Module 10: Statistics, Part 2

By the end of this week, you will:

1. Recognize, describe, and calculate measures of spread of
data: variance, standard deviation, and range. (12.4)
2. Recognize the normal probability distribution and apply it
appropriately. (12.5)

12.1-1 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Section 12.4

Measures of
Dispersion

12.1-2 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 What You Will Learn
Upon completion of this section, you will be
able to:
• Calculate the range of a set of data.
• Calculate the standard deviation of a set
of data.

12.1-3 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Measures of Dispersion

Measures of dispersion are used to

measure the variability of data, including the
spread of the data.

12.1-4 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Range

The range is the difference between the

highest and lowest values; it indicates the
total spread of the data.
Range = highest value – lowest value

12.1-5 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Example 1: Determine the Range

The amount of carbohydrates, in grams, of

10 different types of yogurt is given below.
Determine the range of these data.
29, 12, 26, 18, 19, 8, 9, 8, 9, 16

12.1-6 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Example 1: Determine the Range

Solution
29, 12, 26, 18, 19, 8, 9, 8, 9, 16
Range = highest value – lowest value
= 29 – 8 = 21
The range of the amount of carbohydrates is
21 grams.

12.1-7 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Standard Deviation
The standard deviation measures how
much the data differ from the mean. It is
symbolized with s when it is calculated for a
sample, and with σ (Greek letter sigma)
when it is calculated for a population.

x  x 
2

s
n 1
12.1-8 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Standard Deviation
The standard deviation, s, of a set of data
can be calculated using the following
formula.

x  x 
2

s
n 1

12.1-9 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 To Find the Standard Deviation of a
Set of Data
1. Determine the mean of the set of data.
2. Make a chart having three columns:
Data Data – Mean (Data – Mean)2
3. List the data vertically under the column
marked Data.
4. Subtract the mean from each piece of
data and place the difference in the
Data – Mean column.
12.1-10 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 To Find the Standard Deviation of a
Set of Data
5. Square the values obtained in the
Data – Mean column and record these
values in the (Data – Mean)2 column.
6. Determine the sum of the values in the
(Data – Mean)2 column.

12.1-11 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 To Find the Standard Deviation of a
Set of Data
7. Divide the sum obtained in Step 6 by
n – 1, where n is the number of pieces of
data.
8. Determine the square root of the number
obtained in Step 7. This number is the
standard deviation of the set of data.

12.1-12 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Example 3: Determine the Standard
Deviation of Stock Prices
The following are the prices of nine stocks
on the New York Stock Exchange.
Determine the standard deviation of the
prices.
$17, $28, $32, $36, $50, $52, $66, $74, $104

12.1-13 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Example 3: Determine the Standard
Deviation of Stock Prices
Solution
The mean x is

x
 x
n
17  28  32  36  50  52  66  74  104

9
459  51

9
12.1-14 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Example 3: Determine the Standard
Deviation of Stock Prices

12.1-15 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Example 3: Determine the Standard
Deviation of Stock Prices
Solution
Use the formula

x  x 
2
5836
s   729.5  27.01
n 1 9 1
The standard deviation, to the nearest tenth,
is $27.01.
12.1-16 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Section 12.5

The Normal Curve

12.1-17 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 What You Will Learn
Upon completion of this section, you will be
able to:
• Understand properties of a normal
distribution.
• Calculate a z-score and use it to
determine the area under a normal curve.
• Calculate the percentage of data between
any two values in a normal distribution.
12.1-18 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Rectangular Distribution
All the observed values occur with the same
frequency.

12.1-19 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 J-shaped Distribution
The frequency is either constantly increasing
or constantly decreasing.

12.1-20 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Bimodal Distribution
Two nonadjacent values occur more
frequently than any other values in a set of
data.

12.1-21 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Skewed Distribution
Has more of a “tail” on one side than the
other.

12.1-22 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Skewed Distribution
Smoothing the histograms of the skewed
distributions to form curves.

12.1-23 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Skewed Distribution
The relationship between the mean, median,
and mode for curves that are skewed to the
right and left.

12.1-24 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Normal Distribution
The most important distribution is the normal
distribution.

12.1-25 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Properties of a Normal Distribution
• The graph of a normal distribution is
called a normal curve.
• The normal curve is bell shaped and
symmetric about the mean.
• The mean, median, and mode of a normal
distribution all have the same value and
all occur at the center of the distribution.

12.1-26 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Empirical Rule
• Approximately 68% of all the data lie
within one standard deviation of the mean
(in both directions).
• Approximately 95% of all the data lie
within two standard deviations of the
mean (in both directions).
• Approximately 99.7% of all the data lie
within three standard deviations of the
mean (in both directions).
12.1-27 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 z-Scores
z-scores (or standard scores) determine
how far, in terms of standard deviations, a
given score is from the mean of the
distribution.

