Chapter one

1 Basic Concepts, Methods of data collection and presentation

1.1 Introduction
1.1.1 Definition and classification of Statistics
Definition of Statistics

Statistics is the science of decision making in a world full of uncertainties.

Statistics is defined as the science of collecting, organizing, presenting, analyzing and
interpreting numerical data for the purpose of assisting in making a more effective decision. Or
from a scientific point of view, it is the science, technology and art of extracting information
from observational data, with an emphasis on solving real world problems.
The field of statistics deals with the collection, presentation, analysis, and use of data to make
decisions, solve problems, and design products and processes. Because many aspects of
engineering practice involve working with data, obviously some knowledge of statistics is
important to any engineer. Specifically, statistical techniques can be a powerful aid in designing
new products and systems, improving existing designs, and designing, developing, and
improving production processes.
Classification of Statistics
Depending on how data can be used statistics is sometimes divided in to two main areas or
branches.
1. Descriptive Statistics: is concerned with summary calculations, graphs, charts and tables.
2. Inferential Statistics: consists of generalizing from samples to populations, performing
estimations and hypothesis tests, determining relationships among variables, and making
predictions.
For example, the average car battery life can be estimated from a few hundred (the sample) car
batteries.
 It is important because statistical data usually arises from sample.
 Statistical techniques based on probability theory are required.

1.1.2 Stages in statistical investigation

There are five stages or steps in any statistical investigation.
1. Collection of data: the process of measuring, gathering, assembling the raw data up on which
the statistical investigation is to be based.
2. Organization of data: Summarization of data in some meaningful way, e.g table form.
3. Presentation of the data: The process of re-organization, classification, compilation, and
summarization of data to present it in a meaningful form.
4. Analysis of data: The process of extracting relevant information from the summarized data,
mainly through the use of elementary mathematical operation.
5. Inference of data: The interpretation and further observation of the various statistical
measures through the analysis of the data by implementing those methods by which
conclusions are formed and inferences made.

1.1.3 Definition of Some Basic terms

a. Statistical Population: It is the collection of all possible observations of a specified
characteristic of interest (possessing certain common property) and being under study.
b. Sample: It is a subset of the population, selected using some sampling technique in such a
way that they represent the population.
c. Sampling: The process or method of sample selection from the population.
d. Sample size: The number of elements or observation to be included in the sample.
e. Census: Complete enumeration or observation of the elements of the population. Or it is the
collection of data from every element in a population
f. Parameter: Characteristic or measure obtained from a population.
g. Statistic: Characteristic or measure obtained from a sample.
h. Variable: It is an item of interest that can take on many different numerical values.

1.1.4 Applications, uses and limitations of Statistics

Applications of statistics:
 In almost all fields of human endeavor.
 Almost all human beings in their daily life are subjected to obtaining numerical facts e.g.
about price.
 Applicable in some process e.g. in designing new products, improving existing designs,
developing, and improving production processes, extent of environmental pollution.
 In industries especially in quality control area.
Uses of statistics:
The main function of statistics is to enlarge our knowledge of complex phenomena.
The following are some uses of statistics:
1. It presents facts in a definite and precise form.
2. Data reduction.
3. Measuring the magnitude of variations in data.
4. Furnishes a technique of comparison
5. Estimating unknown population characteristics
6. Testing and formulating of hypothesis
7. Studying the relationship between two or more variable
8. Forecasting future events.
Limitations of statistics
As a science statistics has its own limitations.
The following are some of the limitations:
 Deals with only quantitative information.
 Deals with only aggregate of facts and not with individual data items.
 Statistical data are only approximately and not mathematical correct.
 Statistics can be easily misused and therefore should be used by experts.

1.1.5 Types of variables and measurement scales

Types of variables
1. Qualitative Variables are nonnumeric variables and can't be measured. Examples
categorizing products as defective or non-defective, light or heavy, gender, religious affiliation,
and state of birth, bearing material (aluminum or copper/lead) or type of wood (pine, oak,
or walnut).
2. Quantitative Variables are numerical variables and can be measured. For example,
temperature, pressure, distance, speed, and voltage are quantitative variables.
Note that quantitative variables are either discrete (which can assume only certain values,
and there are usually "gaps" between the values, such as the number of bedrooms in your
house, number of cars in Wachemo University) or continuous (which can assume any
value within a specific range, such as the air pressure in a tire.)
Measurement scales
Measurement is the assignment of numbers to objects or events in a systematic fashion.
Measurement scale refers to the property of value assigned to the data based on the properties of
order, distance and fixed zero. Four levels of measurement scales are commonly distinguished:
nominal, ordinal, interval, and ratio and each possessed different properties of measurement
systems.
1. Nominal Scales
Nominal scales are measurement systems that possess none of the three properties stated above.
 Level of measurement which classifies data into mutually exclusive, all inclusive
categories in which no order or ranking can be imposed on the data.
 No arithmetic and relational operation can be applied.
Examples:
o Sex (Male or Female)
o Marital status(married, single, widow, divorce)
o Country code
o Regional differentiation of Ethiopia
o Motor type
2. Ordinal Scales
Ordinal Scales are measurement systems that possess the property of order, but not the property
of distance. The property of fixed zero is not important if the property of distance is not satisfied.
 Level of measurement which classifies data into categories that can be ranked.
Differences between the ranks do not exist.
 Arithmetic operations are not applicable but relational operations are applicable.
 Examples:
o Letter grades (A, B, C, D, F).
o Rating scales (Excellent, Very good, Good, Fair, poor).
o Military status.
3. Interval Scales
Interval scales are measurement systems that possess the properties of Order and distance, but
not the property of fixed zero.
 Level of measurement which classifies data that can be ranked and differences are meaningful.
However, there is no meaningful zero, so ratios are meaningless.
 All arithmetic operations except division are applicable.
 Relational operations are also possible.
 Examples: IQ, Temperature in oF
4. Ratio Scales
Ratio scales are measurement systems that possess all three properties: order, distance, and fixed
zero. The added power of a fixed zero allows ratios of numbers to be meaningfully interpreted;
i.e. the ratio of Bekele's height to Martha's height is 1.32, whereas this is not possible with
interval scales.
 Level of measurement which classifies data that can be ranked, differences are meaningful,
and there is a true zero. True ratios exist between the different units of measure.
 All arithmetic and relational operations are applicable.
 Examples: Weight, Height, distance, Age

