MODULE 3: Descriptive Statistics MEC 51 - MA

1ST Semester | Academic Year 2024-2025 | Ma’am Milagros Faustino

In addition to tabular and graphical methods of summarizing data, o It is sometimes called as the positional average because it
one also finds it useful to summarize data by methods that lead to is the value that lies exactly in the middle of the data set
numerical results, called descriptive measures. after the values have been placed in an ordered array
o The principal strength of the sample median is that it is
DESCRIPTIVE STATISTICS
insensitive to very large or very small values
o The principal weakness of the sample median is that it is
determined mainly by the middle points in a sample and is
o Numerical measures that are used to describe certain less sensitive to the actual numerical values of the
characteristics of the data remaining data points

MEASURES OF CENTRAL LOCATION

MODE

o The value in the data set that occurs with the greatest
o Any single value which is used to identify the “center” or
frequency
the typical value in the data set
o If all the observations occur with equal frequency, the
o It is oftentimes referred to as the average
data has no mode
o But in some instances, there can be more than one mode
MEAN o No Mode: each data value occurs the same number of
times
o Sum of all values of the observations divided by the o Unimodal: one data value occurs with the greatest
number of observations in the data set frequency
o Bimodal: two data values occur with the same frequency
o Multimodal: more than two data values occur with the
same frequency

MEASURES OF VARIABILITY/DISPERSION

o Dispersion refers to the spread or variability in the data

o A measure of dispersion indicates to what degree the
individual observations are dispersed or spread out
o The arithmetic mean is, in general, a very natural measure around the mean
of central location
o One of its principal limitations, however, is that it is overly RANGE
sensitive to extreme values
o In this instance it may not be representative of the
o The difference between the maximum and the minimum
location of the great majority of the sample points
values in the data set
o Common examples occur in distributions of income and
o Maximum: the highest value in the data set
selling prices of houses
o Minimum: the lowest value in the data set
o Because a few extreme values at the upper end will inflate
the mean, the median will give a better picture of central
tendency STANDARD DEVIATION

MEDIAN o A measure of dispersion which indicates the extent of

scattering of the observations from the mean
o A value that divides an ordered set of data (array) into two
equal parts (usually denoted by Md) VARIANCE
o Md = middle value in the array when n is odd
o Md = mean of the two middle values when n is even
o The square of the standard deviation

MEC 51: Statistical Analysis with Software Application LESSON 3 1

 MODULE 3: Descriptive Statistics MEC 51 - MA
1ST Semester | Academic Year 2024-2025 | Ma’am Milagros Faustino

o The average squared deviation of the observations from

the mean
SYMMETRIC DISTRIBUTION

o A set of observations is SYMMETRICALLY distributed if its

graphical representation (histogram, bar chart) is
symmetric with respect to a vertical axis passing through
the mean
SKEWED DISTRIBUTION

o One whose shapes on either side of the center differ

STANDARD ERROR (OF THE MEAN) o A nonsymmetrical distribution
POSITIVELY SKEWED DISTRIBUTION
o Is used to measure how well the obtained statistic will
estimate the target parameter
o The smaller the standard error, the better the statistic
o In a positively skewed distribution has more observations
estimates the parameter
that are greater than or equal to the mean
o It is estimated by dividing the standard deviation with the
o The histogram will generally have a long tail
square root of the sample size
o Thus, the phrase skewed to the left is applied here
NEGATIVELY SKEWED DISTRIBUTION

o The standard deviation of sample means is known as the o A negatively skewed distribution has more observations
standard error of the mean (SE) that are greater than or equal to the mean
o The histogram will generally have a long tail
COEFFICIENT OF VARIATION o Thus, the phrase skewed to the left is applied here
PEARSON COEFFICIENT OF SKEWNESS
o The coefficient of variation (CV) measures how scattered
the data relative to the mean
o It is a relative measure of variation that is always
o The Pearson coefficient of skewness provides a numerical
expressed as a percentage
measure of the skewness of the distribution

o The coefficient of variation is very useful when comparing

the two or more data sets that have different means
and/or measured in different unit of measurement
o The values of the coefficient usually range from -3 to +3
o When the distribution is symmetrical, the coefficient is
MEASURE OF SKEWNESS zero
o When the distribution is positively skewed, it is positive
o Measurement of the lack of symmetry of the distribution o When the distribution is negatively skewed, it is negative
DETERMINING IF SKEWNESS IS SIGNIFICANTLY
NON-NORMAL

