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Lecture 3 Descriptive Statistics - Numerical Measures

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21 views28 pages

Lecture 3 Descriptive Statistics - Numerical Measures

Uploaded by

Sayeeda Jahan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to

Statistics

Sayeeda Jahan

Spring 2021
Chapter 3
Descriptive Statistics: Numerical
Methods
Part A
 Measures of Location
 Measures of Variability


 %
x
Measures of Location

 Mean
 Median
 Mode
 Percentiles
 Quartiles
Example: Apartment Rents

Given below is a sample of monthly rent


values ($)
for one-bedroom apartments. The data is a
sample of 70
apartments in a particular city. The data are
425 430 430 435 435 435 435 435 440 440
presented
in440 440 440
ascending 445 445 445 445 445 450 450
order.
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Mean

 The mean of a data set is the average of all


the data values.
 If the data are from a sample, the mean is
denoted
x by
.  xi
x
n
 If the data are from a population, the mean is
denoted by m (mu).
 xi

N
Example: Apartment Rents

 Mean
 xi 34, 356
x  490.80
n 70
425 430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Median

 The median is the measure of location most


often reported for annual income and property
value data.
 A few extremely large incomes or property
values can inflate the mean.
Median

 The median of a data set is the value in the


middle when the data items are arranged in
ascending order.
 For an odd number of observations, the
median is the middle value.
 For an even number of observations, the
median is the average of the two middle
values.
Example: Apartment Rents

 Median
Median = 50th percentile
i = (p/100)n = (50/100)70 = 35.5
Averaging the 35th and
36th data values:
Median = (475 + 475)/2 = 475
425 430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Mode

 The mode of a data set is the value that occurs


with greatest frequency.
 The greatest frequency can occur at two or
more different values.
 If the data have exactly two modes, the data
are bimodal.
 If the data have more than two modes, the
data are multimodal.
Example: Apartment Rents

 Mode
450 occurred most frequently (7
times)
Mode = 450
425 430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Percentiles

 A percentile provides information about how


the data are spread over the interval from the
smallest value to the largest value.
 Admission test scores for colleges and
universities are frequently reported in terms of
percentiles.
Percentiles

 The pth percentile of a data set is a value such


that at least p percent of the items take on this
value or less and at least (100 - p) percent of the
items take on this value or more.
• Arrange the data in ascending order.
• Compute index i, the position of the pth
percentile.
i = (p/100)n
• If i is not an integer, round up. The p th
percentile is the value in the i th position.
• If i is an integer, the p th percentile is the
average of the values in positions i and i +1.
Example: Apartment Rents

 90th Percentile
i = (p/100)n = (90/100)70 = 63
Averaging the 63rd and 64th data
values:
90th Percentile = (580 + 590)/2 =
425 585
430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Quartiles

 Quartiles are specific percentiles


 First Quartile = 25th Percentile
 Second Quartile = 50th Percentile = Median
 Third Quartile = 75th Percentile
Example: Apartment Rents

 Third Quartile
Third quartile = 75th percentile
i = (p/100)n = (75/100)70 = 52.5 =
53
Third quartile = 525
425 430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Measures of Variability

 It is often desirable to consider measures of


variability (dispersion), as well as measures of
location.
 For example, in choosing supplier A or supplier
B we might consider not only the average
delivery time for each, but also the variability
in delivery time for each.
Measures of Variability

 Range
 Interquartile Range
 Variance
 Standard Deviation
 Coefficient of Variation
Range

 The range of a data set is the difference


between the largest and smallest data values.
 It is the simplest measure of variability.
 It is very sensitive to the smallest and largest
data values.
Example: Apartment Rents

 Range
Range = largest value - smallest
value
Range = 615 - 425 = 190
425 430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Interquartile Range

 The interquartile range of a data set is the


difference between the third quartile and the
first quartile.
 It is the range for the middle 50% of the data.
 It overcomes the sensitivity to extreme data
values.
Example: Apartment Rents

 Interquartile Range
3rd Quartile (Q3) = 525
1st Quartile (Q1) = 445
Interquartile Range = Q3 - Q1 = 525 - 445 =
80
425 430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615
Variance

 The variance is a measure of variability that


utilizes all the data.
 It is based on the difference between the value
of each observation (xi) and the mean (x for a
sample, m for a population).
Variance

 The variance is the average of the squared


differences between each data value and the
mean.
 If the data set is a sample, the variance is
denoted by s2. (x  x )
2
s2  i
n 1

 If the data set is a population, the variance is


denoted by  2. 2  ( xi   ) 2
 
N
Standard Deviation

 The standard deviation of a data set is the


positive square root of the variance.
 It is measured in the same units as the data,
making it more easily comparable, than the
variance, to the mean.
 If the data set is a sample, the standard
deviation is denoted s.
s  s2
 If the data set is a population, the standard
deviation is denoted  (sigma).

  2
Coefficient of Variation

 The coefficient of variation indicates how large


the standard deviation is in relation to the
mean.
 If the data set is a sample, the coefficient of
variation is computed s as follows:
(100)
x

 If the data set is a population, the coefficient


of variation is computed
 as follows:
(100)

Example: Apartment Rents

 Variance
2  ( xi  x ) 2
s  2 , 996.16
n 1
 Standard Deviation

s  s2  2996. 47 54. 74
 Coefficient of Variation

s 54. 74
100  100 11.15
x 490.80
End of Chapter 3, Part A

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