1.2 Methods of data collection and presentation

1.2.1 Methods of data collection
There are three major methods of data collection
i. Observation or measurement
ii. Interviews and questionnaires
iii. The use of documentary sources
I. Observation or measurement:-In this method, data can be obtained through direct
observation or measurement.
 It requires training of persons who measure in order to insure the use of standard
procedure
 Provides accurate information but it is expensive and inconvenient
II. Interviews and Questionnaires
Questionnaire: - are written documents which instruct the readers or listeners to answer the
questions written on it.
There are three ways of collecting information under this method
a) Face –to-face interviews ( Questionnaires in charge of interviewers )
 b) Telephone interviews
c) Mailed questionnaires ( Self-administered questionnaires returned by mail )
III. The use of documentary sources
It is extracting of information from existing sources (e.g. Hospital, municipality, …)
1.2.2 Source and types of data
Any scientific investigation requires data related to the study. The required data can be obtained
from either a primary source or a secondary source.
Primary source: Is a source of data that supplies firsthand information for the use of the
immediate purpose.
Primary data: are data originally collected for the immediate purpose. Primary data are more
expensive than secondary data.

Data measured or collect by the investigator or the user directly from the source.
Secondary source: are individuals or agencies, which supply data originally collected for other
purposes by them or others. Usually they are published or unpublished materials, records,
reports, documents and etc.

Secondary data: data collected from a secondary source.

- Data gathered or compiled from published and unpublished sources or files.
Note: Data which are primary for one may be secondary for the other.
1.2.3 Methods of data presentation
Having collected and edited the data, the next important step is to organize it. That is to present it
in a readily comprehensible condensed form that aids in order to draw inferences from it. It is
also necessary that the like be separated from the unlike ones. The process of arranging data in to
classes or categories according to similarities technically is called classification.
Classification is a preliminary and it prepares the ground for proper presentation of data.
The presentation of data is broadly classified in to the following two categories:
 Tabular presentation
 Diagrammatic and Graphic presentation.
 1.2.4 Frequency distributions
Frequency distribution: is the organization of raw data in table form using classes and
frequencies.
Frequency: is the number of values in a specific class of the distribution.
There are three basic types of frequency distributions
 Categorical frequency distribution
 Ungrouped frequency distribution
 Grouped frequency distribution
1. Categorical frequency Distribution:
Used for data that can be place in specific categories such as nominal, or ordinal. e.g. marital status.
Example: a social worker collected the following data on marital status for 25 persons.(M=married,
S=single, W=widowed, D=divorced)
M S D W D
S S M M M
W D S M M
W D D S S
S W W D D

Solution:
Since the data are categorical, discrete classes can be used. There are four types of marital status M,
S, D, and W. These types will be used as class for the distribution. We follow procedure to construct
the frequency distribution.
Step 1: Make a table as shown.
Class (1) Tally (2) Frequency (3) Percent (4)
M
S
D
W

Step 2: Tally the data and place the result in column (2).
Step 3: Count the tally and place the result in column (3).
f
Step 4: Find the percentages of values in each class by using; %  * 100 Where f= frequency of
n
the class, n=total number of value.
Step 5: Find the total for column (3) and (4).
Combining the entire steps one can construct the following frequency distribution.
Class (1) Tally (2) Frequency (3) Percent (4)
M //// 5 20
S //// // 7 28
D //// // 7 28
W //// 6 24

2. Ungrouped frequency Distribution:

-Is a table of all the potential raw score values that could possible occur in the data along with the
number of times each actually occurred.
-Is often constructed for small set or data on discrete variable.
Constructing ungrouped frequency distribution:
 First find the smallest and largest raw score in the collected data.
 Arrange the data in order of magnitude and count the frequency.
 To facilitate counting one may include a column of tallies.
Example:-
The following data represent the mark of 20 students.
80 76 90 85 80
70 60 62 70 85
65 60 63 74 75
76 70 70 80 85
Construct a frequency distribution, which is ungrouped.
Solution:-Step 1: Find the range, Range=Max-Min=90-60=30.
Step 2: Make a table as shown
Step 3: Tally the data.
Step 4: Compute the frequency.
Mark Tally Frequency
60 // 2
62 / 1
63 / 1
65 / 1
70 //// 4
74 / 1
 75 // 2
76 / 1
80 /// 3
85 /// 3
90 / 1
Each individual value is presented separately, that is why it is named ungrouped frequency
distribution.
3. Grouped frequency Distribution:
-When the range of the data is large, the data must be grouped in to classes that are more than one
unit in width.
Definitions:
 Grouped Frequency Distribution: a frequency distribution when several numbers are
grouped in one class.
 Class limits: Separates one class in a grouped frequency distribution from another. The
limits could actually appear in the data and have gaps between the upper limits of one class
and lower limit of the next.
 Units of measurement (U): the distance between two possible consecutive measures. It is
usually taken as 1, 0.1, 0.01, 0.001, -----.
 Class boundaries: Separates one class in a grouped frequency distribution from another. The
boundaries have one more decimal places than the row data and therefore do not appear in
the data. There is no gap between the upper boundary of one class and lower boundary of the
next class. The lower class boundary is found by subtracting U/2 from the corresponding
lower class limit and the upper class boundary is found by adding U/2 to the corresponding
upper class limit.
 Class width: the difference between the upper and lower class boundaries of any class. It is
also the difference between the lower limits of any two consecutive classes or the difference
between any two consecutive class marks.
 Class mark (Mid points): it is the average of the lower and upper class limits or the average
of upper and lower class boundary.
 Cumulative frequency: is the number of observations less than/more than or equal to a
specific value.
 Cumulative frequency above: it is the total frequency of all values greater than or equal to
the lower class boundary of a given class.
 Cumulative frequency blow: it is the total frequency of all values less than or equal to the
upper class boundary of a given class.
 Cumulative Frequency Distribution (CFD): it is the tabular arrangement of class interval
together with their corresponding cumulative frequencies. It can be more than or less than
type, depending on the type of cumulative frequency used.
 Relative frequency (rf): it is the frequency divided by the total frequency.
 Relative cumulative frequency (rcf): it is the cumulative frequency divided by the total
frequency.
Steps for constructing Grouped frequency Distribution

