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The document discusses various statistical concepts including variability measurement, quartile deviation, the Pareto Principle, binomial distribution conditions, root cause analysis, and normal distribution. It provides formulas for range, variance, standard deviation, and quartile deviation, along with examples and explanations of the Pareto Principle and root cause analysis. Additionally, it describes the characteristics of normal distribution and its significance in statistics.

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23 views2 pages

Answers Revised

The document discusses various statistical concepts including variability measurement, quartile deviation, the Pareto Principle, binomial distribution conditions, root cause analysis, and normal distribution. It provides formulas for range, variance, standard deviation, and quartile deviation, along with examples and explanations of the Pareto Principle and root cause analysis. Additionally, it describes the characteristics of normal distribution and its significance in statistics.

Uploaded by

munabibenard2
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Answers to Statistical and Analytical Questions

Ques2: Define Variability Measurement in Statistics with Formulas


Variability measures how spread-out data points are in a dataset. Common measures
include:
1. Range: The formular for measuring range is Range (Maximum Value - Minimum
Value).
2. Variance: The formular for measuring variance is (Population variance (σ²): σ² = Σ (Xᵢ
- μ) ² / N)
3. Sample variance [(s²): s² = Σ (Xᵢ - X̄ ) ² / (n - 1)]
3. Standard Deviation: [σ = √(σ²), s = √(s²)]
Ques3: What Is Quartile Deviation? Explain with Example
According to Chai & Zheng, (2023), the spread of the central 50% of a dataset is
measured by quartile deviation. Quartile deviation is calculated as the 50% of the range
between the lower quartile (Q1) and the upper quartile (Q3) of a given set of data.
Formula:
Quartile Deviation = (Q3 − Q1) ÷ 2
Example:
For the dataset 2, 4, 6, 8, 10:
Q1 (lower quartile) = 4
Q3 (upper quartile) = 8
Quartile Deviation = (8 − 4) ÷ 2 = 2
Ques4: Why Is the Pareto Principle Famous?
The 80/20 rule which is commonly known as the Pareto Principle is well-known for
illustrating that a minority of inputs (20%) frequently accounts for a majority of
outcomes (80%).
Examples:
For instance, it is assumed that the largest percentage of sales (80%) is typically
generated by a small percentage of targeted customers (20%).
Most issues (80%) can often be traced back to a small number of root causes (20%).
Ques5: What Are Two Necessary Conditions for a Binomial Distribution?
Binomial distribution has two imperative conditions for it to be deemed standard. Firstly,
it should have clear fixed number of trials (n). A standard experiment should have a set of
trials to be deemed binomial distribution. Secondly, it should show a constant probability
(p). this implies that each trial must have the same probability of success (p) and failure
(1-p).
Ques6: How Might Root Cause Analysis Be Applied to a Real-Life Situation?
Explain with Example
Root Cause Analysis (RCA) identifies the main reason behind a problem to prevent its
recurrence.
Example:
Problem: Frequent customer complaints about late deliveries.
Steps:
1. Define the Problem: Late deliveries occur 30% of the time.
2. Collect Data: Analyze order processes, transportation, and communication.
3. Identify Root Cause: Delays are due to outdated logistics software.
4. Implement Solution: Upgrade the software and train staff.
Result: Reduced delivery delays and higher customer satisfaction.
Ques7: How Do You Define Normal Distribution with Figure?
The Normal Distribution is a probability distribution and is also known as the bell curve.
It is a symmetric round the mean, with the common data points concerted near the central
value.
Key Features:
According to Chai & Zheng, (2023, mode, mean (μ), and median are normally found at
the focal point of the distribution and have similar characteristics. Approximately 68% of
data in ja normal distribution is found in a single standard deviation (σ) of the mean.
Ninety five percent (95%) are found in two standard deviations, and 99.7% in three
standard deviations as illustrated in the figure below.

References
Chai, S., & Zheng, X. (2023, April). A Contrarian Trading Strategy: Mean vs. Median
Reversion. In Proceedings of the 2023 7th International Conference on E-
Commerce, E-Business and E-Government (pp. 134-138).

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