Module 1

Continuation
Example:
Calculate the median of weekly
expenditure from the following data:
Solution:
 MODE
Mode (M0) is the value around which maximum concentration of items
occurs. For example, a manufacturer would like to know the size of shoes that has
maximum demand or style of the shirt that is more frequently demanded. Here,
Mode is the most appropriate measure. Mode is the value which is repeated the
highest number of times in the series. It is the size of that item which possesses
the maximum frequency
Computation of Mode in case of Ungrouped Data/ Individual
series

The mode of this series can be obtained by mere inspection. The number which
occurs most often is the mode. Note that if in any series, two or more numbers have the
maximum frequency, then the mode will be difficult to calculate. Such series are called
as Bi-modal, Tri-modal or Multi-modal series.
Example :
Find the mode of 15, 21, 26, 25, 21, 23, 28, 21
Solution:
The mode is 21 since it occurs three times and the other values occur only once
Computation of mode in case of
discrete series
The mode in case of discrete series is calculated by applying the
following methods:
(a) Simple inspection method:
By simple inspection, the modal value is the value of the variable
against which the frequency is the largest.
Example :
Find the modal age of boys studying in XII
class from the following data

Solution:
From the above data we can clearly see that
modal age is 10 yrs because 10 has occurred
maximum number of times i.e. 9.
b) Grouping and Analysis Table method:

This method is generally used when the difference between the

maximum frequency and the frequency preceding it or succeeding it is
very small.
Process of Computation:
In order to find mode, a grouping table and an analysis table are to be
prepared in the following manner:
Grouping Table:
A grouping table consists of 6 columns.
1. Arrange the values in ascending order and write down their corresponding
frequencies in the column-1.
2. In column-2 the frequencies are grouped into two’s and added.
3. In column-3 the frequencies are grouped into two’s, leaving the first
frequency and added.
4. In column-4 the frequencies are grouped into three’s, and added.
5. In column-5 the frequencies are grouped into three’s, leaving the first
frequency and added.
6. In column-6 the frequencies are grouped into three’s, leaving the first and
second frequencies and added.
7. Now in each these columns mark the highest total with a circle.
Analysis
Table:
After preparing a grouping table, prepare an analysis table. While
preparing this table take the column numbers as rows and the values of
the variable as columns. Now for each column number see the highest
total in the grouping table (Which is marked with a circle) and mark the
corresponding values of the variable to which the frequencies are
related by using bars in the relevant boxes. Now the value of the
variable (class) which gets highest number of bars is the modal value
(modal class).
Applying grouping and Analysis Table Method to the given example for
calculating the value of mode for discrete series.
Grouping table:
Computation of Mode in case of Continuous
series
In case of continuous series, for calculating mode, first of all
ensure that the given continuous series is the exclusive series with
equal class intervals. In order to find out the mode we need one step
more than those used for discrete series. As explained in the discrete
series, modal class is determined by inspection or by preparing
grouping and analysis tables. The steps involved are:
1. Determine the modal class which as the maximum frequency.
2. Value of the mode can be calculated by the formula :
Example:
From the following data calculate mode:
Solution:
Example:
Calculate the modal wages from the following data:
Solutio
n: Here the maximum frequency is 12 by inspection method, corresponding to the class interval (35 - 40) which is the
modal class
Empirical Relationship between
Mean, Median and Mode

Mean – Mode = 3 (Mean – Median)

OR
Mode = 3 Median – 2 Mean
Application in Business decisions
A measure of central tendency helps in identifying
the center of all the observations and therefore is also
called as Statistical Averages or Averages or Measures of
Central Location. The central tendency helps in condensing
the large data into a single value that represents the entire
data set.
Measures of Dispersion
Dispersion or spread is the degree of the scatter or variation of
the variable about a central value. A measure of dispersion indicates
the scattering of data. It explains the disparity of data from one
another, delivering a precise view of their distribution. The measure of
dispersion displays and gives us an idea about the variation and the
central value of an individual item.
In other words, dispersion is the extent to which values in a
distribution differ from the average of the distribution. It gives us an
idea about the extent to which individual items vary from one another,
and from the central value.
Example:

Let there be 5 students in the class having heights of

150cm, 160cm, 175cm, 190cm and 200 cm. Calculate
the range and coefficient of range of heights?

Solution:

Largest value= 200 cm

Smallest value = 150 cm
Range = 200cm – 150cm =50 cm
Coefficient of Range = = = =0.1428
Example:
A statistical data was collected from 11 school children on the number of hours
they spend watching television in one week. The data is given below 3, 8.5, 12,
9, 16.5, 9, 14, 20, 18, 19, 20. Find quartile deviation and coefficient of quartile
deviation.

