Course Number: STA 240
Course Name: Statistics
Course Instructor: Tamanna Siddiqua Ratna
(Lecturer, CAAS)
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Conception of Measures of central tendency
Compute and interpret Arithmetic mean, geometric
mean and Harmonic mean for grouped and
ungrouped data.
compute and interpret the median and mode for
ungrouped data.
Situation to use proper Measures of central tendency.
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Definition: The measure which usually
reflects the complete data set and falls in the
centre of the array is known as measure of
central tendency since it tends to lie in the
centre.
Example: Average of the 1st term marks of
STA 240 course of Sec G is 92.
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Mean Median Mode
Value that
Simply Average Middle Value of
occurs most
of a data set. an ordered data
frequently.
set.
Example: Example: Example:
20, 25, 26, 22, 25 20, 25, 26, 22, 25 20, 25, 26, 22, 25
Sum (Ʃ X ) = 118 Sort data in ascending Mostly occurs 25
No. of data point= 5 way, for Twice.
Mean= 118/5 =23.6 20, 22, 25, 25, 26
Mid value is 25 So, Mode = 25
Median = 25 5
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For raw/ungrouped data For grouped data
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• Sample Mean: We often select a sample from the
population to estimate the mean , that mean is known as
sample mean.
• The mean of a sample is denoted by 𝑥(read
ҧ “x bar”).
𝑠𝑢𝑚 𝑜𝑓 𝑎𝑙𝑙 𝑣𝑎𝑙𝑢𝑒𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑠𝑎𝑚𝑝𝑙𝑒
sample mean 𝑥ҧ =
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑣𝑎𝑙𝑢𝑒𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑠𝑎𝑚𝑝𝑙𝑒
• Example: If I take a Class test of sec A where total no of
students is 55, but I take a sample of 10 students from
them and estimate the average of those 10 students. I get
sample mean 85 which represents our population
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For raw/ungrouped data For grouped data
σ𝑵
𝒊=𝟏 𝑿𝒊 σ𝑲
𝒊=𝟏 𝒇𝒊 𝑿𝒊
ഥ=
𝒙 ഥ=
𝒙 ;
𝒏 𝒏
Where, 𝐧 = σ𝑲
𝒊=𝟏 𝒇𝒊
where: where:
ഥrepresents the samplemean.
𝒙 ഥ represents the sample mean.
𝒙
nis the number of values in the n is the number of values in the
sample. sample.
X represents any particular value. Xis the class midpoint.
∑ is the Greek capital letter “sigma” ∑ is the Greek capital letter “sigma”
and indicates the operation of and indicates the operation of
adding. adding.
∑X is the sum of the X values in the f is the number of frequency.
sample. ∑f is the total frequency.
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❑ A sample of ten movie theaters in a large metropolitan area
tallied the total number of movies showing last week. Compute
the mean number of movies showing.
Movies frequency class (f)(X)
showing f midpoint
X
1 up to 3 1 2 2 σ𝑲
𝒊=𝟏 𝒇𝒊 𝑿𝒊
𝑥ҧ =
3 up to 5 2 4 8 𝒏
𝟔𝟔
5 up to 7 3 6 18 = = 𝟔. 𝟔
𝟏𝟎
7 up to 9 1 8 8 =7
9 up to 3 10 30
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Total 10 66
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The major characteristics of the arithmetic mean are:
a. At least the interval scale of measurement is required.
b. All the data values are used in the calculation.
c. A set of data has only one mean. That is, it is unique.
d. The sum of the deviations from the mean equals 0 that
is σ(𝑥 − 𝑥)ҧ = 0.
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Marks of 6 students in STA 240 course are
given as,
85, 87, 90, 100, 70 , 75
a. Compute AM of this data set .
b. Show that, ∑(Xi - )=0
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Problem 02
The following are the number of customers of a
bank who are served within 10 minutes of their
arrival in different days:
Class 50-60 60-70 70-80 80-90 90-100 Total
interval of
Customers
No of 15 18 12 10 5 60
Days
Calculate average number of customers served
within 10 minutes of arrival and interpret the
result.
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Problem -03
The following data give the weekly amounts spent (in
dollar) on groceries for a sample of 20 households.
271 243 159 176 227 273 180 146 160 132
207 228 219 235 156 166 153 142 175 201
a) Construct a frequency distribution mentioning
number of classes and class interval.
b) Portray this given data as histogram and frequency
polygon on same graph.
c) Find out the average amount spent on groceries of
those households.
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Practice :
Statistical Techniques in Business & Economics,
Douglas A. Lind, William G. Marchal & Samuel A.
Wathen, 16th edition (2005), Tata McGraw Hill Irwin.
** Chapter 03 (Page 62)
Problem 9, 10
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Weighted Mean is a an average of quantities to
which have been attached a series of weights in
order to make proper allowance for their relative
importance.
If a set of observations x1, x2, x3,…. xn with respective
weights w1, w2, …. wn then
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Problem 04:
Suppose a student has secured the following
GPA in three course in a certain semester:
Course Required Credit
GPA
MAT-101 3 3
ENG-101 2.75 4
CSC-103 4 3
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Course GPA (Xi) Credit Wi
(Weight ;Wi)
MAT-101 3 3 9
ENG-101 3.5 4 14
CSC-103 2.75 3 8.25
31.25
Average, 𝑥ҧ𝑤 = 31.25/10=3.125
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Problem 5
Calculate the average final marks of a student of STA-
240.