1. Find the largest and smallest values

2. Compute the Range(R) = Maximum - Minimum
3. Select the number of classes desired, usually between 5 and 20 or use Sturges rule
k  1  3.32 log n where k is number of classes desired and n is total number of
observation.
4. Find the class width by dividing the range by the number of classes and rounding up, not
R
off. w  .
k
5. Pick a suitable starting point less than or equal to the minimum value. The starting point
is called the lower limit of the first class. Continue to add the class width to this lower
limit to get the rest of the lower limits.
6. To find the upper limit of the first class, subtract U from the lower limit of the second
class. Then continue to add the class width to this upper limit to find the rest of the upper
limits.
7. Find the boundaries by subtracting U/2 units from the lower limits and adding U/2 units
from the upper limits. The boundaries are also half-way between the upper limit of one
class and the lower limit of the next class. !may not be necessary to find the boundaries.
8. Tally the data.
9. Find the frequencies.
 10. Find the cumulative frequencies. Depending on what you're trying to accomplish, it may
not be necessary to find the cumulative frequencies.
11. If necessary, find the relative frequencies and/or relative cumulative frequencies
Example:- Construct a frequency distribution for the following data.
11 29 6 33 14 31 22 27 19 20
18 17 22 38 23 21 26 34 39 27
Solutions:
Step 1: Find the highest and the lowest value H=39, L=6
Step 2: Find the range; R=H-L=39-6=33
Step 3: Select the number of classes’ desired using Sturges formula;
k  1  3.32 log n =1+3.32log (20) =5.32=6(rounding up)
Step 4: Find the class width; w=R/k=33/6=5.5=6 (rounding up)
Step 5: Select the starting point, let it be the minimum observation.
 6, 12, 18, 24, 30, 36 are the lower class limits.
Step 6: Find the upper class limit; e.g. the first upper class=12-U=12-1=11
 11, 17, 23, 29, 35, 41 are the upper class limits.
So combining step 5 and step 6, one can construct the following classes.
Class limits
6 – 11
12 – 17
18 – 23
24 – 29
30 – 35
36 – 41
Step 7: Find the class boundaries; E.g. for class 1 Lower class boundary=6-U/2=5.5
Upper class boundary =11+U/2=11.5
 Then continue adding w on both boundaries to obtain the rest boundaries. By doing so
one can obtain the following classes.
Class boundary
5.5 – 11.5
11.5 – 17.5
17.5 – 23.5
23.5 – 29.5
 29.5 – 35.5
35.5 – 41.5
Step 8: tally the data.
Step 9: Write the numeric values for the tallies in the frequency column.
Step 10: Find cumulative frequency.
Step 11: Find relative frequency or/and relative cumulative frequency.
The complete frequency distribution follows:
Class Class boundary Class Mark Tally Freq. Cf (less than type) Cf (more than rf. rcf (less than
limit type) type
6 – 11 5.5 – 11.5 8.5 // 2 2 20 0.10 0.10
12 – 17 11.5 – 17.5 14.5 // 2 4 18 0.10 0.20
18 – 23 17.5 – 23.5 20.5 ////// 7 11 16 0.35 0.55
24 – 29 23.5 – 29.5 26.5 //// 4 15 9 0.20 0.75
30 – 35 29.5 – 35.5 32.5 /// 3 18 5 0.15 0.90
36 – 41 35.5 – 41.5 38.5 // 2 20 2 0.10 1.00

1.2.5 Diagrammatic and graphical presentation of data

These are techniques for presenting data in visual displays using geometric and pictures.
Importance:
 They have greater attraction.
 They facilitate comparison.
 They are easily understandable.
1.2.5.1 Diagrammatic presentation of data: Bar charts, pie-chart and pictogram
-Diagrams are appropriate for presenting discrete data.
-The three most commonly used diagrammatic presentation for discrete as well as qualitative data are:
 Pie charts, Pictogram, Bar-graphs
Pie chart
- A pie chart is a circle that is divided in to sections or wedges according to the percentage of
frequencies in each category of the distribution. The angle of the sector is obtained using:
Valueofthepart
Angleof sec tor  * 100
thewholequantity
Example: Draw a suitable diagram to represent the following population in a town.
 Men Women Girls Boys
2500 2000 4000 1500
Solutions: Step 1: Find the percentage.
Step 2: Find the number of degrees for each class.
Step 3: Using a protractor and compass, graph each section and write its name corresponding percentage.
Class Frequency Percent Degree
Men 2500 25 90
Women 2000 20 72
Girls 4000 40 144
Boys 1500 15 54

CLASS

Boy s Men

Girls Women

Pictogram (Reading assignment, read from books and plot it)

In diagram, we represent data by means of some picture symbols. We decide about a suitable
picture to represent a definite number of units in which the variable is measured.
Example: draw a pictogram to represent the following population of a town.
Year 1989 1990 1991 1992
Population 2000 3000 5000 7000
Bar-graphs:
- A set of bars (thick lines or narrow rectangles) representing some magnitude over time space.
- They are useful for comparing aggregate over time space.
- Bars can be drawn either vertically or horizontally.
- There are different types of bar graphs. The most common are:
 Simple bar-graph
 Component or sub divided bar-graph.
 Multiple bar-graphs.
Simple Bar-graphs
 -Are used to display data on one variable.
-They are thick lines (narrow rectangles) having the same breadth. The magnitude of a quantity is
represented by the height /length of the bars.
Example: The following data represent sale by product, 1957- 1959 of a given company for three
products A, B, C.
Product Sales($) Sales($) Sales($)
In 1957 In 1958 In 1959
A 12 14 18
B 24 21 18
C 24 35 54
Solutions:
Sales by product in 1957

30
25
Sales in $

20
15
10
5
0
A B C
product

Component Bar-graphs
-When there is a desire to show how a total (or aggregate) is divided in to its component parts, we use
component bar-graph.
-The bars represent total value of a variable with each total broken in to its component parts and different
colours or designs are used for identifications
Example: Draw a component bar graph to represent the sales by product from 1957 to 1959.
Solutions:

