MTH 161: Introduction To Statistics: Dr. Mumtaz Ahmed

MTH 161: Introduction To Statistics
Lecture 07
Dr. MUMTAZ AHMED
Review of Previous Lecture
In last lecture we discussed:
 An overview of MS-Excel
 Creating Charts in MS-Excel
Graphs for Qualitative Data
 Bar Chart
 Simple Bar Chart
 Multiple Bar Chart
 Component Bar Chart
 Pie Chart
 Graphs for Quantitative Data
 Scatter Plot
2  Histogram
Objectives of Current Lecture
 Use of Excel Add-ins
Activating Excel Add-ins
Introduction to Analysis Tool Pack Excel Add-in
 Calculating Basic Summary Statistics using Data Analysis Tool Pack
 Constructing Histogram using Data Analysis Tool pack
Measures of Central Tendency

 Characteristics of a good Average
 Arithmetic Mean (or simply Mean)
 Mean for ungrouped Data
 Mean for grouped Data
 Related Examples
3
Excel Add-ins
ADD-IN:
An Add-in is a software program that extends the capabilities of larger
programs.
There are many Excel add-ins designed to complement the basic

functionality offered by Excel.
Common Add-in for performing basic statistical functions in Excel is:

‘Analysis Tool Pack’.
Before using, we have to activate the add-in (if it is not already active).
4
Histograms For Quantitative Data
24
Example: Construct a Histogram for temperature data. 35
17
21
24
37
26
46
58
30
32
13
12
38
41
43
44
27
53
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 Data, in nature, has a tendency to cluster around a central value.
 That central value condenses the large mass of data into a single
representative figure.
 The central value can be obtained from sample values (called

statistic) and population observations (called parameter).
6
Definition:
Average is an attempt to find a single figure to describe a group of
figures. (Clark, A famous Statistician)
Objectives for the study of measures of central tendency

Two main objectives:
 To get one single value that represent the entire data.
 To facilitate comparison among different data sets.
7
Characteristics of a Good Average
According to the statisticians Yule and Kendall, an average will be termed
good or efficient if it possesses the following characteristics:
 Should be easily understandable.
 Should be rigidly defined.
It means that the definition should be so clear that the interpretation of the
definition does not differ from person to person.
 Should be mathematically expressed
 Should be easy to calculate.
 Should be based on all the values of the variable.
This means that in the formula for average all the values of the variable
should be incorporated.
8
Characteristics of a Good Average
 The value of average should not change significantly along with the
change in sample.
This means that the values of the averages of different samples of the same
size drawn from the same population should have small variations. In other
words, an average should possess sampling stability.
 Should be suitable for further mathematical treatment.
 The average should be unduly affected by extreme values.

This means that the formula for average should be such, that it does not
show large due to the presence of one or two very large or very small
values of the variable.
9
Different Measures of Central Tendency
 Mathematical Averages
Arithmetic Mean or simply Mean or average
Geometric Mean
Harmonic Mean
 Positional Averages
Median
Mode
In this lecture we will focus on Arithmetic Mean in Detail.

The discussion of other measures of Central Tendency will be in
subsequent lectures.
10
Arithmetic Mean (or Simply Mean)
It is the most popular and well known measure of central tendency.


 It can be used with both discrete and continuous data.
Calculation:
The mean is equal to the sum of all the values in the data set divided by the
number of values in the data set.
Example: Calculate Arithmetic Mean of five numbers:

2, 5, 7, 10, 6
Arithmetic Mean=(2+5+7+10+6)/5=30/5=6
Notation:
Sample Mean ()
Population Mean ()
Arithmetic Mean for Ungrouped Data
General
 Formulae For Un-Grouped Data:
For ‘n’ observations, .

