constants,

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is called a linear equation in x. This equation is also called first degree equation, the
highest power of the unknown factor x being 1. Again, two linear equations of the form
0 are known as simultaneous equations in x and y .
0 , a2 x + b2 y + c2 =
a1 x + b1 y + c1 =

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Linear equations are widely used in different places in Physics, Engineering and
Mathematics. It is partly due to the fact that it can help to approximate non-linear

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equations. Linear equations are equations for a straight line and are of the first order.

The graph of Simultaneous linear equation in two variables is given below:

Suppose the linear equation in two variables are x + y = 5 and x + y = 2 .

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So, the roots of the linear equation x + y = 5 is

X -10 -5 0 5 10

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15 10 5 0 -5
y= 5 − x

So, the roots of the linear equation x + y =

2 is
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X -4 -2 0 2 4

6 4 2 0 -2
y= 2 − x
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Here blue line shows the graph of x + y =5 and red line shows the graph of
m

x+y =2.
Given below is a basic example of how this equation is graphed:
)A
(c

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14 Quantitative Aptitude

Notes

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Methods of solving simultaneous equations

There are three methods to solve any simultaneous equations. These methods are
as follows:

1. Method of elimination by substitution.

2.
3.
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Method elimination by equating coefficients.
Method of cross multiplication.
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1. Method of elimination by substitution.
Step 1:
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We obtain the value of one variable in terms of the other from any of the given two
equations.

Step 2:
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Substitute the value of variable, obtained in step 1, in the other equation and solve
it.
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Step 3:

Substitute the value of variable, obtained in step 2, in the result of step 1 and get
the value of the remaining unknown variable.
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2. Method of elimination by equating coefficient.

Step 1:
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Multiply one or both of the equations by a suitable number or numbers so

that either the coefficients of x or the coefficients of y in both the equations become
numerically equal.

Step 2:
(c

Add both the equations, as obtained in step 1, or subtract one equation from the
other, so that the terms with equal numerical coefficients cancel mutually.

Step 3:

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Quantitative Aptitude 15

Solve the resulting equation to find the value of one of the unknowns.
Notes
Step 4:

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Substitute this value in any of the two given equations and find the value of the
other unknowns.

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3. Method of cross-multiplication.

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Step 1.

Express the given simultaneous equations as:

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0
a1 x + b1 y + c1 =

and, a2 x + b2 y + c2 =
0

Step 2.

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Write the equation in the following form in order to obtain the solution of the given
equation.
x y 1
= =
 b1 c1   c1 a1   a1 b2 
    
 b2 c2   c2 a2   a2 b2 
= =
x y x

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b1c2 − b2 c1 c1a2 − c2 a1 a1b2 − a2b1
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1.1.7. Introduction to Inequalities with Graphs

Inequalities

Mathematical sentences of the type 5 ≠ 7, 7 > 5, −1 < 2, 3 y < 15, 5t > 20 are
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called inequalities or in inequations. These sentences say that one thing is not equal to
another.

Universal set
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Consider the sentences

3x = 12
2x < 3
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If the variable x in the equation (a) is replaced by the number 4, it yields a true
statement. We say that the equation is satisfied. Similarly, the inequation (b) is satisfied
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if the variable x is replaced by the numbers

…..,-3, -2, -1, 0, 1

Sometimes it is necessary to specify a set from which the replacement for the
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variable should be chosen. For example, if we write the open sentences. “_______ is a
beautiful city”, it would be difficult to give any precise answer, unless the set of cities is
specified.

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16 Quantitative Aptitude

The set of a elements from which the replacement for the variable is taken is called
Notes the replacement set.

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Solution Set or truth Set

Consider the inequation 1 + x > 5 . We can obtain the following solutions for the

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replacement sets shown.

Replacement set Solutions

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A = {0,1, 2,5, 7,8} 5, 7 and 8

B = {0,1, 2,3, 4, 6} 6

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C = {0,1, 2,3, 4} φ
The above Ex. illustrates the fact that the solution of an inequation depend upon
the replacement set used. It also follows from the above that an equation may have

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one, many or no solution, depending upon the replacement set. The solution or
solutions of a given inequation from a set, which we call the solution set or the truth set.
It is obviously a subset of the replacement set.

Properties:

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1. Adding to or subtracting from both sides of any inequality any non-zero
number produces an equivalent inequality.
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(i) x − 3 > 5 is equivalentto
x −3+3 > 5+3
x >8
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(ii) x + 1 > 3 is equivalentto

x +1−1 > 3 −1
U

x>2
2. Multiplying or dividing both sides of an inequalities by the same positive
number produces an equivalent inequality.
ity

(i) 5 x > 15 is equivalent to

5 x 15
>
5 5
m

x>3
x
(ii) > 2 is equivalent to
3
)A

x
×3 > 2×3
3
x>6
3. Multiplying both sides of an inequality by the same negative number
(c

produces an inequality with its direction reverse.

(i) x > 8 is equivalent to − x < −8

Amity Directorate of Distance & Online Education

Quantitative Aptitude 17

(ii) − x > −8 is equivalent to x < 8 Notes

4. (i) Squaring both sides of an inequality produces an equivalent inequality if

e
both sides are positive.

in
In other words,
2 2
If x > y, x > 0, y > 0 then x > y :

nl
For Ex.: 5>3 produces

52 > 32
25 > 9

O
(ii) Squaring both sides of an inequality produces an inequality with its
direction reversed if both sides are negative.

ity
In other words,

2 2
If x > y, x < 0, y < 0 then x < y or

2 2
If x < y, x < 0, y < 0 then x > y
For Ex.: -3 > 5 produces

( −3)
2
< ( −5 )
2 rs
ve
9 < 25
Graphing the inequality
ni

Place the variable on the left and the inequality symbol will point to the direction to
be shaded. The arrows at the ends of the number line will match the inequality sign.
U
ity
m
)A

a. When the ≤ or ≥ signs are used, the point is included → use the solid circle
•.
b. When the < or > signs are used, the point is not included → use the open
(c

circle  .
c. The line goes to the right (greater than symbol) if > is used

Amity Directorate of Distance & Online Education

18 Quantitative Aptitude

d. the lines goes to the left (less than the symbol) if < is used
Notes Here are some Example of inequalities which shows how such inequalities are represented.

e
in
nl
O
ity
rs
ve
ni
U
ity

Check your Understanding

m

1. ________ of a variable (or a constant) is a value that is raised to the power of the
variable.
)A

2. __________ are the square roots (√) of numbers that cannot be simplified into a
whole or rational number.
3. Thus, all surds are irrational numbers, but all irrational numbers are not surds. True
/ False
(c

4. An ___________ is a statement where two algebraic expressions are equal.

5. Similar surds are surds that are not completely irrational and can be expressed as a
product of a rational number and an irrational number. True / False

Amity Directorate of Distance & Online Education

Quantitative Aptitude 19

6. Logarithms of numbers to the base 10 are known as _________ logarithm.

Notes
7. An equation having the form ax + b = 0 where a ≠ 0 , a and b are arbitrary constants,

e
is called a __________ equation in x.
8. Linear equations are equations for a ___________ line and are of the first order.

in
9. The set of a elements from which the replacement for the variable is taken is called
the _____________ set.

nl
10. The value of a variable in an equation which satisfied the given equation are known
as __________ of an equation

O
Multiple Choice Questions
log9 3
1. Solve 4 10log x 83
+ 9log2 4 =

a. 3

ity
b. 11
c. 4
d. 9 a+b b+c c +a

rs
 xa   xb   xc 
2. Find the value of  b  × c  × a 
x  x  x 
a. 1
ve
b. 6
c. 9
d. 0
ni

3 1+ x + 1− x
3. If x = , then find the value of
2 1+ x − 1− x
U

a. √3
b. √5
c. √7
ity

d. 1
4. Find the value of log 0..01 10000
a. 2
m

b. 6
c. -2
)A

d. -8
5. Find the value of log 3 log 2 log 2 256
a. 7
(c

b. 5
c. 3
d. 1

Amity Directorate of Distance & Online Education

20 Quantitative Aptitude

Summary
Notes
●● The index says that a particular number (or base) is to be multiplied by itself,

e
the number of times equal to the index raised to it. It is a compressed method of
writing big numbers and calculations.

in
●● Surds are the square roots (√) of numbers that cannot be simplified into a whole or
rational number. It cannot be accurately represented in a fraction. In other words, a
surd is a root of the whole number that has an irrational value.

nl
●● Logarithm of numbers to base e are known as nature logarithm.
●● Logarithms of numbers to the base 10 are known as common logarithm.

O
●● An equation is a statement where two algebraic expressions are equal.
●● The value of a variable in an equation which satisfied the given equation are
( )
known as roots of an equation i.e., if f x = 0 is a polynomial equation and

ity
( ) ( )
f a = 0 , then a is a root of f x = 0 .
●● An equation having the form ax + b = 0 where a ≠ 0 , a and b are arbitrary constants,
is called a linear equation in x. This equation is also called first degree equation,
the highest power of the unknown factor x being 1.
●●
rs
There are three methods to solve any simultaneous equations. These methods are
as follows:
ve
●● Method of elimination by substitution.
●● Method elimination by equating coefficients.
●● Method of cross multiplication.
ni

●● Mathematical sentences of the type 5 ≠ 7, 7 > 5, −1 < 2, 3 y < 15, 5t > 20 are
called inequalities or in inequations. These sentences say that one thing is not
equal to another.
U

●● The solution or solutions of a given inequation from a set, which we call the
solution set or the truth set. It is obviously a subset of the replacement set.
ity

Activity
1. Simplify: 310 x 108 / 36 x 105
2. Solve the equation: 4x2 + 5x – 10 = 0 What are the roots?
m

3. Solve the equation: 6x2 – 3x + 9 = 0 What are the roots?

4. Describe the 3 methods of solving simultaneous equations. Explain in detail and
provide examples that are not provided in the book.
)A

5. 2x2 + 15 < 25 Solve and graph the answer

Questions and Exercises

1. What is the law of indices for positive integral exponents?
(c

2. List the eight Laws of Indices.

3. Give two examples of irrational numbers that are not considered surds.
4. List the rules of surds.
Amity Directorate of Distance & Online Education
Quantitative Aptitude 21

5. What are the steps to solving a quadratic equation?

Notes
6. How do you graph an equation in point-slope form?

e
Glossary

in
●● Binomial Surds: A surd that is made of two other surds
●● Common Logarithm: Logarithms of numbers to the base 10 are known as
common logarithm.

nl
●● Compound Surds: An expression which is the addition or subtraction of two or
more surds

O
●● Index: is a value that is raised to the power of the variable(or a constant).
●● Natural logarithm: Logarithm of numbers to base e are known as nature
logarithm.

ity
●● Simple Surds – A surd that has only one term is called a simple surd.
●● Surds: are the square roots (√) of numbers that cannot be simplified into a whole
or rational number.
●● Pure Surds – Surds which are completely irrational.

Further Reading rs
ve
1. McCune, Sandra Luna. McGraw-Hill Education Algebra I Review and
Workbook. McGraw Hill; 1st edition (January 8, 2019)
2. Selby, Peter H.; Slavin, Steve. Practical Algebra: A self-Teaching Guide,
Second Edition. John Wiley & Sons; 2nd edition (February 14, 1991)
ni

Check your Understanding: Answer

1. Index
U

2. Surds
3. True
ity

4. Equation
5. False
6. Common
m

7. Linear
8. Straight
)A

9. Replacement
10. Roots

Multiple Choice
(c

1. B 2. A 3. A
4. C 5. D

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22 Quantitative Aptitude

Module - 2: Data Arrangement

Notes

e
Structure:

in
2.1 Arithmetic Progression
2.1.1 Definition of Arithmetic Progression and the nth term of AP.

nl
2.1.2 Sum of n terms of AP
2.1.3 Representation of terms in AP
2.1.4 Arithmetic mean between a and b

O
2.1.5 Arithmetic Progression and its applications in business
2.2 Geometric Progression

ity
2.2.1 Definition of Geometric Progression, nth term of GP
2.2.2 Sum of n terms of GP
2.2.3 Representation of terms in GP

rs
2.2.4 Geometric mean between a and b
2.2.5 Geometric Progression and its applications in business
2.3 Permutation and Combination
ve
2.3.1 Introduction to Permutations and Combination and its applications in
business
ni
U
ity
m
)A
(c

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Quantitative Aptitude 23

Unit - 2.1: Arithmetic Progression

Notes

e
Objectives:
At the end of this unit, you will be able to understand

in
●● Definition of Arithmetic Progression and the nth term
●● Sum of n terms of AP

nl
●● Representation of terms in AP
●● Arithmetic mean between a and b

O
●● Arithmetic Progression and its applications in Business

Introduction

ity
In mathematics, the word sequence is used in the same way as it is in ordinary
English. When we say that a collection of objects is listed in a sequence, we usually
mean that the collection is ordered in such a way that it first identifies the first member,
then the second member, then the third member and so on. In this unit, we will learn

rs
about arithmetic progression, nth term of an A.P., the sum of first n terms of A.P. and
arithmetic mean also.
ve
2.1.1 Definition of Arithmetic Progression and the nth Term of AP

Arithmetic Progression
An arithmetic progression (A.P.) is a sequence whose terms increase or decrease
ni

by a fixed number is called the common difference of the A.P.

In mathematical form, if a1 a2 a3 a4 , , , ,......, an are in A.P., then

U

a2 − a1 = a3 − a2 = ... = an − an-1 = d

If a is the first term and d is a common difference, then A.P. can be written as
ity

a,a + d,a + 2d,....., [a + (n-1) d]

Ex. (i) 2,4,6,8,......

(ii) 4,8,12,16,......
m

Some characteristics of an Arithmetic series

If the sum of n terms of any series is a quadratic expression, then that series will be
)A

arithmetic series.

If the same number is added or subtracted from each term of an arithmetic

progression, then new series formed will also be in an arithmetic progression.

If the same number is multiplied or divided by each term of an arithmetic

(c

progression, then new series formed will also be in the form of arithmetic series.

If corresponding terms of two series are added or subtracted, then new series
formed will also be in an arithmetic series.

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24 Quantitative Aptitude

Series formed by multiplying or dividing corresponding terms of two arithmetic

Notes progression, then series formed will be not be in an arithmetic series.

e
2.1.2 Sum of n terms of AP

in
The nth term of an A.P.

Suppose a be the first term, d be a common difference and an be the last term of
an A.P., then the nth term is given by

nl
an =a + ( n − 1) d , where d= an − an−1
( n − r + 1)
th
The rth term from the end of finite A.P. is the term from the beginning.

O
The sum of n terms of an A.P.

Suppose there are n terms of a sequence, whose first term is a, the common

ity
difference is d and the last term is an, then the sum of n terms is given by
n
S= 2a + ( n − 1 ) d 
2
n

Example

rs
Find the 10th term of the following sequence:
Sequence: 1, 3, 5, 7, …
ve
Answer:
Given: 1, 3, 5, 7, …
ni

a1 = 1, a2 = 3, a3 = 5, a4 = 7, a10 = ?

Common difference,
U

d1 = a2 - a1

=3–1
ity

=2

d2 = a3 - a2

=5–3
m

= 2

d = d1 = d2 = 2
)A

So, the given sequence is A.P>

An = a + (n – 1)d

A10 = 1 + 9d
(c

= 19

Example

Amity Directorate of Distance & Online Education

Quantitative Aptitude 25

Find the sum of the first 10 terms of the sequence

Notes
Sequence: 10, 15, 20, 25, …

e
A1 = 10, a2 = 15, a3 = 20, a4 = 25, S10 = ?

in
Common difference,

D1 = a2 – a1

nl
= 15 – 10

=5

O
D2 = a3 – a2

= 20 – 15

=5

ity
So, the given sequence is A.P.
n
S= 2a + ( n − 1 ) d 
2
n

S10 = 5(20 + 45)

= 325 rs
ve
2.1.3 Representation of Terms in AP
A progression is a type of sequence for which a formula for the nth term can
be found. The Arithmetic Progression is the most commonly used sequence in
ni

mathematics, with simple formulas.

Arithmetic Progression Notation

U

In AP, we will encounter three main terms, which are denoted as follows:

◌◌ Common difference (d)

◌◌ nth Term (an)
ity

◌◌ Sum of the first n terms (Sn)

Arithmetic Progression is represented by all three terms. In the following section,
we will learn more about these three properties.
m

Common Variation in Arithmetic Progression

The terms used in this progression for a given series are the first term, the
)A

common difference between the two terms, and the nth term. Let’s suppose, a1, a2, a3,
……………., an is an AP, then; the common difference ‘d’ can be obtained as:

d = a2 – a1 = a3 – a2 = ……. = an – an – 1

Where ‘d’ is a common distinction. It can be either positive or negative, or it can be

(c

zero.

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26 Quantitative Aptitude

First Term of Arithmetic Progression

Notes
The AP can also be expressed in terms of common difference, as shown below:

e
a, a + d, a + 2d, a + 3d, a + 4d, ………. ,a + (n – 1) d

in
where ‘a’ is the progression’s first term.

General Form of an Arithmetic Progression

nl
Consider an Arithmetic Progression to be: a1, a2, a3, ……………., an

Position of Terms Representation of Terms Values of Term

O
1 a1 a = a + (1-1) d
2 a2 a + d = a + (2-1) d
3 a3 a + 2d = a + (3-1) d

ity
4 a4 a + 3d = a + (4-1) d
. . .
. . .
N

2.1.4 Arithmetic mean between a and b

rs an a + (n-1)d
ve
If we insert one arithmetic mean between two numbers a and b, then

a+b
Arithmetic mean =
2
ni

Arithmetic mean of a group of observations is the quotient obtained by dividing the

sum of all the observations by their number. Thus, arithmetic mean denoted by is
U

Sum of all the observations

x =
Number of Observations
ity

Discrete Frequency Distribution: if the value x1 occurs f1 times, the value x2 occurs
m

f2 times, and so on, then

)A
(c

Where N = f1 + f2 +......fn = Total frequency.

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Quantitative Aptitude 27

Methods of calculating Arithmetic mean

Notes
There are three methods of calculating arithmetic mean

e
a. Direct method

in
b. Short-Cut method
c. Step-deviation method
These methods are applicable to any type of series.

nl
a. Direct method:

O
b. Short cut method: In this method first we assured any numer say A (often

ity
called assumed mean). Then

c. By Stem-Deviation Method

∑ f (x – A)
x= A +
∑f
rs
ve
= A+
∑ f (x – A)
N
Where.
ni

h=Class size
U
ity

Properties of arithmetic mean

1. The algebraic sum of the deviations of all the variate values from their mean is
zero.
m

2. If every value of the variable is increased by same constant a, then arithmetic

mean is also increased by a.
)A

3. Arithmetic mean is not independent of the change of origin and scale.

4. The sum of the squares of the deviations of all the values taken about their
mean is minimum.
(c

Example
10

∑ 3( −2)
n −1
Evaluate .
n =1

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28 Quantitative Aptitude

Notes 10

∑ 3( −2)
n −1
Answer: = 3 − 6 + 12 − 24 + .......

e
n =1

in
First term, a = 3

Common ratio, r = −2

nl
a (1 − r n )
Sn =
1−r
( )

O
3 1 − ( −2 )
10

S10 =
1 − ( −2 )
3 (1 − 1024 )

ity
=
3
= −1023
Example

rs
Insert one arithmetic mean between 3 and 5.

Answer:
ve
Given a = 3 and b = 5

a+b
Arithmetic mean =
2
ni

3+5
=
2
=4
U

The required arithmetic mean is 4.

2.1.5 Arithmetic Progression and its Applications in Business

ity

If a similar number is added or subtracted from each term of an Arithmetic

Progression, the following terms in the succession are likewise in Arithmetic
Progression with similar basic contrast. If each term in an Arithmetic Progression is
divided or multiplied by the equivalent non-zero number, the following sequence is also
m

in an Arithmetic Progression.

If 2y = x + z, three numbers x, y, and z are in an Arithmetic Progression.

)A

If the nth term of a sequence is a linear expression, the sequence is an Arithmetic

Progression.

If we select terms from an Arithmetic Progression that are in the ordinary stretch,
these terms will also be in Arithmetic Progression.
(c

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Quantitative Aptitude 29

Example: Mr. Singh wants to start a savings plan. He decides that the bare
minimum he should save in any given year is Rs. 100,000. He serves Rs. 100,000 at Notes

e
the end of the first year and saves an additional Rs. 5000 each year after that. How
much money will he have saved by the end of his 30th year?

in
Solution: a = Rs. 100,000

d = Rs. 5000

nl
n = 30

O
ity
rs
Some real-life applications of an arithmetic progression include:
ve
◌◌ Arithmetic Progression is used in the calculation of straight-line depreciation.
◌◌ Arithmetic Progression is used to forecast any sequence while someone is
waiting for a cab. If the traffic is moving at a steady pace, they can predict
ni

when the next cab will arrive.

◌◌ Arithmetic Progression is used in Pyramid-like patterns where things
are constantly changing, among other things, and in a variety of other
U

applications.
◌◌ Online account checking is a fundamental application of everyday arithmetic.
With the risk of identity theft and online banking, a general understanding of
fundamental mathematics is essential.
ity

◌◌ You can see a real-life application of arithmetic progression when you take
a taxi. Once you board a taxi, you will be charged an initial fee followed by
a per mile or kilometre fee. This diagram shows an arithmetic sequence in
which you will be charged a fixed (constant) rate plus the starting rate for each
m

kilometre travelled.

Check your Understanding

)A

1. An arithmetic progression (A.P.) is a _________ whose terms increase or decrease

by a fixed number is called the common difference of the A.P.
2. Arithmetic __________ of a group of observations is the quotient obtained by dividing
the sum of all the observations by their number.
(c

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30 Quantitative Aptitude

3. If the same number is added or subtracted from each term of an arithmetic

Notes progression, then new series formed will also be in an arithmetic progression. True /
False

e
4. Arithmetic mean is independent of the change of origin and scale. True / False

in
5. Arithmetic Progression is used in Pyramid-like patterns where things are constantly
changing, among other things, and in a variety of other applications. True / False

nl
Multiple Choice
1. Find the 10th term of the following sequence: 2,4,6,8,.........

O
a. 12
b. 10
c. 40

ity
d. 20
2. Find the sum of the first 10 terms of the following sequence: 1,3,5,7,.........
a. 250
b.
c.
88
100 rs
ve
d. 125
3. Find the number of all-natural numbers between 20 and 80, which are divisible by 3.
a. 15
ni

b. 20
c. 6
U

d. 18
4. The sum of three terms in A.P. is 33 and their product is 1155, Find the terms.
a. 15,11,7
ity

b. 1,4,3
c. 6,8,4
d. 4,2,9
m

Summary
●● An arithmetic progression (A.P.) is a sequence whose terms increase or decrease
)A

by a fixed number is called the common difference of the A.P.

●● Some characteristics of an Arithmetic series
●● If the sum of n terms of any series is a quadratic expression, then that series will
be arithmetic series.
(c

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Quantitative Aptitude 31

●● If the same number is added or subtracted from each term of an arithmetic

progression, then new series formed will also be in an arithmetic progression. Notes

e
●● If the same number is multiplied or divided by each term of an arithmetic
progression, then new series formed will also be in the form of arithmetic series.

in
●● If corresponding terms of two series are added or subtracted, then new series
formed will also be in an arithmetic series.
●● Series formed by multiplying or dividing corresponding terms of two arithmetic

nl
progression, then series formed will be not be in an arithmetic series.
●● The terms used in this progression for a given series are the first term, the

O
common difference between the two terms, and the nth term.
●● Arithmetic mean of a group of observations is the quotient obtained by dividing the
sum of all the observations by their number.

ity
Activity
1. Rose wants to start saving money. She decides that the minimum amount she needs
to save in any year is Rs. 90,000. She deposits Rs. 90,000 at the end of the first year

rs
and saves an additional Rs. 8000 each year following that. How much money will
she have saved after 25 years?
2. How does one calculate the arithmetic mean using the direct method; Short-cut
ve
method; and Step-deviation method. Explain the steps and give original example
problems to illustrate how each method is used and in which scenarios.

Questions and Exercises

ni

1. List five characteristics of an arithmetic series.

2. What are the three terms most commonly used in arithmetic progression notation?
U

3. What are the steps to calculating the arithmetic mean?

4. List 3 examples of real-life applications of arithmetic progression.

Glossary
ity

●● Arithmetic progression (A.P.): is a sequence whose terms increase or decrease

by a fixed number
●● Progression: is a type of sequence for which a formula for the nth term can be
m

found.
●● Further Reading
)A

●● Carnielli, Antonio Lucio. Mathematics on Several Subjects: Theory and tests:

Combinatorics, Logarithms, Arithmetic Progressions and Geometric Progressions
and other topics. Independently published (November 1, 2016)
●● Future Point Coaching Center. Important questions of Quadratic Euations and
Arithmetic Progression for competitive exams and CBSE Xth class board exam
(c

2020: Useful for achievers. Kindle Edition January 25, 2020

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32 Quantitative Aptitude

Check your Understanding: Answers

Notes
1. Sequence

e
2. Mean

in
3. True
4. False
5. True

nl
Multiple Choice

O
1. D
2. C
3. B

ity
4. A

rs
ve
ni
U
ity
m
)A
(c

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Quantitative Aptitude 33

Unit -2.2: Geometric Progression

Notes

e
Objectives:
At the end of this unit, you will be able to understand:

in
●● Definition of Geometric Progression and the nth term of GP
●● Sum of terms in GP

nl
●● Representation of terms in GP
●● Geometric mean between a and b

O
●● Geometric Progression and its Applications in Business

Introduction

ity
In this unit, we will learn about geometric progression, nth term of a G.P., the sum
of first n terms of G.P. and geometric mean also.

2.2.1 Definition of Geometric Progression, nth Term of GP

rs
A geometric progression (G.P.) is a sequence of numbers, whose first term is non-
zero and each of the terms is obtained by multiplying its just preceding term is obtained
ve
by a constant quantity. This constant quantity is called the common ratio of the G.P.

In mathematical term, if a1 ,a2 ,a3 ,......,an are in G.P., then

ni

Here, r is known as the common ratio of G.P.

U

If a is the first and r is the common ratio, then G.P. can be written as a,ar ,ar2
,......,arn−1 , where a ≠ 0 .
ity

Example: Find the Geometric Progression ratio.

3, 6, 12, 24, ……

a1 = 3, a2 = 6, a3 = 12, a4 = 24
m
)A

(6/3) = (12/6) = 2

2, 6, 18, 54, ……

a1 = 2, a2 = 6, a3 = 18, a4 = 54
(c

(6/3) = (54/18) = 3

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34 Quantitative Aptitude

2.2.2 Sum of n Terms of GP

Notes
It is also called the general term of a G.P. Let a be the first term r be the common

e
ratio and an be the last term of a G.P., then the nth term is given by

in
nl
Suppose there are n terms of a sequence, whose first term is a, the common ratio
is r, and the last term is an, then the sum of n terms is given by

O
ity
rs
ve
Example Find the sum of 5 terms of the G.P.: 3 + 6 + 12 + 24 ………….

Answer:

Given a = 3
ni

6
Common ratio r =
2
U

=3
 r > 1 . So, the sum of 5 terms
a ( r n − 1)
ity

Sn =
r −1
3 ( 25 − 1 )
S5 =
2 −1
m

S5 = 3 × 31
S5 = 93
)A

Hence, the required sum is 93.

Example 1.21 Find the sum of 10 terms of the geometric progression

1 + 3 + 3 + 3 3 + .......
(c

Answer:

Given a=1

Amity Directorate of Distance & Online Education

Quantitative Aptitude 35

3 Notes
Common ratio r =
1

e
= 3
 r > 1 . So, the sum of 5 terms

in
a ( r n − 1)
Sn =
r −1

nl
S10 =
1 ( ( 3 ) − 1)
10

O
3 −1
5
3 −1 3 +1
= ×
3 −1 3 +1

ity
243 − 1
=
3−1
× 3 +1 ( )
= 121 ( 3 +1 )
( )
Hence, the required sum is

2.2.3 Representations of terms in GP

121 3 +1 .
rs
ve
A geometric progression is a sequence where each term has the same fixed
ratio, known as the common ratio. G.P. is an abbreviation for geometric progression.
The geometric sequence is generally written as a, ar, ar2..., where a is the first term
ni

and r is the common ratio of the sequence. The common ratio can have both negative
and positive values. In a geometric progression, each successive term is obtained by
multiplying the common ratio by the preceding term.
U

Let a be the first term and r be the common ratio for a Geometric Sequence.

Then the second term, a2 = a × r = ar

Third term, a3 = a2 × r = ar × r = ar2

ity

Similarly, nth term, an = arn-1

a2
The common ratio of a geometric progression r –
a1
m

The formula for the nth term of a geometric progression with the first term a and a
comon ratio of r.
)A

an =arn-1

The formula for the sum of geometric progression formula,

(c

Amity Directorate of Distance & Online Education

36 Quantitative Aptitude

a
The sum of infinite geometric formula S∞ – where r < 1.
1–r
Notes

e
2.2.4 Geometric Mean Between a and b
The geometric mean is defined as the nth root of the product of n numbers, i.e., for

in
a set of numbers a1, a2, a3, ….., an, the geometric mean is defined as

nl
Geometric mean

O
And also if we insert one geometric mean between two numbers a and b, then

Geometric mean =

ity
2.2.5 Geometric Progression and its Applications in Business
●● Geometric progression is a common method for calculating interest earned.
●● Geometric progression is a popular method for calculating the balance in our

rs
savings account.

