M.B.A. SEM M.B.A.

SEM- -1 1
Quantitative Quantitative Analysis Analysis
Devina Upadhyay Devina Upadhyay
M.Sc. , M.phil., PhD (pursuing) M.Sc. , M.phil., PhD (pursuing)
Statistics
Descriptive theory Inferential theory Decision theory
Introduction to Descriptive Introduction to Descriptive
statistics statistics
Descriptive theory
Measures of
central tendency
Measures of
Dispersion
Measures of
Variation
Ungrouped Versus Ungrouped Versus
Grouped Data Grouped Data
Ungrouped data Ungrouped data
have not been summarized in any have not been summarized in any
way way
are also called are also called raw data raw data
Grouped data Grouped data
have been organized into a have been organized into a
frequency distribution frequency distribution
Example of Ungrouped Example of Ungrouped
Data Data
42
30
53
50
52
30
55
49
61
74
26
58
40
40
28
36
30
33
31
37
32
37
30
32
23
32
58
43
30
29
34
50
47
31
35
26
64
46
40
43
57
30
49
40
25
50
52
32
60
54
Ages of a Sample of
Managers from
Urban Child Care
Centers in the
United States
Frequency Distribution of Frequency Distribution of
Child Care Managers Ages Child Care Managers Ages
Class Interval Class Interval Frequency Frequency
20 20- -under 30 under 30 6 6
30 30- -under 40 under 40 18 18
40 40- -under 50 under 50 11 11
50 50- -under 60 under 60 11 11
60 60- -under 70 under 70 3 3
70 70- -under 80 under 80 1 1
Data Range Data Range
4
2
30
53
50
52
30
55
49
61
74
26
58
40
40
28
36
30
33
31
37
32
37
30
32
23
32
58
43
30
29
34
50
47
31
35
26
64
46
40
43
57
30
49
40
25
50
52
32
60
54
Smallest
Largest
51 =
23 - 74 =
Smallest - Largest = Range
Relative Frequency Relative Frequency
Relative Relative
Class Interval Class Interval Frequency Frequency Frequency Frequency
20 20- -under 30 under 30 6 6 .12 .12
30 30- -under 40 under 40 18 18 .36 .36
40 40- -under 50 under 50 11 11 .22 .22
50 50- -under 60 under 60 11 11 .22 .22
60 60- -under 70 under 70 3 3 .06 .06
70 70- -under 80 under 80 1 1 .02 .02
Total Total 50 50 1.00 1.00
6
50
=
18
50
=
Cumulative Frequency Cumulative Frequency
Cumulative Cumulative
Class Interval Class Interval Frequency Frequency Frequency Frequency
20 20- -under 30 under 30 6 6 6 6
30 30- -under 40 under 40 18 18 24 24
40 40- -under 50 under 50 11 11 35 35
50 50- -under 60 under 60 11 11 46 46
60 60- -under 70 under 70 3 3 49 49
70 70- -under 80 under 80 1 1 50 50
Total Total 50 50
18 + 6
11 + 24
Class Midpoints, Relative Class Midpoints, Relative
Frequencies, and Cumulative Frequencies, and Cumulative
Frequencies Frequencies
Relative Cumulative Relative Cumulative
Class Interval Class IntervalFrequency Frequency Midpoint Midpoint Frequency Frequency Frequency Frequency
20 20- -under 30 under 30 6 6 25 25 .12 .12 6 6
30 30- -under 40 under 40 18 18 35 35 .36 .36 24 24
40 40- -under 50 under 50 11 11 45 45 .22 .22 35 35
50 50- -under 60 under 60 11 11 55 55 .22 .22 46 46
60 60- -under 70 under 70 3 3 65 65 .06 .06 49 49
70 70- -under 80 under 80 1 1 75 75 .02 .02 50 50
Total Total 50 50 1.00 1.00
Common Statistical Graphs Common Statistical Graphs
Histogram Histogram -- -- vertical bar chart of vertical bar chart of
frequencies frequencies
Frequency Polygon Frequency Polygon -- -- line graph of line graph of
frequencies frequencies
Pie Chart Pie Chart -- -- proportional proportional
representation for categories of a representation for categories of a
whole. whole.
Histogram Histogram -- -- vertical bar chart of vertical bar chart of
frequencies frequencies
Class Interval Frequency
20-under 30 6
30-under 40 18
40-under 50 11
50-under 60 11
60-under 70 3
70-under 80 1
0
1
0
2
0
0 10 20 30 40 50 60 70 80
Years
F
r
e
q
u
e
n
c
y
Histogram Construction Histogram Construction
Class Interval Class Interval Frequency Frequency
20 20- -under 30 under 30 66
30 30- -under 40 under 40 18 18
40 40- -under 50 under 50 11 11
50 50- -under 60 under 60 11 11
60 60- -under 70 under 70 33
70 70- -under 80 under 80 11
0
1
0
2
0
0 10 20 30 40 50 60 70 80
Years
F
r
e
q
u
e
n
c
y
Frequency Polygon Frequency Polygon -- -- line graph line graph
of frequencies of frequencies
Class Interval Frequency
20-under 30 6
30-under 40 18
40-under 50 11
50-under 60 11
60-under 70 3
70-under 80 1
0
1
0
2
0
0 10 20 30 40 50 60 70 80
Years
F
r
e
q
u
e
n
c
y
Truck Truck
Production in Production in
the U.S. in the U.S. in
last year last year
(Hypothetical (Hypothetical
values) values)
Truck
Production
Company
A
B
C
D
E
Totals
357,411
354,936
160,997
34,099
12,747
920,190
39%
39%
17%
4%
1%
A B C D E
U.S. Truck Production U.S. Truck Production-- -- proportional proportional
representation for categories of a representation for categories of a
whole. whole.
Descriptive statistics, measure of Descriptive statistics, measure of
