Statistics

Statistics is a branch of mathematics that deals with the study of

collecting, analyzing, interpreting, presenting, and organizing data in a
particular manner. Statistics is defined as the process of collection of data,
classifying data, representing the data for easy interpretation, and further
analysis of data. Statistics also is referred to as arriving at conclusions
from the sample data that is collected using surveys or experiments.
Different sectors such as psychology, sociology, geology, probability, and
so on also use statistics to function.

Mathematical Statistics
Statistics is used mainly to gain an understanding of the data and focus
on various applications. Statistics is the process of collecting data,
evaluating data, and summarizing it into a mathematical form. Initially,
statistics were related to the science of the state where it was used in the
collection and analysis of facts and data about a country such as its
economy, population, etc. Mathematical statistics applies mathematical
techniques like linear algebra, differential equations, mathematical
analysis, and theories of probability.

There are two methods of analyzing data in mathematical statistics that

are used on a large scale:

 Descriptive Statistics
 Inferential Statistics

Descriptive Statistics
The descriptive method of statistics is used to describe the data collected
and summarize the data and its properties using the measures of central
tendencies and the measures of dispersion.

Inferential Statistics
This method of statistics is used to draw conclusions from the data.
Inferential statistics requires statistical tests performed on samples, and it
draws conclusions by identifying the differences between the 2 groups.
Tests calculate the p-value that is compared with the probability of
chance(α) = 0.05. If the p-value is less than α, then it is concluded that
the p-value is statistically significant.

Data Representation in Statistics

The collection of observations and facts is known a data. These
observations and facts can be in the form of numbers, measurements, or
statements. There are two different kinds of data i.e. Qualitative data and
quantitative data. Qualitative data is when the data is descriptive or
categorical and quantitative data is when the data is numerical
information. Once we know the data collection methods, we aim at
representing the collected data in different forms of graphs such as a bar
graph, line graph, pie chart, stem and leaf plots, scatter plot, and so on.
Before the analysis of data, the outliers are removed that are due to the
invariability in the measurements of data. Let us look at different kinds of
data representation in statistics.

Descri
Data Representation
ption
Bar
Grap
h

A
group
of
data
repre
sente
d with
recta
ngula
r bars
with
lengt
hs
propo
rtiona
l to
the
value
s is
a bar
graph
.

The
bars
can
either
be
vertic
ally or
horizo
ntally
plotte
d.
Pie
Chart

The pi
e
chart
is a
type
of
graph
in
which
a
circle
is
divide
d into
Secto
rs
where
each
sector
repre
sents
a
propo
rtion
of the
whole
.
Line
grap
h

The li
ne
graph
repre
sents
the
data
in a
form
of
series
that is
conne
cted
with a
straig
ht
line.
These
series
are
called
mark
ers.
Picto
grap
h

Data
show
n in
the
form
of
pictur
es is
a pict
ograp
h.
Pictori
al
symb
ols for
words
,
object
s, or
phras
es
can
be
repre
sente
d with
differ
ent
numb
ers.
Histo
gram

The hi
stogr
am is
a
type
of
graph
where
the
diagr
am
consis
ts of
recta
ngles,
the
area
is
propo
rtiona
l to
the
frequ
ency
of a
variab
le and
the
width
is
equal
to the
class
interv
al.
Here
is an
exam
ple of
a
histog
ram.
 Freq
uenc
y
Distri
butio
n

The fr
equen
cy
distrib
ution
table
in
statist
ics
showc
ases
the
data
in
ascen
ding
order
along
with
their
corres
pondi
ng
frequ
encie
s.

The
frequ
ency
of the
data
is
often
repre
sente
d by
f.

Different Models of Statistics

Statistics being a broad term used in various forms, different models of
statistics are used in different forms. Listed below are a few models:

Skewness - In statistics, the word skewness refers to a measure of the

asymmetry in a probability distribution where it measures the deviation of
the normal distribution curve for data. The value of skewed distribution
could be positive or negative or zero. The curve is said to be skewed when
it shifts from left to right. If the curve mores towards the right it is called a
positive skewed and if the curve moves towards the left, it is called left-
skewed.

ANOVA Statistics - The word ANOVA means Analysis of Variance. The

measure used in calculating the mean difference for the given set of data
is called the ANOVA statistics. This model of statistics is used to compare
the performance of stocks over a period of time.