Examples
 of Ungrouped Data:
Example 1: Marks obtained by 5 students, 20, 15, 5, 20, 10


SS
Arithmetic Mean for Grouped Data
General
 Formulae For Grouped Data:
Where,
is the frequency of the i-th class
is the mid point of the i-thclass
Example: Calculate Arithmetic Mean for the following
frequency distribution of temperature data:
Classes Frequency (f)
11-20 3
21-30 6
31-40 5
41-50 4
51-60 2

Calculate Mid point (x) of each class.
Classes Frequency (f)

11-20 3
21-30 6
31-40 5
41-50 4
51-60 2

Calculate Mid point (x) of each class.
Classes Frequency (f) Mid Point (x)

11-20 3 (11+20)/2=15.5
21-30 6 25.5
31-40 5 35.5
41-50 4 45.5
51-60 2 55.5

Calculate the product of frequency (f) and Mid point (x) of each class.
i.e. calculate fx.
Classes Frequency (f) Mid Point (x)

11-20 3 (11+20)/2=15.5
21-30 6 25.5
31-40 5 35.5
41-50 4 45.5
51-60 2 55.5

Calculate the product of frequency (f) and Mid point (x) of each class.
i.e. calculate fx.
Classes Frequency (f) Mid Point (x) fx

11-20 3 (11+20)/2=15.5 46.5
21-30 6 25.5 153
31-40 5 35.5 177.5
41-50 4 45.5 182
51-60 2 55.5 111

Calculate and .

11-20 3 (11+20)/2=15.5 46.5
21-30 6 25.5 153
31-40 5 35.5 177.5
41-50 4 45.5 182
51-60 2 55.5 111

Calculate and .

11-20 3 (11+20)/2=15.5 46.5
21-30 6 25.5 153
153
31-40
31-40 55 35.5
35.5 177.5
177.5
41-50
41-50 44 45.5
45.5 182
182
51-60
51-60 22 55.5
55.5 111
111
Total =20
Total

Calculate and .

11-20 3 (11+20)/2=15.5 46.5
21-30 6 25.5 153
153
31-40
31-40 55 35.5
35.5 177.5
177.5
41-50
41-50 44 45.5
45.5 182
182
51-60
51-60 22 55.5
55.5 111
111
Total =20 =670
Total

Calculate Arithmetic mean using above formula.

11-20 3 (11+20)/2=15.5 46.5
21-30 6 25.5 153
153
31-40
31-40 55 35.5
35.5 177.5
177.5
41-50
41-50 44 45.5
45.5 182
182
51-60
51-60 22 55.5
55.5 111
111
Total =20 =670
Total

Calculate Arithmetic mean using above formula.

11-20 3 (11+20)/2=15.5 46.5
21-30 6 25.5 153
153
31-40
31-40 55 35.5
35.5 177.5
177.5
41-50
41-50 44 45.5
45.5 182
182
51-60
51-60 22 55.5
55.5 111
111
Total =20 =670
Total

𝐀𝐫𝐢𝐭𝐡𝐦𝐞𝐭𝐢𝐜 𝐌𝐞𝐚𝐧= 𝒙
´=
∑ 𝒇𝒙 = 𝟔𝟕𝟎 =𝟑𝟑 .𝟓
∑𝒇 𝟐𝟎
Review
 Use of Excel Add-ins
Activating Excel Add-ins
Introduction to Analysis Tool Pack Excel Add-in
 Calculating Basic Summary Statistics using Data Analysis Tool Pack
 Constructing Histogram using Data Analysis Tool pack

 Characteristics of a good Average
 Arithmetic Mean (or simply Mean)
 Mean for ungrouped Data
 Mean for grouped Data
 Related Examples
27
Next Lecture
In next lecture, we will study:

Weighted Mean
Combined Mean
Merits and demerits of Arithmetic Mean
 Median
Median for Grouped Data
Median for Ungrouped Data
Merits and demerits of Median
28

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MTH 161: Introduction To Statistics

Measures of Central Tendency

There are many Excel add-ins designed to complement the basic

Common Add-in for performing basic statistical functions in Excel is:

 The central value can be obtained from sample values (called

Objectives for the study of measures of central tendency

 Should be suitable for further mathematical treatment.

 The average should be unduly affected by extreme values.

In this lecture we will focus on Arithmetic Mean in Detail.

Example: Calculate Arithmetic Mean of five numbers:

For ‘n’ observations, .

Example 1: Marks obtained by 5 students, 20, 15, 5, 20, 10

Classes Frequency (f)

Classes Frequency (f) Mid Point (x)

Classes Frequency (f) Mid Point (x)

Classes Frequency (f) Mid Point (x) fx

Classes Frequency (f) Mid Point (x) fx

Classes Frequency (f) Mid Point (x) fx

Classes Frequency (f) Mid Point (x) fx

Classes Frequency (f) Mid Point (x) fx

Classes Frequency (f) Mid Point (x) fx

Measures of Central Tendency

Measures of Central Tendency

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