Characteristics of Geometric Progression

ve
●● If each term of geometric series is multiplied or divided by the same quantity, then
new series formed will also be in geometric progression.
●● Series formed by multiplying or dividing by corresponding terms of two geometric
series will also be in geometric progression.
ni

●● Series formed by reciprocal of the term of geometric series is also in geometric

progression.
U

Solved Examples:
Example What is the geometric mean of 10, 51.2 and 8?
ity

Answer:
Product of all given numbers = 10 × 51.2 × 8
= 4096
G.M. = 3 4096
m

= 3 (16 )
3

= 16
)A

Example What is the geometric mean of 1, 3, 9, 27 and 81?

Answer:
(c

Amity Directorate of Distance & Online Education

Quantitative Aptitude 37

Product of all given numbers = 1 × 3 × 9 × 27 × 81

Notes
= 59049

e
G.M. = 5 59049

in
= 5 (9)
5

=9

nl
Exmple:
3.9 If the first two terms of a G.P. are 125 and 25. Find its 5th term.

O
Answer:
Given a = 125 ar = 25

ar

ity
\ Common ratio =
a
ar 25
=
a 125
r=
1
5 rs
ve
So, the fifth term of G.P.

4
1
ni

4
ar= 125 ×  
5
1
=
U

5
1
Hence, the fifth term is
5
ity

Check your Understanding

1. A ____________ progression (G.P.) is a sequence of numbers, whose first term is
non- zero and each of the terms is obtained by multiplying it’s just preceding term is
obtained by a constant quantity.
m

2. A geometric progression is a sequence where each term has the same ________
ratio, known as the common ratio.
3. The geometric sequence is generally written as a, ar, ar2..., where a is the first term
)A

and r is the _________ ratio of the sequence. True / False

4. In a geometric progression, each successive term is obtained by multiplying the
common ratio by the preceding term. True / False
(c

5. The geometric ________ is defined as the nth root of the product of n numbers
6. Geometric progression is a common method for calculating ______________
earned.

Amity Directorate of Distance & Online Education

38 Quantitative Aptitude

7. Series formed by multiplying or dividing by corresponding terms of two geometric

Notes series will also be in geometric progression. True / False

e
8. In a geometric progression, each successive term is obtained by multiplying the
common ratio by the following term. True / False

in
Multiple Choice
1. If the first two terms of a G.P. are 125 and 25. Find its 5th term.

nl
a. 1/5
b. 5

O
c. 1
d. 2
2. Find the sum of 5 terms of the G.P.: 3 + 6 + 12 + 24 ………….

ity
a. 65
b. 78
c. 44

3.
d. 93
rs
Find the sum of 10 terms of the geometric progression 1 + 3 + 3 + 3 3 + .......
ve
a. 154(√3+3)
b. 100(√3+5)
c. 121(√3+1)
ni

d. 145(√3+3)
4. The sum of few terms of any ratio series is 728, if common ratio is 3 and last term is
U

486, then find the first term of the series.

a. 5
b. 2
ity

c. 9
d. 22
5 5 5
5. Calculate the following geometric series: 5 + + + + ......
3 9 27
m

a. 7.5
b. 9
)A

c. 4
d. 3.5

Summary
(c

●● A geometric progression (G.P.) is a sequence of numbers, whose first term is non-

zero and each of the terms is obtained by multiplying its just preceding term is
obtained by a constant quantity. This constant quantity is called the common ratio
of the G.P.
Amity Directorate of Distance & Online Education
Quantitative Aptitude 39

●● The geometric sequence is generally written as a, ar, ar2..., where a is the first
term and r is the common ratio of the sequence. The common ratio can have both Notes
negative and positive values. In a geometric progression, each successive term is

e
obtained by multiplying the common ratio by the preceding term.

in
●● The geometric mean is defined as the nth root of the product of n numbers
●● Characteristics of Geometric Progression
●● If each term of geometric series is multiplied or divided by the same quantity, then

nl
new series formed will also be in geometric progression.
●● Series formed by multiplying or dividing by corresponding terms of two geometric

O
series will also be in geometric progression.
●● Series formed by reciprocal of the term of geometric series is also in geometric
progression.

ity
Activity
1. The 6th term and 8th term of a G.P. are 32 and 128 respectively. Find the common
ratio o the G.P.

rs
2. If three geometric means are put between 2 and 32, find the value of the third
geometric mean.

Questions and Exercises

ve
1. What is the formula for the nth term of a geometric progression?
2. What is the formula for the sum of geometric progression?
3. List the characteristics of geometric progression.
ni

Glossary
●● Common Ratio: This constant quantity is called the common ratio of the G.P.
U

●● Geometric mean: is defined as the nth root of the product of n numbers

●● Geometric progression (G.P.) is a sequence of numbers, whose first term is non-
ity

zero and each of the terms is obtained by multiplying its just preceding term is
obtained by a constant quantity.

Further Readings
m

1. Carnielli, Antonio Lucio. Mathematics on Several Subjects: Theory and

tests: Combinatorics, Logarithms, Arithmetic Progressions and Geometric
Progressions and other topics. Independently published (November 1, 2016)
)A

2. Future Point Coaching Center. Important questions of Quadratic Euations and

Arithmetic Progression for competitive exams and CBSE Xth class board exam
2020: Useful for achievers. Kindle Edition January 25, 2020

Check your Understanding: Answers

(c

1. Geometric
2. Fixed

Amity Directorate of Distance & Online Education

40 Quantitative Aptitude

3. Common
Notes
4. True

e
5. Mean

in
6. Interest
7. True
8. False

nl
Multiple Choice
1. A

O
2. D
3. C

ity
4. B
5. A

rs
ve
ni
U
ity
m
)A
(c

Amity Directorate of Distance & Online Education

Quantitative Aptitude 41

Unit 2.3 Permutation and Combination Notes

e
Objectives:
At the end of this unit, you will be able to understand:

in
●● Introduction to Permutations and Combination and its applications in Business

nl
Introduction
In today’s business world scenarios, there are many such problems which we can
solve with the help of Permutation and combination. This unit will cover in-depth about

O
the problems presented in businesses and how to solve them.

2.3.1 Introduction to Permutations and Combinations and its

ity
Applications in Business
Each of different arrangements, which can be made by taking some or all of
a number of things is called a permutation. e.g., Arrangements of objects taking 2 at
a time from given 3 objects (a, b, c) are ab, bc, ca, cb, ac, ba, then total number of
arrangements is 6, each of which is known as permutation.

Meaning of n Pr rs
ve
Number of permutations of n distinct objects taking r at a time is denoted by n Pr .

n n!
= Pr , ∀0 ≤ r ≤ n
( n − r )!
ni

= n ( n − 1 )( n − 2 ) ...... ( n − r + 1 ) , ∀n ∈ N and r ∈W

Properties of n Pr
U

●● The number of permutations of n distinct object taken all at a time is n Pn = n! .

n n n
●● = P0 1,= P1 n, and = Pn −1 n!,
n
●= .n −1 Pr −1 r .
Pr n= n −1
Pr −1 + n −1 Pr
ity

●●
n −1
P=
r (n − r ) n −1
Pr −1

Ex.: In how many of the distinct permutations of the letters in the ‘MISSISSIPPI’ do
m

the four I’s not come together?

Solution: The word MISSISSIPPI has 11 letters in which

)A

The number of permutations of the word ‘MISSISSIPPI’ in which 4 I’s and 4’s are like
11!
=
4!4!2!
If all the I’s are together, then it will be considered as one letter and remaining 7
(c

letters and 1 I’s letter will be considered as 8 letters. So, the number of permutations is
8!
=
4!2!
Hence, total number of arrangements

Amity Directorate of Distance & Online Education

42 Quantitative Aptitude

11! 8!
Notes −
4!4!2! 4!2!
=

e
11 × 10 × 9 × 8 × 7 × 6 × 5 × 4! 8 × 7 × 6 × 5 × 4!
= −
4!4!2! 4!2!

in
= 34650 − 840
= 33810

nl
Application of Permutation and Combination
In today’s business world scenarios, there are many such problems which we can
solve with the help of Permutation and combination. Few of them are discussed below:

O
Ex.: If it is required to seat 5 men and 4 women in a row so that the women occupy
the even places. How many such arrangements are possible?

ity
Solution: We are given that there are 5 men and 4 women.

There are 9 positions.

The even positions are: 2nd, 4th, 6th, and 8th places.

= 24
rs
These four places can be occupied by 4 women in P (4, 4) ways = 4! = 4 x 3 x 2 x 1

The remaining 5 positions can be occupied by 5 men in P (5, 5) ways =5! = 5 x 4 x

ve
3 x 2 x 1 = 120 ways

Therefore, by the fundamental counting principle,

Total number of ways of seating arrangements = 24 x 120 = 2880

ni

Ex.: How many different ways can five male and five females form a circle for a
business meeting such that the male and female set alternate?
U

Solution: After fixing up one boy on the table, the remaining can be arranged in 4!
ways but male and female are to sit alternate.

There will be 5 places, between two males, these 5 places can be filled by 5
ity

females in 5! ways.

The required number of ways = 4! x 5! = 2880

Ex.: A board meeting of a company is organised in a room for 24 persons along the
m

two sides of a table with 12 chairs on each side, 6 persons want to sit on a particular
side and persons want to sit on the other side. In how many ways can they be seated?

Solution: 6 persons can be arranged on the 12 chairs on the particular sides in

)A

12
P6 ways and 3 persons can be arranged on the 12 chairs on the other side in 12P3.

Remaining persons = 24 – 6 – 3 = 15

Now the remaining 15 persons can be arranged on the remaining 15 chairs in 15P15,
(c

i.e., 15! Ways.

Therefore, the required number of ways = 12P6 x 12P3 x 15!

Amity Directorate of Distance & Online Education

Quantitative Aptitude 43

Ex.: Mr. Rajan has 10 employee and he wants to invite 6 of them to a party. How
many times 3 particular employee never attend the party? Notes

e
Solution: Excluding the 3 particular friends. Mr. Rajan can invite 6 friends from
remaining 7 friends. This can be done in 7C6 = 7 ways.

in
Each of the different groups or selections which can be made by some or all of
a number given, things without reference to the order of the things in each group is
called a combination. e.g., The groups made by taking 2 objects at a time from three

nl
objects (a,b,c) are ab, bc, ca. then, the number of groups is 3 each of which is known
as combination.

O
Meaning of n C r

The number of combinations of n different things taken r at a time is denoted by

n
n
C r or  
r 

ity
n
n n! Pr
C= = ,∀0 ≤ r ≤ n
r ! ( n − r )!
r
r!
n ( n − 1 )( n − 2 ) ...... ( n − r + 1 )
, ∀n ∈ N and r ∈W
r ( r − 1 )( r − 2 ) .....2.1

Properties of n C r rs
ve
n
C r is a natural number.
n n
C0
= C n 1,n =
= C1 n
n
C r =n C n−r
ni

n
C r + n C r −1 =
n +1
Cr
n
C 0 + n C1 + n C2 + .... + n C n =
2n
U

Ex.1.32: Find n, if n −1
P3 :n P4 = 1: 9

Solution:
ity

n −1
P3 :n P4 = 1: 9
( n − 1)! : n! = 1: 9
( n − 1 − 3)! ( n − 4 )!
( n − 1)! : n ( n − 1)! = 1: 9
m

( n − 4 )! ( n − 4 )!
( n − 1)! × ( n − 4 )! =
)A

1: 9
( n − 4 )! n ( n − 1)!
1 1
=
n 9
n=9
(c

Ex.: In how many of the distinct permutations of the letters in the ‘MISSISSIPPI’ do
the four I’s not come together?

Solution: The word MISSISSIPPI has 11 letters.

Amity Directorate of Distance & Online Education
44 Quantitative Aptitude

The number of permutations of the word ‘MISSISSIPPI’ in which 4 I’s and 4’s are like
Notes 11!
=

e
4!4!2!
If all the I’s are together, then it will be considered as one letter and remaining 7

in
letters and 1 I’s letter will be considered as 8 letters. So, the number of permutations is
8!
=
4!2!

nl
Hence, total number of arrangements
11! 8!
− =
4!4!2! 4!2!

O
11 × 10 × 9 × 8 × 7 × 6 × 5 × 4! 8 × 7 × 6 × 5 × 4!
= −
4!4!2! 4!2!
= 34650 − 840

ity
= 33810

Ex.1.34: In a polygon the number of diagonals is 54. The number of sides of the
polygon is ____?

rs
Solution: Let number of sides of polygon is n. Since number of sides of the
polygon is equal to the number of vertices of polygon.

 Number of diagonals of polygon = 54

ve
n
C2 − n =54
n ( n − 1)
−n= 54
2
ni

n 2 − 3n =
108
n 2 − 3n − 108 =
0
( n + 9 )( n − 12 ) =
0
U

n = 12

Because n cannot be negative.

ity

Ex.1.35: Find the number of ways of selecting 9 balls from 6 red balls, 5 white balls
and 5 blue balls, if each selection consist of 3 balls of each colour.

Solution: Total number of ways selecting 9 balls (3 balls of each colour) is

m

= 6 C3 ×5 C3 ×5 C3
= 6 C3 ×5 C2 ×5 C2
6×5× 4 5× 4 5× 4
)A

= × ×
6 2 2
= 20 × 10 × 10
= 2000

Ex.1.36: Four boys picked up 30 mangoes. In how many can they divide them, if all
(c

mangoes areidentical?

Solution: 30 mangoes can be distributed among 4 boys such that each boy can
receive any number of mangoes.
Amity Directorate of Distance & Online Education
Quantitative Aptitude 45

Hence, total number of ways

Notes
=30 + 4 −1 C4 −1

e
=33 C3
33.32.31

in
=
1.2.3
= 5456

nl
Ex.1.37: How many different ways can five boys and five girls form a circle such
that the boys and girls set alternate?

O
Solution: After fixing up one boy on the table, the remaining can be arranged in 4!
waysbut boys and girls are to sit alternate.

There will be 5 places, between two boys, these 5 places can be filled by 5 girls in
5! ways.

ity
The required number of ways
= 4!× 5!
= 2880

Application of Permutation and Combination

rs
In today’s business world scenarios, there are many such problems which we can
ve
solve with the help of Permutation and combination. Few of them are discussed below:

Ex. 1.38: If it is required to seat 5 men and 4 women in a row so that the women
occupy the even places. How many such arrangements are possible?
ni

Solution: We are given that there are 5 men and 4 women.

There are 9 positions.

U

The even positions are: 2nd, 4th, 6th, and 8th places.

These four places can be occupied by 4 women in P (4, 4) ways =4! = 4 × 3 × 2 × 1

= 24
ity

The remaining 5 positions can be occupied by 5 men in P (5, 5) ways =5!

= 5 × 4 × 3 × 2 × 1 = 120 ways
Therefore, by the fundamental counting principle,
m

Total number of ways of seating arrangements = =24 × 120 =2880

Ex. 1.39: How many different ways can five male and five females form a circle for
)A

a business meeting such that the male and female set alternate?

Solution: After fixing up one boy on the table, the remaining can be arranged in 4!
waysbut male and female are to sit alternate.

There will be 5 places, between twomales, these 5 places can be filled by 5

(c

females in 5! ways.

The required number of ways

Amity Directorate of Distance & Online Education

46 Quantitative Aptitude

= 4!× 5!
Notes
= 2880

e
Ex. 1.40: A board meeting of a company is organised in a room for 24 persons
along the two sides of a table with 12 chairs on each side, 6 persons want to sit on a

in
particular side and persons want to sit on the other side. In how many ways can they be
seated?

nl
Solution: 6 persons can be arranged on the 12 chairs on the particular sides in
12 12
P6 ways and 3 persons can be arranged on the 12 chairs on the other side inP3 .
Remaining persons = 24 – 6 -3 = 15 and remaining chairs = 24 – 6 – 3= 15.

O
Now the remaining 15 persons can be arranged on the remaining 15 chairs in
15
P15 , i.e., 15! Ways.

ity
12
Therefore, the required number of ways = P6 ×12 P3 × 15!
Ex. 1.41: Mr. Rajan has 10 employee and he wants to invite 6 of them to a party.
How many times 3 particular employee never attend the party?

Solution: Excluding the 3 particular friends. Mr. Rajan can invite 6 friends from

rs 7
remaining 7 friends. This can be done in C6 = 7 ways.

Check your Understanding

ve
1. Each of different arrangements, which can be made by taking some or all of a number
of things is called a ______________.
2. ___________ of objects taking 2 at a time from given 3 objects (a, b, c) are ab, bc,
ni

ca, cb, ac, ba.

3. Each of the different groups or selections which can be made by some or all of a
number given, things without reference to the order of the things in each group is
U

called a ____________.
4. In today’s business world scenarios, there are many such problems which we can
solve with the help of Permutation and combination. True / False
ity

Multiple Choice
1. How many different ways can five boys and five girls form a circle such that the boys
and girls set alternate?
m

a. 3456
b. 2880
)A

c. 4321
d. 2112
2. Four boys picked up 30 mangoes. In how many can they divide them, if all mangoes
are identical?
(c

a. 5456
b. 6666

Amity Directorate of Distance & Online Education

Quantitative Aptitude 47

c. 4347
Notes
d. 2112

e
3. Find the number of ways of selecting 9 balls from 6 red balls, 5 white balls and 5 blue
balls, if each selection consist of 3 balls of each colour

in
a. 5000
b. 2000

nl
c. 1500
d. 4000

O
n −1
4. Find n, if P3 :n P4 = 1: 9
a. 9
b. 5

ity
c. 7
d. 11

rs
Summary
●● Each of different arrangements, which can be made by taking some or all of a
number of things is called a permutation. e.g., Arrangements of objects taking 2 at
ve
a time from given 3 objects (a, b, c) are ab, bc, ca, cb, ac, ba, then total number of
arrangements is 6, each of which is known as permutation.
●● Each of the different groups or selections which can be made by some or all of a
number given, things without reference to the order of the things in each group is
ni

called a combination. e.g., The groups made by taking 2 objects at a time from
three objects (a,b,c) are ab, bc, ca. then, the number of groups is 3 each of which
is known as combination.
U

●● Each of the different groups or selections which can be made by some or all of a
number given, things without reference to the order of the things in each group is
called a combination.
ity

Activity
1. How many ways can you arrange the letters of the word ‘Leading” where all the
vowels always come together?
m

2. How many three constant and two vowel words can you form if you have seven
constants and four vowels?
)A

3. How many three digit numbers which are divisible by five can be formed out of the
numbers 2, 3, 5, 6, 7, 9?

Questions and Exercises

1. What is the equation that is used to calculate the number of permutations?
(c

2. What are two examples on how permutations solve business related problems?

Amity Directorate of Distance & Online Education

48 Quantitative Aptitude

Glossary
Notes
●● Combination: each of the different groups or selections which can be made by

e
some or all of a number given, things without reference to the order of the things in
each group.

in
●● Permutation: Each of different arrangements, which can be made by taking some
or all of a number of things.

nl
Further Readings
1. Carnielli, Antonio Lucio. Mathematics on Several Subjects: Theory and
tests: Combinatorics, Logarithms, Arithmetic Progressions and Geometric

O
Progressions and other topics. Independently published (November 1, 2016)
2. Future Point Coaching Center. Important questions of Quadratic Euations and
Arithmetic Progression for competitive exams and CBSE Xth class board exam

ity
2020: Useful for achievers. Kindle Edition January 25, 2020
Check your Understanding: Answers
1. Permutation
2.
3.
Arrangement
Combination rs
ve
4. True

Multiple Choice
1. B
ni

2. A
3. B
U

4. A
ity
m
)A
(c

Amity Directorate of Distance & Online Education

Quantitative Aptitude 49

Module - 3: Differential Calculus

Notes

e
Structure:

in
3.1 Sets
3.1.1 Definition of Sets and Subsets.
3.1.2 Representation of a Set - Roster form, Descriptive form and Set

nl
Builder form.
3.1.3 Types of Sets - Empty, Singleton, Finite, Infinte Sets, Equal, Power and

O
Universal Sets..
3.2 Relations and Functions
3.2.1 Relations and functions

ity
3.2.2 Function - Definition and Types
3.3 Limit and Continuity
3.3.1 Limit of a function - Definition and Methods
3.2.2 Methods to solve limit

rs
3.2.3 Continuous and discontinuous functions - Introduction and Application
ve
ni
U
ity
m
)A
(c

Amity Directorate of Distance & Online Education

50 Quantitative Aptitude

Unit - 3.1: Sets

Notes

e
Objectives:
At the end of this unit, you will be able to understand:

in
●● Definition of Set and Subset
●● Representation of Set - Roster Form, Descriptive Form and Set Builder Form

nl
●● Types of Sets – Empty, Singleton, Finite, Infinite Sets, Equal, Power, Universal

O
3.1.1 Definition of Sets and Subsets
The set theory was developed by a German Mathematician Georg Cantor (1845-
1918). Nowadays, set theory is used in almost all branches of mathematics. We also

ity
use sets to define Relation and Functions. The knowledge of sets is required in the
study of geometry, sequence, probability, etc. In this unit, we will discuss some basic
definitions related to sets.

Definition of a Set

rs
“A well-defined collection of objects is called a set”.

The term “well-defined” implies that in a given set, it would be possible to decide if
ve
certain objects belong to the set. The term “distinct” implies that a given object should
not be repeated in a collection or group. The object in the set is called its member or
element. A set is represented by { }.
ni

Generally, sets are denoted by capital letters X, Y, Z…. and its element are denoted by
small letters x, y, z…….

Let X is a non-empty set. If x is an element of X, then we write x ∈ X and it can be read

U

as ‘x is an element of X’ or ‘x belongs to X’. If x is not an element of X, then we write x ∉

X and read as ‘x is not an element of X’ or ‘x does not belong to X’.
ity

Example: Suppose we have a set X that is defined in this way X = Set of all days in
a week. In this set Sunday, Monday, Tuesday, Wednesday, Thursday, Friday, Saturday
are members of the set.

Definition of a Subset
m

In the previous unit, we learned what sets are, how they are represented and they
are classified. In this unit, we will learn what are Subset, Superset and Proper subset.
)A

Let X and Y be two non-empty sets. If each element of set X is an element of set Y,
then set X is known as subset of set Y.

If set X is a subset of set Y, then set Y is called the superset of X.

(c

Also, if X is a subset of Y, then it is denoted as X ⊆ Y and read as ‘X is a subset of

Y.

If x ∈ X ⇒ x ∈ Y then X ⊆ Y If x ∈ X ⇒ x ∉ Y Then X will not be a subset of Y.

Amity Directorate of Distance & Online Education

Quantitative Aptitude 51

Example 2.2.1 If X = {a, b} and Y = {a, b, c, d}

Notes
Here each element of X is an element of Y. Thus X ⊆ Y i.e. X is a subset of Y and Y

e
is a superset of X.

Proper Subset If each element of X is in set Y but set Y has at least one element

in
which is not in X, then set X is known as proper subset of set Y, If X is a proper subset
of Y, then it is written as X ⊂ Y and read as X is a proper subset of Y.

nl
Example:
If N = {1,2,3,4,........}

O
And W = {0,1,2,3,4,.......}

Then N⊂W

ity
3.1.2 Representation of a Set- Roster Form, Descriptive Form and
Set Builder Form
Sets can be represented by following two methods:

1.
2.
Tabular Method or Roster Method
Set Builder Method rs
ve
Tabular Method or Roster Method – In this method, elements are listed and put
with in a brace {} and separated by commas.

Example Suppose we have a set X that is defined in this way X = {x : x is an even

number and x < 15} X = {2, 4, 6, 8, 10, 12, 14}
ni

Set Builder Method: - In this method, instead of listing all elements of a set, we
list the property or properties satisfied by the elements of a set and write it as X = {x :
U

P (x)} It is read as “X is the set of all elements x such that x has the property P(x).” The
symbol ‘:’ stands for such that.

Example: Suppose we have a set X that is defined in this way X = Set of all even
number less than 15. X = {x: x = 2n, n ∈ N and 1 ≤ n ≤ 7} Or X = {x: x is an even number
ity

less than 15} This method is also known as Rule method.

3.1.3 Types of Sets- Empty, Singleton, Finite, Infinite Sets, Equal, Power and
Universal Sets
m

Types of Set:
(i) Empty (Void/Null) Set: A set which has no element, is called an empty set. It
)A

is denoted by φ or {}. Example, Let X = Set of all even prime numbers greater
than 3.
Example, Let Y = Set of all prime numbers less than 2.

(ii) Singleton Set: A set which has only one element or member, is known as
(c

singleton set.
Example, Let X = {x: x is an even prime number} and Y = {a}

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52 Quantitative Aptitude

(iii) Finite Set: A set which has finite number of element or member, is known as
Notes finite set.

e
Example, Let X = {x: x is an even number less than 9} and Y = {1, 3, 5, 7, 11, 13,
15}

in
(iv) Infinite Set: A set which have infinite number of element or member, is known
as infinite set. Example, Let X = {x: x is a natural number} and Y = {2, 4, 6, 8,
10, 12, 14……………………}

nl
(v) Equivalent Sets: If two finite sets X and Y have same number of elements,
then the sets are known as equivalent set.

O
Example, Let X = {2, 4, 6, 8} and Y = {1, 3, 5, 7}

(vi) Equal Sets: If X and Y are two non-empty sets and each element of X is an
element of set Y and each element of set Y is an element of set X, then sets

ity
X, and Y are called equal sets.
Example, Let X = {x: x = 2n, n ∈ N and 1 ≤ n ≤ 5} and Y = {2, 4, 6, 8, 10}

(vii) Universal Set: If there are some sets under consideration, then there happens
to be a set which is a superset of each one of the given sets. Such a set is

rs
known as the universal set and it is denoted by U.
Example, Suppose we have three set X = {a, b}, Y = {c, d, e}, and Z = {f, g, h, I, j}.
ve
∴ U = {a, b, c, d, e, f, g, h, I, j} is a universal set for all given sets.

(viii) Power Set: If X is a non-empty set, then the collection of all possible subsets
of set X can be referred to as power set. It is denoted by P(X). The total
number of elements in a power set of X, containing n elements, is 2n .
ni

Example, Let X = {a, b, c} ∴ P(X) = {φ, = {a}, {b}, {c}, {a, b}, {b, c}, {c, a}, {a, b, c}}

Check your Understanding

U

1. The set theory was developed by a German Mathematician Georg Cantor (1845-
1918).
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2. We also use sets to define Relation and Functions. True / False

3. The term “___________” implies that a given object should not be repeated in a
collection or group.
4. The term “________-__________” implies that in a given set, it would be possible to
m

decide if certain objects belong to the set.

5. In the ___________ method(roster method), elements are listed and put with in a
brace {} and separated by commas.
)A

6. A set which has no element, is called an _________ set.

7. If two finite sets X and Y have same number of elements, then the sets are known as
universal set. True / False
(c

8. If X is a non-empty set, then the collection of all possible subsets of set X can be
referred to as _______ set.

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Quantitative Aptitude 53

Summary:
Notes
●● A set is well-defined collection of distinct objects.

e
●● Set can be represented in two ways (i) Tabular form or Roster form (ii) Set builder
method.

in
●● In the tabular form, the elements of a set are actually written down, separated by
commas and enclosed within braces.

nl
●● In the set builder method, a set is described by a characterizing property of its
element.
●● A set that does not contain a single element or member is called a null or empty

O
set.
●● A set with only one element or member is known as singleton set.
●● A set, which has a finite number of element or member, is known as finite set;

ity
otherwise it is called non-finite set.
●● Two sets X and Y are said to be equal, if every element of set X is in set Y and
every element of set Y is in set X.
●●
●● rs
The collection of all subset of a set X is called Power set of X.
Two sets X and Y are said to be equivalent, if the number of element in both sets
are equal.
ve
●● All the sets under consideration are likely to be subsets of a set is called the
universal set
Activity
ni

1. Find ten real life examples of where set are used. What method was used to represent
them? What kind of set are they?
U

Questions and Exercises

1. What is a subset?
2. List the types of sets.
ity

3. How does one represent a set?

4. What are the two methods of representing a set?
m

Glossary
●● Set: A well-defined collection of objects
●● Set Builder Method: In this method, instead of listing all elements of a set, we list
)A

the property or properties satisfied by the elements of a set

●● Tabular Method or Roster Method: In this method, elements are listed and put
with in a brace {} and separated by commas.
(c

Further Reading
1. Boelkins, Matthew. Active Calculus 2018: Single Variable. CreateSpace
Independent Publishing Platform; 2018th edition (August 13, 2018)

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54 Quantitative Aptitude

2. Edwards, Bruce H.; Larson, Ron. Calculus: Early Transcendental FUnctions

Notes Cengage Learning; 7th edition (January 1, 2018)

e
3. Stewart, James. Calculus 8th Edition. Cengage Learning; 8th edition (May 19,
2015)

in
Check your Understanding: Answers
1. Set

nl
2. True
3. Distinct

O
4. Well-defined
5. Tabular
6. Empty

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7. False
8. Power

rs
ve
ni
U
ity
m
)A
(c

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Quantitative Aptitude 55

Unit - 3.2: Relations and Functions

Notes

e
Objective:
At the end of this unit, you will be able to understand:

in
●● Relations and Functions

nl
Introduction
In mathematics, a function is a relation between a set of inputs and a set of
possible outputs. Functions have a property that they have an output for every input. In

O
this unit, we will learn what functions are and how they are classified, and we will also
discuss the inverse function.

