DATASET EXERCISES
1. Mean and Standard Deviation (Using Table 2.6)
Given data (grouped):
Price per m² (₱) Frequency Midpoint (x)
15 000 – 18 000 8 16 500
18 000 – 21 000 25 19 500
21 000 – 24 000 18 22 500
24 000 – 27 000 22 25 500
27 000 – 30 000 9 28 500
30 000 – 33 000 3 31 500
33 000 – 36 000 5 34 500
Total 90
Step 1 – Mean
\bar{X} = \frac{\Sigma (f x)}{n}
\bar{X} = \
frac{(8×16500)+(25×19500)+(18×22500)+(22×25500)+(9×28500)+(3×31
500)+(5×34500)}{90}
\bar{X} = \frac{2,108,000}{90} = \boxed{23 422.22 PHP per m²}
Step 2 – Standard Deviation
S = \sqrt{\frac{\Sigma f(x - \bar{X})^2}{n-1}}
Using midpoints and mean = 23 422.22:
X f x – x̄ (x−x̄)² f(x−x̄)²
16 500 8 −6 922 47 932 000 383 456 000
19 500 25 −3 922 15 382 000 384 550 000
22 500 18 −922 850 000 15 300 000
25 500 22 2 078 4 319 000 95 018 000
28 500 9 5 078 25 788 000 232 092 000
31 500 3 8 078 65 256 000 195 768 000
34 500 5 11 078 122 724 000 613 620 000
\Sigma f(x-\bar{X})^2 = 1 919 804 000
S = \sqrt{\frac{1 919 804 000}{89}} = \boxed{4 658.6 PHP per m² (≈ 4
659)}
2. Estimate % of Lots > ₱ 20 000 (using Normal Distribution)
Given:
Μ = 23 422
Σ = 4 659
Find P(X > 20 000)
Z = \frac{X - \mu}{\sigma} = \frac{20000 – 23422}{4659} = -0.735
P(X > 20000) = 1 – P(Z < -0.735)
From z-table: P(Z < −0.735) = 0.231.
P(X > 20000) = 1 – 0.231 = \boxed{0.769 = 76.9\%}
3. Compare with Actual Results (Tables 2.6 and 2.7)
From Tables 2.6 and 2.7:
Price Range (₱/m²) Below 20 000 Above 20 000
% of lots (15 000–18 000 + 18 000–21 000) = 8 + 25 = 33 lots57 lots
Proportion 33 / 90 = 36.7 % 63.3 %
So actual proportion of lots > ₱ 20 000 = 63.3 %.
4. Interpretation / Comment
Measure Normal Approx. Actual Comment
P(X > ₱ 20 000) ≈ 76.9 % 63.3 % Normal model overestimates the
upper tail, meaning the actual distribution is slightly skewed to the right
(there are some higher-priced outliers raising the mean).
✅ Conclusion:
The normal distribution gives a rough estimate but not a perfect fit; actual
data show a lower percentage of expensive lots than predicted by a
symmetric normal curve.
LINKING CONCEPTS
1. Mutually Exclusive and Statistically Independent Events
Mutually exclusive events cannot occur together:
P(G and H) = 0
P(G and H) = P(G)P(H)
Examples:
1. Attending two meetings at the same time – mutually exclusive.
2. Rain today and submitting a report – independent.
3. Paying by cash or card – mutually exclusive; my coworker paying by
card tomorrow – independent.
a. Mutually exclusive events cannot be independent (unless one has 0 probability).
Example: If , , then (exclusive) but (not equal).
b. holds only if events are independent (no influence). It is false when events affect each other or
are mutually exclusive.
2. Probability Distributions and Uncertainty
Even if real situations are uncertain or assumptions imperfect, probability distributions still help
describe patterns and support decisions.
Distributi
Practical Uses
on
Defective products, customer
Binomial
responses
Poisson Number of arrivals or accidents
Normal Test scores, employee heights
Exponent Machine life, waiting time between
ial calls
They remain useful for risk estimation and forecasting, despite limitations.
3. Importance of Standard Z-Scores
A z-score shows how far a value is from the mean.
They are vital because they:
1. Allow comparison across different units (e.g., salaries, grades).
2. Simplify probability and normal distribution calculations.
3. Help in standardization and hypothesis testing.
Example:
A student with performed better than one with , even if raw scores differ.