SALES BY PRODUCT 1957-1959

100

80
Sales in $

Product C
60
Product B
40
Product A
20

0
1957 1958 1959
Year of production
Multiple Bar-graphs
- It is used to display data on more than one variable for comparing different variables at the same time.
Example: Draw a multiple bar chart to represent the sales by product from 1957 to 1959.
Solutions:

Sales by product 1957-1959

60
50
Sales in $

40 Product A
30 Product B
20 Product C

10
0
1957 1958 1959
Year of production

1.2.6 Graphical presentation of data: Histogram, Frequency polygon, and Ogive curve
- The histogram, frequency polygon and cumulative frequency graph or ogive are most commonly
applied graphical representation for continuous data.
Procedures for constructing statistical graphs:
 Draw and label the X and Y axes.
 Choose a suitable scale for the frequencies or cumulative frequencies and label it on the Y axes.
 Represent the class boundaries for the histogram or ogive or the mid points for the frequency
polygon on the X axes.
 Plot the points.
 Draw the bars or lines to connect the points.
Histogram
A graph which displays the data by using vertical bars of various height to represent frequencies. Class
boundaries are placed along the horizontal axes. Class marks and class limits are sometimes used as
quantity on the X axes.
Example: Construct a histogram to represent the previous data (example *).
Frequency Polygon: It is a line graph. The frequency of the data is placed along the vertical axis and
classes mid points are placed along the horizontal axis. It is customer to the next higher and lower class
interval with corresponding frequency of zero; this makes it a complete polygon.
 Example: Draw a frequency polygon for the above data (example *).
Solutions:

4
Value Frequency

0
2. 5 8. 5 14.5 20.5 26.5 32.5 38.5 44.5

Class Mid points

Ogive (cumulative frequency polygon)

- A graph showing the cumulative frequency (less than or more than type) plotted against upper or
lower class boundaries respectively. That is class boundaries are plotted along the horizontal axis and
the corresponding cumulative frequencies are plotted along the vertical axis. The points are joined by a
free hand curve.
Example: Draw an ogive curve(less than type) for the above data. (Example *)
 Chapter two
2 Summarizing of Data
2.1 Measures of central Tendency: objectives of measuring central tendency
Introduction: When we want to make comparison between groups of numbers it is good to have a single
value that is considered to be a good representative of each group. This single value is called
the average of the group. Averages are also called measures of central tendency. An average
which is representative is called typical average and an average which is not representative and
has only a theoretical value is called a descriptive average. A typical average should possess
the following:
 It should be rigidly defined.
 It should be based on all observation under investigation.
 It should be as little as affected by extreme observations.
 It should be capable of further algebraic treatment.
 It should be as little as affected by fluctuations of sampling.
 It should be ease to calculate and simple to understand.

Objectives:
 To comprehend (understand) the data easily.
 To facilitate comparison.
 To make further statistical analysis.
The Summation Notation:
 Let X1, X2 ,X3 …XN be a number of measurements where N is the total number of
th
observation and Xi is i observation.
 Very often in statistics an algebraic expression of the form X1+X2+X3+...+XN is used in a
formula to compute a statistic. It is tedious to write an expression like this very often, so
mathematicians have developed a shorthand notation to represent a sum of scores, called
the summation notation.
N
The symbol X
i 1
i is a mathematical shorthand for X1+X2+X3+...+XN
Properties of Summation
n
1.  k  nk
i 1
where k is any constant

n n
2.  kX i  k  X i where k is any constant
i 1 i 1

n n
3.  (a  bX
i 1
i )  na  b X i
i 1
where a and b are any constant

n n n
4. (X
i 1
i  Yi )   X i   Yi
i 1 i 1

2.2 Types of measures of central tendency

There are several different measures of central tendency; each has its advantage and
disadvantage.
2.2.1 The mean (Arithmetic, weighted, Geometric and Harmonic)
Arithmetic Mean: Is defined as the sum of the magnitude of the items divided by the number of
items.
Arithmetic Mean for ungrouped data: The mean of X1, X2 ,X3 …Xn is denoted by A.M ,m or
X 1  X 2  ...  X n
X 
n
X and is given by: n
if each item occurs only once
 Xi
X  i 1

 If X1 occurs f1 times, If X2occurs f2 times, ……, If Xn occurs fn times

k

fX k

f n
i i
Then the mean will be X  i 1 , where k is the number of classes and i
k

f
i 1
i
i 1

Example: Obtain the mean of the following number 2, 7, 8, 2, 7, 3, 7

Solution:
Xi fi Xifi
2 2 4
3 1 3
7 3 21
8 1 8
Total 7 36
 4

f i Xi
36
X  i 1
4
  5.15
f
7
i
i 1

Arithmetic Mean for Grouped Data: If data are given in the shape of a continuous frequency
k

f i Xi th
distribution, then the mean is obtained as: X  i 1
, Where Xi =the class mark of the i
k

f i 1
i

class and fi = the frequency of the ith class.

Example: calculate the mean for the following age distribution.
Class frequency
6- 10 35
11- 15 23
16- 20 15
21- 25 12
26- 30 9
31- 35 6
Solutions:
 First find the class marks
 Find the product of frequency and class marks
 Find mean using the formula.
Class fi Xi Xifi
6- 10 35 8 280
11- 15 23 13 299
16- 20 15 18 270
21- 25 12 23 276
26- 30 9 28 252
31- 35 6 33 198
Total 100 1575

f X i i
1575
X  i 1
6
  15.75
f
100
i
i 1
 Exercises: Life times (in months) of 75 bulbs are summarized in the following frequency
distribution:
Marks No. of students
40-44 7
45-49 10
50-54 22
55-59 f4
60-64 f5
65-69 6
70-74 3
If the 20% of the bulbs have life times between 55 and 59 months,
i. Find the missing frequencies f4 and f5.
ii. Find the mean.
Special properties of Arithmetic mean
1. The sum of the deviations of a set of items from their mean is always zero. i.e.
n