Exams Weight/Percentages Marks
First term 0.2 85
Mid term 0.2 95
Quiz test/class test 0.5 98
Assignment 0.15 85
Final term 0.35 87
Attendance 0.5 95
Solution: 𝑥ҧ𝑤 =
0.2×85+0.2×95+0.5×98+0.15×85+0.35×87+0.5×95
=92.47
0.2+0.2+0.5+0.15+0.35+0.5
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Ungrouped Data Grouped data
If a set of observations x1, If a set of observations x1,
x2, x3,…. xn then Geometric x2, x3,…. xn have frequencies
Mean (GM) be, f1, f2,…., fn Geometric Mean
(GM) be,
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GM is widely used in Economic and
Business for the construction of index
number.
Averaging ratios and percentages.
Computing average rates of increase
and decrease.
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Situation where GM doesn’t work
▪If data set carries null observation .
For example, 23, 25, 36, 0, 25
For this data set GM is not applicable .
▪If data set contains negative values as observation.
For example , 23, 25, 36, -25
For this data set GM is not applicable also.
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➢Another measure of central tendency, is the
median.
➢This measure divides a group of numbers into two
parts, with half the numbers below the median and
half above it.
➢The median is not as sensitive to extreme values
as the mean.
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To find the median, sort the observations from
smallest to largest and identify the middle value.
The major characteristics of the median are:
a. At least the ordinal scale of measurement is
required.
b. It is not influenced by extreme values.
c. Fifty percent of the observations are larger
than the median.
d. It is unique to a set of data
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To find the median of a ungrouped set of
observations:
1. Rank the items.
2. If the number of items is odd, the median
is the middle item in the list.
3. If the number of items is even, the
median is the mean of the two middle numbers.
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1
Formula 1: 𝑀𝑒 = 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 2
𝑛 + 1 𝑡ℎ 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛, 𝑖𝑓 𝑛 𝑖𝑠 𝑜𝑑𝑑.
1 𝑛 𝑛
Formula 2: 𝑀𝑒 = 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 2 2
𝑡ℎ + 2
+ 1 𝑡ℎ 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛, 𝑖𝑓 𝑛 𝑖𝑠 𝑒𝑣𝑒𝑛.
❑ Example: Ten students in a math class were polled as
to the number of siblings in their individual families
and the results were:
3, 2, 2, 1, 1, 6, 3, 3, 4, 2.
Find the median number of siblings for the ten students.
Solution: 𝑛 = 10. Ranking the observations: 1, 2, 2, 2, 3,
3, 3, 4, 6
1 𝑛 𝑛
𝑀𝑒 = 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ + + 1 𝑡ℎ 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛
2 2 2
1 10 10 1
= 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ + + 1 𝑡ℎ 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛 = 5th + 6th observation
2 2 2 2
1
= 3+3 =3
2
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Calculating Median of Grouped Data
The Median of a sample of data organized in a frequency
distribution is computed by:
𝒉 𝑵
𝑴𝒆 = 𝑳 + ( − 𝑪𝑭)
𝒇 𝟐
Where,
L is the lower limit of the median class,
his the width of the media class,
fis the frequency of the median class,
CFis the cumulative frequency preceding the median class.
𝑁
The median class will be the value for which 𝐶𝐹 ≥
2
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The following data represent the distribution of income of
132 employees of a certain company. Calculate the
median of this dataset and interpret the result.
Income (In Thousand taka) No. employee
<10 10
10 – 15 25
15 – 20 48
20 – 25 21
25 – 30 16
30+ 12
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Solution:
Income No. of Cumulative
employee Frequency
<10 10 10
10 – 15 25 35
15 – 20(median class) 48 83
20 – 25 21 104
25 – 30 16 120
30+ 12 132
Total 132
We have given, N = 132, h= 5, N/2 = 132/2 = 66,
The median class is 15 - 20 because 83>61 & the frequency is , f = 48.
CF = 35.
𝒉 𝑵 𝟓
𝑴𝒆 = 𝑳 + − 𝑪𝑭 = 𝟏𝟓 + 𝟔𝟔 − 𝟑𝟓 = 𝟏𝟖. 𝟐𝟐
𝒇 𝟐 𝟒𝟖
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Problem 06
The following are the number of customers of a
bank who are served within 10 minutes of their
arrival in different days:
Class 50-60 60-70 70-80 80-90 90-100 Total
interval of
Customers
No of 15 18 12 10 5 60
Days
a. Calculate median number of customers
served within 10 minutes of arrival.
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The mode of a data set is the value that occurs
the most often.
If a distribution has two modes, then it is called
bimodal.
If a distribution has three modes, then it is
called tri-modal.
If a distribution has more than three modes,
then it is called multimodal.
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Example:
Ten students in a math class were polled
as to the number of siblings in their
individual families and the results were:
3, 2, 2, 1, 3, 6, 3, 3, 4, 2. Find the mode
for the number of siblings.
3, 2, 2, 1, 3, 6, 3, 3, 4, 2
The mode for the number of siblings is
3.
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Formula:
Where,
L is the lower class limit of modal class.
∆1= difference of the frequency of modal and pre-
modal class
∆2= difference of the frequency of modal and post-
modal class
h= modal class width.
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The following data represent the distribution of female
workers in different garments industries according to their
monthly salary (in Taka). Find the maximum salary on an
average by using mode.
Salary (in Thousand Taka) No. of Worker
5000-6000 10
6000-7000 15
7000-8000 6
More than 80000 4
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Bell shaped Curve and Skewness:
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**when the sample size is large and does
not include outliers, the mean score usually
provides a better measure of central
tendency.
**Use the median to describe the middle
of a set of data that does have an outlier.
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Summary of when to use the mean, median
and mode
Best measure of central
Type of Variable
tendency
Nominal Mode
Ordinal Median
Interval/Ratio (not skewed) Mean
Interval/Ratio (skewed) Median
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Thank You.
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