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3.2.1 Relations and Functions

Definition of Function
A function f from a set X to another set Y is said to be a function (or mapping)

rs
from X to Y if, with every element of X, the relation f relates a unique element of Y. The
element of set Y is called f-image of the element of set X. Also, the element of set X is
called pre-image of the element of set Y under f.
ve
Classification of Functions
Constant Function: A function which does not change as its parameters vary, i.e.,
the function whose rate of change is zero.
ni

Or

Let c be a constant, then the function f (x) = c, ∀ x ∈ R is known as a constant

U

function.

The domain of f (x) = R and range of f (x) = [c]

Example 2.2.1 The graph of a constant function f (x) = 2.

ity

Table for function at a different value of x.

x 1 2 3 4 5
m

y = f(x) 2 2 2 2 2

Now we can draw a graph according to the obtain data from the above table
)A
(c

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56 Quantitative Aptitude

Notes Graph of f(x) = 2

e
2.5

in
1.5

Y-axis
1

nl
0.5

O
0
0 1 2 3 4 5 6
X-axis

ity
Fig.3.1.3 The graph of constant function f(x) = 2

Polynomial Function: The function y = f ( x ) = a0 x + a1 x + ....... + an , where a0

n n −1

, a1 , a2 ,……, an are real coefficients, and n is a non-negative integer, is known as a

polynomial function.

If

The domain of
rs
a0 ≠ 0 , then the degree of a polynomial function is n.
f ( x ) = R and range varies from function to function.
ve
Example 3.2.2 The graph of the function f ( x ) = x2
Table for functions at different values of x.
ni

x -5 -4 -3 -2 -1 0 1 2 3 4 5
f(x) = x2 25 16 9 4 1 0 1 4 9 16 25
U

Now we can draw a graph according to the obtain data from the above table.

Graph of f(x) = x2
ity

30

25

20
m

15

10
)A

0
-6 -4 -2 0 2 4 6
(c

Fig. 3.1.4 The graph of function f(x) = x2

Rational Function: If P(x) and Q(x) are polynomial functions, Q( x ) ≠ 0 ,

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Quantitative Aptitude 57

Notes
P(x)
then the function f ( x ) = is known as a rational function.

e
Q( X )
The domain of R − {x : Q ( x ) =
f (x) = 0} and range varies from function to

in
function.

Irrational Function: The function containing one or more terms having non-

nl
integral rational powers of x are called irrational function.

=
Example 3.2.3.1 y (x)
f= x

O
Domain varies from function to function.

Identity Function: Function f (x) = x, ∀ x ∈ R is known as identity function. It is a

straight line passing origin and having slope unity.

ity
The domain of f ( x ) = R and Range of f ( x ) = R
Example 3.2.3 The graph of a function f (x) = x
Table for function at the different value of x.

X
f (x) = x
-5
-5
-4
-4
-3
-3
-2
-2
-1
-1
0
0
1
1
rs
2
2
3
3
4
4
5
5
ve
Now we can draw a graph according to the obtain data from the above table.

Graph of f(x) = x
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4
U

0
ity

-6 -4 -2 0 2 4 6
-2

-4
m

-6

Fig. 3.1.5 The graph of function f(x) = x

)A

Square Root Function: The function that associates every positive real number x
to + x is called the square root function, i.e., f ( x ) = + x
f ( x=
) [0, ∞ ) .
(c

Range of

Exponential Function: A function of the form f ( x ) = a , a is a positive real

x

number, is an exponential function. The value of the function depends upon the value of

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58 Quantitative Aptitude

Notes a for 0 < a < 1 , the function is decreasing and 0for< a < 1 , the function is increasing.
Domain of f (x) = R

e
And Range of f ( x=
) [0, ∞ )

in
Example 3.2.4 The graph of the function f ( x ) = ex
Table for function at the different value of x.

nl
x f(x) = ex
-5 0.0067379

O
-4 0.0183156
-3 0.0497871
-2 0.1353353

ity
-1 0.3678794
0 1
1 2.7182818
2 7.3890561
3
4 rs 20.085537
54.59815
ve
5 148.41316

Now we can draw a graph according to the obtain data from the above table.
ni

Graph of f(x) = ex
160
140
U

120
100
Y-axis

80
ity

60
40
20
m

0
-6 -4 -2 0 2 4 6
X-axis
)A

Fig. 3.1.6 The graph of function f(x) = e.x

=
Logarithmic Function: Function f (x) log a x , ( x , a > 0 ) and a ≠ 1 is known as
the logarithmic function.
(c

Domain of f ( x=
) ( 0, ∞ )

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Quantitative Aptitude 59

And Range of f (x) = R Notes

f ( x ) = log10 x

e
Example 3.2.5 The graph of the function

Table for function at the different value of x.

in
x 0.1 1 10 25 50 75 100
f (x) = log10 x -1 0 1 2 3 4 5

nl
Now we can draw a graph according to the obtain data from the above table

O
Graph of f(x) = log10x
2.5
2

ity
1.5
1
Y-axis

0.5
0
-0.5

-1.5
-1
0 20 40 60 80

rs 100 120
ve
X-axis

Fig. 3.1.7 The graph of the function f (x) = log10 x

ni

=
Modulus Function: Function y ( x ) x is known as modulus function.
f=
  x, x0
y  f ( x)  x  
U

 x, x0

Example 3.2.6 The graph of the function f (x) = x

ity

Table for function at the different value of x.

X –5 –4 –3 –2 –1 0 1 2 3 4 5
f (x) = |x| 5 4 3 2 1 0 1 2 3 4 5
m

Now we can draw a graph according to the obtain data from the above table
)A
(c

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60 Quantitative Aptitude

Notes Graph of f(x) = | x |

e
6

in
4

Y-axis
3

nl
2

O
0
-6 -4 -2 0 2 4 6
X-axis

ity
Fig. 3.1.8 The graph of Function f (x) = |x|

Inverse Function: Let f be defined as a function from X to Y such that for every
element of Y them exists an image. Let y be an arbitrary element of Y. Then, f being
onto, there exists an element x ∈ X such that f ( x ) = y . Also, f being one-one, this x

rs
must be unique. Thus, for each y ∈Y , there exists a unique element x ∈ X such that
f ( x ) = y . So, we may define a function,
ve
f −1 : Y → X
\ f −1 ( y ) =
x ⇔ f (x) =
y
The above function f −1 is called the inverse of f.
ni

Example 3.2.7 Suppose we have a function y= f ( x )= x + 3 and

Table for function and inverse of the given function at the different value of x and y,
U

respectively.

We have given y= f ( x )= x + 3
So, to find the inverse of this function, we need to find the value of x in terms of y.
ity

So, f −1 ( x )= y − 3
x 0 1 2 3 4 5
m

f (x) 3 4 5 6 7 8
Y 0 1 2 3 4 5
f –1 (x) –3 –2 –1 0 1 2
)A

Now we can draw a graph according to the obtain data from the above table.
(c

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Quantitative Aptitude 61

Graph of f(x) Notes

e
9
8

in
7
6
Y-axis

5
4

nl
3
2
1

O
0
0 1 2 3 4 5 6
X-axis

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Fig. 3.1.9 The graph of function f (x) = x + 3

Now we can draw a graph of the inverse of the above function according to the
obtain data from the above table.

3
Graph of f (x)
-1

rs
ve
2

0
Y-axis

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0 1 2 3 4 5 6
-1

-2
U

-3

-4
X-axis
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Fig. 3.1.10 Graph of f-1(x)

It is clear from the above figure that the points of the line of the two graphs are the
m

image of each other.

Check your Understanding

)A

1. In mathematics, a __________ is a relation between a set of inputs and a set of

possible outputs.
2. A __________ function is a function which does not change as its parameters vary.
A function of the form f(x)=a2, where (a) is a positive real number, is an __________
(c

function.
3. Functions have the property that they have an output for every input. True / False

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62 Quantitative Aptitude

Multiple Choice
Notes
1. If , then x is

e
a. 81

in
b. 36
c. 64
d. None of these

nl
2. A number of two digits is equal to three times the digits’ sum. Find the number.
a. 72

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b. 63
c. 24

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d. 27
3.
6 6 6........ is equal to

3
6

rs
a. 2
b. 1
3
2
ve
c. 6
d. 3

7log1 + 3log 2 + 4log3 − 2log6

ni

4. Find the value of

a) log56
b) log18
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c) log39
d) log24
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Summary
●● In mathematics, a function is a relation between a set of inputs and a set of
possible outputs. Functions have the property that they have an output for every
m

input.
●● There are many types of functions such as constant function, polynomial function,
rational function. Irrational function, identity function, square root function,
)A

exponential function, logarithmic function, modulus function and inverse function.

Activity
1. Draw a graph of the inverse of x
(c

2. Create a graph of any rational and irrational number

3. Draw the graph o 3x

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Quantitative Aptitude 63

Questions and Exercises

Notes
1. What is a polynomial function?

e
2. Describe a rational function.

in
3. How is a square root function depicted?
4. What does a logarithmic function look like graphed out?
5. Describe a modulus function.

nl
Glossary
●● Constant Function: a function which does not change as its parameters vary.

O
●● Exponential Function: a function of the form f(x)=a2, where (a) is a positive real
number.

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●● Irrational Function: function containing one or more terms having non-integral
rational powers of x.

Further Reading

rs
1. Boelkins, Matthew. Active Calculus 2018: Single Variable. CreateSpace
Independent Publishing Platform; 2018th edition (August 13, 2018)
2. Edwards, Bruce H.; Larson, Ron. Calculus: Early Transcendental FUnctions
ve
Cengage Learning; 7th edition (January 1, 2018)
3. Stewart, James. Calculus 8th Edition. Cengage Learning; 8th edition (May 19,
2015)
ni

Check your Understanding: Answers

1. Function
U

2. Constant
3. Exponential
4. True
ity

Multiple Choice
1. A
2. D
m

3. D
4. B
)A
(c

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64 Quantitative Aptitude

Unit - 3.3: Limit and Continuity

Notes

e
Objectives:
At the end of this unit, you will be able to understand:

in
●● Function – Definition and Types
●● Limit of a function – Definition and Methods

nl
●● Methods to Solve Limit
●● Continuous and Discontinuous Functions – Introduction and Application

O
3.3.1 Function – Definition and Types
In mathematics, a function is a relation between a set of inputs and a set of

ity
possible outputs. Functions have a property, which is they have an output for every
input. In this unit, we will learn what functions are and how they are classified, and we
will also discuss the inverse function.

rs
Definition of Function
A function f from a set X to another set Y is said to be a function (or mapping)
from X to Y if, with every element of X, the relation f relates a unique element of Y. The
ve
element of set Y is called f-image of the element of set X. Also, the element of set X is
called pre-image of the element of set Y under f. The image given below is an Example
of function in mathematics:
ni
U
ity
m
)A

Constant Function: A function which does not change, as its parameters vary, i.e.,
the function whose rate of change is zero.

Or

f ( x ) = c , ∀ x ∈ R is known as a constant
(c

Let c be a constant, then the function

function.

The domain of f ( x ) = R and range of f ( x ) = [ c ]

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Quantitative Aptitude 65

Ex. 3.1 The graph of a constant function f (x) = 2 . Notes

e
Table for function at a different value of x.

Table for function at a different value of x.

in
X 1 2 3 4 5
y = f(x) 2 2 2 2 2

nl
Now we can draw a graph according to the obtain data from the above table

O
ity
rs
ve
ni

Fig.3.1.1 The graph of constant function f(x) = 2

( )
U

n n −1
Polynomial Function: The function y = f x = a0 x + a1 x + ....... + an , where
a0 , a1 , a2 ,……, an are real coefficients, and n is a non-negative integer, is known as
a polynomial function.

a0 ≠ 0 , then the degree of a polynomial function is n.

ity

If

The domain of f ( x ) = R and range varies from function to function.

Ex. 3.2 The graph of the function f ( x ) = x
2
m

Table for functions at different values of x.

x -5 -4 -3 -2 -1 0 1 2 3 4 5
)A

f(x) = x 2
25 16 9 4 1 0 1 4 9 16 25

Now we can draw a graph according to the obtain data from the above table.
(c

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66 Quantitative Aptitude

Notes

e
in
nl
O
ity
Fig. 3.1.2 The graph of function f(x) = x2

Q ( x ) ≠ 0 , then the

rs
Rational Function: If P(x) and Q(x) are polynomial functions,
P(x)
function f ( x ) = is known as a rational function.
Q( X )
ve
The domain of R − {x : Q ( x ) =
f (x) = 0} and range
varies from function to function. In other words, domain is the set of all values for
which we get the function defined. Range of the function will be a set of all the values
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taken by f.
5
A graph for the function f ( x ) = is shown below.
x −1
U
ity
m
)A
(c

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Quantitative Aptitude 67

Irrational Function: The function containing one or more terms having non-integral
rational powers of x are called irrational function. Notes

e
=
Ex. 3.3 y (x)
f= x

in
nl
O
ity
Domain varies from function to function. rs
ve
For Example, if we are to find the graph of function f(x) = √(x + 2), the following will
be the solution:
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U
ity
m

( )
Identity Function: Function f x = x , ∀ x ∈ R is known as identity function. It is a
straight-line passing origin and having slope unity.

The domain of f ( x ) = R and Range of f ( x ) = R

)A

Ex. 3.4The graph of a function f (x) = x

Table for function at the different value of x.

X -5 -4 -3 -2 -1 0 1 2 3 4 5
(c

-5 -4 -3 -2 -1 0 1 2 3 4 5
f (x) = x
Now we can draw a graph according to the obtain data from the above table.

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68 Quantitative Aptitude

Notes

e
in
nl
O
ity
Fig. 3.1.5 The graph of function f(x) = x

rs
Square root Function: The function that associates every positive real number x
( )
to + x is called the square root function, i.e., f x = + x

Range of f ( x=
) [0, ∞ ) , which means that the range of a function can be 0 but not
ve
∞.

( ) x
Exponential Function: A function of the form f x = a , where a is a positive
real number and is an exponential function. The value of the function depends upon
the value of a for 0 < a < 1 , the function is decreasing and for a > 1 , the function is
ni

increasing.

Domain of f (x) = R
U

And Range of f ( x=
) [0, ∞ )
Ex. 3.5 The graph of the function f ( x ) = ex
ity

Table for function at the different value of x.

X f(x) = ex
-5 0.0067379
-4 0.0183156
m

-3 0.0497871
-2 0.1353353
)A

-1 0.3678794
0 1
1 2.7182818
2 7.3890561
(c

3 20.085537
4 54.59815
5 148.41316

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Quantitative Aptitude 69

Now we can draw a graph according to the obtain data from the above table.
Notes

e
in
nl
O
ity
Fig. 3.1.6 The graph of function f(x) = e.x

=
Logarithmic Function: Function f x ( ) log a x , ( x , a > 0 ) and a ≠ 1 is known as
the logarithmic function.

Domain of f ( x=) ( 0, ∞ ) rs
ve
And Range of f (x) = R
Ex. 3.6The graph of the function f ( x ) = log10 x
Table for function at the different value of x.
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x 0.1 1 10 25 50 75 100
-1 0 1 2 3 4 5
f ( x ) = log10 x
U

Now we can draw a graph according to the obtain data from the above table
ity
m
)A
(c

Fig. 3.1.7 The graph of the function

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70 Quantitative Aptitude

Notes =
Modulus Function: Function y ( x ) x is known as modulus function.
f=
f (x) = x

e
Ex. 3.7The graph of the function

Table for function at the different value of x.

in
X -5 -4 -3 -2 -1 0 1 2 3 4 5
5 4 3 2 1 0 1 2 3 4 5

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f (x) = x
Now we can draw a graph according to the obtained data from the above table

O
ity
rs
ve
Fig. 3.1.8 The graph of function f(x)=|x|
ni

Inverse Function: Let f be defined as a function from X to Y such that for every
element of Y there exists an image. Let y be an arbitrary element of Y. Then, f being
( )
onto, there exists an element x ∈ X such that f x = y . Also, f being one-one, this x
U

must be unique. Thus, for each y ∈Y , there exists a unique element x ∈ X such that
( )
f x = y . So, we may define a function,
f −1 : Y → X
ity

\ f −1 ( y ) =
x ⇔ f (x) =
y

The above function f −1 is called the inverse of f.

m

Ex. 3.8Suppose we have a function y= f ( x )= x + 3 and

Table for function and inverse of the given function at the different value of x and y
)A

respectively.

We have given y= f ( x )= x + 3
So, to find the inverse of this function, we need to find the value of x in terms of y.
(c

So, f −1 ( x )= y − 3

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Quantitative Aptitude 71

X 0 1 2 3 4 5
Notes
3 4 5 6 7 8

e
f (x)
Y 0 1 2 3 4 5

in
-3 -2 -1 0 1 2
f −1 ( x )

nl
Now we can draw a graph according to the obtain data from the above table.

O
ity
rs
Fig. 3.1.9 The graph of function f(x) =x + 3
ve
We can now draw a graph of the inverse, of the above function according to the
obtained data from the above table.
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U
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m
)A

Fig. 3.1.10 Graphof f -1(x)

It is clear from the above figure that the points of the line of the two graphs are the
image of each other.
(c

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72 Quantitative Aptitude

3.3.2 Limit of a Function – Definition and Methods

Notes
Concepts of limits and continuity

e
If f ( x ) is a function of x such that, if x approaches to a constant value ‘a’, then the value of
f ( x ) also approaches to another constant k, then constant k is known as limit of f ( x ) at x = a

in
. Limit is defined as

lim f ( x ) = k

nl
x →a

Or

The theoretical explanation and diagram does not match correctly. Please discuss

O
individual concepts with different diagram i.e. LHL, RHL and existence of limit, using the
exactly same notations as in theory, to specify where they exist in diagram.

A real number b is called the limit of the function f, if for every ε > 0 , however small,

ity
there exists d > 0 such that f ( x ) − b < ε , whenever 0 < x − a < d

lim f ( x ) = b
x →a

Left Hand Limit

()
rs
A function f x is said to approach ‘b’ as x approaches ‘a’ from the left, if
corresponding to an arbitrary positive number ε , there exists a positive number d such
that f ( x ) − b < ε , whenever a − d < x < a .
ve
It is written as lim− f ( x ) = b or f (a − 0) =
b
x →a

The working rule for finding the left hand limit is put a − h for x in f ( x ) , where h is
ni

positive and very small and make h approach zero.

i.e.,

f ( a −=
0 ) lim f ( a − h )
U

h→0
ity

Right Hand Limit

()
A function f x is said to approach ‘b’ as x approaches ‘a’ from the right, if
corresponding to an arbitrary positive number ε , there exists a positive number d such
that f ( x ) − b < ε , whenever a < x < a + d .
m

It is written as lim+ f ( x ) = b or f (a + 0) =
b.
x →a

The working rule for finding the right-hand limit is put a + h for x in f ( x ) , where h is
)A

positive and very small and make h approach zero.

i.e.,

f ( a +=
0 ) lim f ( a + h )
h→0
(c

The right and left limits are shown in the diagram below. The region to the right of a
shows the right-hand limit and the region to the left of a shows the left-hand limit.

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Quantitative Aptitude 73

Notes

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Existence of Limit

If both right hand limit and left hand limit exist and are equal, then their common
value, evidently will be the limit of f as x → a i.e.,

ity
If lim
= f ( x ) lim
= f ( x ) b , then lim f ( x ) = b ,
x →a + −
x →a x →a

If however, either both of these limits do not exist or both these limits exist but are
not equal in value, then lim f ( x ) does not exist.

Algebra of Limits
x →a
rs
ve
Let f and g be two functions such that both lim f ( x ) and lim g ( x ) exist. Then,
x →a x →a

Limit of sum of two functions is sum of limits of the functions, i.e.,

lim  f ( x ) +=
g ( x )  lim f ( x ) + lim g ( x )
ni

x →a x →a x →a

Limit of difference of two functions is difference of the limits of the functions, i.e.,
U

lim  f ( x ) −=
g ( x )  lim f ( x ) − lim g ( x )
x →a x →a x →a

Limit of product of two functions is product of the limits of the functions, i.e.,

lim  f ( x )=
.g ( x )  lim f ( x ) − lim g ( x )
ity

x →a x →a x →a

Limit of a quotient of two functions is quotient of the limits of the functions

(whenever denominator is non-zero), i.e.,

f ( x ) lim f (x)
m

lim = x →a
x →a g ( x ) lim g ( x )
x →a

(
Ex. 3.9: Find the value of lim x + x − 3x .
4 3
)
)A

x →3

Solution:

lim ( x 4 + x 3 − 3x=) lim x 4 + lim x 3 − 3lim x

x →3 x →3 x →3 x →3
4 3
= 3 +3 −9
(c

= 81 + 27 − 9
= 99

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74 Quantitative Aptitude
4x + 3
Ex. 3.10: Find the value of lim .
Notes x →4 x −2
Solution: Taking x = 4

e
4x + 3 4 × 4 + 3
lim =
x −2 4 −2

in
x →4

19
=
2

nl
x −4
Ex. 3.11: Find the value of lim .
x →4 x −4

O
x −4
Solution:Let f ( x ) = lim
x →4 x −4
At x = 4,

ity
RHL = lim+ f ( x )
x →4

= lim f ( 4 + h )
h→0

4+h−4

rs
= lim
h→0 4+h−4

= lim
(4 + h − 4)
h→0 4+h−4
ve
=1
At x =4,

LHL = lim− f ( x )
ni

x →4

= lim f ( 4 − h )
h→0

4−h−4
= lim
U

h→0 4−h−4
−(4 − h − 4)
= lim
h→0 4−h−4
= −1
ity

RHL ≠ LHL

\ At x = 4, limit does not exist.

x4 − 1 x3 − k3
Ex. 3.12: If lim = lim 2 2 , then find the value of k.
m

x →1 x − 1 x →k x − k

x4 − 1 x3 − k3
Solution: Given, lim = lim 2 2
)A

x →1 x − 1 x →k x − k

3 3 −2  x n − an 
⇒ 4 (1) lim
4 −1
= k 
2  x →a x − a 
3
(c

⇒ 4 =k
2
8
⇒k=
3

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Quantitative Aptitude 75

3.3.3 Methods to Solve Limits

Limits An Informal Approach
Notes

e
The tow broad areas of calculus known as differential and integral calclus are
built on the foundation concept of a limit. In this section our approach to this important

in
concet will be insuitive, concentirating on uinderstanding what a limit is using numerical
and graphical examples. In the next section, our apporach will be anlytical, that is, we
will use algebratic methods to compare the value of a limit of a function.

nl
1. Limit of a function informal approach Consider the function
16 – x2
f(x) =
4–x

O
Whose domain is the set of all real numbers except –4. Although f can not be
evaluted of –4 because subtituting Œ4 for x results in the nunddined quanitity 0/0,f(x)
can be calculated at any number x that is very close to –4. The two tables

ity
(2)
show that as X apporaches –4 from either the left or right, the function valjues

rs
f(x) appear to be approaching 8, in other words, when x is near (4,f (x) is near 8. To
interpret the numberical information in (1) graphically, observe that for every number x
=–4, the function f can be simplified by cancellation.
ve
As seen in the graph of f is essentially the graph of y= 4 –x with the exception
ni

that the graph of f has a hole at the point that corresponds to x = –4. For x sufficiently
close to –4, represented by the two arrowheads on the x-axis, the two arrowbeads on
the y-axis, representing function values f(x), simultaneously get closer and closer to the
U

number 8. indeed, in view of the numerical results in (2), the arrow heads can be made
as close as we like to the number 8. We say 8 is the limit of f9x) as x approaches –4.
ity
m
)A
(c

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Notes

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(c

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Quantitative Aptitude 77

Notes

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rs
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(c

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78 Quantitative Aptitude

Notes

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(c

Which form the backbone of differential calculus, also have the indetermine form
0/0.

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Quantitative Aptitude 79

Notes

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Limit Theorems

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Intorudction: the intention of the informal discussion in Section 2.1 was to gi ve ou
an intuitive grasp of when a limit does or does not exist. However. It is neither desirable
nor practical, in every instance, to reach a conclusion about the existence of a limit
based on a graph or on a table of numerical values. We must be able to evaluate a

rs
limit, or discern its non-existence, in a somewhat mechanical fashion. The theorems
that we shall consider in this section establish such a means. The proofs of some of
these reults are given in the appendix.
ve
The firs theorem gives two basic results that will be used throughout the discussion
of this section.
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(c

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Notes

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(c

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Quantitative Aptitude 81

Notes

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rs
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(c

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82 Quantitative Aptitude

Notes

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(c

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Quantitative Aptitude 83

Notes

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(c

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84 Quantitative Aptitude

Notes

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(c

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Quantitative Aptitude 85

Notes

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rs
ve
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U

Limits A Formal Approach

Introduction: In the discussion that follows we will consider an alternative approach
to the notion of a limit that is based on a nalytical concepts rather than on incuitive
ity

concepts. A proof of the existence of a limit can never be based on one’s ab olity to
sketch graphs or on tables of numerical values. Althogh a good intuitive understanding
of lim f (x) is sufficient for proceeding with the study of the calculus in this text, an
intuitive understanding is admittedly too vegue to be any use in proving theorems.
m

To give a rigorous demonstration of the existence of a limit, or to prove the important

theorems of Section 2.2, we must start with a precise definition of a limit.
)A
(c

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Notes

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(c

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Quantitative Aptitude 87

Notes

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(c

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88 Quantitative Aptitude

Notes

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(c

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Quantitative Aptitude 89

Notes

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(c

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90 Quantitative Aptitude

Notes

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Quantitative Aptitude 91

Notes

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Limits: Graphic Solutions

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Graphical Limits

Let f(x) be a functuion defined on the interval [–6,11] whose graph is given as:

rs
ve
The limits are defined as the value that the function approaches as it goes to an x
value. Using this definition, it is possible to find the value of the limits given a graph. A
ni

few examples are below:

U

In general, you can see that these limits are equal to the value of the function. This
is true if the function is continuous.

Continuity
ity

Continuity of a graph is loosely defined as the ability to draw a graph without

having to lift your pencil. To better understand this, see the graph below:
m
)A

Let’s investigate at the flowing points:

(c

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92 Quantitative Aptitude

x = –3 x=0 x=2
Notes
Discontinuous at this discontinuous at this point discontinuous at this point

e
point the value is not The limit of the left is not The limit from the left is equal
defined at –3 “Removab equal to the limit from the to the right, but is not equal

in
le discontinuity” right “Jump discontinuity” to the value of the function
“Removable discontinuty”
x=4 x=5 x=6

nl
continuous at this point Continuous at this point Dfiscontinuous at this point
The limit from the left is The limit from the left is The value of the limit is
equal to the limit from equal to the limit from equal to negative infinity and

O
the right and equal to the right and equal to the therefore not defined “Infinite
the value of the function value of the function discontinuity”

One-Sided Limits: General Definition

ity
One-sided limits are differentiated as right hand limits (when the limit approaches
from the right) and left-ha nd limits (when the limit approaches from the left) whereas
ordinary limits are sometimes referred to as two-sided limits. Right-hand limits approach
the specified point from positive infinity Left-hand limits approach this p;oint from
negative infinity.

The righ-handed limit: rs

ve
The left-handed limit:
ni

A More formal Definition of Continuity

U

From this information, a more formal definition can be found. Continuity, at a point
a, is defined when the limit of the function from the left equals the limit from the right
and this value is also euqal to the value of the function. using notation, for all points 0
ity

where

the functioin is said to be continuous.

m

Summary: When does a limit not exist?

◌◌ A general limit does not exist if the left-and right-hand limits aren’t equal
)A

(resulting in a discontinuity in the function).

◌◌ A general limit does not exist wherever a function increases or decreases
infinitely (“without bound”) as it approaches a given x-value.
◌◌ A general limit does not exist in the cases of infinite oscillation when
(c

approaching a fixed point.

Limits: Numeric Solutions

Now that you know how to solve a limit graphically, you may be asking yhourself:

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Quantitative Aptitude 93

‘That’s great, but what about when there isn’t a graph in the problem?’ That is a good
question, and that is what this next section is about. There are a manyh better (and Notes
more accurate) ways to find the value of the limit than graphing or pluggi ng in numbers

e
that get closer and closer to the value of interest. These solution methods fall under
three catagories: sub stitution, factoring, and the conjugate method. But first things first,

in
let’s discuss some of the general rules for limits.