 ( X  X )  0.
i 1
i

2. The sum of the squared deviations of a set of items from their mean is the minimum. i.e.
n n

 ( Xi  X )   ( X  A) , A  X
i 1
2

i 1
i
2

3. If X 1 is the mean of n1 observations

If X 2 is the mean of n 2 observations

.
.
If X k is the mean of n k observations
Then the mean of all the observation in all groups often called the combined mean is given
k

X n  X 2 n 2  ....  X k n k X n i i
by: Xc  1 1  i 1
n1  n 2  ...n k
k

n
i 1
i

Example: In a class there are 30 females and 70 males. If females averaged 60 in an

examination and boys averaged 72, find the mean for the entire class.
 Solutions:
Males
Females
X 2  72
X 1  60
n2  70
n1  30

X 1 n1  X 2 n 2 X n i i
Xc   i 1

n1  n 2
2

n
i 1
i

30(60)  70(72) 6840

 Xc    68.40
30  70 100

4. The effect of transforming original series on the mean.

a) If a constant k is added/ subtracted to/from every observation then the new mean
will be the old mean± k respectively.
b) If every observations are multiplied by a constant k then the new mean will be k*old

mean

Weighted Mean

 When a proper importance is desired to be given to different data a weighted mean is

appropriate. Weights are assigned to each item in proportion to its relative importance.
 Let X1, X2, …Xn be the value of items of a series and W1, W2, …Wn their corresponding
weights , then the weighted mean denoted X w is defined as:
n

X W i i
Xw  i 1
n

W
i 1
i

Example: A student obtained the following percentage in an examination: English 60, Biology
75, Mathematics 63, Physics 59, and chemistry 55.Find the students weighted arithmetic mean if
weights 1, 2, 1, 3, 3 respectively are allotted to the subjects.
Solutions:
 5

X W i i
60 * 1  75 * 2  63 * 1  59 * 3  55 * 3 615
Xw  i 1
   61.5
1 2  1 3  3
5
10
W
i 1
i

Merits and Demerits of Arithmetic Mean

Merits:
 It is rigidly defined.
 It is based on all observation.
 It is suitable for further mathematical treatment.
 It is stable average, i.e. it is not affected by fluctuations of sampling to some extent.
 It is easy to calculate and simple to understand.
Demerits:
 It is affected by extreme observations.
 It cannot be used in the case of open end classes.
 It cannot be determined by the method of inspection.
 It cannot be used when dealing with qualitative characteristics, such as intelligence, honesty,
beauty.
 It can be a number which does not exist in a serious.
 Sometimes it leads to wrong conclusion if the details of the data from which it is obtained are
not available.
 It gives high weight to high extreme values and less weight to low extreme values.
The Geometric Mean
 The geometric mean of a set of n observation is the nth root of their product.
 The geometric mean of X1, X2 ,X3 …Xn is denoted by G.M and given by:
G.M  n X1 * X2 * ... * Xn
 Taking the logarithms of both sides
1
log(G.M)  log(n X 1 * X 2 * ... * X n )  log(X 1 * X 2 * ... * X n ) n
1 1
 log(G.M)  log(X 1 * X 2 * .... * X n )  (log X 1  log X 2  ...  log X n )
n n
1 n
 log(G.M)   log X i
n i1
  The logarithm of the G.M of a set of observation is the arithmetic mean of their logarithm.
1 n
 G.M  Anti log(  log X i )
n i1

Example: Find the G.M of the numbers 2, 4, 8.

Solutions: G.M  n X1 * X2 * ... * Xn  3 2 * 4 * 8  3 64  4
Remark: The Geometric Mean is useful and appropriate for finding averages of ratios.
The Harmonic Mean
The harmonic mean of X1, X2 , X3 …Xn is denoted by H.M and given by:
n
H.M  n , This is called simple harmonic mean.
1

i 1 X i

In a case of frequency distribution:

k
n
H.M  k
fi
, n   fi

i 1 X i
i 1

If observations X1, X2, …Xn have weights W1, W2, …Wn respectively, then their harmonic
mean is given by
n

W i
H.M  n
i 1
, This is called Weighted Harmonic Mean.
W
i 1
i Xi

Remark: The Harmonic Mean is useful and appropriate in finding average speeds and average
rates.
Example: A cyclist pedals from his house to his college at speed of 10 km/hr and back from the
college to his house at 15 km/hr. Find the average speed.
Solution: Here the distance is constant
The simple H.M is appropriate for this problem.
X1= 10km/hr X2=15km/hr
2
H.M   12km/hr
1 1

10 15
 2.2.2 The mode
Mode is a value which occurs most frequently in a set of values
The mode may not exist and even if it does exist, it may not be unique.
In case of discrete distribution the value having the maximum frequency is the model value.
Examples:
1. Find the mode of 5, 3, 5, 8, 9. Mode =5
2. Find the mode of 8, 9, 9, 7, 8, 2, and 5. It is a bimodal Data: 8 and 9
3. Find the mode of 4, 12, 3, 6, and 7. No mode for this data.
- The mode of a set of numbers X1, X2, … Xn is usually denoted by X̂ .

Mode for Grouped data

If data are given in the shape of continuous frequency distribution, the mode is defined as:

 1  Where:
X̂  L mo  w 
 1   2  Xˆ  the mod e of the distribution
w  the size of the mod al class
 1  f mo  f 1
 2  f mo  f 2
f mo  frequencyof the mod al class
f 1  frequencyof the class preceedingthe mod al class
f 2  frequencyof the class following the mod al class

Note: The modal class is a class with the highest frequency.

Example: Following is the distribution of the size of certain farms selected at random from a
district. Calculate the mode of the distribution.
Size of farms No. of farms
5-15 8
15-25 12
25-35 17
35-45 29
45-55 31
55-65 5
65-75 3
Solutions:
45  55 is the mod al class,sin ce it is a class with thehighestfrequency.
L mo  45
w  10
 1  f mo  f 1  2
 2  f mo  f 2  26
f mo  31
f 1  29
f2  5

ˆ  45  10 2 
X
 2  26 
 45.71

Merits and Demerits of Mode

Merits:
 It is not affected by extreme observations.
 Easy to calculate and simple to understand.
 It can be calculated for distribution with open end class
Demerits:
 It is not rigidly defined.

 It is not based on all observations

 It is not suitable for further mathematical treatment.

