CHAPTER 1

1. INTRODUCTION
Definition and classifications of statistics
Definition:
We can define statistics in two ways.
1. Plural sense (lay man definition).
It is an aggregate or collection of numerical facts.
2. Singular sense (formal definition)
Statistics is defined as the science of collecting, organizing, presenting, analyzing
and interpreting numerical data for the purpose of assisting in making a more
effective decision.
Classifications:
Depending on how data can be used statistics is some times divided in to two main
areas or branches.
1. Descriptive Statistics: is concerned with summary calculations, graphs, charts
and tables.
2. Inferential Statistics: is a method used to generalize from a sample to a
population. For example, the average income of all families (the population) in
Ethiopia can be estimated from figures obtained from a few hundred (the sample)
families.
 It is important because statistical data usually arises from sample.
 Statistical techniques based on probability theory are required.

Stages in Statistical Investigation

There are five stages or steps in any statistical investigation.

1. Collection of data: the process of measuring, gathering, assembling the raw data
up on which the statistical investigation is to be based.
 Data can be collected in a variety of ways; one of the most common
methods is through the use of survey. Survey can also be done in different
methods, three of the most common methods are:
 Telephone survey
 Mailed questionnaire
 Personal interview.
Exercise: discuss the advantage and disadvantage of the above three methods
with respect to each other.

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2. Organization of data: Summarization of data in some meaningful way, e.g table
form
3. Presentation of the data: The process of re-organization, classification,
compilation, and summarization of data to present it in a meaningful form.
4. Analysis of data: The process of extracting relevant information from the
summarized data, mainly through the use of elementary mathematical operation.
5. Inference of data: The interpretation and further observation of the various
statistical measures through the analysis of the data by implementing those
methods by which conclusions are formed and inferences made.
 Statistical techniques based on probability theory are required.

Definitions of some terms

a. Statistical Population: It is the collection of all possible observations of a
specified characteristic of interest (possessing certain common property) and
being under study. An example is all of the students in AAU 3101 course in this
term.
b. Sample: It is a subset of the population, selected using some sampling technique
in such a way that they represent the population.
c. Sampling: The process or method of sample selection from the population.
d. Sample size: The number of elements or observation to be included in the
sample.
e. Census: Complete enumeration or observation of the elements of the
population. Or it is the collection of data from every element in a population
f. Parameter: Characteristic or measure obtained from a population.
g. Statistic: Characteristic or measure obtained from a sample.
h. Variable: It is an item of interest that can take on many different numerical
values.

Types of Variables or Data:

1. Qualitative Variables are nonnumeric variables and can't be measured.

Examples include gender, religious affiliation, and state of birth.
2. Quantitative Variables are numerical variables and can be measured. Examples
include balance in checking account, number of children in family. Note that
quantitative variables are either discrete (which can assume only certain values, and
there are usually "gaps" between the values, such as the number of bedrooms in your
house) or continuous (which can assume any value within a specific range, such as the
air pressure in a tire.)

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 Applications, Uses and Limitations of statistics
Applications of statistics:
 In almost all fields of human endeavor.
 Almost all human beings in their daily life are subjected to obtaining
numerical facts e.g. abut price.
 Applicable in some process e.g. invention of certain drugs, extent of
environmental pollution.
 In industries especially in quality control area.
Uses of statistics:
The main function of statistics is to enlarge our knowledge of complex phenomena.
The following are some uses of statistics:
1. It presents facts in a definite and precise form.
2. Data reduction.
3. Measuring the magnitude of variations in data.
4. Furnishes a technique of comparison
5. Estimating unknown population characteristics.
6. Testing and formulating of hypothesis.
7. Studying the relationship between two or more variable.
8. Forecasting future events.
Limitations of statistics
As a science statistics has its own limitations. The following are some of the
limitations:
 Deals with only quantitative information.
 Deals with only aggregate of facts and not with individual data items.
 Statistical data are only approximately and not mathematical correct.
 Statistics can be easily misused and therefore should be used be experts.

Scales of measurement
Proper knowledge about the nature and type of data to be deal with is essential in
order to specify and apply the proper statistical method for their analysis and
inferences. Measurement scale refers to the property of value assigned to the data
based on the properties of order, distance and fixed zero.

In mathematical terms measurement is a functional mapping from the set of objects

{Oi} to the set of real numbers {M(Oi)}.

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The goal of measurement systems is to structure the rule for assigning numbers to
objects in such a way that the relationship between the objects is preserved in the
numbers assigned to the objects. The different kinds of relationships preserved are
called properties of the measurement system.

Order

The property of order exists when an object that has more of the attribute than
another object, is given a bigger number by the rule system. This relationship must
hold for all objects in the "real world".

The property of ORDER exists

When for all i, j if Oi > Oj, then M(Oi) > M(Oj).

Distance

The property of distance is concerned with the relationship of differences between

objects. If a measurement system possesses the property of distance it means that the
unit of measurement means the same thing throughout the scale of numbers. That is,
an inch is an inch, no matters were it falls - immediately ahead or a mile downs the
road.

More precisely, an equal difference between two numbers reflects an equal

difference in the "real world" between the objects that were assigned the numbers.
In order to define the property of distance in the mathematical notation, four objects
are required: Oi, Oj, Ok, and Ol . The difference between objects is represented by
the "-" sign; Oi - Oj refers to the actual "real world" difference between object i and
object j, while M(Oi) - M(Oj) refers to differences between numbers.