Solution.
Arrange the data in ascending order of magnitude as follows
3, 8.5, 9, 9, 12, 14, 16.5, 18, 19, 20, 20
Q1 = value of th item
= value of th item
= 3rd item
=9
Q3 = value of 3th item
= value of 9th item
= 19

Quartile Deviation ,QD = = 5

Coefficient of quartile deviation = = =0.3571

Example

Calculate the value of quartile deviation and its

coefficient from the following data
Solution :
Marks are arranged in ascending order
Example:

A survey of domestic consumption of electricity in a

colony gave the following distribution of units
consumed

Find quartile deviation and coefficient of quartile deviation.

Solution:
Coefficient of quartile deviation =

= =0.402
Mean Deviation
(MD)
Mean deviation is the arithmetic mean of absolute deviation
of the observations from an assumed average.
Mean Deviation for a Raw Data

Let us consider a raw data of n observations. Mean deviation is

calculated as follows
Mean deviation=, where A is any average
Compute an average (A) which is required to calculate mean deviation
(mean or median or mode)

Find the absolute deviation of the observations from the average to

each value. It is denoted by |x − A| .
The arithmetic mean of these absolute deviations is mean deviation
Example:
Eleven students were selected and asked how many hours each of them
studied the day before the final examination in statistics. Their answers
were recorded here 8, 11, 5, 4, 5, 0, 2, 6, 9, 3, 2. Calculate Mean
Deviation about mean

Solution:
Mean Deviation for a Discrete Frequency
Distribution
For a discrete frequency distribution consisting of N observations,
the procedure and formulae is as follows
Mean deviation= , where A is any average
Step 1: Find the average (A) which is required to calculate mean
deviation.
Step 2: Find the absolute deviations of the observations from the average
to each value.ie |x − A|.
Step 3: Multiply |x−A| by their frequency f . Thus we get f |x−A| to each
observations.
Step 4 :The arithmetic mean of these values is the mean deviation.
Example:
The following table shows the number of books read by students in a
literature class consisting of 28 students, in a month.

Calculate mean deviation about mode of number of books read

Solution:
Mean deviation about mode =
Mode=2 (the value which has maximum frequency).
Mean Deviation for a Continuous Frequency
Distribution

To find mean deviation, convert the

continuous frequency distribution into discrete
frequency distribution by taking middle values of
each classes. The procedure and formulae are
same in a discrete frequency distribution
Example:
Calculate mean deviation from median
of the following data
Coefficient of Mean deviation

If the deviations are taken from Arithmetic mean ,

Coefficient of M.D= is the mean.
If the deviations are taken from Median M,
Coefficient of M.D= is the median.
If the deviations are taken from Mode Z,
Coefficient of M.D= is the mode.
 Standard Deviation(SD)
Standard deviation (SD) is defined as the positive square
root of the mean of squares of deviations from the
arithmetic mean. It is denoted by Greek letter σ (sigma).It
cannot be negative. It is the best measure of dispersion.
Properties
1. The minimum value of SD is zero.
2. The sum of squared deviation is minimum when taken about mean
Standard deviation for a raw data
Let us consider a raw data of n observations. SD can be calculated as
follows

For computation purpose we can use another formula derived from the above. The procedure is discussed below
Example:

A survey was conducted for the number of road accidents

in a major city during 11 successive weeks. The results are
given below
8 ,6 ,3 ,0 ,5 ,9 ,2 ,1 ,3 ,5 ,2 . Calculate SD of road accidents
Standard Deviation for a Discrete Frequency Distribution
For a discrete frequency distribution consisting of N
observations, the procedure and formulae is discussed below
Example:

25 students were given an arithmetic test. The time in minute to

complete the test is as follows

Calculate SD of their time to complete the test

Solutio
n:
Standard Deviation for a Continuous
Frequency Distribution

To find SD, convert the continuous

frequency distribution into discrete
frequency distribution by taking mid values
of each class. The procedure and formulae
are same as in the case of a discrete
frequency distribution
Example:
A study of 100 engineering companies
gives the following information

Find SD of profit earned.

Solutio
n:
Variance

The term variance was introduced

by R.A.Fisher. It is defined as the
square of SD.

Variance =
Or, SD = = σ
Coefficient of Variation (CV)

It is the relative measure of SD. It is the

most commonly used measure to compare
the consistency or stability between two or
more sets of data. Coefficient of variation
is defined as SD divided by its arithmetic
mean expressed in percentage
Suppose, between two groups we
have to find the consistent group.
First find the CV for each group. The
group with less CV is considered to
be the consistent group. It is free
from the unit of original
measurements
Example:
In two factories A & B located in same industrial
area, the weekly wage(in Rupees) and standard
deviations are as follows

1. Which factory pays larger amount as weekly wages?

2. Which factory has greater consistency in individual wages?
Solution:
Since total wages of factory B is greater than factory A,
factory B pays larger amount as weekly wages. Since CV
is greater for A compared to B, factory A has greater
variability
Thank you