 It is not stable average, i.e. it is affected by fluctuations of sampling to some
extent.
 Often its value is not unique.
Note: being the point of maximum density, mode is especially useful in finding the most popular
size in studies relating to marketing, trade, business, and industry. It is the appropriate average to
be used to find the ideal size.
2.2.3 The Median
In a distribution, median is the value of the variable which divides it in to two equal halves.
In an ordered series of data median is an observation lying exactly in the middle of the series. It is the
middle most value in the sense that the number of values less than the median is equal to the number
of values greater than it.
-If X1, X2, …Xn be the observations, then the numbers arranged in ascending order will be X[1], X[2],
…X[n], where X[i] is ith smallest value.
 X[1]< X[2]< …<X[n]
-Median is denoted by X̂ .
Median for ungrouped data
 X ( n1) 2  ,If n is odd.
~ 1
X   (X  X ), If n is even
 2 n 2  ( n 2 )  1


Example: Find the median of the following numbers.
a) 6, 5, 2, 8, 9, 4.
b) 2, 1, 8, 3, 5, 8.
Solutions:
a) First order the data: 2, 4, 5, 6, 8, 9. Here n=6
~ 1
X  (X n  X n )
2 [2] [  1]
2

1
 ( X [3]  X [ 4 ] )
2
1
 ( 5  6)  5.5
2
b) Order the data:1, 2, 3, 5, 8. Here n=5
~ X
X n 1
[ ]
2
 X [3]
3

Median for grouped data

If data are given in the shape of continuous frequency distribution, the median is defined as:
~ w n
X  L med  (  c)
f med 2
Where :
L med  lower class boundary of the median class.
w  the size of the median class
n  total number of observations.
c  the cumulativefrequency( less than type) preceeding the median class.
f med  thefrequency of the median class.
 Remark: The median class is the class with the smallest cumulative frequency (less than type) greater

n
than or equal to .
2
Example: Find the median of the following distribution.
Class Frequency
40-44 7
45-49 10
50-54 22
55-59 15
60-64 12
65-69 6
70-74 3
Solutions:
 First find the less than cumulative frequency.
 Identify the median class.
 Find median using formula.
Class Frequency Cumu.Freq(less
than type)
40-44 7 7
45-49 10 17
50-54 22 39
55-59 15 54
60-64 12 66
65-69 6 72
70-74 3 75

n 75
  37.5
2 2
39 is the first cumulative frequencyto be greater thanor equalto 37.5
 50  54 is the median class.

L  49.5, w  5
med
n  75, c  17, f  22
med
 
~
X L w ( n  c)
med f 2
med
 49.5  5 (37.5  17)
22
 54.16

Merits and Demerits of Median

Merits:
 Median is a positional average and hence not influenced by extreme observations.
 Can be calculated in the case of open end intervals.
 Median can be located even if the data are incomplete.
Demerits:
 It is not a good representative of data if the number of items is small.
 It is not amenable to further algebraic treatment.
 It is susceptible to sampling fluctuations.
2.3 Measures of location: Quantiles (Quartiles, Deciles and Percentiles)
When a distribution is arranged in order of magnitude of items, the median is the value of the middle
term. Their measures that depend up on their positions in distribution quartiles, deciles, and percentiles
are collectively called quantiles.
Quartiles: are measures that divide the frequency distribution in to four equal parts.
The value of the variables corresponding to these divisions are denoted Q1, Q2, and Q3 often called the
first, the second and the third quartile respectively.
Q1 is a value which has 25% items which are less than or equal to it. Similarly Q2 has 50%items with
value less than or equal to it and Q3 has 75% items whose values are less than or equal to it.
- To find Qi (i=1, 2, 3) we count iN of the classes beginning from the lowest class.
4
- For grouped data: we have the following formula
Q  L Q  w ( iN  c) ,i  1,2,3
i i fQ 4
i
Where :
L Q  lower class boundary of thequartile class.
i
w  thesize of thequartile class
N  total number of observations.
c  thecumulativefrequency(lessthan type) preceedingthequartile class.
f Q  thefrequency of thequartile class.
i
Remark: The quartile class (class containing Qi) is the class with the smallest cumulative frequency

(less than type) greater than or equal to iN .

4
Deciles: are measures that divide the frequency distribution in to ten equal parts.
The values of the variables corresponding to these divisions are denoted D1, D2,.. D9 often called the
first, the second,…, the ninth decile respectively.
iN
To find Di (i=1, 2,..9) we count of the classes beginning from the lowest class.
10
- For grouped data: we have the following formula
w iN
Di  L Di  (  c ) , i  1,2,...,9
f Di 10
Where :
L Di  lower class boundaryof the decile class.
w  the size of the decileclass
N  total number of observations.
c  the cumulativefrequency(less than type) preceedingthe decile class.
f Di  thefrequency of the decile class.

Remark: The decile class (class containing Di )is the class with the smallest cumulative frequency (less

than type) greater than or equal to iN .

10
Percentiles: are measures that divide the frequency distribution in to hundred equal parts.
The values of the variables corresponding to these divisions are denoted P1, P2,.. P99 often called the
first, the second,…, the ninety-ninth percentile respectively.
To find Pi (i=1, 2,..99) we count iN of the classes beginning from the lowest class.
100
- For grouped data: we have the following formula
w iN
Pi  L Pi  (  c) , i  1,2,...,99
f Pi 100
Where :
L Pi  lower class boundary of the percentile class.
w  the size of the percentile class
N  total number of observations.
c  the cumulativefrequency( less than type) preceedingthe percentile class.
f Pi  thefrequency of the percentileclass.
Remark: The percentile class (class containing Pi )is the class with the smallest cumulative
frequency (less than type) greater than or equal to iN .
100

Example: Considering the following distribution and Calculate:

a) All quartiles.
b) The 7th decile.
c) The 90th percentile.
Values Frequency
140- 150 17
150- 160 29
160- 170 42
170- 180 72
180- 190 84
190- 200 107
200- 210 49
210- 220 34
220- 230 31
230- 240 16
240- 250 12
Solutions:
 First find the less than cumulative frequency.
 Use the formula to calculate the required quantile.
Values Frequency Cum.Freq(less than type)
140- 150 17 17
150- 160 29 46
160- 170 42 88
170- 180 72 160
180- 190 84 244
190- 200 107 351
200- 210 49 400
210- 220 34 434
220- 230 31 465
230- 240 16 481
240- 250 12 493
a) Quartiles:
i. Q1
- determine the class containing the first quartile.
N
 123.25
4
 170  180 is the class containingthe first quartile.