central tendency, Measure of central tendency, Measure of
Variability, For group and Variability, For group and
Ungrouped data, Measures of Ungrouped data, Measures of
shape shape ..
Measures of Central Tendency: Measures of Central Tendency:
Ungrouped Data Ungrouped Data
Measures of central tendency means Measures of central tendency means
measures of location. measures of location.
Common Measures of Location Common Measures of Location
Mode Mode
Median Median
Mean Mean
Percentiles Percentiles
Quartiles Quartiles
Mean Mean
Arithmetic mean : Simple average Arithmetic mean : Simple average
Geometric mean: Relative percentage Geometric mean: Relative percentage
Weighted mean: Weights associated with Weighted mean: Weights associated with
every units. every units.
Mode Mode
The most frequently occurring value in a The most frequently occurring value in a
data set data set
Bimodal Bimodal -- -- Data sets that have two modes Data sets that have two modes
Multimodal Multimodal -- -- Data sets that contain more Data sets that contain more
than two modes than two modes
The mode is 44. The mode is 44.
There are more 44s There are more 44s
than any other value. than any other value.
35
37
37
39
40
40
41
41
43
43
43
43
44
44
44
44
44
45
45
46
46
46
46
48
Mode Mode -- -- Example Example
Median Median
Middle value in an ordered array of Middle value in an ordered array of
numbers. numbers.
Unaffected by extremely large and Unaffected by extremely large and
extremely small values. extremely small values.
Median: Computational Median: Computational
Procedure Procedure
First Procedure First Procedure
Arrange the observations in an ordered array. Arrange the observations in an ordered array.
If there is an odd number of terms, the If there is an odd number of terms, the
median is the middle term of the ordered median is the middle term of the ordered
array. array.
If there is an even number of terms, the If there is an even number of terms, the
median is the average of the middle two median is the average of the middle two
terms. terms.
Second Procedure Second Procedure
The medians position in an ordered array is The medians position in an ordered array is
given by (n+1)/2. given by (n+1)/2.
Median: Example
with an Even Number of Terms
Ordered Array
3 4 5 7 8 9 11 14 15 16 16 17 19 19 20 21
There are 16 terms in the ordered array.
Position of median = (n+1)/2 = (16+1)/2 = 8.5
The median is between the 8th and 9th terms,
14.5.
If the 21 is replaced by 100, the median is
14.5.
If the 3 is replaced by -88, the median is 14.5.
Median: Example Median: Example
with an Odd Number of Terms with an Odd Number of Terms
Ordered Array Ordered Array
3 4 5 7 8 9 11 14 15 16 16 17 19 19 20 21 3 4 5 7 8 9 11 14 15 16 16 17 19 19 20 21
22 22
There are 17 terms in the ordered array. There are 17 terms in the ordered array.
Position of median = (n+1)/2 = (17+1)/2 = Position of median = (n+1)/2 = (17+1)/2 =
9 9
The median is the 9th term, 15. The median is the 9th term, 15.
If the 22 is replaced by 100, the median is If the 22 is replaced by 100, the median is
15. 15.
If the 3 is replaced by If the 3 is replaced by - -103, the median is 103, the median is
15. 15.
Variability Variability
No Variability
Variability
Measures of Variability: Measures of Variability:
Ungrouped Data Ungrouped Data
Measures of variability describe the Measures of variability describe the
spread or the dispersion of a set of data. spread or the dispersion of a set of data.
Common Measures of Variability Common Measures of Variability
Range Range
Interquartile Range Interquartile Range
Variance Variance
Standard Deviation Standard Deviation
Coefficient of Variation Coefficient of Variation
Range Range
The difference between the largest and The difference between the largest and
the smallest values in a set of data the smallest values in a set of data
Simple to compute Simple to compute
Ignores all data points except Ignores all data points except the the
two extremes two extremes
Example: Example:
Range Range = =
Largest Largest - - Smallest Smallest = =
48 48 - - 35 = 13 35 = 13
35
37
37
39
40
40
41
41
43
43
43
43
44
44
44
44
44
45
45
46
46
46
46
48
35
48
Interquartile Range Interquartile Range
Range of values between the first and third Range of values between the first and third
quartiles quartiles
Less influenced by extremes Less influenced by extremes
Interquartile Range Q Q = 3 1
Population Variance Population Variance
Average of the Average of the squared squared deviations from deviations from
the arithmetic mean. the arithmetic mean.
mean is 13. mean is 13.
Observations:5,9,16,17,18. Observations:5,9,16,17,18.
5
9
16
17
18
-8
-4
+3
+4
+5
0
64
16
9
16
25
130
X
X
)
2
X
)
2
2
130
5
26 0
o