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O
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rs
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ni
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)A
(c

Limits of Rational Functions: Subsititution Method

A rational functgion is a function that can be written as the ratio of two algebraic

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94 Quantitative Aptitude

expressions. If a function is considered rational and the denominator is not zero, the
Notes limit can be found by subsititution. This can be seen in the example below (which is
similar to the example #3 above, but now done i n one quick, convenient step):

e
in
This can be fefined more formally as: If P(x) and Q(x) are algebraic expressions
and Q(c) 30, then:

nl
O
ity
Factoring Method
x2-9
Consider the function (x) = x+3 . How would you find the limit of F as x
approacheds –3? If you try to use subsitituion to find the limit, world-ending paradoxes
ensue:

rs
But fear not, this answer just tells us that we must use a different method to find
ve
the limit, because the functgion likely has a “hole” at the given. Therefore, the factoring
method can be tried. To start this method, the numerator and denominator must be
factored (in this case the denominator is “factored” already).
ni

The factor (x+3) can be canceled to get the much simpler limit expression of limx--
U

3
(x–3) that can easily be evaluated via subsitituion:

Therefore, the result of the limit can be found, with the understanding that there is a
ity

“hole” in the graph at x = –3. Hence, limx-.-3 x -9 = –6

2

x+3

D. Now you try somel

m
)A

Conjugate Method
The conjugate of a binomial expressio n (i.e. an expression with two terms, you
can tell this because of the latin root bi-meaning two) is the same expressio n with
opposite middle signs. For example, the conjugate of (√x – 5) is (√x + 5). “This is reality
(c

useful if you have a radical in your limit. This is because the product of two conjugates
containing radicals will, itself, contain no radical in you limit. This is because the product
of two conjugates containing radicals will, itself, contain no radical expressions. See
below:

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Quantitative Aptitude 95

(√x – 5) (√x + 5) = √x2 + 5 √x – 5 √x – 25 = x – 25

Notes
your should use the conjugate method whenever you have a limit problem

e
containing redicals for which substitution does no twork.

in
Example:

nl
O
Well, another hole in the universe, or at least the graph, indicating that you’ll need
another method to find the limit since the function probably has a hole at x = 5. To start,
multiply both the numerator and denominator by the conjugate of the radical expression

ity
(√x+11+4):

rs
ve
ni
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Formal Definition: Limits

ity

Limits are more formally defined as

‘L is the limit of f(x) as x approaches o if for every number ∈>0, there is a

corresponding number d>0 such that for all x. Using notation we write
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)A
(c

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Notes

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Limits: Advanced Topics

rs
Previously,k when we found that the result of a limit doing straight substitution
yielded0/0 we used factoring or conjugation to be able to solve the probple. What
happens when neither of those methods prove useful? You become very grateful for the
ve
17th-century French mathematician Guillaume de L’Hopital. L Hopital was the man that
derived a method of solving these types of equations, known as indeterminate forms.
This method, know as LHopital’s Rule, is formally defined below.
ni
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Quantitative Aptitude 97

Notes

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98 Quantitative Aptitude

Limits to Infinity (Horizontal Asymptotes)

Notes
What happens to a functgion as it goes further and futher out to the left and

e
right? well, that depends on the function. But half of the answert can be discovered
by allowing the independent variable to take on in increasingly large, positive values

in
and keeping as eye on the output (the graph)- this investigates what is happening
as ewe go futher and further to the right. The other half is discovered by allowing the
independent variable to take on increasingly large, negative values and, again, keeping

nl
an eye on the output- this investigates what is happening as we go further and further to
the left.

Here arf some basic facts and some generalization that will be sufficient to

O
evaluate most ‘limits to infinity”.

Consider the function as an algebraic fraction, and consider the ratio of the leading
terms. Let the algebraic expression in the numerator be expressed as n(x) and the

ity
algebraic expression found in the denominator be expressed as d(x), then

◌◌ if the degree of the numerators is lower than the degree of the denominator,
then limx-.-∞ n(x) = 0. In genral, whenever the denominator grows faster than
d(x)
the numerator, the limit will go to zero. thus, in these cases, as the graph

and closer to zero.

rs
extends far to both the left and the right, the output (i.e., the graph) gets closer

Here is a list of functions in order of their rate of growth – quickest to slowest:

ve
x!, ... 4x, 3x, 2x, ... x4, x3, x2 xlogx, x, logx, ..., 3,2,1

Examples:
ni
U

◌◌ If the degree of the numerator is higher than the degree of the denominator,
then limx-.-∞ n(x) = ∞ or – ∞. In genral, whenever the numerator grows faster
d(x)
than the denominator, the limit will go to positive or negative infinity. Thus, in
these cases, as the graph extends far to both the left and the right, the output
ity

(i.e., the graph) increases or decreases without bound. In these cases, each
side needs to tbe considered separately.
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Quantitative Aptitude 99

Notes

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3.3.4 Continuous and Discontinuous functions – Introduction and
Application
Continuity of a Function at a Point

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A function f ( x ) is said to be continuous at an interior point x = a of its domain if
lim f ( x ) = f ( a ) . In other words, a function f ( x ) is said to be continuous at a point
xx →=aa provided left hand limit, right hand limit and value of the function are equal:

f ( x ) is continuous at a point x = a if

rs
A function

lim f ( a −=
h ) lim f ( a +=
h) f (a)
h→0 h→0
ve
Continuity on a function on an open interval
A function f ( x ) is said to be continuous on an open interval ( a, b ) if it is continuous
at each point of ( a, b ) .
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Continuity on a function on a closed interval

A function f ( x ) is said to be continuous on a closed interval [a, b] if

it is continuous at each point of ( a , b ) .
U

f ( x ) is continuous from right at x = a , i.e.,

lim f ( a + h ) =
f (a)
ity

h→0

f ( x ) is continuous from right at x = b , i.e.,

lim f ( b − h ) =
f (b)
h→0
m

f ( x ) is continuous at each point of the open interval ( a , b ) .

Discontinuity of a function
)A

A function f ( x ) , which is not continuous at a point x = a , is said to be discontinuous

at that point.
(c

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Notes

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ity
not? rs
Ex. 3.13:Check whether the function f ( x ) = 

4 x , if x ≤ 2
2
4 x 2 , if x ≤ 2
3, if x>2
is continuous at x = 2, or
ve
Solution: Given, f ( x ) = 
3, if x>2
At x = 2,

LHL = limf ( x )
ni

x →2 −

= lim( 4 x 2 )
x →2 −

= 16
U

At x =2,
RHL = limf ( x )
x →2 +
ity

=3
f ( 2 ) = 16

LHL
= f ( 2 ) ≠ RHL
m

\ function is not continuous at x = 2..

x+1, if x ≥ 1
Ex. 3.14:Check whether the function f ( x ) =  2 is continuous at x = 1,
or not? x + 1, if x<1
)A

x+1, if x ≥ 1
Solution: Given, f ( x ) =  2
x + 1, if x<1
At x = 1,

RHL = limf ( x )
(c

x →1+

= lim( x + 1)
x →1+

=2
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Quantitative Aptitude 101

At x =1,
Notes
LHL limf ( x )

e
→

= limf ( x + )

in
→

= 1+1

f (1 )= x + 1

nl
=2
 LHL
= RHL
= f (1)

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\ function is continuous at x = 1.

kx 2 , if x ≤ 2
Ex. 3.15: If function f ( x ) =  is continuous at x = 2, then find the value of

ity
k? 3, if x>2
kx 2 , if x ≤ 2
Solution: Given, f ( x ) = 
3, if x>2
At x = 2,

LHL = limf ( x )
x →2 −

= lim( kx 2 )
rs
ve
x →2 −

= 4k
At x =2,
RHL = limf ( x )
ni

x →2 +

=3
f ( 2 ) = 4k
U

If function is continuous then LHL = f (x) .

= RHL

So,
ity

4k = 3
3
k=
4
Check your Understanding
m

1. The two broad areas of calculus knows as differential and integral calculus are built
on the foundation concept of a __________.
)A

2. A _________ of the existence of a limit can never be based on one’s ability to sketch
graphs or on tables of numerical values.
3. _________ of a graph is loosely defined as the ability to draw a graph without having
to lift your pencil.
(c

4. Left had limits approach the specified point from positive infinity. True / False
5. A _________ function is a function that can be written as the ratio of two algebraic
expressions.

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102 Quantitative Aptitude

6. The ___________ of a binomial expression is the same expression with opposite

Notes middle signs.

e
Multiple Choice
(1 + ) −1
lim (1 + )

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1. The value of is
→ −1
a. 20
b. 21

nl
c. 15
d. 17

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x4 − 4
2. The value of lim x
x→ 2
2
+ 3 2x − 8
is
a. 8
−
5
7

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b.
5
8
c.
5
d. None of these

3. The value of
a. 0
lim x
x →1
x 7 − 2x 5 + 1
3
− 3x 2 + 2 rs
is
ve
b. 1
c. -1
d. 3
ni

x2 − 4
4. The value of lim
x →2 3x − 2 − x + 2
is
a. 8
U

b. -8
c. 7
ity

d. 5
5. Find n, if lim
x n − 2n
= 80 , n∈N .
x →2 x −2
a. 5
m

b. 6
c. 4
d. 7
)A

Summary
●● The two broad areas of calculus knows as differential and integral calculus are
built on the foundation concept of a limit.
(c

●● The limit of the nth root of a function is the nth root of the limit whenever the limit
exists and has a real nth root.

Amity Directorate of Distance & Online Education

Quantitative Aptitude 103

●● A proof of the existence of a limit can never be based on one’s ability to sketch
graphs or on tables of numerical values. Notes

e
●● Continuity of a graph is loosely defined as the ability to draw a graph without
having to lift your pencil.

in
●● One sided limits are differentiated as right-hand limits and left-hand limits whereas
ordinary limits are sometimes referred to as two-sided limits. Right had limits
approach the specified point from positive infinity. Left hand limits approach this

nl
point from negative infinity.
●● A general limit does not exist wherever a function increases or decreases infinitely
as it approaches a given x-value.

O
●● A rational function is a function that can be written as the ratio of two algebraic
expressions. If a function is considered rational and the denominator is not zero,
the limit can be found by substitution.

ity
●● The conjugate of a binomial expression is the same expression with opposite
middle signs.
●● ()
A function f x is said to be continuous at a point x =a provided left hand limit,

●●
right hand limit and value of the function are equal.
() rs
A function f x is said to be continuous on an open interval
( )
at each point of a , b .
( a, b ) if it is continuous
ve
●● ()
A function f x , which is not continuous at a point x =a, is said to be
discontinuous at that point.

Activity
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1. Find the point(s) of discontinuity for the function

2. Consider the function:
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3. If , determine the values of a and b for which f(x) is continuous.

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4. Given the function:

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5. Determine the value of a for which the function is continuous at .

Questions and Exercises

)A

1. Describe a limit of a function.

2. What are the theorems of limits?
3. List the five limit rules.
(c

4. What is the factoring method?

5. Why is it beneficial to have conjugates?

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104 Quantitative Aptitude

Glossary
Notes
●● Continuity of a graph: is loosely defined as the ability to draw a graph without

e
having to lift your pencil.
●● Rational function: is a function that can be written as the ratio of two algebraic

in
expressions.
●● Further Reading

nl
●● Boelkins, Matthew. Active Calculus 2018: Single Variable. CreateSpace
Independent Publishing Platform; 2018th edition (August 13, 2018)
●● Edwards, Bruce H.; Larson, Ron. Calculus: Early Transcendental FUnctions

O
Cengage Learning; 7th edition (January 1, 2018)
●● Stewart, James. Calculus 8th Edition. Cengage Learning; 8th edition (May 19,
2015)

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Check your Understanding: Answers
1. Limit
2. Proof
3.
4.
Continuity
False
rs
ve
5. Rational
6 Conjugate
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Multiple Choice
1. B
2. C
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3. B
4. A
ity

5. A
m
)A
(c

Amity Directorate of Distance & Online Education

Quantitative Aptitude 105

Module - 4: Data Analysis

Notes

e
Structure:

in
4.1 Data interpretation
1.1.1 Data and Statistical Data, Frequency Distribution
1.1.2 Graphical Representation

nl
1.1.3 Histogram
1.1.4 Frequency Polygon and Frequency Curve

O
1.1.5 Ogive- Part 1
1.1.6 Ogive- Part 2

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4.2 Descriptive Measures
2.1.1 Measure of the Central Tendency - I
2.1.2 Measure of the Central Tendency - II
2.1.3 Measure of Dispersion
2.1.4 Kurtosis, skewness
rs
ve
ni
U
ity
m
)A
(c

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106 Quantitative Aptitude

Unit - 4.1: Data Interpretation

Notes

e
Objectives:
At the end of this unit, you will be able to understand:

in
●● Data and Statistical Data, Frequency Distribution
●● Graphical Representation

nl
●● Histogram
●● Frequency Polygon and Frequency Curve

O
●● Ogive Part 1
●● Ogive Part 2

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4.1.1 Data and Statistical Data, Frequency Distribution

Introduction

rs
The word Statistics is derived from the Italian word ‘Stato’ which means ‘state’;
and the word ‘Statista’ refers to a person who is involved with the affairs of state. Thus,
statistics originally was meant for collection of facts useful for affairs of the state, like
the taxes, land records, population demography, etc. There is an evidence of use of
ve
some of the principles of statistics by ancient Indian civilization as well. Some of the
techniques have found their mention in Vedic Mathematics. However, the modern
statistical methods spread from Italy to France, Holland and Germany in 16th century.
ni

Definitions of Statistics
The definitions of statistics are as follows: “Statistics are the classified facts
U

representing the conditions of the people in the state. Specially those facts which can
be stated in number or in table of numbers or in any tabular or classified arrangement.”
– Webster
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“Statistics may be defined as the science of collection, presentation, analysis and

interpretation of data.” – Croxton and Cowden “By statistics we mean quantitative data
affected to a marked extent by multiplicity of causes.” –Yule and Kendall

Functions of Statistics
m

1. Condensation: Statistics compresses a mass of figures to small meaningful

information, for example, average sales, BSE index, the growth rate etc. It is
)A

impossible to get a precise idea about the profitability of a business from a

mere record of income and expenditure transactions. The information of Return
OnInvestment (ROI), Earnings Per Share (EPS), profit margins, etc., however, can
be easily remembered, understood and thus used in decision-making.
2. Forecast: Statistics helps in forecasting by analyzing trends, which are essential
(c

for planning and decision-making. Predictions based on the gut feeling or hunch
can be harmful for the business. For example, to decide the refining capacity for a
petrochemical plant, it is required to predict the demand of petrochemical product

Amity Directorate of Distance & Online Education

Quantitative Aptitude 107

mix, supply of crude oil, the cost of crude, substitution products, etc., for next 10 to
20 years, before committing an investment. Notes

e
3. Testing of hypotheses: Hypotheses are the statements about population parameters
based on past knowledge or information. It must be checked for its validity in the light

in
of current information. Inductive inference about the population based on the sample
estimates involves an element of risk. However, sampling keeps the decision-
making costs low. Statistics provides quantitative base for testing our beliefs about

nl
the population.
4. Relationship between Facts: Statistical methods are used to investigate the cause
and effect relationship between two or more facts. The relationship between demand

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and supply, money-supply and price level can be best understood with the help of
statistical methods.
5. Expectation: Statistics provides the basic building block for framing suitable policies.

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For example how much raw material should be imported, how much capacity should
be installed, or manpower recruited, etc., depends upon the expected value of
outcome of our present decisions.

Limitations of Statistics

rs
Statistical techniques, because of their flexibility have become popular and
are used in numerous fields. But statistics is not a cure-all technique and has few
limitations. It cannot be applied to all kinds of situations and cannot be made to answer
ve
all queries. The major limitations are:

1. Statistics deals with only those problems, which can be expressed in quantitative
terms and amenable to mathematical and numerical analysis. These are
ni

not suitable for qualitative data such as customer loyalty, employee integrity,
emotional bonding, motivation etc.
2. Statistics deals only with the collection of data and no importance is attached to
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an individual item.
3. Statistical results are only an approximation and not mathematically correct.
There is always a possibility of random error.
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4. Statistics, if used wrongly, can lead to misleading conclusions, and therefore,

should be used only after complete understanding of the process and the
conceptual base.
m

5. Statistics laws are not exact laws and are liable to be misused.
6. The greatest limitation is that the statistical data can be used properly only by a
profressional. A person having thorough knowledge of the methods of statistics
)A

and proper training can only come to conclusions.

7. If statistical data are not uniform and homogenous, then the study of the problem
is not possible. Homogeneity of data is essential for a proper study.
8. Statistical methods are not the only method for studying a problem. There are
(c

other methods as well, and a problem can be studied in various ways.

Amity Directorate of Distance & Online Education

108 Quantitative Aptitude

Data Collection
Notes
The collection and analysis of data constitute the primary stages of execution of

e
any statistical investigation. The procedure for collection of data depends upon various
considerations such as the scope, objective, nature of investigation, etc. Availability

in
of resources such as time, money, manpower, etc., also affect the procedure choice.
Data may be collected either from a primary or from a secondary source, which are
described below.

nl
Types of Data – Primary and Secondary
The data used in statistical study is termed as either ‘primary’ or ‘secondary’

O
depending upon whether it was collected specifically for the undertaken study or for
some other purpose.

When the data used in a statistical study is collected under the control and

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supervision of the investigator, such type of data is referred to as ‘primary data’.
Primary data is collected afresh and for the first time, and thus, happen to be original
in character. On the other hand, when the data is not collected for this purpose, but is
derived from other sources then such data is referred to as ‘secondary data’. Often,

rs
secondary data is collected by some other organization to satisfy their needs, but it is
used by someone else for entirely different reasons.

The difference between primary and secondary data is only in terms of degree. For
ve
example, data, which are primary in the hands of one, becomes secondary in hands
of other. Suppose an investigator wants to study the working conditions of labourers in
an industry. If the investigator or their agent collects the data directly, then it is called
a ‘primary data’. But if subsequently someone else uses this collected data for some
ni

other purpose, then this data becomes a ‘secondary data’.

Types of Statistics
U

The study of statistics can be categorized into two main branches. These branches
are descriptive statistics and inferential statistics.

Descriptive statistics is used to sum up and graph the data for a category picked.
ity

This method helps to understand a particular collection of observations. A sample is

defined on descriptive statistics. There is no confusion in concise numbers, since you
just identify the individuals or things which are calculated.

Descriptive statistics give information that describes the data in some manner. For
m

example, suppose a pet shop sells cats, dogs, birds and fish. If 100 pets are sold, and
35 out of the 100 were dogs, then one description of the data on the pets sold would be
that 35% were dogs.
)A

Inferential statistics are techniques that allow us to use certain samples to

generalize the populations from which the samples were taken. Hence, it is crucial that
the sample represents the population accurately. The method to get this done is called
sampling. Since the inferential statistics aim at drawing conclusions from a sample
(c

and generalizing them to a population, we need to be sure that our sample accurately
represents the population. This requirement affects our process. At a broad level, we
must do the following:

Amity Directorate of Distance & Online Education

Quantitative Aptitude 109

◌◌ Define the population we are studying.

◌◌ Draw a representative sample from that population.
Notes

e
◌◌ Use analyses that incorporate the sampling error.

in
Methods of Collecting Data

Methods of collecting primary data

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Generally, for managerial decision-making, it is necessary to analyze information
regarding a large number of characteristics. Collection of primary data can be time
consuming, expensive, and hence requires a great deal of deliberation. According to the

O
nature of information required, one of the following methods or their combination can be
selected.

1. Observation Method: In this method, the investigator collects the data through

ity
personal observations. This method is very useful if data is created in the system
through capturing transactions. Computerized transaction processing can be
modified to generate necessary data or information. An investigator well versed with
the system or a part of the system is ideally suited for collecting this kind of data. Since
the investigator is solely involved in collecting the data, their training, knowledge and

2.
rs
skills play an important role as far as the quality of the data is concerned. Sometimes,
the audio/video aids can also be used to record the observations.
Indirect Investigation: In this case, the information collected by oral or written
ve
interrogation forms the primary data. Usually enquiry commissions, board of
investigations, investigation teams and committees collect data in this manner.
Quality of the data largely depends upon the person interviewed, their motives,
ni

memory, overall cooperation, and the interviewer’s repute with the person being
interviewed.
3. Questionnaire with Personal Interview: This is the most common and popular
U

method for data collection. In this method, individuals are personally interviewed and
answers are recorded to collect the data. Questionnaire is structured and followed
in specific sequence. Occasionally, a part of the questionnaire may be unstructured
to motivate the interviewee to give additional information or information on intimate
ity

matters. Accuracy of the data depends on the ability, sincerity and the tactfulness of
the interviewer to conduct the interview in friendly and professional environment.
4. Mailed Questionnaire: In this method, the structured questionnaire is mailed to
selected people with a request to fill it and return. Along with the questions, the
m

supplementary information clarifying terms, explaining process, etc., is also

attached. In a few cases, inducements for filling and returning the questionnaire
are also given. To develop a report, the covering of a letter with a questionnaire
)A

is necessary to explain the reason for the data collection and, if any, to alleviate
the respondent’s fears. The respondents are believed to be literate and be able to
answer the questions without any confusion. This is a less expensive and faster
method to collect large volume of data, over a wide geographic area, in a standard
(c

form, and at the convenience of the respondent. Hence this method is most popular
and extensively used. However, this method needs a guard against two drawbacks
viz. The absence of an interviewer, which results in a large proportion of the non-
response and the possibility of reducing the reliability of the replies if the respondent

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110 Quantitative Aptitude

is not sufficiently motivated. These shortcomings can be overcome by increasing

Notes sample size and designing the questionnaire comprehensively.

e
5. Telephonic Interview: This method is less expensive but has limited in scope, as
the respondent must possess a telephone and has it listed. Further, the respondent

in
must be available and in the frame of mind to provide correct answers. This method
is comparatively less reliable for public surveys. However, for industrial survey, in
developed regions, and with known customers, this method is best suited. There is

nl
a limit to the number of questions that the interviewee could answer in three to four
minutes. The mthod is efficient If there are just three to five yes/no type questions
and two to three short questions.

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6. Internet Surveys: Of late, Internet surveys have become popular. These are less
expensive, fast and can be interactive. However, its scope is limited to those who have
regular Internet access. With rapid growth in technology and Internet connectivity it
would be one of the main methods of collecting primary data. With its interactivity

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and multimedia facilities it also combines the advantages of other methods.

Methods of Collecting Secondary Data

Secondary data is one that has been collected or analyzed by some other agency

1. rs
for another purpose. Sources of secondary data are -

Publications of central, state and local governments. This is an important and

ve
reliable source to get unbiased data.
2. Publications of foreign governments or of international bodies. Although it is
a good source, context under which it is collected needs to be verified before
using this data. For international situations this data could be very useful and
ni

authentic.
3. Journals of trade, commerce, economics, scientific, engineering, medicine, etc.
This data could be very reliable for a specific purpose.
U

4. Other published sources like books, magazines, reports, newspapers, etc.

5. Unpublished data, based on internal records and documents of an organization
ity

can provide most authentic and much cheaper information provided we could
identify the source.
6. Diaries, letters, mailers can also provide secondary data. The problem with the
unpublished data is that it’s difficult to locate and get access.
m

Applications of Statistics
Data is a collection of any number of related observations. We can collect the
)A

number of telephones installed in a given day by several workers or the numbers of

telephones installed per day over a period of several days by one worker and call the
results our data. A collection of data is called a data set and a single observation is
called as a data point. Data is used everywhere in day to day life. It is applicable in
very large number of fields such as economics, management, sociology, anthropology,
(c

agriculture, medicine, psychology, education. All the fields lean heavily on data and its
analysis. The application of data is so vast and ever expanding that it is very difficult to
define. Its use has permeated almost in every facet of our lives.

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Quantitative Aptitude 111

Application of Statistics in Business Decision

Notes
Statistics is not restricted to only information about the State, but it also extends

e
to almost every realm of the business. Statistics is about scientific methods to gather,
organize, summarize and analyze data. More important still is to draw valid conclusions

in
and make effective decisions based on such analysis. To a large degree, company
performance depends on the preciseness and accuracy of the forecast. Statistics
is an indispensable instrument for manufacturing control and market research.

nl
Statistical tools are extensively used in business for time and motion study, consumer
behaviour study, investment decisions, credit ratings, performance measurements
and compensations, inventory management, accounting, quality control, distribution

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channel design, etc. For managers, therefore, understanding statistical concepts and
knowledge about using statistical tools is essential. With an increase in a company’s
size and market uncertainty due to reduced competition, the need for statistical
knowledge and statistical analysis of various business circumstances has greatly

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increased. Prior to this, when the size of business used to be small without much
complexities, a single person, usually owner or manager of the firm, used to take all
decisions regarding the business. Example: A manager used to decide, from where the
necessary raw materials and other factors of production were to be acquired, how much

rs
of output will be produced, where it will be sold, etc. This type of decision making was
usually based on experience and expectations of this single individual and as such had
no scientific basis.
ve
Classification of Data
Classification refers to the grouping of data into homogeneous classes and
categories. It is the process of arranging things in groups or classes as per their
ni

resemblances and affinities.

Rules of Classification - The principal rules of classifying data are:

U

1. To condense the data mass in such a way that salient features can be readily noticed;
for example, household incomes can be grouped as higher income group, middle-
income group and lower income group based on certain criterion.
ity

2. To facilitate comparison between attributes of variables; for example, comparison

between education and income, income and expenditure on consumer durables, etc.
3. To prepare the data for tabulation.
4. To highlight the significant features of the data; for example, data is concentrated on
m

one side, or one particular value may be dominant.

5. To enable grasping of data.
)A

6. To study the relationship formed.

Bases of Classification
Some common types of bases of classification are:
(c

1. Geographical classification: In this type, data is classified according to area or region.

For example, State wise industrial production, city wise consumer behaviour, area
wise sales figures, etc.

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112 Quantitative Aptitude

2. Chronological classification: In this type, data is classified according to the time of its
Notes occurrence; for example, monthly sales, daily demand, yearly production, etc.

e
3. Qualitative classification: When the data is classified according to some attributes,
which are not capable of measurement, it is known as qualitative classification. In

in
dichotomous classification, an attribute is divided into two classes, one possessing
the attribute and other not possessing it; for example, smoker, non-smoker, employed,
unemployed, etc. In many-fold classification, attribute is divided so as to form several

nl
classes like education level, religion, mother tongue, etc.
4. Classification of data according to characteristics: It refers to the classification of
data according to some characteristics which can be measured; for example, age,

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salary, height, etc. Quantitative data may be further classified into two types namely
discrete and continuous. In case of discrete type, values of the variables taken are
countable (could be infinitely large also for example, integers). Examples of these
are number of accidents, number of defectives, etc. In case of continuous quantities,

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data can take any real values; for example, weight, height, distance, volume, etc.

Frequency Distribution
Classification of data shows the different values of a variable and their respective

rs
frequency of occurrence is called a frequency distribution of the values.

There are two kinds of frequency distributions, namely, discrete frequency

ve
distribution (or simple, or ungrouped frequency distribution), and continuous frequency
distribution (or condensed or grouped frequency distribution).

a. Discrete Frequency Distribution

ni

The process of preparing discrete frequency distribution is simple. First, all the
possible values of variables are arranged in ascending order in a column. Then another
column of ‘Tally’ mark is prepared to count the number of times a particular value of the
U

variable is repeated. To facilitate counting, a block of five ‘Tally’ marks is prepared. The
last column contains frequency. To illustrate this let us consider one example.

Example:
ity

Construct frequency distribution table for the following data of number of family
members in 30 families:

4 3 2 3 4 5 5 7 3 2
m

3 4 2 1 1 6 3 4 5 4
2 7 3 4 5 6 2 1 5 3
)A

Number
of Family ‘Tally Marks’ Frequency
Members
1 ||| 3
(c

2 |||| 5
3 |||| || 7
4 |||| | 6

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Quantitative Aptitude 113

5 |||| 5
Notes
6 || 2

e
7 || 2
Total N = 30

in
b. Continuous Frequency Distribution
For continuous data a ‘grouped frequency distribution’ is necessary. For discrete

nl
data, discrete frequency distribution is better than array, but this does not condense the
data. ‘Grouped frequency distribution’ is useful for condensing discrete data by putting
them into smaller groups or classes called class-intervals. Some important terms used

O
in case of continuous frequency distribution are as follows:

1. Class limits: Class limits denote the lowest and highest value which can be included
in the class. The two boundaries of class are known as the lower limit and upper limit

ity
of the class. For example, 10-18, 20-28, where 10 and 18 are limits of the first class;
20 and 28 are limits of second class,etc.
2. Class intervals: The class interval represents the width, the span or the size of a
class. The width may be determined by subtracting the lower limit of one class from

3.
class interval 20 – 15 =5.
rs
the lower limit of the following class. For example, classes 10-15, 15-20, etc have

Class frequency: The number of observations falling within a particular class

ve
is known as its class frequency. Total frequency indicates the total number of
observations N =Σf.
4. Mid-point of a class is defined as the sum of two
ni

successive lower limits divided by two. Thus class mark is the value lying halfway
between lower and upper class limits. For example, classes 10-20, 20-30, etc have
class marks 15, 25etc.
U

5. Types of class intervals: There are many different ways in which limits of class
intervals can beshown.
6. Exclusive method: In this method, the class intervals are so arranged that upper
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limit of one class is the lower limit of next class. This method always presumes that
the upper limit is excluded from the class, for example, with class limits 20-25, 25-30
observation with value 25 is included in class25-30.
7. Inclusive method: In this method, the upper limit of the class is included in the
m

same class itself. In such case there is no overlap of upper limit of former class and
lower limit of successive class. For example, with class limits 20-29.5, 30-39.5, 40-
49.5, etc. there is no ambiguity but values from 29.5 to 30 or 39.5 to 40 etc. are not
)A

allowed.
8. Open end: In an open-end distribution, the lower limit of the very first class or upper
limit of the last class is not given. For example, while stating the distribution of
monthly salary of managers in rupees, one may specify class limits as, below 10000,
(c

10000-15000, 15000-20000, 20000-25000, above 25000. Similarly, while recording

weights of college students in kg as grouped data the class intervals could be less
than 40, 40 to 50, 50 to 60, 60 to 70, 70 to 80, greater than80.