MEC 51: Statistical Analysis with Software Application LESSON 3 2

 MODULE 3: Descriptive Statistics MEC 51 - MA
1ST Semester | Academic Year 2024-2025 | Ma’am Milagros Faustino

o If skewness is less than −1 or greater than +1, the o Computed by adding numerical observations
distribution is highly skewed
o If skewness is between −1 and −½ or between +½ and +1, o Total number of observations
the distribution is moderately skewed
o If skewness is between −½ and +½, the distribution is OTHER MEASURES
COUNTOF LOCATION
approximately symmetric
PERCENTILES
Simplified Guideline
i) If │ skewness │ ≤ 2*standard error, then symmetric o Are values that divide an ordered set of observations into
ii) If │skewness │ > 2*standard error, then skewed right if Sk is 100 equal parts
positive; or skewed left if Sk is negative o These values, denoted by P1, P2 …, P99 are defined such
that 1% of the data fall below P1, 2% of the data fall below
where std. error = square root of 6 / n (estimate) P2, … and 99% of the data fall below P99, respectively

MEASURE OF KURTOSIS DECILES

o It measures the extent to which observations cluster o Are values that divide an ordered set of observations into
around a central point 10 equal parts
o These values, denoted by D1, D2 …, D9 are defined such
that 10% of the data fall below D1, 20% of the data fall
below D2, … and 90% of the data fall below D9,
respectively

o Are values that divide an ordered set of observations into

4 equal parts
o These values, denoted by Q1, Q2, and Q3 are defined such
QUARTILES
that 25% of the data fall below Q1, 50% of the data fall
below Q2, and 75% of the data fall below Q3, respectively

o A normal distribution has kurtosis exactly 3 (excess

kurtosis exactly 0)
o Any distribution with kurtosis ≈3 (excess ≈0) is called
mesokurtic
o A distribution with kurtosis 3 (excess kurtosis >0) is called
leptokurtic
o Compared to a normal distribution, its central peak is
higher and sharper, and its tails are longer and fatter
BOX-AND-WHISKER PLOTS
Simplified Guideline:
i) If │ kurtosis│ ≤ 2*standard error, then Mesokurtic
ii) If │kurtosis│ > 2*standard error, then Leptokurtic if Ku is positive; o A box-and-whisker plot (sometimes called a box plot) is
or Platykurtic if Ku is negative often used to provide a visual summary of a set of data
o A box-and-whisker plot shows the median, the first and
Where Std. error = square root of 24 / n third quartiles, and the minimum and maximum values of
a data set
OTHER SUMMARY STATISTICS

SUM
MEC 51: Statistical Analysis with Software Application LESSON 3 3
 MODULE 3: Descriptive Statistics MEC 51 - MA
1ST Semester | Academic Year 2024-2025 | Ma’am Milagros Faustino

THE FIVE-NUMBER SUMMARY

o Minimum: the least value in a data set

o First Quartile: the number for which 25% of the data
values are less than
o Median:
o Third Quartile: the number for which 75% of the data
values are less than
o Maximum: the greatest value in a data set

DETECTING OUTLIERS

Interquartile Range: (IQR) = Q3 - Q1

Whiskers:
o Locate the smallest value contained in the interval [LF, Q1]
and form a whisker
o Locate the largest value contained in the interval [UF, Q3]
and form a whisker

Lower Fence (LF): Q1 – 1.5 x IQR

Upper Fence (UF): Q3 + 1.5 x IQR

Outliers: If the distance from the box exceeds 1.5 times the
interquartile range (in either direction), the observation may be
labelled an outlier and is denoted by o.

Note: If the distance from the box exceeds 3 times the IQR (in either
direction), the observation is called a far outlier and is denoted by x.

Lower Fence (LF): Q1 – 3 x IQR

Upper Fence (UF): Q3 + 3 x IQR

MEC 51: Statistical Analysis with Software Application LESSON 3 4