MEASURERS OF CENTRAL TENDENCY

DATA is a collection of facts, such as numbers, words, measurements, observations or just descriptions of
thing.
TWO CATEGORIES OF DATA
1. QUALITATIVE – is also called attribute data that are typically associated with inherent
characteristics of the items under consideration. However, attribute data are not easy to
analyze using numerical techniques.

Example: If we are studying human beings, the following characteristics may be considered
attributes: color of the hair, race, color of the eyes, types of cars driven, etc.

A. Nominal – categorized ( category of shirt in terms of color )

B. Ordinal – categorized with rank ( rank of orders by winners like 1st place , 2nd place, 3rd place )

2. QUANTITATIVE – Also called as numerical data result from a process that quantifies which
includes
counts of (how many) or measurements (length, weight, and so on).

A. Interval – is like the ordinal level but meaningful amounts of differences between data can
be determined. It has no inherent (natural) zero starting point where the none of
the quality is present ( zero means something or arbitrary ex: IQ )
B. Ratio – is the interval level modified to include the inherent zero starting point where zero
indicates that none of the quantity is present. ( zero means no value, ex: score and age )
C. Discrete – data that represents counts ( countable )
EXAMPLE :
1. The number of people living in Brgy. San Isidro.
2. The score in a basketball game.
3. The number of books in ICCT Cainta Library.
D. Continuous – data that represents measurement ( measurable )
EXAMPLE :

1. IQ scores of the
students in Ms.
Berces’ Math class
2. The height of the
basketball player
 3. The volume of
weekly garbage
produced by Brgy.
123
1. IQ scores of the students in Ms. Berces’ Math Class.
2. The height of the basketball player.
3. The volume of weekly garbage produced by Brgy. 123

MEAN – most stable, most useful.

Mean – 45, 46, 49, 48, 47, 3 ( outliers, highest or lowest ) , 100
∑ summation - means total

EXAMPLE :

88, 89, 86, 87, 90

Mean = x__
n

= _440_→ the total of 88, 89, 86, 87, 90

5 → the number of data

= 88

MEDIAN – middle most value

EXAMPLE :
86, 87, 88, 89, 90 → the middle number here is 88 and the answer would be 88 also.

however, if the case is like this,

86, 87, 88, 89, 89, 90 you will have to add both middle number which is 88 and 89.

Median = _88 + 89_

2 → this is the number of data

= __17__
E. Discrete numerical
data
F. - data that
represents counts
G.
H. Example: The
number of people
living in Brgy. San
Isidro
I. The score in a
basketball game
J. The number of
books in ICCT Cainta
Library
K. Discrete numerical
data
L. - data that
represents counts
M.
N. Example: The
number of people
living in Brgy. San
Isidro
O. The score in a
basketball game
P. The number of
books in ICCT Cainta L
3. Example: If we are
studying human
beings, the
4. following
characteristics may be
considered attributes:
5. color of the hair,
race, color of the eyes,
types of car
6. driven, etc.
7. Example: If we are
studying human
beings, the
8. following
characteristics may be
considered attributes:
9. color of the hair,
race, color of the eyes,
types of car
10. driven, etc.
11. Example: If we
are studying human
beings, the
12. following
characteristics may be
considered attributes:
 13. color of the hair,
race, color of the eyes,
types of car
14. driven, etc. Example: If we are studying
human beings, the following characteristics may be considered attributes: color of the hair, race,
color of the eyes, types of cars driven,
2

= 88.5

MODE – most frequent, most occurring and can also be categorize as unimodal, bimodal, trimodal,
multimodal or no mode.

EXAMPLE :
2, 1, 1, 2, 3, 4, 5, 5, 5 therefore the mode is 5 because it is the most occurring

MEASURES OF POSITION
It is the way to divide a set of data into equal parts.
QUARTILE – 4 equal parts
DECILE – into 10 equal parts ( D1 to D9 )
PERCENTILE – into 100 equal parts ( P1 to P99 )

Q1 Q2 Q3 Q4

EXAMPLE :
80, 81, 87, 88, 89, 89, 92, 95, 97, 98

QK = _K ( n + 1 )_
4 If the answer has decimal, then you need to calculate again.

Q1 = _1 ( 10 + 1 )_ → Q1 = 81 + .75 ( 87 – 81 ) 81 is the 2nd digit in data ( 2.75 )

4 = 81 + .75 ( 6 ) + .75 because of 2.75
= _1 ( 11 )_ = 81 + 4.5 87 is the nearest to the right of 81
4 Q1 = 85.5 81 will be deducted from 87
= _11_
4
= 2.75
EXAMPLE :
80, 81, 87, 88, 89, 89, 92, 95, 97, 98

DK = _K ( n + 1 )_
10 If the answer has decimal, then you need to calculate again.