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114 Quantitative Aptitude

9. Unequal class interval: The method Is also used to limit the class intervals where
Notes the width of the classes is not equal for all classes. This method is of practical use
when there are large gaps in the data, or distribution of the data is uneven. It is used

e
for explaining, visualizing and plotting data with unequal class interval. However, we
must adjust formulae for calculationsaccordingly.

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Cumulative and Relative Frequency
In many situations rather than listing the actual frequency opposite each class, it

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may be appropriate to list either cumulative frequencies or relative frequencies orboth.

Cumulative Frequencies

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The cumulative frequency of a given class interval thus, represents the total of all
the previous class frequencies including the class against which it is written.

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Relative Frequencies
Relative frequency is obtained by dividing the frequency of each class by the total
number of observations ie. the totalfrequency.

rs
◌◌ If the relative frequency is multiplied by 100, we get the percentagefrequency.
◌◌ There are two important advantages in looking at relative frequencies
(percentages) instead of the absolute frequencies in a frequency distribution.
ve
Theseare:
◌◌ Relative frequencies facilitate the comparison of two or more than sets ofdata.
◌◌ Relative frequencies constitute the basis of understanding the probability
concept.
ni

Example: Age of 50 employees is given. Find cumulative frequency, relative

frequency and percentage frequency.
U

22 21 37 33 28 42 56 33 32 59
40 47 29 65 45 48 55 43 42 40
ity

37 39 56 54 38 49 60 37 28 27
32 33 47 36 35 42 43 55 53 48
29 30 32 37 43 54 55 47 38 62
m

Class Class Cumulative Relative Percentage

Interval Frequency Frequency Frequency Frequency
20-30 7 (0+7) = 7 7/50 = 0.14 14
)A

30-40 16 (7+16) = 23 16/50 = 0.32 32

40-50 15 (23+15) = 38 15/50 = 0.30 30
50-60 9 (38+9) = 47 9/50 = 0.18 18
(c

60-70 3 (47+3) = 50 3/50 = 0.06 6

N = f = 50 Total = 1 Total = 100

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Quantitative Aptitude 115

A frequency distribution is constructed to satisfy three objectives: (i) to facilitate the

analysis of data, (ii) to estimate frequencies of the unknown population distribution from Notes
the distribution of sample data, and (iii) to facilitate the computation of various statistical

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measures.

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4.1.2 Graphical Representation

Methods of Re-presentation of Data

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One of the most convincing and appealing ways in which statistical results may be
represented is through graphs and diagrams.

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Diagrams and graphs are extremely used because of the following reasons:
(i) Diagrams and Graphs attract to the eye.

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(ii) They have more memorizing effect.
(iii) It facilitates for easy comparison of data from one period to another.
(iv) Diagram and graphs give bird’s eye view of entire data; therefore, it conveys
meaning very quickly.

a. Bar Diagram
rs
In a bar diagram, only the length of the bar is taken into account but not the width.
ve
In other words bar is a thick line whose width is merely shown, but length of the bar is
taken into account and is called one-dimensional diagram.

Simple Bar Diagram

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It represents only one variable. Since these are of the same width and vary only in
lengths (heights), it becomes very easy for a comparative study. Simple bar diagrams
U

are very popular in practice. A bar chart can be either vertical or horizontal; for example
sales, production, population figures etc. for various years may be shown by simple bar
charts
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Illustration - 1

The following table gives the birth rate per thousand of different countries over a
certain period of time.

New
m

Country India Germany U. K. Sweden China

Zealand
Birth Rate 33 16 20 30 15 40
)A
(c

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116 Quantitative Aptitude

40
Notes B 40 Simple Bar Diagram

e
I 35
30
r
30

in
t
25
h 20
20 16 15

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R
15

a 10
t 5

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e 0
India Germ UK New Swe Chin
an zeala den a
nd
Countries

ity
Comparing the size of bars, China’s birth rate is highest, next is India whereas
Germany and Sweden equal in the lowest positions.

Illustration 2 - Represent the data by using a simple bar diagram.

Countries:
Production of
A
rs
B C D E F
ve
Rice (000’s 38 42 29 28 18 11
tons):
Production of Rice (000's Tons

ni

50
42
40 38
29 28
U

30
20 18
11
10
ity

0
A B C D E F
m

Sub-divided BarDiagram
In a subdivided bar diagram, each bar representing the magnitude of given value is
further subdivided into various components. Each component occupies a part of the bar
)A

proportional to its share in total.

Illustration -

Present the following data in a sub-divided bar diagram.

(c

Amity Directorate of Distance & Online Education

Quantitative Aptitude 117

Year/Faculty Science Humanities Commerce

Notes
2014-2015 240 560 220

e
2015-2016 280 610 280

in
Y

1400

nl
1200

1000
Scale: 1 cm = 200
800 Index

O
Sci
600 Hum
400 Com

ity
200

X
2014-15 2015-16

Illustration – 2

rs
The Number of Students in University X during 2008 to 2011 areas follows.
Represent the data by a similar diagram.
ve
Year Arts Commerce Science Total
2008 - 2009 20,000 10,000 5,000 35,000
2009 - 2010 26,000 9,000 7,000 42,000
ni

2010 - 2011 31,000 9,500 7,500 48,000

60000
U

N
u
m 50000
5
b ,7
n ce
ie
ity

e
,7
0 Sc 00
r 40000 ce
ie n rce
0 Sc 00 me 0
,5 m
Co , 95 0
ce e
o
ie n erc
f 30000 Sc 00 m m 0
e Co , 900
erc
m

s m
m 0 0
t Co 100
,
u 20000 0
31
d s,
20
0 Art 00
)A

e 0 r t s,
20 A 00
n 10000 r t s,
A 00
t
s
0
(c

2008-2009 2009-2010 2010-2011

Years

Amity Directorate of Distance & Online Education

118 Quantitative Aptitude

Multiple Bar Diagram

Notes
In a multiple bar diagram, two or more sets of related data are represented and the

e
components are shown asseparate adjoining bars. The height of each bar represents
the actual value of the component. The components are shown by different shades or

in
colours.

Illustration 1 - Construct a suitable bar diagram for the following data of number of
students in two different colleges in different faculties.

nl
College Arts Science Commerce Total
A 1200 800 600 2600

O
B 700 500 600 180
1800
= College 'A'

ity
1600
= College 'B'
1400
1200

rs
1200
No. of students

1000
ve
800
800 700
600 600
600 500
ni

400

200
U

ARTS SCIENCE COMMERCE

Different departments
ity

Fig: A multiple bar diagram showing numbers of students in two different colleges
in differentdepartments.

Illustration 2
m

Read the following data of results of III semester. B.B.A.examination of Mangalore

University held in May 2006, 2007 and 2008 in a multiple bar diagram
)A

Year Class I Class II Class III Failed

2006 100 300 500 300
2007 120 400 600 280
2008 100 500 700 300
(c

Percentage bar Diagram

In percentage bar diagram the length of the entire bar kept equal to 100 (Hundred).
Various segment of each bar may change and represent percentage on an aggregate.
Amity Directorate of Distance & Online Education
Quantitative Aptitude 119

Illustration 1
Notes

e
Year Men Women Children
1995 45% 35% 20%

in
1996 44% 34% 22%
1997 48% 36% 16%

nl
700
600

O
500
400 Ist Class
300 IInd Class

ity
200 IIIrd Class
Failed
100
0

◌◌
2006 2007 2008
rs
axis on the graph paper. Make sure to write the title above the table so that it
ve
determines the purpose of the graph.
◌◌ For instance, if one of the factors is time, it goes on the horizontal axis,
referred to as the x-axis. The other factor would subsequently go on the
ni

vertical axis, which is known as the y-axis. Both the axes are to be labeled as
per their respective factors. For example, The x axis can be labeled as time or
day.
U

◌◌ Afterward, with the help of the already given data, the exact values on the
graph can be pointed. Once the points are joined, a clear inference about the
trend can be made.
ity

Pie Chart
A pie chart or a circle chart is a circular statistical graphic that is divided into
slices to illustrate a numerical proportion. In a pie chart, the arc length of each slice
is proportional to the quantity it represents. While it is named for its resemblance to a
m

pie which has been sliced, there are variations on the way it can be presented..In a pie
chart, categories of data are represented by wedges in the circle and are proportional in
size to the percent of individuals in each category.
)A

Pie charts are very widely used in the business world and the mass media. Pie
charts are generally used to show percentage or proportional data and usually the
percentage represented by each category is provided next to the corresponding slice of
pie. Pie charts are good for displaying data for around six categories or fewer.
(c

Example:
Show the following data of expenditure of an average working class family by a
suitable diagram
Amity Directorate of Distance & Online Education
120 Quantitative Aptitude

Item of Expenditure Percent of Total Expenditure

Notes
Food 65

e
Clothing 10
Housing 12

in
Fuel and Lighting 5
Miscellaneous 8

nl
Solution:
1. Food = 65/ 100 x 360 = 234

O
2. Clothing = 10/ 100 x 360 = 36
3. Housing = 12/ 100 x 360 = 43.2
4. Fuel and Lighting = 5/ 100 x 360 = 18

ity
5. Miscellaneous = 8/ 100 x 360 = 28.8
The angles of different sectors are calculated as shown below:

rs
Food Pie Chart
ve
ni
U
ity

4.1.3 Histogram
A histogram consists of contiguous boxes and has both horizontal axis and a
vertical axis. The horizontal axis is labeled with what the data represents (for instance,
m

distance from your home to school). The vertical axis is labeled either Frequency or
relative frequency. The graph will have the same shape with either label. The histogram
(like the stemplot) can give you the shape of the data, the center, and the spread of the
)A

data. (The next section tells you how to calculate the center and the spread.)

The relative frequency is equal to the frequency for an observed value of the data
divided by the total number of data values in the sample. (In the chapter on Sampling
and Data (Section 1.1), we defined frequency as the number of times an answer
occurs.)
(c

RF = f/n

Amity Directorate of Distance & Online Education

Quantitative Aptitude 121

Where f is the frequency n is the total number of data values (or the sum of the
individual frequencies), and RF is the relative frequency. Notes

e
Example – If 3 students in Mathematics class of 40 students received from 90% to
100%, then,

in
f = 3, n = 40 and

RF = f/n

nl
= 3/40

= 0.075

O
Seven and a half percent of the students received 90% to 100%. Ninety percent to
100% are quantitative measures.

ity
Example:
Formulate the Histogram from the following data –

Class Interval Frequency

10.5 – 18.5
18.5 – 26.5
26.5 – 34.5
rs
3
5
5
ve
34.5 – 42.5 2
42.5 – 50.5 4
50.5 – 58.5 2
ni

Solution:

Histogram
U
ity
m
)A
(c

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122 Quantitative Aptitude

4.1.5 Ogive – Part – 1

Notes
Ogives

e
When frequencies are added, they are called the cumulative frequencies. The

in
curve obtained by plotting cumulating frequencies is called a cumulative frequency
curve or an ogive (pronounced as ojive).

To construct an Ogive: (i) Add up the progressive totals of frequencies, class by

nl
class, to get the cumulative frequencies. (ii) Plot classes on the horizontal (x-axis) and
cumulative frequencies on the vertical (y-axis).

O
Less than Ogive: To plot a less than ogive, data is arranged in ascending order
of magnitude and frequencies are cumulated from the top i.e. adding. Cumulative
frequencies are plotted against the upper class limits. Ogives under this method, gives
a positive curve

ity
Greater than Ogive: To plot a greater than ogive, the data is arranged in the
ascending order of magnitude and frequencies are cumulated from the bottom or
subtracted from the total from the top. Cumulative frequencies are plotted against the
lower class limits. Ogives under this method, gives negative curve

rs
Uses: Certain values like median, quartiles, quartile deviation, co-efficient of
skewness etc. can be located using ogives. Ogives are helpful in the comparison of the
two distributions.
ve
Illustration 1 –
Draw less than and more than ogive curves for the following frequency distribution
ni

and obtain median graphically. Verify the result.

CI 0-20 20-40 40-60 60-80 80-100 100-120 120-140 140-160

U

f 5 12 18 25 15 12 8 5

Size Icf Mcf Size

ity

20 5 100 0
40 17 95 20
60 35 83 40
80 60 65 60
m

100 75 40 80
120 87 25 100
)A

140 95 13 120
160 100 5 140
(c

Amity Directorate of Distance & Online Education

Quantitative Aptitude 123

Y
180 Notes

e
160

in
140

120

nl
100 Less than

80

O
60

40

ity
More than
20

0 X
20 40 60 80 100 120 140 160 180

rs
Example: Find the median from the following series. Also draw less than ogive,
more than ogive and locate median on a graph.
ve
Income (`) No. of Persons
0-20 82
20-40 112
ni

40-60 150
60-80 95
U

80-100 48

Solution:
ity

Class
Class
C.I. F L.C.F. (More M.C.F.
(Less then)
then)
0-20 82 20 82 0 487
m

20-40 112 40 194 20 405

40-60 150 60 344 40 293
)A

60-80 95 80 439 60 143

80-100 48 100 487 80 48
(c

Amity Directorate of Distance & Online Education

124 Quantitative Aptitude

600
Notes
500

e
No. of Persons
400 Less than ogive

in
300

200 More than ogive

nl
100

0
20 40 60 80 100
Median 50 Median Income

O
4.1.6 Ogive – Part 2

Cumulative Frequency Curve or the Ogive

ity
If from a cumulative frequency table, the upper limits of the class taken as
x-coordinates and the cumulative frequencies as the y-coordinates and the points
are plotted, then these points when joined by straight lines, we obtain less than type
cumulative frequency polygon.

rs
If more than cumulative frequency is plotted against the corresponding lower limits
of each class and the points plotted are joined by straight lines, we obtain more than
type cumulative frequency polygon.
ve
However, when the points plotted are joined by a free hand smooth curve, we
obtain cumulative frequency curve.

Example: A cumulative frequency polygon for the given following data

ni

Class Frequency Cumulative

frequency
U

0-10 2 2
10-20 4 6
20-30 10 16
ity

30-40 4 20
40-50 3 23
50-60 8 31
m

60-70 1 32
70-80 5 37
80-90 11 48
)A

90-100 2 50
(c

Amity Directorate of Distance & Online Education

Quantitative Aptitude 125

Notes

e
in
nl
O
ity
Activity1: Construct an ogive curve for the following frequency distribution of
Cotton Mills in Bombay according to the quantities of cotton consumed-

Cotton consumed in thousand candles

No. of Mils rs
ve
0-2 5
2-4 13
4-6 12
6-8 11
ni

8-10 8
10-12 4
U

12-14 1
14-16 3
16-18 1
ity

18-20 1
over 20 2

The following table shows the frequency distribution for the number of students per
m

teacher in 750 colleges and professional schools-

Students x Frequency F
)A

1 7
4 46
7 165
(c

10 195
13 189
16 89

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126 Quantitative Aptitude

19 28
Notes
22 19

e
2 9
528 3

in
Check your Understanding

nl
1. ___________ helps in forecasting by analysing trends, which are essential for
planning and decision-making.
2. ______________ are the statements about populations parameters based on past

O
knowledge or information.
3. Inductive ___________ about the population based on the sample estimates involves
an element of risk.

ity
4. Statistics deals with only those problems which can be expressed in quantitative
terms and amendable to mathematical and numerical analysis. True / False
5. _____________ statistics is used to sum up and graph the data for a category
picked.
6.
rs
______________ refers to the grouping of data into homogeneous classes and their
categories.
ve
7. In a _________ graph, only the length of the bar is taken into account but not the
width.
8. A _________ graph is a type of chart used to show information changing over time.
ni

9. A ________ chart or a circle chart is a circular statistical graphic that is divided into
slices to illustrate a numerical proportion.
10. A ___________ consists of contiguous boxes and has both horizontal axis and a
U

vertical axis.
11. The ___________ frequency is equal to the frequency for an observed value of the
data divided by the total number of data values in the sample.
ity

12. The curve obtained by plotting cumulating frequencies is called a cumulative

frequency curve or an ogive. True / False

Summary
m

●● Statistics originally was meant for collection of facts useful for affairs of the state,
like the taxes, land records, population demography, etc.
)A

●● “Statistics are the classified facts representing the conditions of the people in the
state. Specially those facts which can be stated in number or in table of numbers
or in any tabular or classified arrangement.”
●● The collection and analysis of data constitute the primary stages of execution of
any statistical investigation. The procedure for collection of data depends upon
(c

various considerations such as the scope, objective, nature of investigation, etc.

Data may be collected either from a primary or secondary source.
●● Descriptive statistics is used to sum up and graph the data for a category picked.

Amity Directorate of Distance & Online Education

Quantitative Aptitude 127

This method helps to understand a particular collection of observations. There is

no confusion in concise numbers, since you just identify the individuals or things Notes
which are calculated.

e
●● Inferential statistics are techniques that allow us to use certain samples to

in
generalize the populations from which the samples were taken. Hence, it is crucial
that the sample represents the populations accurately.
●● Statistical tools are extensively used in business for time and motion study,

nl
consumer behaviour study, investment decisions, credit ratings, performance
measurements and compensations, inventory management, accounting, quality
control, distribution channel design, etc. For managers, therefore, understanding

O
statistical concepts and knowledge about using statistical tools is essential.
●● Classification refers to the grouping of data into homogeneous classes and their
categories. It is the process of arranging things in groups or classes as per their

ity
resemblances and affinities.
●● One of the most convincing and appealing ways in which statistical results may be
represented in through graphs and diagrams.
●● A line graph is a type of chart used to show information changing over time. We

●●
rs
use multiple dots to plot line graphs connected by straight lines. It is also known as
a line chart. It consists of two axes defined as the ‘x’ and ‘y’ axis.
A pie chart or a circle chart is a circular statistical graphic that is divided into slices
ve
to illustrate a numerical proportion. Pie Charts are widely used in the business
world and the mass media. They are generally used to show percentages or
proportional data and usually the percentages represented by each category is
ni

provided next to the corresponding slice of pie.

●● A histogram consists of contiguous boxes and has both horizontal axis and a
vertical axis. The horizontal axis is labelled with what the data represents and the
U

vertical axis is labelled either Frequency or relative frequency.

●● When frequencies are added, they are called the cumulative frequencies. The
curve obtained by plotting cumulating frequencies is called a cumulative frequency
ity

curve or an ogive.

Activity
Create the cumulative frequency table and draw the Ogive for the data below.
m

Marks 1-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80

Frequency 3 8 12 14 10 6 5 2
)A

Questions and Exercises

1. Describe the functions of statistics.
2. What are the two forms of collected data? Give examples of each.
3. List the different methods of collecting primary data.
(c

4. What are the rules of classification?

5. What type of data is best represented by a pie chart?

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128 Quantitative Aptitude

6. How does one construct an ogive?

Notes
Glossary

e
●● Classification: the grouping of data into homogenous classes and categories.

in
●● Line Graph: is a type of chart used to show information changing over time.
●● Primary Data: when the data used in a statistical study is collected under the
control and supervision of the investigator.

nl
●● Relative frequency: is equal to the frequency for an observed value of the data
divided by the total number of data values in the sample.

O
●● Secondary Data: when data is derived from other sources that have not been
collected for the specific purpose of research.
●● Further Reading

ity
●● Bekes, Gabor. Data Analysis for Business, Economics, and Policy. Cambridge
University Press (May 6, 2021)
●● Huberman, A. Michael; Miles, Matthew B.; Saldana, Johnny. Qualitative Data
Analysis: A Methods Sourcebook
●●
rs
Knaflic, Cole Nussbaumer. Storytelling with Data: A Data Visualization Guide for
Business Professionals. Wiley; 1st edition (November 2, 2015)
ve
Check your Understanding: Answers
1. Statistics
2. Hypotheses
ni

3. Inference
4. True
U

5. Descriptive
6. Classification
ity

7. Bar
8. Line
9. Pie
10. Histogram
m

11. Relative
12. True
)A
(c

Amity Directorate of Distance & Online Education

Quantitative Aptitude 129

Unit - 4.2: Descriptive Measures

Notes

e
Objectives:
At the end of this unit, you will be able to understand

in
●● Measure of the Central Tendency – I
●● Measure of the Central Tendency – II

nl
●● Measure of Dispersion
●● Kurtosis, Skewness

O
Introduction
Measures of central tendency are a single value which can be considered as

ity
representative of a set of observations. The value around which the observations
can be considered as centered is known as an Average or average value or a
location center. Since such representative values tend to lie centrally within a set of
observations when arranged according to magnitudes, these averages are then called
measures of central tendency.

4.2.1 Measure of the Central Tendency – I rs

ve
Central Tendency Measures
Central tendency has three main measures: mode, median and mean. Each
of those measurements represents a specific indication of the distribution’s typical or
ni

central value.

●● Mean - The mean is the average of the numbers. It is easy to calculate: add up all
the numbers, then divide by how many numbers there are. In other words it is the
U

sum divided by the count

●● Median - Within a sorted, ascending or descending list of numbers, the median
is the middle number and may be more representative of that set of data than
ity

the average. The median is often used as opposed to the mean when the series
includes outliers that may distort the average of values.
●● Mode - The mode is the number most frequently seen in a dataset. A collection of
numbers may have one mode, one mode, or no mode at all. Other popular central
m

tendency measurements include a set’s mean, or mean, and a set ‘s median,

middle value.
)A

Average
An average is a single figure that sums up the characteristics of a whole group of
figures.

In the words of clark “average is an attempt to find one single figure to describe
(c

whole of figures. An average is described as a measure of central tendency as it is

more or less a central value around which various values cluster.

In the world of CROXTON and COWDEN “an average is a single value within the

Amity Directorate of Distance & Online Education

130 Quantitative Aptitude

range of the data that is used to represent all of the values in the series. Since an average
Notes is somewhere within the range of the data, it is called a measure of cultural value.

e
Objectives served by Averages

in
Averages serve the following purposes:

1. To obtain a clear and concise picture of large number of numerical data.

nl
2. To compare different groups by the means of averages.
3. To obtain a clear picture of a whole group studying sample data.
4. To provide definite rates to the relationship between different groups.

O
Characteristics of good average
1. It is rigidly defined and its value is always definite.

ity
2. It is easy to understand and calculate, hence it is very popular.
3. It is based on all the observations; so that it can become a good representative.
4. It can be easily used for comparisons.
5.

rs
It is capable of further algebraic treatments, like finding the sum of the observation
values. Finding the mean and total number of the observations, and finding the
combined arithmetic mean when different groups are given etc.
ve
6. It is not affected much by sampling fluctuations.

Essentials of a good Average

ni

The essentials of a good average are as follows:

1. It must be defined rigidly.

2. It must be based on all the observation of the data.
U

3. It must be readily comprehensible or understandable.

4. It must be capable of being calculated with reasonable ease and rapidity.
ity

5. It must be affected as little as possible by fluctuations of sampling.

6. It must be readily amenable to arithmetic or algebraic treatment.

Arithmetic Mean
m

Arithmetic mean is defined as the value obtained by dividing the total values
of all items in the series by their number. In other word is defined as the sum of the
given observations divided by the number of observations, i.e., add values of all items
)A

together and divide this sum by the number of observations.

Symbolically – x= x1 + x2 + x3 + xn/n

Properties of Arithmetic Mean

(c

1. The sum of the deviations, of all the values of x, from their arithmetic mean, is zero.
2. The product of the arithmetic mean and the number of items gives the total of all
items.
Amity Directorate of Distance & Online Education
Quantitative Aptitude 131

3. Finding the combined arithmetic mean when different groups are given.
Notes
Demerits of Arithmetic Mean

e
1. Arithmetic mean is affected by the extreme values.

in
2. Arithmetic mean cannot be determined by inspection and cannot be located
graphically.
3. Arithmetic mean cannot be obtained if a single observation is lost or missing.

nl
4. Arithmetic mean cannot be calculated when open-end class intervals are present in
the data.

O
Arithmetic Mean for Ungrouped Data

A) Individual Series

ity
1. Direct Method
The following steps are involved in calculating arithmetic mean under an individual
series using direct method:
- Add up all the values of all the items in the series.

rs
- Divide the sum of the values by the number of items. The result is the arithmetic
mean.
ve
The following formula is used: X = ∑ x/N

Where, X = Arithmetic mean ∑x = Sum of the values N = Number of items.

ni

Illustration 1 – Value(x) – 125 128 132 135 140 148 155 157 159 191

Calculate the arithmetic mean

U

Solution –

Total number of terms = N = 10

Mean = ∑ x ∑ 125 128 132 135 140 148 155 157 159 191 = 1440
ity

X ∑ ∑ x/n ∑ 1440/10

= 144
m

2. Short-cut Method or Indirect method

The following steps are involved in calculating arithmetic mean under individual
series using short-cut or indirect method:
)A

1. Assume one of the values in the series as an average. It is called as working

mean or assumed average.
2. Find out the deviation of each value from the assumed average.
(c

3. Add up the deviations

4. Apply the following formula. X = A d N + ∑
where, X = Arithmetic mean A = Assumed average ∑ d = Sum of the deviations

Amity Directorate of Distance & Online Education

132 Quantitative Aptitude

N = Number of items
Notes
Illustration - 1

e
Calculate the arithmetic average of the data given below using short–cut method

in
Roll No 1 2 3 4 5 6 7 8 9 10
Marks 43 48 65 57 31 60 37 48 78 59

nl
Solution –

Roll No Marks Obtained D = 60

O
1 43 -17
2 48 -12
3 65 5

ity
4 57 -3
5 31 -29
6 60 0
7
8
9
rs 37
48
78
-23
-12
18
ve
10 59 -1
∑d = – 74
ni

X = a + ∑d/N

+ 60 + (- 74/10) = 52.6 marks

U

2.1.5 Combined Arithmetic Mean

Arithmetic mean and number of items of two or more related groups are known
ity

as combined mean of the entire group. The combined average of two series can be
calculated by the given formula –

n1x1 + n2x2/ n1 + n2
m

Where, n1 = No. of items of the first group, n2 = No. of items of the second group

x1= A.M of the first group, x2 = A.M of the second group,

)A

Example - From the following data ascertain the combined mean of a factory
consisting of 2 branches namely branch A and Branch B. In branch A the number of
workers is 500, and their average salary of 300. In branch B the number of workers is
1,000 and their average salary is 250
(c

Solution:
Let the no. of workers in branch A be n1 = 500

Let the no. of worker in branch B be n2 = 1000

Amity Directorate of Distance & Online Education

Quantitative Aptitude 133

Average salary x1 = 300

Notes
Average salary x2 = 250

e
n1x1 + n2x2/ n1 + n2

in
= 500(300) + 1000(250)/ 500 + 1000

= 1, 50,000 + 2, 50,000/1500

nl
= 266.66

Weighted Arithmetic Mean

O
Some times, some observations get relatively more importance than other
observations. The weight for such observation must be given on the basis of their
relative importance. In weighted arithmetic mean, for finding an average the value of
each item is multiplied by its weight and then the product are divided by the number of

ity
weights.

Symbolically = ∑wx / ∑w

Example – Calculate simple and weighted average from the following data –

Month
Price
Jan
42.5
Feb
51.25
March
50 52
rs
April May
44.25
June
54
ve
No. of tonnes 25 30 40 50 10 45

Solution:
ni

No. of tonnes WX purchased

Month Price Per Tonn
( in 000)(x) (w)
Jan 42.5 25 1062.5
U

Feb 51.25 30 1537.5

March 50 40 2000
ity

April 52 50 2600
May 44.25 10 442.5
June 54 45 2430
m

N=6 X = 294 ∑w = 200 ∑wx = 10027.5

Simple AM
)A

X = ∑x/n = 294/6 = 49

Weighted AM

Xw = ∑wx/∑w = 10027.5/200 = 50.137

(c

The correct average price paid is `50.30 and not `49 i.e., weight arithmetic mean is
correct than simple arithmetic mean.

