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Lecture 3

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9 views30 pages

Lecture 3

Uploaded by

uditbhayana1709
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Measures of Location and

Dispersion
One of the most important uses of a histogram is to provide
information about the shape, or form, of a distribution.
Percentile

70th percentile in any examination means ,


approximately 70% of the students scored lower than
this individual and approximately 30% of the students
scored higher than this individual.
Percentile

Numbers Ranks
3 1
5 2
7 3
8 4
9 5
11 6
13 7
15 8
Example 1
Example 2
Percentile
Example 2(comparison)
Example 3
Example 3.....

The Birthdays are as follows:


Quartile
• It is often desirable to divide data into four parts, with each
part containing approximately one-fourth, or 25% of the
observations.
• Quartiles are just specific percentiles; thus, the steps for
computing percentiles can be applied directly in the
computation of quartile
Central Tendency

• The measures of central tendency which are most


commonly used in practice.
 Arithmetic Mean – Simple and Weighted Mean
 Median
 Mode
Mean

• It is the most important measure of location is the


mean, or average value, for a variable. The mean
provides a measure of central location for the
data.
• Arithmetic Mean: The most popularly used
measure of central tendency is arithmetic mean or
simply mean. Arithmetic mean is of two types :
• Simple arithmetic mean
• Weighted arithmetic mean.
Properties of Arithmetic mean

The following are a few important properties of arithmetic


mean:
• The sum of the deviations of the items from the arithmetic
mean is always zero, i.e. ,   X  X  0
• The sum of the squared deviations of the items from the
arithmetic mean is minimum, i.e.,  X  X  is minimum.
2

• If each item of a series is increased or decreased by a


constant k, then the arithmetic mean of the new series also
get increased or decreased by k, i.e., New mean = X  k
• If each item of a series is multiplied by a constant k then the
arithmetic mean of the new series also gets multiplied by k,
i.e., New mean =
kX
Combined Arithmetic Mean

• Consider two related groups such that N 1 and N2 are


the number of observations in first and second groups
X 1 and X 2
respectively. Let be their respective means.
Then the mean of the two groups taken together or
their combined mean is given by
N1 X 1  N 2 X 2
X 12 
N1  N 2

The formula can be extended to more number of


groups.
Merits of Arithmetic Mean

• It is simple to calculate and easy to understand.


• It is based on each and every observation of the
series.
• It does not fluctuate with sampling.
• It does not depend upon the position in the series.
• It is capable of further algebraic treatment.
• It is rigidly defined. Everyone will get the same
answer when apply the formula of average.
Demerits of Arithmetic Mean

• It is unduly affected by extreme values, i.e., by the presence of very large and
very small items. For instance, mean of 55, 54, 49, 50, 5is 42.6 but 42.6 is not
a single value that represent the whole of data as one single item 5 has affected
the average so much.
• It cannot be determined by inspection like mode and it cannot be located
graphically.
• In case of open-end classes where the lower limit of the first class interval and
upper limit of the last class interval is not known, mean sometimes introduces
error. In such cases, assumptions should be made regarding the size of the
class interval of open-end classes. In such cases, median and mode are the
most suitable averages.
• Mean is not a suitable average in case of qualitative data such as honesty,
beauty, voice quality etc. In such cases, rank correlation is computed.
• Mean is not a good measure of central tendency in case of normal distribution
and in case of U shaped distribution.
Example

• If the balance in savings bank account of nine


households in rupees are:
745, 2000, 1500, 68000, 461, 549, 3750,
1800, 4795,The average balance per
household is....
Median

• The median is another measure of central location.


• The median is the value in the middle when the data
are arranged in ascending order (smallest value to
largest value).
• With an odd number of observations, the median is
the middle value.
• An even number of observations has no single middle
value. In this case, we follow convention and define
the median as the average of the values for the middle
two observations.
Median

• The median is the measure of location most


often reported for annual income and property
value data because a few extremely large
incomes or property values can inflate the
mean. In such cases, the median is the
preferred measure of central location.
• whenever a data set contains extreme values,
the median is often the preferred measure of
central location
Example
Mode

• The mode is the value that occurs with greatest


frequency
• Situations can arise for which the greatest frequency
occurs at two or more different values. In these
instances more than one mode exists. If the data contain
exactly two modes, we say that the data are bimodal. If
data contain more than two modes, we say that the data
are multimodal. In multimodal cases the mode is almost
never reported because listing three or more modes
would not be particularly helpful in describing a
location for the data
Comparison of Central tendency

• A skewed distribution is a distribution in which


more data values in the data set is
concentrated around the lower values Mode
<Median < Mean
Shape of frequency curve ...Measure of Skewness

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