Degrees of freedom - This model of statistics is used when the values

are changed. Data that can be moved while estimating a parameter is the
degree of freedom.

Regression Analysis - In this model, the statistical process determines

the relationship between the variables. The process signifies how a
dependent variable changes when an independent variable changed.

Measures of Central Tendency in Statistics

The measure of central tendency and the measure of dispersion are
considered as the basis of descriptive statistics. The representative value
for the given data is the measure of central tendency that gives us an
idea of where data points are centered. This is done to find how the data
are scattered around this centered measure. We use mean, median, and
mode to find the central measures of tendency. In our day-to-day life, we
find the average height of the students, the average income, the average
score in exams, or of the player. The different measures of central
tendency for the data are:

 Arithmetic Mean
 Median
 Mode
 Geometric Mean
 Harmonic Mean

Mean, Median and Mode in Statistics

Mean is considered the arithmetic average of a data set that is found by
adding the numbers in a set and dividing by the number of observations in
the data set. The middle number in the data set while listed in either
ascending or descending order is the median. Lastly, the number that
occurs the most in a data set and ranges between the highest and lowest
value is the mode. For n number of observations, we have

 Mean = ¯x=∑xn
 Median = n+12th term if n is odd.
 Median = n2th term +(n2+1)thterm2
 Mode = The value which occurs most frequently
Measures of Dispersion in Statistics
The measures of central tendency do not suffice to describe the complete
information about a given data. Thus we need to describe the variability
by a value called the measure of dispersion. The different measures of
dispersion are:

 The range in statistics is calculated as the difference between the

maximum value and the minimum value of the data points.
 The quartile deviation that measures the absolute measure of
dispersion. The data points are divided into 3 quarters. Find the
median of the data points. The median of the data points to the left of
this median is said to be the upper quartile and the median of the data
points to the right of this median is said to be the lower quartile. Upper
quartile - lower quartile is the interquartile range. Half of this is the
quartile deviation.
 The mean deviation is the statistical measure to determine the
average of the absolute difference between the items in a distribution
and the mean or median of that series.
 The standard deviation is the measure of the amount of variation of a
set of values.

Mean Deviation For ungrouped data

In statistics, the frequency distributions of data can be discrete data or
continuous. For n number of individual observations x1,x2,x3,xr,.....xn, the
mean deviation about mean and median are calculated as follows:
Mean Deviation for ungrouped data = sum of deviation/number of
observations = ∑Ni=1(xi−¯x)n

Mean Deviation for Discrete Grouped data

The measurements of the data units are clearly shown in such a
frequency distribution. Let there be n distinct data
points x1,x2,x3,xr,.....xn, occurring with frequencies f1,f2,f3....fn.

a) Mean deviation about mean

 We find the mean ¯x using ∑Ni=1(Xi−fi)∑Ni=1fi. This is the ratio of the
sum of the products of xi observations and their respective
frequencies fi to the sum of the frequencies.
 Mean Deviation=1N∑Ni=1(xifi)
 Afterwhich find the deviations of observations xi from the mean ¯x and

Mean Deviation = ¯x=∑Ni=1fi∣xi−¯x∣∑Ni=1fi

get their absolute values. i.e. |xi−¯x| for all i = 1, 2, 3, .....n


b) Mean deviation about median

 Find the median by arranging the observations in ascending order.

 Obtain the cumulative frequencies. Then identify the observation
whose cumulative frequency is ≥ N/2, where N = sum of frequencies.
 Thus we have arrived at the required median. To get the absolute

= 1N∑Ni=1fi∣xi−M∣
values of the deviations from median, we calculate MD( median)

Mean Deviation for Continuous Grouped data

Here the data points take any value within a range and they are
continuous. They can be measured and represented by using intervals on
the real number line. The frequency in which data are arranged in classes
is not countable.

a) Mean deviation about mean

The mean of the continuous frequency distribution is centered at its mid-

point in each class. Then the same procedure is followed as in the case of
discrete frequency distribution.

b) Mean deviation about median

Median = l+N2−Cf×h, where the median class is the class interval

whose cf is ≥ N/2, N the sum of frequencies, l, f, h, and C are, the lower
limit, the frequency, the width of the median class and C the cumulative
frequency of the class just preceding the median class. After finding the
median, |xi - M| is obtained.

Standard Deviation and Variance

We have the other prominent methods in statistics to find the proper
measure of dispersion, known as the variance and the standard deviation.
While finding the mean deviation about the mean and the median, there
arises a difficulty in taking squares of all the deviations.