Amity Directorate of Distance & Online Education

134 Quantitative Aptitude

Median
Notes
Median is defined as the value of the item dividing the series into two equal

e
halves, whereonehalf contains all values a less than (or equal to) it and the other half
contains all values greater than (or equal to) it. It is alsode fined as the “ central value

in
of the variable. In median, the value of items must be arranged in order of their size or
magnitude to find out themedian.

Median is a positional average. The term position refers to the place of a value in

nl
the series, where the place of median is such that it is equal to the number of items
lying on the either side; therefore it is also called as locativeaverage.

O
Merits of Median
Following are the advantages of median:

1. It is rigidly defined.

ity
2. It is easy to calculate and understand.
3. It can be located graphically.
4. It is not affected by extreme values like the arithmeticmean.
5.
6.
rs
It can be found by mere in spection.
It can be used for qualitativestudies.
ve
7. Even if the extreme values are unknown, median can be calculate difone knows the
number of items.

Demerits of Median
ni

Following are the disadvantages of median:

1. In the case of individual observations, the values are to be arranged in order of their
U

size to locate median. Such an arrangement of data is tedious task if the number of
items islarge.
2. If the median is multiplied by the number of items, the total value of all the items
ity

cannot be obtained as in the case of the arithmetic average.

3. It is not suitable for complex algebraic or mathematical treatment.
4. It is more affected by sampling fluctuations.
m

Application of Median
Example – Determine the median from the following –
)A

25, 15, 23, 40, 27 25 23 25 20

Solution - Arranging the figures in ascending order –

S. No Value or Size
(c

1 15
2 20
3 23

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Quantitative Aptitude 135

4 23
Notes
5 25

e
6 25
7 25

in
8 27
9 40

nl
Median = 10/2
= 5th term
= 25

O
Example:
The following steps are involved in calculating median in continuous series:

ity
1) Find out the cumulative frequency
2) Find out the median item, i.e., N/2 th item.
3) Find out the group or class containing the median
4) Estimate the median applying the following formula.
n
Me = i + 2
− cf
xi
rs
ve
fm
where me = Median
i = Lower limit of the median class
ni

cf = Cumulative frequency of the class preceding the median class

i = Size of class interval
U

fm = Middle one of frequency sequence.

Example 1:
ity

Calculate the median mark from the following frequency distribution.

Mark No. of students

0-10 5
m

0-20 13
0-30 20
0-40 32
)A

0-50 60
0-60 80
0-70 90
(c

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136 Quantitative Aptitude

Solution:
Notes
Mark F CF

e
0-10 5 5
0-20 6 13

in
0-30 7 20
0-40 12 32

nl
0-50 28 60
0-60 20 80
0-70 10 90

O
N 90
M= = = 45
2 2

ity
n
− cf 50 - 40
Me = 1 + 2
xi = 40 + 28
fm
10

rs
= 40 + x 13
28

= 40 + 4.64 = 44.64
ve
Find the median from the following series. Also draw less than ogive, more than
ogive and locate median on a graph.

No. of Persons
ni

Income (`)
0-20 82
20-40 112
U

40-60 150
60-80 95
ity

80-100 48

Solution:

Class
m

Class
C.I. F L.C.F. (More M.C.F.
(Less then)
then)
0-20 82 20 82 0 487
)A

20-40 112 40 194 20 405

40-60 150 60 344 40 293
60-80 95 80 439 60 143
(c

80-100 48 100 487 80 48

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Quantitative Aptitude 137

600
Notes
500

e
No. of Persons
400 Less than ogive

in
300

200 More than ogive

nl
100

0
20 40 60 80 100
Median 50 Median Income

O
Mode

ity
The word “mode” is derived from the French word “1a mode” which means fashion.
So it can be regarded as the most fashionable item in the series or the group.

Croxtan and Cowden regard mode as “the most typical of a series of values”.
As are sult it can sum up the characteristics of a group more satisfactorily than the

rs
arithmetic mean ormedian. Mode is defined as the value of the variable occurring most
frequently in a distribution. In other words it is the most frequent size of item in a series.
ve
Merits of Mode
The following are the merits of mode:
1. The most important advantage of mode is that itisusuallyon an actual value.
ni

2. In the case of discrete series, mode can be easily located by inspection.

3. Mode is not affected by extremevalues.
4. Mode can be determined even if extreme values are not given.
U

5. It is easy to understand and this average is used by people in their every day speech.

Demerits of Mode
ity

The following are the demerits of mode:

1. It is not based on all the observation of the data
2. In a number of cases there will be more than one modein the series.
3. If mode is multiplied by the number of items, the product will not be equal to the total
m

value of the items.

4. It will not truly represent the group if there are a small number of items of the same
)A

size in a large group of items of different sizes

5. It is not suitable for further mathematical treatment

Applications of Mode
Mode in Ungrouped Data
(c

a) IndividualSeries
The mode of this series can be obtained by mere inspection. The number which
occurs most often is the mode.
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138 Quantitative Aptitude

Illustration - 1
Notes
Locate mode in the data 7, 12, 8, 5, 9, 6, 10, 9, 4, 9, 9

e
Solution:

in
On inspection, it is observed that the number 9 has maximum frequency i.e., repeated
maximum of 4 times than any other number. Therefore mode (Z)= 9

nl
b) DiscreteSeries
The mode is calculated by applying grouping and analysis table.

O
i) Grouping Table: Consisting of six columns including frequency column, 1st
column is the frequency 2nd and 3rd column is the grouping two way frequencis
and 4th, 5th and 6th column is the grouping three way frequencies.
ii) Analysis table: consisting of two columns namely tally bar and frequency

ity
Steps in Calculating Mode in Discrete Series
The following steps are involved in calculating mode in discrete series:

1.
2.
3.
rs
Group the frequencies bytwo’s.
Leave the frequency and group the other frequencies intwo’s.
Group the frequencies inthrees.
ve
4. Leave the frequency of the first size and add the frequencies of other sizes in
three’s.
5. Leave the frequencies of the first two sizes and add the frequencies of the other
ni

sizes in threes.
6. Prepare an analysis table to know the size occurring the maximum number
U

of times. Find out the size, which occurs the largest number of times. That
particular size is themode.

c) ContinuousSeries
ity

The following steps are involved in calculating mode in continuous series.

1. Find out the modal class. Modal class can be easily found out by inspection.
The group containing maximum frequency is the modal group. Where two or
more classes appearto be a modal class group, it can be decided by grouping
m

process and preparing ananalyzed table as was discussed in question number

2.102.
)A

2. The actual value of mode is calculated by applying the following formula.

Mo = l + fm – f1 / 2fm – f1 – f2i
Example:
(c

Marks F CF
0-10 5 5

Calculate the modal wages,

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Quantitative Aptitude 139

Daily wages in ` (x) : 20-25 25-30 30-35 35-40 40-45 45-50

Notes
No. of workers (f) : 1 2 8 12 7 5

e
Solution:

in
Here, the maximum frequency is 12, corresponding to the class interval (35-40)
which is the modal class, Therefore, L1=35 L2=40 F1=12 FM=8 F2=7

nl
X F
20-25 1
25-30 3

O
30-35 8
35-40 12
40-45 7 f2

ity
15-50 5

fm – f1 12 - 8
Mode = I + xI = 35+ ( ) 40.35
2 fm – f1–f1 2(12)=8.7

= 35 + (
4
24–15
)5 = 35 + (
20
9
) =35+2.22 rs
= 37.22
ve
Example 2:
Less than 10 20 30 40 50 60 70 80
ni

Frequency: 4 16 40 76 96 112 120 125

Solution:
U

Need to ascertain lower limit of the continuous class (LL = UL –) Class length (CL)
= 20–10 = 10 i.e., (10–10 = 0............)

Value (x) Class f

ity

Less than 10 0-10 4 4

Less than 20 10-20 16-4=12 12
Less than 30 20-30 40-16=24 24
m

Less than 40 I130-40I1 76-40=36 36

Less than 50 40-50 96-76=20 20
)A

Less than 60 50-60 112-96=16 16

Less than 70 60-70 120-112=8 8
Less than 80 70-80 125-125=5 5
(c

fm – f1 36 - 24
Z=I+ xI = 30+ ( ) 40.30
2fm – f1–f1 2(36)= 24-20

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140 Quantitative Aptitude

12 120
Notes = 30 + ( ) 10 = 30 + ( ) =30+4.285 Z= 37.22
72–44 28

e
Empirical Relationship between Mean, Median andMode

in
When mode is ill defined, it is difficult to find the value of mode, a sort of empirical
relationship exist among the mean, median and mode in such a way that the median
lies between the mode and the mean.The mode departs (to the left i.e., positive

nl
skewed) 2/3 difference from the median and the mean departs (to the right i.e.,
negatively skewed) 1/3 difference from the median. Karl Pearson’s expressed this
relationship as Z = 3M - 2X (when it is positives kewness).

O
Example - M is 28, AM is 29 find Mode

Solution :

Z = 3M - 2X

ity
= 3(28)-2(29)

= 84– 78

rs
=26

29>28>26

– M = ? AM = 39 Z = 36.5
ve
Solution:

Z = 3M - 2X
ni

= 36.5 = 3(M)-2(39)

= 36.5 = 3M –78
U

= 3M = -78 - 36.5

M = - 114.5/-3

= 38.16
ity

Key Takeaways
●● Measures of central tendency: It is a single value which can be considered as
representative of a set of observations and around which the observations can be
m

considered as Centered is called an ’Average’ (or average value)or a Center of

location.
)A

●● Average: It is described as a measure of central tendency as it is more or less a

central value around which various values cluster.In the world of CROXTON and
COWDEN “an average is a single value within the range of the data that is used to
represent all of the values in theseries.
(c

●● Median: It is defined as the value of that item which divides the series into two
equal halves, onehalf contains all values less than (or equal to)it and the other half
containing all values greater than (or equal to) it. It is also defined as the “central
value of the variable.

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Quantitative Aptitude 141

4.2.2 Measure of the Central Tendency – II

Notes
There are four fundamental characteristics in which similar frequency distribution

e
may differ. One of the characteristic is central tendency. A central tendency measure is
a single value that attempts to describe a set of data by identifying the central position

in
within that set of data. As a result, measures of central tendency are also known as
measures of central location. They’re also known as summary statistics. The mean
(also known as the average) is probably the most familiar measure of central tendency,

nl
but there are others, such as the median and the mode. The mean, median, and mode
are all valid measures of central tendency, but depending on the circumstances, some
measures of central tendency are more appropriate to use than others.

O
Measures of central tendency are averages of the first order. Following are some
general rules:

◌◌ The mean is the most commonly used and generally regarded as the best

ity
measure of central tendency. However, in some cases, either the median or
the mode is preferable.
◌◌ When determining central tendency, the median is the preferred measure:
 In the data distribution, there are a few outliers (Remember that a single

 rs
outlier can have a significant impact on the mean).
Your data contains some missing or undetermined values.
ve
 There is an unrestricted distribution. (For example, if you have a data field
that measures the number of children and your options are 0, 1, 2, 3, 4, 5
or “ 6 or more,” the “ 6 or more field” is open ended and makes calculating
the mean impossible because we do not know exact values for this field.
ni

 You have data that has been measured on an ordinal scale.

◌◌ When data is measured on a nominal (or, in some cases, ordinal) scale, mode
U

is the preferred measure.

Arithmetic Mean
The mean (or average) is the most well-known and widely used measure of
ity

central tendency. It can be applied to both discrete and continuous data, but it is most
commonly applied to continuous data. The sum of all the values in the data set divided
by the number of values in the data set equals the mean. So, if we have ‘n’ values in a
data set with values x1, x2, ..., xn, the sample mean, usually denoted by x (pronounced
m

“x bar”), is:
)A

This formula is usually written in a slightly different style, with the Greek capital
letter Σ, pronounced “sigma,” which means “sum of...”:
(c

You may have noticed that the sample mean is mentioned in the preceding

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142 Quantitative Aptitude

formula. So, what is the significance of the term “sample mean”? This is because, in
Notes statistics, samples and populations have very different meanings, and these differences
are very important, even though they are calculated in the same way in the case of the

e
mean. To indicate that we are calculating the population mean rather than the sample
mean, we use the Greek lower case letter “mu,” which is represented as μ:

in
nl
The mean is essentially a data set model. It is the most commonly used value.
However, you will notice that the mean is not always one of the actual values in your

O
data set. However, one of its most important characteristics is that it minimises error in
predicting any single value in your data set. That is, it is the value in the data set that
produces the least amount of error when compared to all other values in the data set.

ity
The mean has the important property of including every value in your data set as part of
the calculation. Furthermore, the mean is the only measure of central tendency in which
the sum of the deviations from the mean is always zero.

When mean should not be used?

rs
The mean has one major drawback: it is especially vulnerable to the influence of
outliers. These are values that are out of the ordinary in comparison to the rest of the
data set because they are unusually small or large in numerical value. Consider the
ve
following wages for factory workers:

Staff 1 2 3 4 5 6 7 8 9 10
Salary 1500 1800 1600 1400 1500 1500 1200 1700 9000 9500
ni

The average salary for these ten employees is Rs. 3070. However, an examination
of the raw data suggests that this mean value may not be the best way to accurately
U

reflect a worker’s typical salary, as most workers earn between Rs.1200 and Rs. 1800.
The two high salaries have skewed the mean. As a result, in this situation, we would
like to have a more accurate measure of central tendency. As we will see later, taking
the median is a better measure of central tendency in this case.
ity

When our data is skewed, we usually prefer the median over the mean (or mode)
(i.e., the frequency distribution for our data is skewed). When the data is perfectly
normal, the mean, median, and mode are identical, according to the normal distribution,
m

which is the most commonly used in statistics. Furthermore, they all represent the most
common value in the data set. However, as the data becomes skewed, the mean loses
its ability to provide the best central location for the data because the skewed data
pulls it away from the average value. The median, on the other hand, best retains this
)A

position and is not as heavily influenced by the skewed values.

Median
The median is the middle score of a set of data arranged in order of magnitude.
(c

Outliers and skewed data have less of an impact on the median. Assume we have the
following data to calculate the median:

65 55 89 56 35 14 56 55 87 45 92

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Quantitative Aptitude 143

We must first rearrange the data in descending order of magnitude (smallest first):
Notes
14 35 45 55 55 56 56 65 87 89 92

e
Our median score is the midpoint - in this case, 56. (highlighted in bold). It is the

in
middle score because there are five scores before it and five scores after it. When you
have an odd number of scores, this works fine, but what happens when you have an
even number of scores? What if you only had ten points? Simply take the middle two

nl
scores and average the result. So, consider the following example:

65 55 89 56 35 14 56 55 87 45

O
We reorder the data in the following order of magnitude (smallest first):

14 35 45 55 55 56 56 65 87 89
Only now do we need to average the fifth and sixth scores in our data set to get a

ity
median of 55.5.

Mode
In our data set, the mode is the most frequent score. The highest bar in a bar chart

rs
or histogram is represented by this symbol on a histogram. As a result, the mode may
be regarded as the most popular option at times. A mode is illustrated below as an
example:
ve
ni
U
ity
m
)A

The mode is typically used for categorical data where we want to know which
category is the most common, as shown below:
(c

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144 Quantitative Aptitude

Notes

e
in
nl
O
ity
We can see from the data above that the bus is the most common mode of

rs
transportation in this data set. However, because the mode is not unique, we have
problems when we have two or more values that share the highest frequency, as shown
below:
ve
ni
U
ity
m
)A

We are now at a loss as to which mode best describes the data’s central tendency.
This is especially problematic with continuous data because we are less likely to have
any one value that is more frequent than the other. Consider measuring the weights of
(c

30 people (to the nearest 0.1 kg). How likely is it that we will come across two or more
people who are exactly the same weight (e.g., 67.4 kg)?

The answer is probably very unlikely - many people may be close, but with such a

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Quantitative Aptitude 145

small sample (30 people) and such a wide range of possible weights, it is unlikely that
you will find two people who are exactly the same weight; that is, to the nearest 0.1 kg. Notes
As a result, the mode is rarely used with continuous data. Another issue with the mode

e
is that it does not provide a good measure of central tendency when the most common
mark is far from the rest of the data in the data set, as shown in the diagram below:

in
nl
O
ity
rs
ve
The mode has a value of 2 in the diagram above. However, we can clearly see
that the mode is not representative of the data, which is primarily concentrated in the
20 to 30 value range. It would be misleading to use the mode to describe the central
tendency of this data set.
ni

Skewed Distributions
U

Because this is a common assumption underlying many statistical tests, we

frequently test whether our data is normally distributed. The following is an example of a
normally distributed set of data:
ity
m
)A
(c

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146 Quantitative Aptitude

When you have a normally distributed sample, you can use either the mean
Notes or the median to calculate central tendency. In fact, the mean, median, and mode of
any symmetrical distribution are all equal. However, in this case, the mean is widely

e
regarded as the best measure of central tendency because it is the only measure that
uses all of the values in the data set to calculate its value, and any change in any of the

in
scores will affect the mean’s value. This is not true for the median or mode.

However, if our data is skewed, as in the right-skewed data set below:

nl
O
ity
rs
ve
ni

The mean is being dragged in the direction of the skew. In these cases, the median
is generally regarded as the best representative of the data’s central location. The
greater the difference between the median and the mean, the greater the emphasis
U

should be placed on using the median rather than the mean. Income (salary) is a
classic example of the above right-skewed distribution, with higher-earners providing a
false representation of typical income when expressed as a mean rather than a median.

When dealing with a normal distribution and normality tests reveal that the data is
ity

not normal, it is customary to use the median rather than the mean. However, this is
more of a guideline than a rule of thumb. Researchers may wish to report the mean of
a skewed distribution if the median and mean are not noticeably different (a subjective
assessment), and if it allows for easier comparisons to previous research.
m

Please see the summary table below to find out what the best measure of central
tendency is for each type of variable.
)A

Sr. No. Type of Variable Best Measure of Central

Tendency
1 Nominal Mode
2 Ordinal Median
(c

3 Interval/Ratio (not skewed) Mean

4 Interval/Ratio (skewed) Median

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4.2.3 Measure of Dispersion

Notes
Different series may possess different dispersions of items around the average.

e
Measures of central tendency are averages of the first order. Measures of dispersion
are averages of the second order. A measure of dispersion gives an idea about the

in
extent of lack of uniformity in the sizes and qualities of the items in a series. It helps us
to know the degree of uniformity and consistency in the series. If the difference between
items is large the dispersion or variation is large and vice versa.

nl
A measure of dispersion or variation in any data shows the extent to which the
numerical values tend to spread about an average. If the difference between items is
small, the average represents and describes the data adequately. For large differences

O
it is proper to supplement information bycalculating a measure of dispersion in addition
to an average.It is useful to determine data for the knowledge it may serve:

◌◌ To compare the current results with the past results.

ity
◌◌ To compare two are more sets of observations.
◌◌ To suggest methods to control variation in the data.
A study of variations helps us in knowing the extent of uniformity or consistency in

rs
any data. Uniformity in production is an essential requirement in industry. Quality control
methods are based on the laws of dispersion.

Absolute and Relative Measures of Dispersion

ve
The measures of dispersion can be either ‘absolute’ or “relative”. Absolute
measures of dispersion are expressed in the same units in which the original data
are expressed. For example, if the series is expressed as Marks of the students in a
ni

particular subject; the absolute dispersion will provide the value in Marks. The only
difficulty is that if two or more series are expressed in different units, the series cannot
be compared on the basis of dispersion.
U

Definition: ‘Relative’ or ‘Coefficient’ of dispersion is the ratio or the percentage of a

measure of absolute dispersion to an appropriate average. The basic advantage of this
measure is that two or more series can be compared with each other despite the fact
ity

they are expressed in different units.

Definition: A precise measure of dispersion is one that gives the magnitude of the
variation in a series, i.e. it measures in numerical terms, the extent of the scatter of the
values around the average.
m

When dispersion is measured in terms of the original units of a series, it is absolute

dispersion or variability. It is difficult to compare absolute values of dispersion in
different series, especially when the series in different units or have different sets of
)A

values. A good measure of dispersion should have properties similar to those described
for a good measure of central tendency.

Measures of Dispersion Relative Variability

(c

The range Relative range Relative range

The Quartile Deviation Deviation Relative Quartile Deviation

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148 Quantitative Aptitude

The Mean Deviation Deviation Relative Mean deviation

Notes
The Median Deviation Deviation Coefficient of Variation

e
The Standard Deviation

in
Graphical Method

Types of Measures of Dispersion

nl
In statistics, dispersion measures help to understand data variability, i.e. how
homogeneous or heterogeneous the data is. It shows how squeezed or dispersed the
variable is, in simple terms.

O
There are two main types of dispersion methods in statistics which are the absolute
Measure of Dispersion and the relative Measure of Dispersion

ity
There practical implications involve -

◌◌ A measure of spread, sometimes also called a measure of dispersion, is used

to describe the variability in a sample or population.
◌◌ A measure of spread gives us an idea of how well the mean, for example,

◌◌
represents the data.

rs
It is usually used in conjunction with a measure of central tendency, such as
the mean or median, to provide an overall description of a set of data.
ve
◌◌ The range is the difference between the highest and lowest scores in a data
set and is the simplest measure of spread.
◌◌ Quartiles tell about the spread of a data set by breaking the data set into
ni

quarters, just like the median breaks it in half.

Range
U

The ‘Range’ of the data is the difference between the largest value of data and
smallest value of data.

This is an absolute measure of variability. However, if we have to compare two sets

ity

of data, ‘Range’ may not give a true picture. In such case, relative measure of range,
called coefficient of range is used. This is given by,

Formulae: Range = L-S

Where L – Largest value and S- Smallest Value

m

In individual observations and discrete series, L and S are easily identified. In

continuous series, the following two methods are used as follows:
)A

Method 1: L - Upper boundary of the highest class.

S - Lower boundary of the lowest class.

Method 2: L - Mid value of the highest class.

(c

S - Mid Value of the lowest class.

Example 1:

Find the set of observations 10 5 8 11 12 9

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Solution: L = 12 S = 5
Notes
Range = L – S

e
= 12 – 5

in
=7

Coefficient of range = L – S / L + S

nl
= 12 – 5/ 12 + 5

= 7/17

O
= 0.4118

Example 2:

ity
Compute the range and the co-efficient of range from the following distribution.

C.I Frequency (f)

120 - 130 2

rs
130 - 140 9
140 - 150 16
150 - 160 12
ve
160-170 5

Solution:
In finding the range the frequencies are never taken into account. The upper limit
ni

of the highest class and the lower limit of the smallest class are only taken into account

Range = L - S
U

= 170 - 120 = 50

Co-efficient of Range = L-S/L+S = 170 – 120/170 + 120

= 50/290
ity

= 0.1724

Interquartile Range and Deviations

m

Inter-quartile range and deviations are described in the following sub sections.

Inter-quartile Range
)A

Inter-quartile range is a difference between upper quartile (third quartile) and lower
quartile

(First quartile).Thus, Inter Quartile Range = (Q3 - Q1)

Quartile deviation
(c

Definition: Quartile Deviation is the average of the difference between upper

quartile and lower quartile.

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150 Quantitative Aptitude

Formulae: Thus, Quartile Deviation = QD = (Q3 - Q1)/2

Notes
Quartile Deviation (QD) also gives the average deviation of upper and lower

e
quartiles from Median.

QD = (Q3 - Q1)/2 = Q3 - Q1 / Q3 + Q1

in
Example 1:

nl
Weekly wages of labourers is given below. Calculate Q.D. and coefficient of Q.D.

Weekly wages 100 200 400 500 600 Total

O
No. of Weeks: 5 8 21 12 6 52

Solution:

Weekly wages No. of Weeks: Cumulative Frequency

ity
100 5 5
200 8 13
400 21 34
500
600 rs 12
6
46
52
N = 52
ve
Q1 = N+1 /4

= 52+1/4
ni

13.25

Q1 = 13th value + 0.25 (14th value – 13th value)

U

= 200 + 0.25 (400-200)

= 200 + 0.25 × 200

= 200 + 50
ity

= 250

Q3 = 3(N+1 /4)
m

= 3 x 13.25

= 39.75
)A

Q3 = 39th value + 0.75 (40th value – 39th value)

= 500 + 0.75 (500-500)

= 500 + 0.75 X 0
(c

= 500.

Q.D. = Q3 - Q1 / 2

= 500 – 250/2

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Quantitative Aptitude 151

= 250/2
Notes
= 125

e
Coefficient of Q.D. = Q3 - Q1/ Q3 + Q1

in
. .= 500 -250/ 500 + 250

= 250/750

nl
= 0.333

Example 2:

O
Determine the interquartile range and percentile range of the following distribution:

C.I Frequency (f)

ity
11 - 13 8
13 - 15 10
15 - 17 15
17 - 19 20
19 – 21
21 - 23
23 – 25
rs
12
11
4
ve
Solution:
ni

Class Intervals Frequency Less than C.F.

11 - 13 8 8
13 - 15 10 18
U

15 - 17 15 33
17 - 19 20 53
19 – 21 12 65
ity

21-23 11 76
23-25 4 80

1. Calculation of Interpquartile Range

m

Calculation of Q1
N 80
Since = = 20, the first quartile class is 15–17
)A

4 4
\ IQ1 = 15, fQ1 = 15, h = 2 and C = 18

20 – 18
Hence, Q1 = 15 + x 2 = 15.27
15
(c

Calculation of Q3

3N 3 x 80
Since = = 60, the third quartile class is 19-21
4 4

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152 Quantitative Aptitude

\ IQ3 = 19, fQ3 = 12, h = 2 and C = 53

Notes
60 – 53

e
Hence, Q3 = 19 + x 2 = 20.17
12

in
Thus, the interquartile range = 20.17 – 15.27 = 4.90

2. Calculation of Percentile Range

nl
Calculation of P10

10N 10 x 80

O
Since, = = 8, P10 lies in the class interval 11–13
100 100

\ IP10 = 11, fp10 = 8, h = 2 and C = 0

ity
8–0
Hence, P10 = 11 + x 2 = 13
8

Calculation of P10

Since
90N
100
=
90 x 80
100 rs
= 72, P10 lies in the class interval 21-23
ve
\ IP10 = 21, fP10 = 11, h = 2 and C = 65

72 – 65
Hence, P90 = 21 + x 2 = 22.27
11
ni

Thus, the percentile range = P90 – P10 = 22.27 = 13.0 = 9.27

Mean Deviation
U

Mean deviation is the arithmetic mean of the absolute deviations of the values
about their arithmetic mean or median or mode. Mean Deviation (MD) is an average
value of absolute deviation of observations from the data mean (or the median or the
ity

mode). It gives how spread/dispersed the data is.

If x1, x2… xn are N observations, then,

Mean Deviation MD = di/N = xi – Average/N

m

Where,

di = Deviation of each observation = xi – Average

)A

Average used for calculating deviation can be the mean, the median or the mode.
However, usually the mean is used. There is also an advantage of taking deviations
from the median, because ‘Mean Deviation’ from median is lowest as compared to any
other ‘Mean Deviations’. Since absolute values of deviations ignoring sign are taken
(c

for calculating Mean Deviation, the mean deviation is not amenable to further algebraic
treatment.

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Quantitative Aptitude 153

Mean Deviation Application

Notes
Definition: The relative measure corresponding to the ‘Mean Deviation’ is

e
coefficient of Mean Deviation’. It is defined as:

Coefficient of mean deviation = Mean Deviation/ Mean or Median or Mode It can

in
also be expressed in percentage by multiplying it with 100.

Formulae:

nl
Coefficient of Mean deviation (about mean) = =Mean deviation about Mean / Mean

= Σ|x-x|/N

O
Coefficient of Mean deviation (about Median) = Mean deviation about Median/
Median

= Σf|x-M|/N

ity
Coefficient of Mean deviation (about Mode) = Mean deviation about Mode / Mode

= Σf|x-z|/N

Example:

Calculate mean deviation about the mean for the following:

12 7 9 7 7 4 10 9 15 20
rs
ve
Solution:

X = 12 + 7 + 9 + 7 + 7 + 4 + 10 + 9 + 15 + 20/ 10
ni

= 100/10

= 10
U

Mean deviation about mean = = Σ|x-x|/N

= 2 + 3 +1+ 3 + 3 + 6 + 0 +1+ 5 +10/ 10

= 34/10
ity

= 3.4

Example 1:
m

MD in Individual series

Calculate mean deviation and it coefficient for the following data

)A

Value (x) 125 128 132 135 140 145 155 157 159 161
(c

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154 Quantitative Aptitude

Solution:
Notes
Steps 1: First compute AM Step 2: Deviation From X Mean

e
Sl. No. Value (x) Formula (X-X) = Dx deviation
A 125 Σx 125-144= -19 Σ Dx

in
X= MD =
B 128 n 128-144= -16 n
C 132 1440 132-144= -12 120
MD = MD =

nl
D 135 10 135-144= -9 ignoring 10
negative
E 140 140-144= -4 sign MD= 12
X=144
F 148 148-144= +4 Coefficient of

O
G 155 155-144= +11 MD
MD =
H 157 157-144= 13 x
I 159 159-144= +15 12

ity
=0.083
J 161 161-144= +17 144
n =10 Σx = 1.440 ΣDx = 120

12 120
= 30 + ( ) 10 = 30 + ( ) =30 + 4.285 z = 34.285

Example 2:
72.44

rs 28
ve
MD in Discrete Series

Calculate mean deviation and it co-efficient for the following data.