w N
 Q1  LQ1  (  c)
LQ  170 ,
1
w 10 fQ 4
1

N  493 , c  88 , f Q  72
1  170 
10
(123.25  88)
72
 174.90

ii. Q2
- determine the class containing the second quartile.
2* N
 246.5
4
 190  200 is the class containingthe sec ond quartile.
LQ  190 ,
2
w 10
N  493 , c  244 , f Q 107
2

w 2* N
 Q2  LQ  (  c)
2
fQ
2
4
10
 170  ( 246.5  244)
72
 190.23

iii. Q3
- determine the class containing the third quartile.
3* N
 369.75
4
 200  210 is the class containingthe third quartile.
 LQ  200 ,
3
w 10
N  493 , c  351 , f Q  49
3

w 3* N
 Q3  LQ 3  (  c)
fQ
3
4
10
 200  (369.75  351)
49
 203.83

b) D7
- determine the class containing the 7th decile.
7* N
 345.1
10
190  200 is the class containingthe seventh decile.
LD  190 ,
7
w 10
N  493 , c  244 , f D 107
7

w 7* N
 D7  LD  (  c)
7
f D 10
7

10
 190  (345.1  244)
107
 199.45

c) P90
- determine the class containing the 90th percentile.
90 * N
 443.7
100
 220  230 is the class containingthe 90th percentile.

LP  220 ,
90
w 10
N  493 , c  434 , f P  3107
90
 w 90 * N
 P90  LP  (  c)
90
f P 100
90

10
 220  (443.7  434)
31
 223.13

2.4 Measures of Dispersion/Variation

Introduction and objectives of measuring Variation
-The scatter or spread of items of a distribution is known as dispersion or variation. In other
words the degree to which numerical data tend to spread about an average value is called
dispersion or variation of the data.
-Measures of dispersions are statistical measures which provide ways of measuring the extent in
which data are dispersed or spread out.
Objectives of measuring Variation:
 To judge the reliability of measures of central tendency
 To control variability it-self.
 To compare two or more groups of numbers in terms of their variability.
 To make further statistical analysis.
Absolute and Relative Measures of Dispersion
The measures of dispersion which are expressed in terms of the original unit of a series are
termed as absolute measures. Such measures are not suitable for comparing the variability of two
distributions which are expressed in different units of measurement and different average size.
Relative measures of dispersions are a ratio or percentage of a measure of absolute dispersion to
an appropriate measure of central tendency and are thus pure numbers independent of the units
of measurement. For comparing the variability of two distributions (even if they are measured in
the same unit), we compute the relative measure of dispersion instead of absolute measures of
dispersion.
Types of Measures of Dispersion
Various measures of dispersions are in use. The most commonly used measures of dispersions
are:
1) Range and relative range
2) Quartile deviation and coefficient of Quartile deviation
3) Mean deviation and coefficient of Mean deviation
4) Standard deviation and coefficient of variation.
2.4.1 Range, Variance, Standard deviation and coefficient of variation
The Range (R): is the largest score minus the smallest score. It is a quick and dirty measure of
variability, although when a test is given back to students they very often wish to know the range
of scores. Because the range is greatly affected by extreme scores, it may give a distorted picture
of the scores. The following two distributions have the same range, 13, yet appear to differ
greatly in the amount of variability.
Distribution 1: 32 35 36 36 37 38 40 42 42 43 43 45
Distribution 2: 32 32 33 33 33 34 34 34 34 34 35 45
For this reason, among others, the range is not the most important measure of variability.

R  LS , L  l arg est observation

S  smallestobservation

Range for grouped data:

If data are given in the shape of continuous frequency distribution, the range is computed as:
R  UCLk  LCL1 , UCLk is upperclasslim it of the last class.
UCL1 is lower class lim it of the first class.
This is sometimes expressed as:

R  X k  X1 , X k is class mark of thelast class.

X 1 is classmark of the first class.
Merits and Demerits of range
Merits:
 It is rigidly defined.
 It is easy to calculate and simple to understand.
Demerits:
 It is not based on all observation.
 It is highly affected by extreme observations.
 It is affected by fluctuation in sampling.
 It is not liable to further algebraic treatment.
 It cannot be computed in the case of open end distribution.
 It is very sensitive to the size of the sample.
The Variance
Population Variance: If we divide the variation by the number of values in the population, we
get something called the population variance. This variance is the "average squared deviation
from the mean".

1
Population Varince   2   ( X i   ) 2 , i  1,2,.....N
N

For the case of frequency distribution it is expressed as:

1
Population Varince   2   f i ( X i   ) 2 , i  1,2,.....k
N

Sample Variance: One would expect the sample variance to simply be the population variance
with the population mean replaced by the sample mean. However, one of the major uses of
statistics is to estimate the corresponding parameter. This formula has the problem that the
estimated value isn't the same as the parameter. To counteract this, the sum of the squares of the
deviations is divided by one less than the sample size.

1
Sample Varince  S 2   ( X i  X ) 2 , i  1,2,....., n
n 1

For the case of frequency distribution it is expressed as:

1
Sample Varince  S 2   f i ( X i  X ) 2 , i  1,2,.....k
n 1

We usually use the following short cut formula.

n
 X i  nX 2
2

S2  i 1
, for raw data.
n 1
 k
 f i X i  nX 2
2

S2  i 1
, for frequency distribution.
n 1

Standard Deviation
There is a problem with variances. Recall that the deviations were squared. That means that the
units were also squared. To get the units back the same as the original data values, the square
root must be taken.

