University School of Business

BA-ECONOMICS
SUBJECT NAME: Statistical Methods
SUBJECT CODE: 24SET-113

Dr. Aman Jindal

ASSOCIATE PROFFESOR

TOPIC OF PRESENTATION
CLASSIFICATION OF DATA DISCOVER . LEARN . EMPOWER
Course After undergoing this Course, the students will be
Outcome able:
CO1 To understand the key concepts and principles of applied
statistics.
CO2 To apply the tools of applied statistics and develop application
of models.
CO3 To analyse the tools of applied statistics in Economics.

CO4 To illustrate the concept of probability, operations research, time

series and index numbers.

CO5 To developed statistical models for industrial application.

Classification of
Data

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 CLASSIFICATION OF
DATA
Classification is the process of arranging the data into different groups or classes according to some

common characteristics. The process of classification is compared to the process of sorting out
operation, all collected letters and packets are separated on the basis of the common characteristic,
i.e. their destinations, Thus ,in the process of classification data are classified into
various homogeneous groups or classes on the basis of similarities and resemblances
 OBJECTIVES OF
CLASSIFICATION
 To facilitate comparison i.e. to make the data comparable.
 To point out the most important feature of the data at a glance.

 To present the data in a brief form.

 To enable statistical treatment of the data collected.
 To make data attractive and effective.
To condense the mass of data in such a way that their similarities and dissimilarities
become very clear.
 METHODS OF CLASSIFICATION
• Geographical Classification
• Chronological Classification
• Quantitative Classification
• Qualitative Classification
GEOGRAPHICAL CLASSIFICATION:
In geographical classification, data are classified on the basis of geographical or locational differences
between the various items. For example, we may present the number of firms producing bicycles states
wise as follows .

No. of firms producing bicycles in 2001

STATE No. OF FIRMS

Punjab 30
Haryana 20
U.P 25
CHRONOLOGICAL
CLASSIFICATION
When data are classified on the basis of time , it is known as chronological
classification. For example, we may present population figures on the
basis of time as given in the following manner.
Population of India (1951-1991)

YEAR POPULATION ( in crores)

1951 36.1
1961 43.9
1971 54.8
1981 68.4
1991 84.4
Qualitative Classification

• Classification of data according to the characteristics and attributes is called Qualitative

classification of data. For example; some qualities like honesty, beauty, intelligence,
literacy, marital status, etc.

Classification Value
Very Good 3
Good 2
Acceptable 1
Not acceptable 0
 QUANTITATIVE CLASSIFICATION

When data are classified on the basis of some characteristics which is capable of direct
quantitative measurement such as height, weight, income, marks. etc., it is called
quantitative classification or numerical or grouped classification. For instance,students
of a college may be classified according to weight as shown in the following table :

WEIGHT ( in Ibs) NO. OF STUDENTS

70-80 40
80-90 50
90-100 150
100-110 250
110-120 200
VARIABL
E
The characteristic, which is capable of direct quantitative measurement is called a variable or
variate. Height weight, production, consumption, marks, etc., are called variables. A variable may
be either discrete or continuous .

(1)Discrete variable: A discrete variable is that one which takes only isolated or discontinuous
values. There are jumps in case of a discrete variable, e.g., no. of goals scored in a match is a
discrete variable .

(2)Continuous variable: A continuous variable is one which can take any value in a specified
interval. Temperature recorded of patients in a hospital, heights of all BBA students of XYZ
university , wages of all workers are examples of continuous variables.
WAYS OF CLASSIFY NUMERICAL DATA OR RAW DATA

• Numerical data or raw data can be classified in any of two ways:

1. Ordered array or individual series
2. Frequency distribution:
(a) discrete frequency distribution or discrete series
(b) Continuous frequency distribution or continuous series
 (1) Ordered array or individual series
An ordered array or individual series is an orderly arrangement of data according to the

ascending or descending order of magnitude. So, on order to prepare an array, the only thing to
be done is to arrange the data or various values of variable in ascending or descending order of
magnitude. An array may be useful if the data are small , but if the variable takes a large number of
values, an array becomes unwieldy.
 Example 1. following data relate to the pocket
expenses (rupees) of 10 students of b.com class.
Array them in ascending and descending
order:
50,20,30,15,45,40,35,25,20,43
(a) Pocket expenses(rupees) of 10 (b)
Pocket expenses(rupees) of
stud ents (in ascending order) 10 students (in descending
order)