D5 = _5 ( 10 + 1 )_ → D5 = 89 + .5 ( 89 – 89 ) 89 is the 5th digit in data ( 5.5 )

10 = 89 + .5 ( 0 ) + .5 because of 5.5
= _5 ( 11 )_ =89 + 0 89 is the nearest to the right of 89
10 D5 = 89 89 will be deducted from 89
= _55_
10
= 5.5

MEASURES OF VARIABILITY
80, 81, 87, 88, 89, 89, 92, 95, 97, 98

RANGE = H-L ( highest and lowest )

= 98 – 80
RANGE = 18
IQR = Q3 – Q1

Q3 = _K ( n + 1 )_ Q1 = _K ( n + 1 )_
4 4
= _3 ( 10 + 1 )_ = _1 ( 10 + 1 )_
4 4
= _3 ( 11 )_ = _1 ( 11 )_
4 4
= _33_ = _11_
4 4
= 8.25 = 2.75

Q3 = 95 + .25 ( 97 – 95 ) Q3 = 81 + .75 ( 87 – 81 )
= 95 + .25 ( 2 ) = 81 + .75 ( 6 )
= 95 + 0.5 = 81 + 4.5
= 95.5 = 85.5

FINAL ANSWER :

RANGE = H – L
= 98 – 80
RANGE = 18
IQR = Q3 – Q1
= 95.5 – 85.5
 IQR = 10

80, 81, 87, 88, 89

X = the data or the given data
x̄ = 80 + 81 + 87 + 88 + 89
5 → and 5 refers to how many data are there
= 425 ÷ 5
= 85
(x - x̄ ) = 80 – 85 = -5
(x - x̄ )2 = -5 x -5 = 25

X x̄ (x - x̄ ) (x - x̄ )2
80 85 -5 25
81 85 -4 16
87 85 -2 4
88 85 3 9
89 85 4 16
= 425 = 70

VARIANCE _________
S2 = ( X - x̄ )2 SD  VARIANCE
n–1 = 4.18
= __70__
5–1
= __70__
4
= 17. 5

If the answer is below 4, it is called low variability and it is consistent. However, if the answer is 4 and
above it is called high variability and it is inconsistent. The lower the variability the consistent the
number is, the higher the variability the inconsistent the number is.

SYMMETRIC AND ASYMMETRIC DISTRIBUTION

SYMMETRIC – if the mean and the median are not equal.
1. Right - Skewed - if the mean and is greater than the median.
2. Left – Skewed – if the mean is less than the median.
ASYMMETRIC – if the mean and the median are not equal.

EXAMPLE :
80, 81, 87, 88, 89, 89, 92, 95, 97, 98

Mean = 89.6 ( 80 + 81 + 87 + 88 + 89 + 89 + 92 + 95 + 97 + 98 = 896 ÷ 10 = 89.6 )

Median = 89 ( 89 + 89 = 178 ÷ 2 = 89 )

The data of distribution is Asymmetric because the value of mean, and median is not equal. Therefore, it
is in the right – skewed because the value of mean is greater than median.
 COMMERCIAL MATHEMATICS
INTEREST – it is the sum of the money received or paid for the use of someone else’s money.
PRINCIPAL – is the original amount borrowed, deposited or invested.
RATE OF INTEREST – is the percent of the principal paid per time period.
TIME – is the number of years, months or days.
SIMPLE INTEREST – it is the interest earned at the end of the allotted time between the lender and the
borrower.

SIMPLE INTEREST FORMULA :

I = Prt ( P x R x T )
I = simple interest
P = principal
R = rate of interest
T = time

FUTURE VALUE ( Maturity Value )

- It is the total amount when the principal is added to the interest.

FORMULA :
F=P+I
F = P ( 1 + rt )

P R T
P = __I__ R = __I__ T = __I__
RT PT PR

P=? r=?
Given: r = 2.5% → ( 2.5 ÷ 100 = 0.025 ) Given: P = 36, 000
t=4 t = 1.5
I = 1,500 I = 4, 860

P = __𝐼__ r = __𝐼__
r𝑡 p𝑡
P = __1500__ r = __4860__
(0.025)(4) (36,000)(1.5)

P = __1500__ r = __4, 860__

0.1 54, 000

P = 15,000 R = 0.09 or 9%
 T=? I=?
Given: p = 250, 000 Given: P = 500, 000
r = 0.5% → ( 0.5 ÷ 100 = 0.005 ) r = 12.5% → ( 12.5 ÷ 100 = 0.125 )
I = 275 t = 10

t = __𝐼__
pr
I = Prt
I = ( 500, 000 ) ( 0.125 ) ( 10 )
t = _____275_____ I = 625, 000
(250, 000)(0.005)
I = 625, 000
t = __275__
1,250

t = 0.22 or 22 years

EXAMPLE :
John invests $5,000 in a savings account at an annual interest rate 7% for 5 years. How much
money did he earned in interest? What is the total value of his savings account at this point?

NOTE :

I = Prt
I = ( 5, 000 ) ( 0. 07 ) ( 5 )
I = $ 1, 750
5000 + 1750 = $6750

A bank offers 0.25% annual simple interest rate for a particular deposit. How much interest
will be earned if 1 million pesos is deposited in this savings account for 1 year?