Populations tan dard deviation    2

Samples tan dard deviation  s  S2

The following steps are used to calculate the sample variance:

1. Find the arithmetic mean.
2. Find the difference between each observation and the mean.
3. Square these differences.
4. Sum the squared differences.
5. Since the data is a sample, divide the number (from step 4 above) by the number of
observations minus one, i.e., n-1 (where n is equal to the number of observations in the
data set).
Examples: Find the variance and standard deviation of the following sample data
1. 5, 17, 12, 10.
2. The data is given in the form of frequency distribution.
Class Frequency
40-44 7
45-49 10
50-54 22
55-59 15
60-64 12
65-69 6
70-74 3
 Solutions:
1. X  11
Xi 5 10 12 17 Total

(Xi- X)2 36 1 1 36 74

n
 ( X i  X )2 74
 S 2  i 1   24.67.
n 1 3
 S  S 2  24.67  4.97.
2. X  55
Xi(C.M) 42 47 52 57 62 67 72 Total
1183 640 198 60 588 864 867 4400
fi(Xi- X)2
n
 fi ( X i  X )2 4400
 S2  i 1
  59.46.
n 1 74
S  S2  59.46  7.71.
Special properties of Standard deviations

1.  ( X i  X )2   ( X i  A) 2 ,A X
n 1 n 1
2. For normal (symmetric distribution the following holds.
 Approximately 68.27% of the data values fall within one standard deviation of the mean. i.e.
with in ( X  S , X  S )

 Approximately 95.45% of the data values fall within two standard deviations of the mean. i.e.
with in ( X  2 S , X  2 S )

 Approximately 99.73% of the data values fall within three standard deviations of the mean.
i.e. with in ( X  3S , X  3S )

3. Chebyshev's Theorem
For any data set ,no matter what the pattern of variation, the proportion of the values that fall

with in k standard deviations of the mean or ( X  kS , X  kS ) will be at least 1  1 ,

2
k
 where k is an number greater than 1. i.e. the proportion of items falling beyond k standard

deviations of the mean is at most 1

k2
Example: Suppose a distribution has mean 50 and standard deviation 6.What percent of the
numbers are:
a) Between 38 and 62
b) Between 32 and 68
c) Less than 38 or more than 62.
d) Less than 32 or more than 68.
Solutions:
a) 38 and 62 are at equal distance from the mean,50 and this distance is 12
 ks  12
12 12
 k    2
S 6

 Applying the above theorem at least (1  1 ) *100%  75% of the numbers lie between 38 and 62.
k2
b) Similarly done.
c) It is just the complement of a) i.e. at most 1 *100%  25% of the numbers lie less
2
k
than 32 or more than 62.
d) Similarly done.
Example 2: The average score of a special test of knowledge of wood refinishing has a mean of
53 and standard deviation of 6. Find the range of values in which at least 75% the scores will lie.
(Exercise)
4. If the standard deviation of X 1 , X 2 , .....X n is S , then the standard deviation of

a) X 1  k , X 2  k , .....X n  k will alsobe S

b) kX1 , kX 2 , .....kX n would be k S

c) a  kX1 , a  kX 2 , .....a  kX n would be k S

Exercise: Verify each of the above relationship, considering k and a as constants.

Examples:
1. The mean and the standard deviation of a set of numbers are respectively 500 and 10.
 a. If 10 is added to each of the numbers in the set, then what will be the
variance and standard deviation of the new set?
b. If each of the numbers in the set are multiplied by -5, then what will be
the variance and standard deviation of the new set?
Solutions:
1. a. They will remain the same.

b. New standard deviation=  k S  5 *10  50

Coefficient of Variation (C.V): Is defined as the ratio of standard deviation to the mean usually
expressed as percents.
S
C.V  *100
X
 The distribution having less C.V is said to be less variable or more consistent.
Examples:
1. An analysis of the monthly wages paid (in Birr) to workers in two firms A and B belonging to the
same industry gives the following results.
Value Firm A Firm B
Mean wage 52.5 47.5
Median wage 50.5 45.5
Variance 100 121
In which firm A or B is there greater variability in individual wages?
Solutions: Calculate coefficient of variation for both firms.
SA 10
C.VA  *100  *100  19.05%
XA 52.5

SB 11
C.VB  *100  *100  23.16%
XB 47.5
Since C.VA < C.VB, in firm B there is greater variability in individual wages.
2. A meteorologist interested in the consistency of temperatures in three cities during a given week
collected the following data. The temperatures for the five days of the week in the three cities were
City 1 25 24 23 26 17
City2 22 21 24 22 20
City3 32 27 35 24 28
Exercise: Which city have the most consistent temperature, based on these data?
2.4.2 Standard Scores (Z-scores)

 If X is a measurement from a distribution with mean X and standard deviation S, then

its value in standard units is
X 
Z  , for population .

X X
Z  , for sample
S
 Z gives the deviations from the mean in units of standard deviation
 Z gives the number of standard deviation a particular observation lie above or below the
mean.
 It is used to compare two observations coming from different groups.
Examples:
1. Two sections were given introduction to statistics examinations. The following information
was given.
Value Section 1 Section 2
Mean 78 90
Stan.deviation 6 5
Student A from section 1 scored 90 and student B from section 2 scored 95.Relatively speaking
who performed better?
Solutions: Calculate the standard score of both students.
X A  X1 90  78
ZA   2
S1 6
XB  X2 95  90
ZB   1
S2 5
 Student A performed better relative to his section because the score of student A is two
standard deviation above the mean score of his section while, the score of student B is only one
standard deviation above the mean score of his section.
2. Two groups of people were trained to perform a certain task and tested to find out which
group is faster to learn the task. For the two groups the following information was given:
Value Group one Group two

Mean 10.4 min 11.9 min

Stan.dev. 1.2 min 1.3 min

Relatively speaking:
a) Which group is more consistent in its performance
b) Suppose a person A from group one take 9.2 minutes while person B from Group two
take 9.3 minutes, who was faster in performing the task? Why?
Solutions:
a) Use coefficient of variation.
S1 1.2
C.V1  *100  *100  11.54%
X1 10.4

S2 1.3
C.V2  *100  *100  10.92%
X2 11.9
Since C.V2 < C.V1, group 2 is more consistent.
b) Calculate the standard score of A and B
X A  X 1 9.2  10.4
ZA    1
S1 1.2
XB  X2 9.3  11.9
ZB    2
S2 1.3
Child B is faster because the time taken by child B is two standard deviation shorter than the
average time taken by group 2 while, the time taken by child A is only one standard deviation
shorter than the average time taken by group 1.