=
=
=
X
N
.
Population Standard Deviation Population Standard Deviation
Square root of the Square root of the
variance variance
)
2
2
2
130
5
26 0
26 0
51
o

o
o
=
=
=
=
=
=
X
N
.
.
.
5
9
16
17
18
-8
-4
+3
+4
+5
0
64
16
9
16
25
130
X
X
)
2
X
Sample Variance Sample Variance
Average of the Average of the squared squared deviations from deviations from
the arithmetic mean. the arithmetic mean.
Mean:1773 Mean:1773
Observations:2398,1844,1539,1311. Observations:2398,1844,1539,1311.
2,398
1,844
1,539
1,311
7,092
625
71
-234
-462
0
390,625
5,041
54,756
213,444
663,866
X
X X
)
2
X X
)
2
2
1
663 866
3
221 288 67
S
X X
n
=

=
=

,
, .
Sample Standard Deviation Sample Standard Deviation
Square root of the Square root of the
sample variance sample variance
)
2
2
2
1
663 866
3
221288 67
221288 67
47041
S
X X
S
n
S
=

=
=
=
=
=

,
, .
, .
.
2,398
1,844
1,539
1,311
7,092
625
71
-234
-462
0
390,625
5,041
54,756
213,444
663,866
X
X X
)
2
X X
Coefficient of Variation Coefficient of Variation
Ratio of the standard deviation to the Ratio of the standard deviation to the
mean, expressed as a percentage mean, expressed as a percentage
Measurement of Measurement of relative relative dispersion dispersion
) 100 . .

