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
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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).
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Histograms For Quantitative Data
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Example: Construct a Histogram for temperature data. 35
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Measures of Central Tendency
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).
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Measures of Central Tendency
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.
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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.
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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.
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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.
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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, .
Arithmetic Mean for Ungrouped Data
Examples
of Ungrouped Data:
Example 1: Marks obtained by 5 students, 20, 15, 5, 20, 10
Arithmetic Mean for Ungrouped Data
Arithmetic Mean for Ungrouped Data
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
Arithmetic Mean for Grouped Data
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
Arithmetic Mean for Grouped Data
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
Arithmetic Mean for Grouped Data
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
Arithmetic Mean for Grouped Data
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
Arithmetic Mean for Grouped Data
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
Arithmetic Mean for Grouped Data
Calculate and .
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
Arithmetic Mean for Grouped Data
Calculate and .
Classes Frequency (f) Mid Point (x) fx
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
Arithmetic Mean for Grouped Data
Calculate and .
Classes Frequency (f) Mid Point (x) fx
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 for Grouped Data
Calculate Arithmetic mean using above formula.
Classes Frequency (f) Mid Point (x) fx
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 for Grouped Data
Calculate Arithmetic mean using above formula.
Classes Frequency (f) Mid Point (x) fx
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
Measures of Central Tendency
Characteristics of a good Average
Arithmetic Mean (or simply Mean)
Mean for ungrouped Data
Mean for grouped Data
Related Examples
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Next Lecture
In next lecture, we will study:
Measures of Central Tendency
Weighted Mean
Combined Mean
Merits and demerits of Arithmetic Mean
Median
Median for Grouped Data
Median for Ungrouped Data
Merits and demerits of Median
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