12.1-28 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 z-Scores
The formula for finding z-scores or standard
scores is

value of piece of data  mean

z
standard deviation

12.1-29 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Example 2: Finding z-scores
A normal distribution has a mean of 60 and a
standard deviation of 15.

Find z-scores for the following values.

a) 75 b) 81 c) 60 d) 33

12.1-30 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Example 2: Finding z-scores
Solution
a) 75
value  mean
z
standard deviation
75  60 15
z75   1
15 15
A value of 75 is 1 standard deviation above
the mean.
12.1-31 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Example 2: Finding z-scores
Solution
b) 81
value  mean
z
standard deviation
81  60 21
z81    1.4
15 15
A value of 81 is 1.4 standard deviations
above the mean.
12.1-32 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Example 2: Finding z-scores
Solution
c) 60
value  mean
z
standard deviation
60  60 0
z60   0
15 15

The mean always has a z-score of 0.

12.1-33 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Example 2: Finding z-scores
Solution
d) 33
value  mean
z
standard deviation
33  60 27
z33    1.8
15 15
A value of 33 is 1.8 standard deviations
below the mean.
12.1-34 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 To Determine the Percent of Data
Between any Two Values
1. Draw a diagram of the normal curve
indicating the area or percent to be
determined.
2. Use the formula to convert the given
values to z-scores. Indicate these
z-scores on the diagram.
3. Look up the percent that corresponds to
each z-score in Table 12.8.
12.1-35 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 To Determine the Percent of Data
Between any Two Values
a) When finding the percent of data to the left
of a negative z-score, use Table 12.8(a).

12.1-36 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 To Determine the Percent of Data
Between any Two Values
b) When finding the percent of data to the left
of a positive z-score, use Table 12.8(b).

12.1-37 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 To Determine the Percent of Data
Between any Two Values
c) When finding the percent of data to the
right of a z-score, subtract the percent of
data to the left of that z-score from 100%.

12.1-38 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 To Determine the Percent of Data
Between any Two Values
c) Or use the symmetry of a normal
distribution.

12.1-39 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 To Determine the Percent of Data
Between any Two Values
d) When finding the percent of data between
two z-scores, subtract the smaller percent
from the larger percent.

12.1-40 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 To Determine the Percent of Data
Between any Two Values
4. Change the areas you found in Step 3 to
percents as explained earlier.

12.1-41 Copyright 2017, 2013, 2009, Pearson, Education, Inc.

 Example 5: Horseback Rides
Assume that the length of time for a
horseback ride on the trail at Triple R
Ranch is normally distributed with a mean
of 3.2 hours and a standard deviation of
0.4 hour.
a) What percent of horseback rides last at
least 3.2 hours?
Solution
In a normal distribution, half the data are
above the mean. Since 3.2 hours is the
mean, 50%, of the horseback rides last at
least 3.2 hours.
12.1-42 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Example 5: Horseback Rides
b) What percent of horseback rides last less
than 2.8 hours?
Solution
Convert 2.8 to a z-score.
2.8  3.2
z2.8   1.00
0.4

The area to the left of –1.00 is 0.1587.

The percent of horseback rides that last less
than 2.8 hours is 15.87%.
12.1-43 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Example 5: Horseback Rides
c) What percent of horseback rides are at
least 3.7 hours?
Solution
Convert 3.7 to a z-score.
3.7  3.2
z3.7   1.25
0.4
Area to left of 1.25 is .8944 = 89.44%.
% above 1.25: 1 – 89.44% = 10.56%.
Thus, 10.56% of horseback rides last at least
3.7 hours.
12.1-44 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Example 5: Horseback Rides
d) What percent of horseback rides are
between 2.8 hours and 4.0 hours?
Solution
Convert 4.0 to a z-score.
4.0  3.2
z4.0   2.00
0.4
Area to left of 2.00 is .9772 = 97.72%.
Percent below 2.8 is 15.87%.
The percent of data between –1.00 and 2.00
is 97.72% – 15.87% = 81.85%.
12.1-45 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Example 5: Horseback Rides
Solution

Thus, the percent of horseback rides that

last between 2.8 hours and 4.0 hours is
81.85%.
12.1-46 Copyright 2017, 2013, 2009, Pearson, Education, Inc.
 Example 5: Horseback Rides
e) In a random sample of 500 horseback
rides at Triple R Ranch, how many are at
least 3.7 hours?

Solution
In part (c), we determined that 10.56% of all
horseback rides last at least 3.7 hours.
Thus, 0.1056 × 500 = 52.8, or approximately
53, horseback rides last at least 3.7
hours.
12.1-47 Copyright 2017, 2013, 2009, Pearson, Education, Inc.