X 35 40 45 50 55 60 65 70 75 80 85 90 95
ni

f 3 8 12 9 4 7 15 5 10 7 5 3 2
U

Solution:

X f fx AM (X-X) = Dx fdx Mean deviation

35 3 105 Σ fx 35-61.95 = – 26.95 80.85 Σ Dx
x= MD =
ity

40 8 320 n 40-61.95= – 21.95 175.60 n

45 12 540 5.575 45-61.95 = – 16.95 203.40 12.17.28
= MD =
50 9 450 90 50-61.95 = – 11.95 107.55 90
55 4 220 = 61.95 55-61.95 = – 6.95 27.88
m

60 7 420 60-61.95 = – 1.95 13.65 MD = 13.525

65 15 975 65-61.95 = 3.05 45.75
70 5 350 70-61.95 = 8.05 40.25 Coefficient of
)A

75 10 750 75-61.95 = 13.05 130.50 MD

MD =
80 7 560 80-61.95 = 18.05 126.35 x
85 5 425 85-61.95 = 23.05 115.25 13.525
=
90 3 270 90-61.95 = 28.05 84.15 61.95
(c

95 2 190 95-61.95 = 33.05 66.10 = 0.218

N=90 Σfx = 5575 Σfdx = 1217.28

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Quantitative Aptitude 155

Example 3:
Notes
MD in Continuous Series

e
Calculate mean deviation and its co-efficient for the following data:

in
X f
10-20 5
20-30 4

nl
30-40 7
40-50 12

O
50-60 10
60-70 8
70-80 4

ity
Solution

X f Mid fx AM (X- x ) =
fdx
Point X dx
10-20
20-30
30-40
5
4
7
15
25
35
75
100
245
x=
Σ fx
n
2.330
31.6
21.6
11.6
rs
80.85
175.60
203.40
MD =
Σ Dx
n
689.6
ve
x= MD =
40-50 12 45 540 50 1.6 107.55 50
50-60 10 55 550 = 46.6 8.4 84.0 Co-efficient of
md
60-70 8 65 520 18.4 147.2 MD= x
ni

70-80 4 75 300 28.4 13.792

113.6
= 46.6
N= 50 Σfx = 2,330 Σfdx = 689.6 = 0.2959
U

4.2.4 Kurtosis, Skewness

ity

Measures of Skewness
In addition to measures of central tendency and measures of variation, there are
two attributes of frequency distribution of a data set that may be of interest to managers
for effective decision-making. These are the Skewness and Kurtosis.
m

When the distribution stretches more to the right than it does to the left, the
distribution is said to be ‘right skewed’ or ‘positively skewed’. Similarly, a left-skewed
distribution is the one that stretches asymmetrically to the left. Thus, the skewness is
)A

a measure of the extent of symmetry or asymmetry of the distribution. In symmetrical

distribution, with single mode, we have (mode = mean = median). In such case
skewness is zero. In case of positive skewness (i.e. right skewness) the mean is to the
right of median, which in turn lies to the right of the mode. The opposite is for negative
skewness. Skewness can be measured either in absolute term as ‘mean minus mode’
(c

or in relative terms. Some of the relative measures are as follows:

1. Kari Pearson’s coefficient of skewness (SKp). It is defined as:

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156 Quantitative Aptitude

(P90 + P10 ) – 2 ´ Md
Notes Skk =
(P90 – P10 )

e
2. Bowley’s Coefficient of Skewness (SKB) (quartile coefficient of skewness). It is
defined as:

in
(Q3 – Q2 ) – (Q2 – Q1 )
(SK B ) =
(Q3 + Q1 )+ (Q2 – Q1 )

nl
(Q + Q1 ) – 2 ´ Md
= 3
(P90 – P10 )

O
Where, Q is quartile.

3. Kelly’s coefficient of skewness (Skk). It is defined as:


 (x– ) 
  i

ity

Skewness =   

 N 
 
 

Where, P is percentile.

rs
Skewness is also defined in term of the moment about mean. One such
measure is defined as:
ve
(x–i )
Absolute Kurtosis = 
N

Relative kurtosis = Absolute kurtosis–3

ni

4. Lorenz Curve: It is a special type of graph, designed to describe as to how much

a certain distribution varies from a completely uniform distribution. It is a cumulative
U

percentage curve comparing the population and factor under study. For example, we
could plot a graph of percentage of population and percentage of their wealth. Lorenz
curve is very useful for comparing two populations particularly when their means and
SD are same
ity

Karl-Pearson’s Coefficient of Skewness

Pearson’s coefficient of skewness is a method developed by Karl Pearson to find
skewness in a sample using descriptive statistics like the mean and mode. Skewness
m

is one measure of the shape of a set of data. Pearson’s coefficient of skewness is

calculated by multiplying the difference between the mean and median, multiplied by
three. The result is divided by the standard deviation.
)A

The formula when using the mode is -

X – Mo
SK1 =
S
(c

Where x = the mean, Mo = the mode and s = the standard deviation for the sample.

The formula when using the median is -

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Quantitative Aptitude 157
3( X – Md)
SK2 =
S Notes
Where x = the mean, Mo = the mode and s = the standard deviation for the sample.

e
3.1.17 Bowley’s Coefficient of Skewness

in
Bowley skewness is a method to figure out whether there is a positively-skewed or
negatively skewed distribution. Bowley Skewness is used as an alternative to find out

nl
more about the asymmetry of an distribution. It is very useful if there are extreme data
values ie. the outliers or if there is an open-ended distribution.

Bowley Skewness = Q3+Q1 – 2Q2 / (Q3 – Q1)

O
Skewness = 0 means that the curve is symmetrical.
Skewness > 0 means the curve is positively skewed.

ity
Skewness < 0 means the curve is negatively skewed.
In a symmetric distribution, like the normal distribution, the first (Q1) and third
(Q3) quartiles are at equal distances from the mean (Q2). In other words, (Q3-Q2) and
(Q2-Q1) will be equal. If you have a skewed distribution then there will be a difference
between those two values.

Limitations of Bowley Skewness

rs
ve
Bowley Skewness is an absolute measure of skewness. It gives a result in the
units that the distribution is in. That’s compared to the Pearson Mode Skewness, which
gives the results in a dimensionless unit — the standard deviation. This means that one
cannot compare the skewness of different distributions with different units using Bowley
ni

Skewness.

Example:
U

Find the Bowley’s coefficient of the data

Pets Families Cumulative Frequency

0 60 60
ity

1 60 120
2 50 170
3 20 190
4 25 215
m

5 10 225
6 or more 5 230
)A

Solution –

Step 1: Finding the quartiles for the data set. Looking at for the “nth” observation
using the following formulas:
(c

Q1 = (total cum freq + 1 / 4)th observation = (230 + 1 / 4 ) = 57.75

Q2 = (total cum freq + 1 / 2)th observation = (230 + 1 / 2 ) = 115.5

Q3 = 3 (total cum freq + 1 / 4)th observation = 3(230 + 1 / 4) = 173.25

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158 Quantitative Aptitude

Step 2: Looking in the table to find the nth observations as calculated in Step 1:
Notes
Q1 = 57.75th observation = 0

e
Q2 = 115.5th observation = 1

in
Q3 = 173.25th observation = 3

Step 3: Plugging the above values into the formula:

nl
Skq = Q3 + Q1 – 2Q2 / Q3 – Q1

Skq = 3 + 0 – 2 / 3 – 0 = 1/3

O
Skq = + 1/3, so the distribution is positively skewed.

Measure of Kurtosis

ity
Kurtosis is a measure of peaked-ness of distribution. Larger the kurtosis, more and
more peaked will be the distribution. The kurtosis is calculated either as an absolute or
a relative value. Absolute kurtosis is always a positive number. Absolute kurtosis of a
normal distribution (symmetric bell shaped distribution) is taken as 3. Relative kurtosis
can be calculated as follows:

Absolute Kurtosis =
(x–i )

N
 rs
ve
Relative kurtosis = Absolute kurtosis–3

◌◌ Relative kurtosis can be negative. Managers usually work with relative

kurtosis.
ni

◌◌ Negative kurtosis indicates a flatter distribution than the normal distribution,

and called as platykurtic.
U

◌◌ A positive kurtosis means more peaked curve, called Leptokurtic.

◌◌ A peak of normal distribution is called Mesokurtic.

Example:
ity

The first four central moments of a distribution are 0, 2.5, 0.7 and 18.75. Test the
skewness and kurtosis of the distribution.

Testing Skewness
m

We are given μ1 = 0, μ2 = 2.5, μ3 = 0.7 and μ4 = 18.75

Skewness is measured by the coefficient β1

)A

μ32
β1 =
μ23

Here μ2 = 2.5, μ3 = 0.7

(0.7)2
(c

Substituting the values, β1 = = + 0.031

(2.5)3
Since β1 = + 0.031, the distribution is slightly skewed.

Testing Kurtosis:

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Quantitative Aptitude 159

For testing kurtosis we compute the value of β2.

Notes
When a distribution is normal or symmetrical, β2 = 3.

e
When a distribution is more peaked than the normal, β2 is more than 3 and when it
is less peaked than the normal, β2 is less than 3.

in
μ4
β1 =
μ22

nl
μ4 = 18.75, μ2 = 2.5

18.75 18.75
β1 = = =3

O
(2.5) 3
6.25

Since β2 is exactly three, the distribution is mesokurtic.

ity
Key Takeaways:
Measure of dispersion: IT gives an idea about the extent of lack of uniformity in the
sizes and qualities of the items in a series. It helps us to know the degree of uniformity
and consistency in the series. If the difference between items is large the dispersion or
variation is large and vice versa.

rs
Range: The ‘Range’ of the data is the difference between the largest value of data
and smallest value of data.
ve
Inter-quartile range: It is a difference between upper quartile (third quartile) and
lower quartile (first quartile). Quartile Deviation is the average of the difference between
upper quartile and lower quartile.
ni

Variance: It is the average squared deviation of the data from their mean. For
sample data, we take the average by dividing with (n-1) where n is a sample size. This
is to cater for degree of freedom. For population data, we average by dividing with the
U

population size N.

Variance analysis: It helps in managing budgets by controlling budgeted

versus actual costs. Without the standard deviation, you can’t compare two data sets
ity

effectively.

Coefficient of Variation: It is defined as the ratio of SD and mean, multiplied by

100.
m

The Standard Deviation (SD) of a set: It is the positive square root of the
variance of the set. This is also referred as Root Mean Square (RMS.) value of the
deviations of the data points. SD of sample is the square root of the sample variance.
)A

Skewness: It is a measure of the extent of symmetry or asymmetry of the

distribution. Kurtosis is a measure of peaked-ness of distribution.

Check your Understanding

(c

1. The ________ is the average of the numbers.

2. Withing a sorted, ascending or descending list of numbers, the __________ is that
middle number and may be more representative of that set of data than the average.

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160 Quantitative Aptitude

3. The _________ is the number most frequently seen in a dataset.

Notes
4. In _____________ arithmetic mean, for finding an average the value of each item is

e
multiplied by its weight and then the product are divided by the number of weights.
5. The word “mode” is derived from the French word “la mode” which means fashion.

in
True / False
6. A central ___________ measure is a single value that attempts to describe a set of
data by identifying the central position within that set of data.

nl
7. When you have a ____________ distributed sample, you can use either the mean
or the median to calculate central tendency.

O
8. Different series may possess different dispersions of items around the average. True
/ False
9. Absolute measures of __________ are expressed in the same units in which the

ity
original data are expressed.
10. __________ or Coefficient of dispersion is the ratio or the percentage of a measure
of absolute dispersion to an appropriate average.

rs
11. Negative kurtosis indicates a flatter distribution than the normal distribution, and
called as ____________.
12. A positive kurtosis means more peaked curve, called _____________.
ve
13. A peak of normal distribution is called Leptokurtic. True / False

Multiple Choice
1. The mean height of 25 male workers in a factory is 61 cm and the mean height of
ni

35 female workers in the same factory is 58cm. The combined mean height of 60
workers in the factory is?
U

a. 59.25
b. 59.5
c. 59.75
ity

d. 58.75
2. Mean of 100 items is 49. It was discovered that three items which should have been
60, 70, and 80 were wrongly read as 40, 20, and 50, respectively. The correct mean
is
m

a. 48
b. 89
)A

c. 50
d. 80
3. If the mode of the data is 18 and the mean is 24, what is the median?
(c

a. 18
b. 24
c. 22
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Quantitative Aptitude 161

d. 21
4. The mean of 30 given numbers, when it is given that the mean of 10 of them is 12
Notes

e
and the mean of the remaining 20 is 9, is equal to
a. 11

in
b. 10
c. 9

nl
d. 5

Summary

O
●● Central tendency has three main measures: mode, median and mean. Each of
those measurements represents a specific indication of the distribution’s typical or
central value.

ity
●● Arithmetic Mean is defined as the value obtained by dividing the total values of all
items in the series by their number. In other words, is defined as the sum of the
given observations divided by the number o observations, i.e., add values of all
items together and divide this sum by the number o observations.
●●

●●
rs
Arithmetic mean for ungrouped data of individual series can be calculated using
either the direct method or Short-cut method(indirect method).
Sometimes, some observations get relatively more importance than other
ve
observations, the weight for such observation must be given on the basis of their
relative importance. In weighted arithmetic mean, for finding an average the value
of each item is multiplied by its weight and then the product are divided by the
number of weights.
ni

●● Median is defined as the value of the item dividing the series into two equal
halves, where one half contains all values less than (or equal to) it and the other
U

half contains all values greater than (or equal to) it. It is also defined as the ‘central
value’ of the variable.
●● Mode is defined as the value of the variable occurring most frequently in a
ity

distribution.
●● A central tendency measure is a single value that attempts to describe a set
of data by identifying the central position within that set of data. As a result,
measures of central tendency are also known as measures of central location.
m

They’re also known as summary statistics. The mean (also known as the average)
is probably the most familiar measure of central tendency, but there are others,
such as the median and the mode. The mean, median, and mode are all valid
)A

measures of central tendency, but depending on the circumstances, some

measures of central tendency are more appropriate to use than others.
●● The skewness is a measure of the extent of symmetry or asymmetry of the
distribution.
(c

●● A measure of dispersion gives an idea about the extent of lack of uniformity in

the sizes and qualities of the items in a series. It helps us to know the degree of
uniformity and consistency in the series.

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162 Quantitative Aptitude

●● Absolute measures of dispersion are expressed in the same units in which

Notes the original data are expressed. The only difficulty is that if two or more series
are expressed in different units, the series cannot be compared on the basis of

e
dispersion.

in
●● Relative or Coefficient of dispersion is the ratio or the percentage of a measure of
absolute dispersion to an appropriate average.
●● The range of the data is the difference between the largest value of data and the

nl
smallest value of data.
●● Mean deviation is the arithmetic mean of the absolute deviations of the values
about their arithmetic mean or median or mode. There is also an advantage of

O
taking deviations from the median, because ‘Mean Deviation’ from median is
lowest as compared to any other ‘Mean Deviations’.
●● In addition to measures of central tendency and measures of variation, there are

ity
two attributes of frequency distribution of a data set that may be of interest to
managers for effective decision-making. These are the Skewness and Kurtosis.
●● Pearson’s coefficient of skewness is calculated by multiplying the difference
between the mean and median, multiplied by 3. The result is then divided by the

●●
standard deviation.
rs
Bowley skewness is a method to figure out whether there is a positively skewed or
negatively skewed distribution.
ve
●● Kurtosis is a measure of peaked-ness of distribution. Larger the kurtosis, more
and more peaked will be the distribution. The kurtosis is calculated ether as an
absolute or a relative value. Absolute kurtosis is always a positive number.
ni

Activity
1. Using Karl-Person’s Coefficient of Skewness formula; solve for the median and
U

mode.
a. Skewness of Distribution = 0.32
b. Standard Deviation = 6.5
ity

c. Mean = 29.6
2. What is the coefficient of skewness if beta one is 9 and beta two is 11?
3. The median of a skewed distribution is 8, 3rd quartile is 12, 1st quartile is 8, and inter-
m

quartile range is 4. What is the relative coefficient of skewness?

Question and Exercises

)A

1. What are the objectives served by averages?

2. List the disadvantages of arithmetic mean.
3. What are the steps to finding the mean using indirect method?
(c

4. What is the formula for calculating weighted average?

5. List the advantages of median.
6. What are the two main types of dispersion methods in statistics?

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Quantitative Aptitude 163

7. How does one calculate mean deviation?

Notes
Glossary

e
●● Arithmetic Mean: is defined as the value obtained by dividing the total values of

in
all items in the series by their number.
●● Mean: an average, it is a single figure that sums up the characteristics of a whole
group of figures.

nl
●● Median: is defined as the value of the item dividing the series into two equal
halves, where one half contains all values less than (or equal to) it and the other
half contains all values greater than (or equal to) it.

O
●● Mode: is defined as the value of the variable occurring most frequently in a
distribution.
●● Range: is the difference between the largest value of data and the smallest value

ity
of data.
●● Skewness: is a measure of the extent of symmetry or asymmetry of the
distribution.

Further Readings
1. rs
Bekes, Gabor. Data Analysis for Business, Economics, and Policy. Cambridge
ve
University Press (May 6, 2021)
2. Huberman, A. Michael; Miles, Matthew B.; Saldana, Johnny. Qualitative Data
Analysis: A Methods Sourcebook
3. Knaflic, Cole Nussbaumer. Storytelling with Data: A Data Visualization Guide
ni

for Business Professionals. Wiley; 1st edition (November 2, 2015)

Check your Understanding: Answers

U

1. Mean 2. Median 3. Mode

4. Weighted 5. True 6. Tendency
ity

7. Normally 8. True 9. Dispersion

10. Relative 11. Platykurtic 12. Leptokurtic
13. False
m

Multiple Choice
1. A
)A

2. C

3. B

4. C
(c

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164 Quantitative Aptitude

Module - 5: Forecasting Techniques

Notes

e
Structure:

in
5.1 Correlation
1.1.1 Correlation-Coefficient_Introduction
1.1.2 Correlation_Coefficient_Application

nl
1.1.3 Introduction_Rank_Correlation
1.1.4 Comparison_Pearson_Spearman_Correlation

O
1.1.5 Application_Rank_Correlation
5.2 Regression

ity
2.1.1 Introduction_Linear_Regression_model
2.1.2 Population_sample_Regression
2.1.3 Method_Least_Square_Understanding
2.1.4 Maths_Behind_Least_Square

rs
ve
ni
U
ity
m
)A
(c

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Unit - 5.1: Correlation

Notes

e
Objectives:

in
●● Correlation-Coefficient Introduction
●● Correlation-Coefficient Application
●● Introduction Rank Correlation

nl
●● Application Rank Correlation

O
Introduction
Correlation is a degree of linear association between two random variables. In
these two variables, we do not differentiate them as dependent and independent

ity
variables. It may be the case that one is the cause and other is an effect i.e.
independent and dependent variables respectively. On the other hand, both may be
dependent variables on a third variable. In some cases there may not be any cause
effect relationship at all. Therefore, if we do not consider and study the underlying
economic or physical relationship, correlation may sometimes give absurd results

rs
Frequently, data is available in the form of some kind of ranking for different
variables. Other times, data can have instances where it is difficult to measure the
ve
cause-effect variables. An example of this instance is when selecting a candidate
for scenario. There are a number of factors on which the experts need to base their
assessment on, therefore, it is not possible to measure many of these parameters in
physical units e.g., sincerity, loyalty, integrity, tactfulness, initiative, etc. The purpose of
ni

computing a correlation coefficient in such situations is to determine the extent to which

the two sets of ranking are in agreement. We will discuss the applications of correlation
coefficient in depth in this unit.
U

5.1.1 Correlation-Coefficient Introduction

Correlation-Coefficient
ity

Correlation of Grouped Data

Many times the observations are grouped into a ‘two way’ frequency distribution
table. These are called bivariate frequency distribution. It is a matrix where rows
are grouped for X variable and columns are grouped for Y variable. Each cell say (i,
m

j) represents the frequency or count that falls in both groups of a particular range of
values of Xi and Yj. In this case correlation coefficient is given by

1
)A

∑ f × mx × m y − ∑ ( f × mx ) ∑ ( f × m y )
r= n
∑ f × mx ) 2 ∑ f × my )2
∑ ( f × mx 2 ) − ∑( f × m y 2 ) −
2 2
(c

Where mX and mY are class marks of frequency distributions of X and Y variables,

fX and fY are marginal frequencies of X and Y and fXY are joint frequencies of X and Y
respectively.

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166 Quantitative Aptitude

Example: Calculate coefficient of correlation for the following data.

Notes
x 0-500 500-1000 1000-1500 1500-2000 2000-2500 Total

e
y
0-200 12 6 - - - 18

in
200-400 2 18 4 2 1 27
400-600 - 4 7 3 - 14

nl
600-800 - 1 - 2 1 4
800-1000 - - 1 2 3 6
Total 14 29 12 9 5 69

O
Solution:
Let the assumed mean for X be a = 1250 and the scaling factor g = 500. Therefore,

ity
we can calculate f x dy and f x dx2 from the marginal distribution of X as,

Class mx - a
X dx = Frequecny f f x dx f x dx2
Mark mx g

rs
0-500 250 -2 14 -28 66
600-1000 750 -1 29 -29 29
1000-1500 1250 0 12 0 0
ve
1500-2000 1750 1 9 9 9
2000-2500 2250 2 5 10 20
Total -38 114
ni

Definition: The correlation coefficient measures the degree of association between

two variables X and Y.
U

The coefficient is given as:

Cov x.cov y
r=
σ xσ y
ity

1 _ _
∑( x − x)( y − y )
r=n
σ xσ y
m

Where r is the ‘Correlation Coefficient’ or ‘Product Moment Correlation Coefficient’

between X and Y. σ X and σ Y are the standard deviations of X and Y respectively. ‘n’ is
the number of the pairs of variables X and Y in the given data.
)A

The expression - 1/nΣ(X − X)(Y − Y) is known as a covariance between the

variables X and Y. It is denoted as Cov (x,y). The Correlation Coefficient r is a
dimensionless number whose value lies between +1 and –1. Positive values of r
indicate positive (or direct) correlation between the two variables X and Y i.e. both X
(c

and Y increase or decrease together.

Negative values of r indicate negative (or inverse) correlation, thereby meaning

that an increase in one variable X or Y results in a decrease in the value of the other
variable. A zero correlation means that there is no association between the two
Amity Directorate of Distance & Online Education
Quantitative Aptitude 167

variables.
Notes
formulla can be modified as:

e
1 _ _
1 _ _ _ _
∑( x − x)( y − y ) ∑( xy − x y − x y + x y
r n= n

in
=
σ xσ y σ xσ y
N N N
=

nl
2 2 2 2
∑x ∑x ∑y ∑y
−  − 
n  n  n  n 
E [ XY ] − E[ x]E[Y ]
=

O
E[ X 2 ] − ( E[ X ]) 2 E[Y 2 ] − ( E[Y ]) 2

Equations (2) and (3) are alternate forms of equation (1). These have advantage

ity
that we don’t have to subtract each value from the mean.

5.1.2 Correlation Coefficient Application

Example:
The data of advertisement expenditure (X) and sales (Y) of a company for past
10 year period is given below. Determine the correlation coefficient between these
variables and comment the correlation.
rs
ve
X 50 50 50 40 30 20 20 15 10 5
Y 700 650 600 500 450 400 300 250 210 200
ni

Solution:
We shall take U to be the deviation of X values from the assumed mean of 30
U

divided by 5. Similarly, V represents the deviation of Y values from the assumed mean
of 400 divided by 10.

Sl. No. (X=X1) (Y=y1) (U=u1) (V=v1) (u1=v1) u12 v 12

ity

1 50 700 4 30 120 16 900

2 50 650 4 25 100 16 625
3 50 600 4 20 80 16 400
m

4 40 500 2 10 20 4 100
5 30 450 0 5 0 0 25
6 20 400 -2 0 0 4 0
)A

7 20 300 -2 -10 20 4 100

8 15 250 -3 -15 45 9 225
9 10 210 -4 -19 76 16 361
10 5 200 -5 -20 100 25 400
(c

Total -2 26 561 110 3136

Short cut procedure for calculation of correlation coefficient

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168 Quantitative Aptitude

n
1 n n
Notes ∑ u1v1 − ∑ 1 ∑ v1
u
n i −1 i −1
r= i −1

e
2 2
n
1 n 2 n
1 n 
∑ u12 −
i −1
∑ v1
n  i −1 
∑ v12 −
i −1
∑ v1
n  i −1 

in
(−2)(26)
561 −
10 561 + 5.2
= = = 0.976
4 676 109.6 3068.4

nl
110 − 3136 −
10 10

Interpretation of r

O
●● The correlation coefficient, r ranges from −1 to 1. A value of 1 implies that a linear
equation describes the relationship between X and Y perfectly, with all data points
lying on a line for which Y increases as X increases. A value of −1 implies that all

ity
data points lie on a line for which Y decreases as X increases. A value of 0 implies
that there is no linear correlation between the variables.
●● More generally, note that (Xi − X) (Yi − Y) is positive if and only if Xi and Yi lie on
the same side of their respective means. Thus the correlation coefficient is positive

●●
their respective means.
rs
if Xi and Yi tend to be simultaneously greater than, or simultaneously less than,

The correlation coefficient is negative if Xi and Yi tend to lie on opposite sides of

ve
their respective means.
●● The coefficient of correlation r lies between –1 and +1 inclusive of those values.
●● When r is positive, the variables x and y increases or decrease together.
ni

●● r = +1 implies that there is a perfect positive correlation between variables x and y.

●● When r is negative, the variables x and y move in the opposite direction.
U

●● When r = -1, there is a perfect negative correlation.

●● When r = 0, the two variables are uncorrelated.
ity

5.1.3 Introduction Rank Correlation

Quite often the data is available in the form of some ranking for different
variables. Also there are occasions where it is difficult to measure the cause-effect
variables. For example, while selecting a candidate, there are number of factors on
m

which the experts base their assessment. It is not possible to measure many of these
parameters in physical units e.g. sincerity, loyalty, integrity, tactfulness, initiative, etc.
Similar is the case during dance contests. However, in these cases the experts may
)A

rank the candidates. It is then necessary to find out whether the two sets of ranks
are in agreement with each other. This is measured by Rank Correlation Coefficient.
The purpose of computing a correlation coefficient in such situations is to determine
the extent to which the two sets of ranking are in agreement. The coefficient that is
determined from these ranks is known as Spearman’s rank coefficient, rS.
(c

This is defined by the following formulla:

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Quantitative Aptitude 169

n
6 × ∑ d12 Notes
rs = 1 i −1

e
2
n(n − 1)
Where, n = Number of observation pairs

in
D = Xi - Yi

= Xi = Values of variable X and = Yi values of variable Y

nl
Rank correlation for tied ranks

O
In case of a tie, i.e., when two or more individuals have the same rank, each
individual is assigned a rank equal to the mean of the ranks that would have been
assigned to them in the event of there being slight differences in their values. To
understand this, let us consider the series 20, 21, 21, 24, 25, 25, 25, 26, 27, 28. Here

ity
the value 21 is repeated two times and the value 25 is repeated three times. When
we rank these values, rank 1 is given to 20. The values 21 and 21 could have been
assigned ranks 2 and 3 if these were slightly different from each other. Thus, each value
will be assigned a rank equal to mean of 2 and 3, i.e., 2.5. Further, the value 24 will be

the mean of 5, 6 and 7 and so on.

rs
assigned a rank equal to 4 and each of the values 25 will be assigned a rank equal to 6,

Since the Spearman’s formula is based upon the assumption of different ranks to
ve
different individuals, therefore, its correction becomes necessary in case of tied ranks. It
should be noted that the means of the ranks will remain unaffected.

Application of Rank Correlation

ni

When two or more items have the same rank, a correction has to be applied to
Σd1 .
2
U

For example, if the ranks of X are 1, 2, 3, 3, 5,..... showing that there are two items
with the same 3rd rank and fourth rank is skipped, then instead of writing 3, we write 3
1 1 1
for both. Thus the sum of these ranks which is 7 (3+4=3 + 3 =7) remains same
2 2 2
ity

keeping the mean of ranks unaffected. But in such cases the standard deviation is
affected. Therefore, correction is required for the Rank Correlation Coefficient. For this,
(m3 –m)
Σd12 is increased by for each tie, where m is number of items in each tie.
12
We must remember that if there are more than one gorup of items with common
m

rank, this correction factor is to be added that many times once for each group.