I = Prt
I = ( 1, 000, 000 ) ( 0. 0025 ) ( 1 )
I = 2,500

How much interests are charged when P50,000 borrowed for 9 months at an annual simple
interest rate of 10%.

I = Prt
I = ( 50, 00 ) ( 0. 10 ) ( 9/12 ) → ( 9 months ÷ 12 )
I = ( 50, 00 ) ( 0. 10 ) ( 0. 75 )
I = 3, 750

When invested at an annual interest rate of 7%, the amount earned is P11,200 of simple
interest in two years. How much money was originally invested?
 P = __𝐼__
r𝑡

P = __11, 200__
( 0. 07 )( 2 )

P = __11, 200__
0.14

P = 80,000

Find the present value of Php 86,000 at 8% simple interest for 3 years.

F = P ( 1 + rt )
P = __F__
1 + rt

P = ___86, 000___
1 + ( 0. 08 )( 3 )

P = __86, 000__
1 + 0.24

P = 69, 354.84

COMPOUND INTEREST
- It is the interest earned on previously earned interest added to the principal. In compound
interest, the present value will be used instead of principal.
- Aside from present value and rate of interest, compound interest will use the following terms:

FREQUENCY OF CONVERSION (m) – the number of times the interest will be added to the present value.
It may be annually or effective (1), semiannually (2), quarterly (4), or monthly (12).
NOMINAL RATE (r) – annual interest rate.
PERIODIC RATE (j) – annual interest rate per frequency of conversion.
NUMBER OF CONVERSIONS (n) – product of frequency of conversions and time

- Aside from present value and rate of interest, compound interest will use the following terms:
FORMULA :
J = __r__
m
n = mt
I= F–P
FUTURE/MATURITY VALUE – It is the total amount when the principal is added to the interest.

FORMULA:
F=P (1+j0)n

EXAMPLE :
Find the maturity value and interest if Php 10,000 is deposited in a bank at 2% compounded
quarterly for 5 years.
J = __r__ n = mt
m n = (4) (5)

j = ___0. 02___ n = 20 conversion periods

4

j = 0. 005

Find the maturity value and interest if Php 10,000 is deposited in a bank at 2% compounded
quarterly for 5 years.

F = P (1 + 𝑗)n
MATURITY VALUE (F) :

F = 10,000 (1 + 0.005)20
F = 11,048.96
Find the maturity value and interest if Php 10,000 is deposited in a bank at 2% compounded
quarterly for 5 years.
COMPOUND INTEREST :
I = F-P
I = 11,048.95 – 10,000
I = 1,048.96
Find the maturity value and interest if Php 10,000 is deposited in a bank at 2%
compounded monthly for 5 years.
J = __r__ n = mt
m n = (12) (5)

j = ___0. 02___ n = 60 conversion periods

12

j = 0. 005

F = P (1 + 𝑗)n
MATURITY VALUE (F)

F = 10,000 (1 + 0.0016)60
F = 11,050.79
COMPOUND INTEREST
I = F-P
I = 11,050.79 – 10,000
I = 1,050.79

Cris borrows P50,000 and promise to pay the principal and interest at 12% compounded
monthly. How much must he repay after 6 years.
 F = P (1 + 𝑟 /𝑚 ) 𝑚𝑡

F = 50,000(1 + 0.12 / 12 ) (12)(6)

F = 50,000(1 + 0.01) 72
F = 50,000(1.01) 72
F = P102,354.97

PRESENT VALUE AT COMPOUNDED INTEREST

FORMULA :
P = ___F___
( 1 + r / m ) mt

P = ___F___
( 1 + j) n
EXAMPLE :
Find the present value of P50,000 due in 4 years if money is invested at 12% compounded
semi-annually.

J = __r__ n = mt
m n = (2) (4)

j = ___0. 12___ n=8

2

j = 0. 006

PRESENT VALUE :
P = __F__
( 1 + j )n

P = ___50, 000___
( 1 + 0. 06 )8

P = __50, 000__
( 1 + 0.6 )8

P = P31, 370. 62

What is the present value of P25,000 due in 2 years and 6 months if money is worth 10%
compounded quarterly.

J = __r__ n = mt
m n = (2.5) (4)

j = ___0. 10___ n = 10
4

j = 0. 025
 How long will it take P3,000 to accumulate to P3,500 in a bank savings account at 0.25%
compounded monthly?

GIVEN:
t=?
P = 3,000
F = 3,500
r = 0.25% or 0.0025
m = 12
J = __r__
m

j = ___0. 0025___
12

j = 0. 000208

F= P(1+j)n

3, 500 = 3, 000 ( 1 + 0. 000208 )n

3, 500 = 3, 000 ( 1 + 0. 000208 )n

3, 000 3, 000

1. 1667 = ( 1 + 0. 000208 )n
log 1.1667 = log 1.000208 n
log 1.1667 = n log 1.000208

log 1.1667 = n log 1. 000208

log 1.000208 log 1. 000208
n = 741