 If ∑Ni=1(xi−¯x)2 becomes zero, while calculating the sum for the mean,
then it means there is no dispersion at all.
 If the sum is small, the observations are closer to the mean indicating
a lower degree of dispersion.
 If the sum is large, there is a higher degree of dispersion of the
observations from the mean ¯x.
 Thus this sum is a reasonable indicator of the degree of dispersion.
This becomes the proper measure of dispersion, denoted as σ 2, and it
is termed as the variance. Thus variance is given as
σ2 = ∑Ni=1(xi−¯x)2N.
 The positive square root of the variance is called the standard
deviation. σ = √∑Ni=1(xi−¯x)2N.

Coefficient of Variation
We compare the coefficient of variations of two or more frequency
distributions. This coefficient of variation in statistics is the ratio of the
standard deviation to the mean, expressed in percentage.

CV = σ/ ¯x × 100.

The distribution that has a greater coefficient of variation has more

variability around the central value than the distribution having a smaller
value of the coefficient of variation.

Important Notes

 The discipline of data collection and organization is called statistics. We

interpret results based on the analysis done using the measures of
central tendencies and the measures of dispersion.
 The frequency distribution of data is represented using bar graphs,
histograms, pie charts, stem and leaf plots, line graphs, or ogives.
 The data collected can be either quantitative (numerical: discrete and
continuous) or qualitative(categorical).

☛ Also Check:

 Probability and Statistics

 Data Handling

Download FREE Study Materials

Statistics Worksheets
Statistics Worksheets
Worksheet on Mean Median Mode

Examples of Statistics
 Example 1:Compute the mean deviation about mean from the
following data.

Size(x) 2 4 6 8 10

Frequency f 2 4 5 3 1

 Solution: In statistics, we know that the mean deviation about mean is

calculated using the formla: Mean = (Σ f x)/N
= [(2×2 + 4×4 + 6×5 + 8×3 +10×1)/15
 = (4 + 16+ 30 + 24 + 10)/15
= 84/15 = 5.6
 Answer: The mean deviation about mean = 5.6
 Example 2: The mean of 5 observations is 4.4 and their
variance is 8.24. If 3 of the observations are 1, 2, and 6, find
the other two observations.

Solution: Let the other two observations be a and b.

Then we have (1 + 2 + 6 + a + b) /5 = 4.4

(1 + 2 + 6 + a + b) = 22
a + b = 22 -9 = 13
a+ b = 13 ----------->(1)
Given : variance = 8.24
We know that in statistics, variance is calculated as:
σ2 = ∑Ni=1(xi−¯x)2N = 8.24
8.24 =(1/5) [3.42 + 2.42 + 1.62 + (a-4.4)2 + (b-4.4)2 ]
41.20 = 11.56 + 5.46 + 2.56 + a2 +b2 + 2× 4.4(a + b) + 2 ×4.42
41.20= 19.58 + 38.72 + 114.4 + a2 +b2
a2 +b2 = 97----------->(2)
 Form (1), we have (a + b) 2 = 169----------->(3)
Solving (2) and (3), we have 2 ab = 72----------->(4)
(4) - (2) gives a2 +b2 -2 ab = 169 - 72 = 25
Thus a - b = 5
Substituting the values of + 5 and - 5 in (1), we get
a = 9, b = 4 (or) a = 4, b = 9
Answer: The other two observations are 4 and 9.

 Example 3: Find the standard deviation of 8,10,12,14,16.

Solution: Given N = 5

Σx= 8+10+12+14+16 = 60

¯x = 60/5 =12

In statistics, Standard deviation = √Variance

Variance = σ 2 =∑Ni=1(xi−¯x)2N.

= 1/5[(8-12)2+(10-12)2+(12-12)2+(14-12)2+(16-12)2]

= 1/5[16 + 4 +0 + 4+ 16]

=40/5 = 8

Standard deviation σ = √8 = 2.83

Answer: The standard deviation of the given data = 2.83

Practice Questions on Statistics




FAQs on Statistics
What is Statistics?
What are the Two Types of Statistics?

What is Descriptive Statistics?

What is Inferential Statistics?
How is Statistics Used in Mathematics?
What is the Purpose of Statistics?
What is the Importance of Statistics in Real Life?
What Are Examples of Statistics?

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