o
= V C
Less c.v more consistency Less c.v more consistency
Less c.v more uniformity Less c.v more uniformity
Less c.v less risk Less c.v less risk
Coefficient of Variation Coefficient of Variation
A B A B
)
)
1
29
4 6
100
4 6
29
100
1586
1
1
1
1

o
o

=
=
=
=
=
.
.
.
. . CV
)
)
2
84
10
100
10
84
100
1190
2
2
2
2

o
o

=
=
=
=
=
CV . .
.
Measures of Central Tendency Measures of Central Tendency
and Variability: Grouped Data and Variability: Grouped Data
Measures of Central Tendency Measures of Central Tendency
Mean Mean
Median Median
Mode Mode
Measures of Variability Measures of Variability
Variance Variance
Standard Deviation Standard Deviation
Mean of Grouped Data Mean of Grouped Data
Weighted average of class midpoints Weighted average of class midpoints
Class frequencies are the weights Class frequencies are the weights
=
=
=
+ + + +
+ + + +

fM
f
fM
N
f M f M f M f M
f f f f
i i
i
1 1 2 2 3 3
1 2 3
Calculation of Grouped Mean Calculation of Grouped Mean
Class Interval Frequency Class Midpoint fM
20-under 30 6 25 150
30-under 40 18 35 630
40-under 50 11 45 495
50-under 60 11 55 605
60-under 70 3 65 195
70-under 80 1 75 75
50 2150
= = =

fM
f
2150
50
43 0 .
Median of Grouped Data Median of Grouped Data
)
Median L
N
cf
f
W
Where
p
med
= +

=
2
:
L the lower limit of the median class
cf = cumulative frequency of class preceding the median class
f = frequency of the median class
W = width of the median class
N = total of frequencies
p
med
Median of Grouped Data Median of Grouped Data -- --
Example Example
Cumulative
Class Interval Frequency Frequency
20-under 30 6 6
30-under 40 18 24
40-under 50 11 35
50-under 60 11 46
60-under 70 3 49
70-under 80 1 50
N = 50
)
)
Md L
N
cf
f
W
p
med
= +

= +

=
2
40
50
2
24
11
10
40 909 .
Mode of Grouped Data Mode of Grouped Data
Midpoint of the modal class Midpoint of the modal class
Modal class has the greatest Modal class has the greatest
frequency frequency
Class Interval Frequency
20-under 30 6
30-under 40 18
40-under 50 11
50-under 60 11
60-under 70 3
70-under 80 1
1579 . 33
10 *
11 6 36
6 18
30
*
2 0 1 2
0 1
mod
35
2
40 30
=

+ =

+ =
=
+
=
W
f f f
f f
L e
Mode
Variance and Standard Variance and Standard
Deviation Deviation
of Grouped Data of Grouped Data
)
2
2
2
o

o
o
=
=

f
N
M
Population
)
2
2
2
1
S
M X
S
f
n
S
=

=

Sample
Population Variance and Population Variance and
Standard Deviation of Grouped Standard Deviation of Grouped
Data Data
1944
1152
44
1584
1452
1024
7200
20-under 30
30-under 40
40-under 50
50-under 60
60-under 70
70-under 80
Class Interval
6
18
11
11
3
1
50
f
25
35
45
55
65
75
M
150
630
495
605
195
75
2150
fM
-18
-8
2
12
22
32
M
)
f
M
2

324
64
4
144
484
1024
)
2
M
)
2
2
7200
50
144
o

= = =

f
N
M
o
o
= = =
2
144 12
Measures of Shape Measures of Shape
Skewness Skewness
Absence of symmetry Absence of symmetry
Extreme values in one side of a distribution Extreme values in one side of a distribution
Kurtosis Kurtosis
Peakedness of a distribution Peakedness of a distribution
Dispersion: Dispersion:
Spread of the data Spread of the data
Skewness Skewness
Symmetric skewed Symmetric skewed
Dispersion Kurtosis Dispersion Kurtosis