15 35 50 30
20 40 45 25
20 43 43 20
25 45 40 20
30 50 35 15
(2) Frequency distribution
The frequency distribution is a statistical table which shows the values of variable arranged order

of magnitude, either individually or in groups, and also the corresponding frequencies side by
side. There are two types of frequency distributions:

(a) discrete frequency distribution

(b) grouped frequency distribution

 (a) Discrete frequency distribution:
It is a statistical table which shows the values of variable individually and also the corresponding
frequencies side by side.In its construction, we count the frequencies of the various items. To find
the frequency of a particular item, we make use of tally bars. Each tally bar indicates the
presence of one value of the item. Tally bars are used in the form of ‘four and cross method’.
The value of the item is repeated five times, a cross is on four lines.
• Example 2.Twenty students of b.com class secured the following marks in
the economics out of 50 marks:
11 12 14 11 16 11 17 16 17 14
17 18 20 14 20 17 20 17 14 20

Present the data in the discrete frequency distribution. Marks Tally bars Frequency

solution: formulation of a 11 III 3

12 I 1
discrete frequency
14 IIII 4
distribution
16 II 2
17 IIII 5
18 I 1
20 IIII 4
Total 20
• Grouped frequency distribution:
It is a statistical table which shows the values of the variable in groups and
also the corresponding frequencies side by side. An example of a grouped
frequency distribution is given below:

Daily wages (Rs) No. of workers

40-50 7
50-60 12
60-70 8
70-80 6
80-90 2
total 35
• Useful term associated with grouped frequency distribution
For a detailed study of grouped frequency distribution, it is necessary to
define and understand following terms:

(a) Class interval or class: it is a group of numbers in which items are placed such as 10-
20, 20-30 etc.

(b) Class frequency: the number of observations falling within a class is called its class
frequency. It is denoted by ‘f’.

(c) Class limits: each class is located between two numbers. These two numbers constitute
class limits. The lowest value of a class is its lower limit and higher value is termed as

upper limit. For example, 10-20 ,lower limit is 10 and the upper limit is 20.
(d) Class mark or mid –value: It is the average value of the upper limit and the lower limit
symbolically.

M.V.(m)=(L1+L2)/2

(e)Width or magnitude of the class : the width or size or magnitude of a class is the
difference between its lower and upper class limits. Symbolically,

i=L1-L2
CONSTRUCTION OF FREQUENCY
DISTRIBUTION
Example: Given below are the marks of 20 students of
a class. Make a discrete frequency distribution.

10 12 18 14 13 10 12 15 17 19

18 16 14 15 17 11 20 13 12 14
SOLUTION: Construction of a discrete frequency
distribution
Marks Tally bars No. of students(f)
10 || 2
11 | 1
12 ||| 3
13 || 2
14 ||| 3
15 || 2
16 | 1
17 || 2
18 || 2
19 | 1
20 | 1
Total 20
Referenc
es
TEXT BOOKS
• 1. Levine, D., Sazbat, K. and Stephan, D. 2013. Business Statistics, 7thEdition,
Pearson Education, India, ISBN: 9780132807265.
• 2. J.K Sharma, 2012. Business Statistics, 2nd Edition, Sixth Impression, Pearson
Education India, 2012 a, ISBN: 9788177586541

REFERENCE BOOKS
• R1 J.K Sharma, Fourth Edition 2014 Business Statistics , Vikas Publishing House ,
ISBN: 9789325980805.
• R2 Gupta, S. 2011. Statistical Methods, 4thEdition, Sultan Chand & Sons, ISBN:
8180548627

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Assessment Pattern

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 THANK YOU

For queries get in touch with me at: [email protected]