Example: Twelve salesmen are ranked for efficiency and length of service as
)A

below:

Salesman A B C D E F G H I J K L

Efficiency (X) 1 2 3 4 4 4 7 8 9 10 11 12
(c

Length of Sercie (Y) 2 1 5 3 9 7 7 6 4 11 10 11

Find the value to spearman’s rank coefficient

Solution:
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Computations of Spearman’s Rank Correlation as shown below:

Notes
Individual Efficiency (X=X1) Length of Sercie d1=x1-y1 d12

e
(Y=y1)
A 1 2 -1 1

in
B 2 1 1 1
C 3 5 -2 4

nl
D (4+5+6)/3=5 3 2 4
E (4+5+6)/3=5 9 -4 16
F (4+5+6)/3=5 (7+8)/3=7.5 -2.5 6.25

O
G 7 (7+8)/3=7.5 -0.5 0.25
H 8 6 2 4
I 9 4 5 25

ity
J 10 (11+12)/2=11.5 -1.5 2.25
K 11 10 1 1
L 12 (11+12)/2=11.5 0.5 0.25
Total

Now, n = 12,
N
d 2
= 65
rs 65
ve
1

i-1

Using the formula

N 1 1 1
{ d + x (33 – 3)
2
x (23 – 2) + x (23 – 2)}
12
1
12 12
ni

rs = 1 i-1
n (n2 –1)

6 x {65 + 2 + 0.5 + 0.5}

U

=1– = 0.762
12 (144–1)

We can conclude that there is a high degree of correlation between efficiency and
length of service.
ity

5.1.4 Comparison Pearson Spearman Correlation

a. Rank Correlation when Ranks are given

m

Example: Ranks obtained by a set of ten students in a mathematics test (variable

X) and a physics test (variable Y) are shown below:
)A

Rank for Variable

1 2 3 4 5 6 7 8 9 10
X
Rank for Variable
3 1 4 2 6 9 8 10 5 7
Y
(c

To determine the coefficient of rank correlation, S r.

Solution:

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Quantitative Aptitude 171

Computations of Spearman’s Rank Correlation as shown below:

Notes
Individual Rank in Maths (X=X2) Rank In Physics d1=x1-y1 d12

e
(Y=y1)
1 1 3 +2 4

in
2 2 1 -1 1
3 3 4 +1 1

nl
4 4 2 -2 4
5 5 6 +1 1
6 6 9 +3 9

O
7 7 8 +1 1
8 8 10 +2 4
9 9 5 -4 10

ity
10 10 7 -3 9
Total 50
N
Now, n = 10, d 2
= 50

rs
1

i-1

Using the Formula

ve
N
6 x 50
rs –1– 6x d 1
2
– 1– – 0.697
i-1
2
10 (100–1)
N (n -1)

We can say that there is a high degree of correlation between the performance in
ni

mathematics and physics.

a. Rank Correlation when Ranks are not given

U

Example: Find the rank correlation coefficient for the following data.

X 75 88 95 70 60 80 81 50
ity

Y 120 134 115 110 140 142 100 150

Solution: Let R1 and R2 denotes the ranks in X and Y respectively.

X Y R1 R2 d=R1–R2 d2
m

75 120 5 5 0 0
00 134 2 4 –2 4
)A

95 150 1 1 0 0
70 115 6 6 0 0
60 110 7 7 0 0
80 140 4 3 1 1
(c

81 142 3 2 1 1
50 100 8 8 0 0
6

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172 Quantitative Aptitude

Notes Conffident of Correlation P–1–

6 d 2

– 1–
6x6
= + 93
8 (64 –1)
2
N (n -1)

e
In this method the biggest item gets the first rank, the next biggest second rank and

in
so on.

Rank correlation for tied ranks

nl
In case of a tie, i.e., when two or more individuals have the same rank, each
individual is assigned a rank equal to the mean of the ranks that would have been
assigned to them in the event of there being slight differences in their values. To

O
understand this, let us consider the series 20, 21, 21, 24, 25, 25, 25, 26, 27, 28. Here
the value 21 is repeated two times and the value 25 is repeated three times. When
we rank these values, rank 1 is given to 20. The values 21 and 21 could have been
assigned ranks 2 and 3 if these were slightly different from each other. Thus, each value

ity
will be assigned a rank equal to mean of 2 and 3, i.e., 2.5. Further, the value 24 will be
assigned a rank equal to 4 and each of the values 25 will be assigned a rank equal to 6,
the mean of 5, 6 and 7 and so on.

Since the Spearman’s formula is based upon the assumption of different ranks to

rs
different individuals, therefore, its correction becomes necessary in case of tied ranks. It
should be noted that the means of the ranks will remain unaffected.
ve
5.1.5 Application Rank Correlation
When two or more items have the same rank, a correction has to be applied to
Σd12.
ni

For example, if the ranks of X are 1, 2, 3, 3, 5,..... showing that there are two items
with the same 3rd rank and fourth rank is skipped, then instead of writing 3, we write 3
1 1 1
U

for both. Thus the sum of these ranks which is 7 (3+4=3 + 3 =7) remains same
2 2 2
keeping the mean of ranks unaffected. But in such cases the standard deviation is
affected. Therefore, correction is required for the Rank Correlation Coefficient. For this,
(m3 –m)
ity

Σd12 is increased by for each tie, where m is number of items in each tie.
12
We must remember that if there are more than one gorup of items with common
rank, this correction factor is to be added that many times once for each group.
m

Example: Twelve salesmen are ranked for efficiency and length of service as
below:

Salesman A B C D E F G H I J K L
)A

Efficiency (X) 1 2 3 4 4 4 7 8 9 10 11 12

Length of Sercie (Y) 2 1 5 3 9 7 7 6 4 11 10 11

Find the value to spearman’s rank coefficient

(c

Solution:

Computations of Spearman’s Rank Correlation as shown below:

Amity Directorate of Distance & Online Education

Quantitative Aptitude 173

Individual Efficiency (X=X1) Length of Sercie d1=x1-y1 d12

Notes
(Y=y1)

e
A 1 2 -1 1
B 2 1 1 1

in
C 3 5 -2 4
D (4+5+6)/3=5 3 2 4

nl
E (4+5+6)/3=5 9 -4 16
F (4+5+6)/3=5 (7+8)/3=7.5 -2.5 6.25
G 7 (7+8)/3=7.5 -0.5 0.25

O
H 8 6 2 4
I 9 4 5 25
J 10 (11+12)/2=11.5 -1.5 2.25

ity
K 11 10 1 1
L 12 (11+12)/2=11.5 0.5 0.25
Total 65

Now, n = 12,
N
d
i-1
1
2
= 65
rs
ve
Using the formula
N 1 1 1
{ d + x (33 – 3)
2
x (23 – 2) + x (23 – 2)}
1
12 12 12
rs = 1 i-1
n (n2 –1)
ni

6 x {65 + 2 + 0.5 + 0.5}

=1– = 0.762
12 (144–1)
U

We can conclude that there is a high degree of correlation between efficiency and
length of service.
ity

Check your Understanding

1. A table displaying correlation coefficients between variables is a correlation
_________.
2. The purpose of computing a correlation coefficient in such situations is to determine
m

the extent to which the two sets of ranking are in agreement. True / False
3. The coefficient that is determined from these ranks is known as _____________
)A

rank coefficient.
4. Many times the observations are grouped into a “two way” frequency distribution
table. True / False

Multiple Choice
(c

1. The sign of the correlation is determined by the

a. Standard Deviation

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174 Quantitative Aptitude

b. Covariance between X and Y

Notes
c. X variable

e
d. Y variable

in
2. Correlation r contains no unit because
a. Absolute number
b. It is a relative number

nl
c. It denotes variables
d. It show the value of attributes

O
3. Value of r lying outside the range of -1 and + 1, indicates
a. Zero correlation

ity
b. Strong correlation
c. Error in calculation
d. Weak correlation

rs
4. A scatter diagram displaying plotted points on an upward sloping straight line denotes
that X and Y has
a. Positive correlation
ve
b. Zero correlation
c. Perfect positive correlation
d. Perfect negative correlation
ni

Summary
●● A table displaying correlation coefficients between variables is a correlation matrix.
U

The association between two variables is presented by each cell in the table. To
summarise results, as an input into a more advanced analysis, and as a diagnosis
for advanced analysis, a correlation matrix is used.
ity

●● Quite often the data is available in the form of some ranking for different
variables. Also, there are occasions where it is difficult to measure the cause-
effect variables. It is necessary to find out whether the two sets of ranks are in
agreement with each other. This is measured by Rank Correlation Coefficient. The
purpose of computing a correlation coefficient in such situations is to determine
m

the extent to which the two sets of ranking are in agreement. The coefficient that is
determined from these ranks is known as Spearman’s rank coefficient.
)A

Activity
1. Sara and Lily are studying for a text. Sara has spent eight hours studying for this test
where as Lily has only put in two hours. The tests were graded and Sara received
an A on the test and Lily received a C. Seeing this Lily wondered if there was a
(c

correlation between the hours studied and the test score. Below is the data that Lily
collected. Using that fine the correlation coefficient.

X (time) 8 2 6 4 2

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Quantitative Aptitude 175

Y (grade) 98 74 87 82 72
Notes

e
2. The scores of ten students in physics and biology are as follows. Calculate the
Spearman Rank Correlation

in
a. Physics: 35, 23, 47, 17, 10, 43, 9, 6, 28, 32
b. Biology: 30, 33, 45, 23, 8, 49, 12, 4, 31, 42

nl
Questions and Exercises
1. What are the key decisions that need to be made when creating a correlation matrix?

O
2. What is Spearman’s rank coefficient formula?
3. How does one determine the rank for tied ranks?

ity
Glossary
●● Bivariate Frequency Distribution: observations that are grouped into a “two
way” frequency distribution table.
●● Correlation Matrix: A table displaying correlation coefficients between variables.

Further Reading
1.
rs
Athanasopoulos, George; Hyndman, Rob J. Forecasting: Principles and
ve
Practice. ‎ Otexts; 3rd ed. edition (May 31, 2021)
2. Gilliland, Michael. Business Forecasting (Wiley and SAS Business Series).
Wiley; 1st edition (December 29, 2015)
ni

Check your Understanding: Answers

1. Matrix
U

2. True
3. Spearman’s
4. True
ity

Multiple Choice
1. A
m

2. B
3. C
4. C
)A
(c

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176 Quantitative Aptitude

Unit - 5.2: Regression

Notes

e
Objectives:
At the end of this unit, you will be able to understand

in
●● Introduction to Linear Regression Model
●● Population Sample Regression

nl
●● Method Least Square Understanding
●● Math Behind Least Square

O
Introduction
There is a need for a statistical model that will extract information from the given

ity
data to establish the regression relationship between independent and dependent
relationship. The model should capture systematic behaviour of data. The non-
systematic behaviour cannot be captured and called as errors. The error is due to
random component that cannot be predicted as well as the component not adequately

rs
considered in statistical model. Good statistical model captures the entire systematic
component leaving only random errors.

In any model we attempt to capture everything which is systematic in data.

ve
Random errors cannot be captured in any case. Assuming the random errors are
‘Normally distributed’ we can specify the confidence level and interval of random errors.
Thus, our estimates are more reliable. If the variables in a bivariate distribution are
correlated, the points in scatter diagram approximately cluster around some curve.
ni

If the curve is straight line we call it as linear regression. Otherwise, it is curvilinear

regression. The equation of the curve which is closest to the observations is called the
‘best fit’.
U

The best fit is calculated as per Legender’s principle of least sum squares of
deviations of the observed data points from the corresponding values on the ‘best
fit’ curve. This is called as minimum squared error criteria. It may be noted that the
ity

deviation (error) can be measured in X direction or Y direction. Accordingly we will get

two ‘best fit’ curves. If we measure deviation in Y direction, i.e. for a given i x value of
data point ( x,y ) and then we measure corresponding y value on ‘best fit’ curve and
then take the value of deviation in y, we call it as regression of Y on X. In the other
m

case, if we measure deviations in X direction we call it as regression of X and Y.

Definition: According to Morris Myers Blair, regression is the measure of the

average relationship between two or more variables in terms of the original units of the
)A

data.

5.2.1 Introduction to Linear Regression Model

Linear regression is a linear model, e.g. a model that assumes a linear relationship
(c

between the input variables (x) and the single output variable (y). More specifically, that
y can be calculated from a linear combination of the input variables (x).

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Quantitative Aptitude 177

A simple and widely used kind of predictive analysis is linear regression. Two
questions are discussed in the general concept of regression: Notes

e
1. Does a collection of predictor variables do a good job of predicting an outcome
(dependent ) variable?

in
2. In particular, which variables are important predictors of the outcome variable and
how they influence the outcome variable, as shown by the magnitude and sign of the
beta estimates.

nl
The relationship between one dependent variable and one or more independent
variables is explained by these regression projections. The formula y = c + b*x

O
describes the simplest form of the regression equation with one dependent and one
independent variable, where y = expected dependent variable score, c = constant, b =
coefficient of regression and x = score on the independent variable.

When there is a single input variable (x), the method is referred to as simple linear

ity
regression. When there are multiple input variables, literature from statistics often refers
to the method as multiple linear regression

Regression Lines

rs
For a bivariate data (Xi, Yi), i = 1,2, ...... n, we can have either X or Y as
independent variable. If X is independent variable then we can estimate the average
values of Y for a given value of X. The relation used for such estimation is called
ve
regression of Y on X. If on the other hand Y is used for estimating the average values of
X, the relation will be called regression of X on Y.

For a bivariate data, there will always be two lines of regression. It will be shown
ni

later that these two lines are different, i.e., one cannot be derived from the other by
mere transfer of terms, because the derivation of each line is dependent on a different
set of assumptions.
U

Line of Regression of Y on X
The general form of the line of regression of Y on X is YCi = a + bXi , where YCi
denotes the average or predicted or calculated value of Y for a given value of X = Xi.
ity

This line has two constants, a and b.

The constant a is defined as the average value of Y when X = 0. Geometrically, it

is the intercept of the line on Y-axis. Further, the constant b, gives the average rate of
m

change of Y per unit change in X, is known as the regression coefficient.

Y
)A

Y1
bX i
a+
Ya =

Ya
(c

a
{
O X1 X

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178 Quantitative Aptitude

Notes The above line is known if the values of a and b are known. These values are
estimated from the observed data (Xi, Yi), i = 1,2, ...... n.

e
Line of Regression of X on Y

in
The general form of the line of regression of X on Y is XCi = c + dYi , where XCi
denotes the predicted or calculated or estimated value of X for a given value of Y = Yi

nl
and c and d are constants. d is known as the regression coefficient of regression of X
on Y.

O
Y

Yi
c+b
Xa =
Yi

ity
Xa Xi

C
{
rs
O X

In this case, we have to calculate the value of c and d so that S1 = Σ(X1 –Xa)2 is
ve
minimised.

Graphing Regression Lines

This shows that the line of regression also passes through the point X,Y . Since
ni

both the lines of regression passes through the point X,Y , therefore X,Y is their point of
intersection as shown
U

bY
i

Y
+
c
=

bX i
a+
a
X

Ya =
ity

Y
Xi

C
m

O X X

We can write c = X – dY
)A

5.2.2 Population Sample Regression

It is the regression model is based on a sample of n bivariate observations drawn
from a larger population of measurements.
(c

ŷ = b0 + b1x

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Quantitative Aptitude 179

To construct an ordinary least-squares regression line, we use the means and

standard deviations of our sample data to calculate the slope (b1) and y-intercept (b0). Notes

e
μy = β0 + β1x, where μy is the population mean response, β0 is the y-intercept, and
beta1 is the slope for the population model.

in
In a population, there can be many different responses for a value of x. In simple
linear regression, the model assumes that for each value of x the observed values
of the response variable y are normally distributed with a mean that depends on x.

nl
To represent such means μy is used. It is also assumed that these means all lie on
a straight line when plotted against x (a line of means). The sample data then fit the
statistical model:

O
Data = fit + residual

yi = (β0 + β1xi) + ϵi

ity
where the errors (εi) are independent and normally distributed N (0, σ). Linear
regression also assumes equal variance of y (σ is the same for all values of x). We use
ε (Greek epsilon) to stand for the residual part of the statistical model. A response y is
the sum of its mean and chance deviation εfrom the mean. The deviations ε represents

rs
the “noise” in the data. In other words, the noise is the variation in y due to other causes
that prevent the observed (x, y) from forming a perfectly straight line.

The sample data used for regression are the observed values of y and x. The
ve
response y to a given xis a random variable, and the regression model describes the
mean and standard deviation of this random variable y. The intercept β0, slope β1, and
standard deviation σ of y are the unknown parameters of the regression model and
must be estimated from the sample data.
ni

◌◌ The value of ŷ from the least squares regression line is really a prediction of
the mean value of y (μy) for a given value of x.
U

◌◌ The least squares regression line (y^=b0+b1xy^=b0+b1x) obtained from

sample data is the best estimate of the true population regression line
◌◌ (μy =β0+ β1xμy = β0 + β1x).
ity

5.2.3 Method Least Square Understanding

Then generally used method to find the ‘best’ fit that a straight line of this kind can
give is the least-square method. To use it efficiently, we first determine.
m

∑ x i2 =
∑ X i 2 − nX 2
∑ y i2 =
∑ Yi 2 − nY 2
)A

∑ X iYi − nX .Y
∑ xi yi =
∑ xi y
b= , a= Y − bX
∑ x i2
These measures define a and b which will give the best possible fit through the
(c

original X and Y points and the value of r can then be worked out as under:

Amity Directorate of Distance & Online Education

180 Quantitative Aptitude

Notes b ∑ x i2
r=
∑ y i2

e
Thus, the regression analysis is a statistical method to deal with the

in
formulation of mathematical model depicting relationship amongst variables which can
be used for the purpose of prediction of the values of dependent variable, given the
values of the independent variable. Alternatively, for fitting a regression equation of the

nl
type Y = a + bXto the given values of X and Y variables, we can find the values of the
two constants viz., a andb by using the following two normal equations:

∑ yi = na + b ∑ xi

O
∑ X iYi = a ∑ X i + b ∑ X i 2
and then solving these equations for finding a and b values. Once these values are
obtained and have been put in the equation Y = a + bX, we say that we have fitted the

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regression equation of Y on X to the given data. In a similar fashion, we can develop
the regression equation of X and Y viz., X = a + bX, presuming Y as an independent
variable and X as dependent variable.

Method of Least Square Parabolic Trend

rs
The mathematical form of a parabolic trend is given by Yt = a + bt + ct2 or Y =
a + bt + ct2 (dropping the subscript for convenience). Here a, b and c are constants
ve
to be determined from the given data. Using the method of least squares, the normal
equations for the simultaneous solution of a, b, and c are:

∑ Y = na + b ∑ t + c ∑ t 2
ni

∑ tY = a ∑ t + b ∑ t 2 + c ∑ t 3
∑ t2Y = a ∑ t 2 + b ∑ t 3 + c ∑ t 4
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By selecting a suitable year of origin, i.e., define X = t - origin such that SX = 0, the
computation work can be considerably simplified. Also note that if SX = 0, then SX3 will
also be equal to zero. Thus, the above equations can be rewritten as:
ity

∑ Y = na + cX 2 ...(i)
b X 2 ...(ii)
∑ XY =∑
∑ X 2Y = a ∑ X 2 + c ∑ X 4 ...(iii)
m

∑ XY
From equation (ii), we get b= ...(iv)
∑X2
∑Y − c ∑ X 2
)A

Further, from equation (i) we get a = ...(v)

n
n ∑ X 2Y − ( ∑ X 2 )( ∑ Y )
And from equation (iii), we get c= ...(vi)
n ∑ X 4 − ( ∑ X 2 )2
(c

Thus, equations (iv), (v) and (vi) can be used to determine the values of the
constants a, b and c.

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Quantitative Aptitude 181

Method of Moving Average - Introduction

Notes
This method is based on the principle that the total effect of periodic variations at

e
different points of time in its cycle gets completely neutralised, i.e., S = 0 t in one year
and C = 0 t in the period of cyclical variations.

in
Method of Least Square - Exponential Trend
The general form of an exponential trend is Y = a.bt, where a and b are constants

nl
to be determined from the observed data. Taking logarithms of both sides, we have logY
= log a + t log b. This is a linear equation in log Y and t and can be fitted in a similar way
as done in case of linear trend. Let A = log a and B = log b, then the above equation can

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be written as log Y = A + Bt.

The normal equations, based on the principle of least squares are:

∑ log Y = nA + B ∑ t

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and ∑ t log Y = A ∑ t + B ∑ t 2
By selecting a suitable origin, i.e., defining X=t- origin, such that SX = 0, the
computation work can be simplified. The values of A and B are given by

=A
∑ log Y
=
n
and B
∑ X log Y
∑X2 rs
ve
respectively. Thus, the fitted trend equation can be written as long Y=A+BX

or Y = Antilog [A + BX] = Antilog [log a + X log b]

= Antilog [log a.bx] = a.bx.

ni

A probability is the quantitative measure of risk. Statistician I.J. Good suggests,

“The theory of probability is much older than the human species, since the assessment
of uncertainty incorporates the idea of learning from experience, which most creatures
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do.”

Development of probability theory in Europe is associated with gamblers in the

famous European casinos, such as the one at Monte Carlo. It is also associated with
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astrology. This unit provides exposure to fundamental concepts, since probability is

inseparable from statistical methods. Those, not familiar with the subject, are suggested
to study details from any book or a book by this author on probability and solve few
numerical problems to understand the logic.
m

In probability, the understanding and method to solve a given problem. The

theory of probability is an indispensable tool in the analysis of situations involving risk.
It is used in various fields such as quality control, management, engineering, physics,
)A

biology, and economics and so on.

Important Terms in Probability

Probability and sampling are inseparable parts of statistics. Before we discuss
(c

probability and sampling distributions, we must be familiar with some common terms
used in theory of probability. Although these terms are commonly used in business, they
have precise technical meaning.

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182 Quantitative Aptitude

5.2.4 Maths Behind Least Square

Notes
The Method of Least Squares is a method for determining the best fit line to

e
data; the proof employs simple calculus and linear algebra. The fundamental issue is
determining the best-fitting straight line

in
y = ax + b

given that, for n ∈ {1, . . . , N}, the pairs (xn, yn) are observed. The method easily

nl
generalises to determining the best form fit:

y = a1 f1 (x) + · · · + cK fK (x);

O
It is not necessary for the functions fk to be linear in x; instead, y must be a linear
combination of these functions.

To find the line of best fit for N points:

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Step 1: For each (x,y) point calculate x2 and xy

Step 2: Sum all x, y, x2 and xy, which gives us Σx, Σy, Σx2 and Σxy (Σ means “sum up”)

Step 3: Calculate Slope m:

m = N Σ(xy) − Σx ΣyN Σ(x2) − (Σx)2

(N is the number of points.) rs

ve
Step 4: Calculate Intercept b:

b = Σy − m ΣxN

Step 5: Assemble the equation of a line

ni

y = mx + b

Example: Sam found how many hours of sunshine vs how many ice creams were
U

sold at the shop from Monday to Friday:

“x” “y”
Hours of Ice Creams
ity

Sunshine Sold
2 4
3 5
5 7
m

7 10
9 15
)A

Let us find the best m (slope) and b (y-intercept) that suits that data

y = mx + b

Step 1: For each (x,y) calculate x2 and xy:

(c

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Quantitative Aptitude 183

x y x2 xy
2 4 4 8
Notes

e
3 5 9 15
5 7 25 35

in
7 10 49 70
9 15 81 135

Step 2: Sum x, y, x2 and xy (gives us Σx, Σy, Σx2 and Σxy):

nl
x y x2 xy
2 4 4 8

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3 5 9 15
5 7 25 35
7 10 49 70

ity
9 15 81 135
Σx: 26 Σy: 41 Σx : 168
2
Σxy: 263

Also N (number of data values) = 5

Step 3: Calculate Slope m:

m = N Σ(xy) − Σx ΣyN Σ(x2) − (Σx)2

rs
ve
= 5 x 263 − 26 x 415 x 168 − 262

= 1315 − 1066840 − 676

ni

= 249164 = 1.5183...

Step 4: Calculate Intercept b:

b = Σy − m ΣxN
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= 41 − 1.5183 x 265

= 0.3049...
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Step 5: Assemble the equation of a line:

y = mx + b

y = 1.518x + 0.305
m

Let’s see how it works out:

y = 1.518x +
)A

x y error
0.305
2 4 3.34 −0.66
3 5 4.86 −0.14
5 7 7.89 0.89
(c

7 10 10.93 0.93
9 15 13.97 −1.03

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184 Quantitative Aptitude

Here are the (x,y) points and the line y = 1.518x + 0.305 on a graph:
Notes

e
in
nl
O
Nice fit!

ity
Sam hears the weather forecast which says “we expect 8 hours of sun tomorrow”,
so he uses the above equation to estimate that he will sell

y = 1.518 x 8 + 0.305 = 12.45 Ice Creams

rs
Sam makes fresh waffle cone mixture for 14 ice creams just in case.

Check your Understanding

ve
Fill Up / True or False

1. There is a need for a statistical model that will extract information from the given
data to establish the _________ relationship between independent and dependent
ni

relationship.
2. The non-systematic behaviour cannot be captured and called as _________.
U

3. The error is due to _________ component that cannot be predicted as well as the
component not adequately considered in statistical model.
4. If the variables in a bivariate distribution are correlated, the points in scatter diagram
approximately cluster around some curve. True / False
ity

5. The equation of the curves which is closest to the observations is called the “______
_____”.
6. When there are multiple input variables, literature from statistics often refers to the
m

method as __________ linear regression.

7. To construct an ordinary least-squares regression line, we use the _________ and
standard deviations of our sample data to calculate the slope and y-intercept.
)A

8. In the method of moving average, successive arithmetic averages are computed

from overlapping groups of successive values of a time series. True / False

Multiple Choice Questions

(c

1. Fit the straight line to the following data.

x 1 2 3 4 5

Amity Directorate of Distance & Online Education

Quantitative Aptitude 185

y 1 2 3 4 5
Notes
a) y=x’

e
b) y=x+1

in
c) y=2x
d) y=2x+1

nl
2.  Fit a second degree parabola to the following data.

x 1 2 3 4 5 6 7 8 9

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y 2 6 7 8 10 11 11 10 9

a) y = -0.2673x2 + 3.5232x – 0.9286

b) y = 0.2673x2 + 3.5232x – 0.9286

ity
c) y = 0.2673x2 + 3.5232x + 0.9286
d) y = -0.2673x2 + 3.5232x + 0.9286
3. Fit the straight line to the following data.

x
y
0
7
5
11
10
16
rs
15
20
20
26
ve
a) y = 0.94x + 6.6
b) y = 6.6x + 0.94
ni

c) y = 0.04x + 5.6
d) y = 5.6x + 0.04
4. Fit the straight line curve to the following data.
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x 75 80 93 65 87 71 98 68 84 77
y 82 78 86 72 91 80 95 72 89 74
ity

a) y = 0.9288x + 7.78155
b) y = 7.78155x + 0.9288
c) y = 0.8288x + 6.78155
m

d) y = 6.78155x + 0.8288

Summary
)A

●● There is a need for a statistical model that will extract information from the given
data to establish the regression relationship between independent and dependent
relationship. The model should capture systematic behaviour of data. The non-
systematic behaviour cannot be captured and called as errors. The error is due
to random component that cannot be predicted as well as the component not
(c

adequately considered in statistical model.

●● Linear regression is a linear model, e.g a model that assumes a linear relationship
between the input variables(x) and the single output variable (y).

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186 Quantitative Aptitude

●● When there is a single input variable (x), the method is referred to as simple linear
Notes regression. When there are multiple input variables, literature from statistics often
refers to the method as multiple linear regression.

e
●● To construct an ordinary least-squares regression line, we use the means and

in
standard deviations of our sample data to calculate the slope and y-intercept.
●● In the method of moving average, successive arithmetic averages are computed
from overlapping groups of successive values of a time series.

nl
Activity
1. Determine the forecast for the four year simple moving average

O
Year 1 2 3 4 5 6 7 8 9 10
Sales 20 21 23 22 25 24 27 26 28 30

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Questions and Exercises
1. What are the two questions discussed in the general concept of regression?
2. What is the mathematical form of a parabolic trend?

rs
3. What is the applicability of using the moving average method?
4. What is the mathematical equation for the method of least squares?
ve
Glossary
●● Linear regression is a linear model, e.g a model that assumes a linear
relationship between the input variables(x) and the single output variable (y).
●● Moving average method: successive arithmetic averages are computed from
ni

overlapping groups of successive values of a time series.

●● Population Regression: is the regression model based on a sample of n bivariate
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observations drawn from a larger population of measurements.

Further Reading
1. Athanasopoulos, George; Hyndman, Rob J. Forecasting: Principles and
ity

Practice. ‎ Otexts; 3rd ed. edition (May 31, 2021)

2. Gilliland, Michael. Business Forecasting (Wiley and SAS Business Series).
Wiley; 1st edition (December 29, 2015)
m

Check your Understanding: Answers

Fill Ups/ True or False
)A

1. Regression
2. Errors
3. Random
(c

4. True
5. Best fit
6. Multiple

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Quantitative Aptitude 187

7. Means
Notes
8. True

e
Multiple Choice

in
a. a
b. a

nl
c. a
d. a

O
ity
rs
ve
ni
U
ity
m
)A
(c

Amity Directorate of Distance & Online Education