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The property of DISTANCE exists, for all i, j, k, l

If Oi-Oj ≥ Ok- Ol then M(Oi)-M(Oj) ≥ M(Ok)-M( Ol ).

Fixed Zero

A measurement system possesses a rational zero (fixed zero) if an object that has
none of the attribute in question is assigned the number zero by the system of rules.
The object does not need to really exist in the "real world", as it is somewhat
difficult to visualize a "man with no height". The requirement for a rational zero is
this: if objects with none of the attribute did exist would they be given the value
zero. Defining O0 as the object with none of the attribute in question, the definition
of a rational zero becomes:

The property of FIXED ZERO exists if M(O0) = 0.

The property of fixed zero is necessary for ratios between numbers to be meaningful.

SCALE TYPES

Measurement is the assignment of numbers to objects or events in a systematic

fashion. Four levels of measurement scales are commonly distinguished: nominal,
ordinal, interval, and ratio and each possessed different properties of measurement
systems.

Nominal Scales

Nominal scales are measurement systems that possess none of the three properties
stated above.

 Level of measurement which classifies data into mutually exclusive, all

inclusive categories in which no order or ranking can be imposed on the data.
 No arithmetic and relational operation can be applied.

Examples:

o Political party preference (Republican, Democrat, or Other,)

o Sex (Male or Female.)
o Marital status(married, single, widow, divorce)
o Country code
o Regional differentiation of Ethiopia.

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Ordinal Scales

Ordinal Scales are measurement systems that possess the property of order, but not
the property of distance. The property of fixed zero is not important if the property
of distance is not satisfied.

 Level of measurement which classifies data into categories that can be ranked.
Differences between the ranks do not exist.
 Arithmetic operations are not applicable but relational operations are
applicable.
 Ordering is the sole property of ordinal scale.

Examples:

o Letter grades (A, B, C, D, F).

o Rating scales (Excellent, Very good, Good, Fair, poor).
o Military status.

Interval Scales

Interval scales are measurement systems that possess the properties of Order and
distance, but not the property of fixed zero.

 Level of measurement which classifies data that can be ranked and differences
are meaningful. However, there is no meaningful zero, so ratios are
meaningless.
 All arithmetic operations except division are applicable.
 Relational operations are also possible.

Examples:

o IQ
o Temperature in oF.

Ratio Scales

Ratio scales are measurement systems that possess all three properties: order,
distance, and fixed zero. The added power of a fixed zero allows ratios of numbers to
be meaningfully interpreted; i.e. the ratio of Bekele's height to Martha's height is
1.32, whereas this is not possible with interval scales.

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  Level of measurement which classifies data that can be ranked, differences are
meaningful, and there is a true zero. True ratios exist between the different
units of measure.
 All arithmetic and relational operations are applicable.

Examples:

o Weight
o Height
o Number of students
o Age

The following present a list of different attributes and rules for assigning numbers to
objects. Try to classify the different measurement systems into one of the four types
of scales. (Exercise)
1. Your checking account number as a name for your account. (nominal)
2. Your checking account balance as a measure of the amount of money you
have in that account. (ratio)
3. The order in which you were eliminated in a spelling bee as a measure of
your spelling ability. ordinal
4. Your score on the first statistics test as a measure of your knowledge of
statistics. interval
5. Your score on an individual intelligence test as a measure of your
intelligence. interval
6. The distance around your forehead measured with a tape measure as a
measure of your intelligence. interval
7. A response to the statement "Abortion is a woman's right" where "Strongly
Disagree" = 1, "Disagree" = 2, "No Opinion" = 3, "Agree" = 4, and
"Strongly Agree" = 5, as a measure of attitude toward abortion.(nominal
8. Times for swimmers to complete a 50-meter race;(ratio)
9. Months of the year Meskerm, Tikimit…(ordinal)
10. Socioeconomic status of a family when classified as low, middle and upper
classes. (ordinal)
11. Blood type of individuals, A, B, AB and O. (nominal)
12. Pollen counts provided as numbers between 1 and 10 where 1 implies
there is almost no pollen and 10 that it is rampant, but for which the values
do not represent an actual counts of grains of pollen. (ordinal)
13. Regions numbers of Ethiopia (1, 2, 3 etc.) (nominal)
14. The number of students in a college;(ratio)
15. the net wages of a group of workers;(ratio)
16. The height of the men in the same town; (ratio)

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 INTRODUCTION TO METHODS OF DATA COLLECTION
There are two sources of data:
1. Primary Data
 Data measured or collect by the investigator or the user directly from
the source.
 Two activities involved: planning and measuring.
a) Planning:
 Identify source and elements of the data.
 Decide whether to consider sample or census.
 If sampling is preferred, decide on sample size, selection
method,… etc
 Decide measurement procedure.
 Set up the necessary organizational structure.
b) Measuring: there are different options.
 Focus Group
 Telephone Interview
 Mail Questionnaires
 Door-to-Door Survey
 Mall Intercept
 New Product Registration
 Personal Interview and
 Experiments are some of the sources for collecting the
primary data.
2. Secondary Data
 Data gathered or compiled from published and unpublished sources or
files.
 When our source is secondary data check that:
 The type and objective of the situations.
 The purpose for which the data are collected and
compatible with the present problem.
 The nature and classification of data is appropriate to our
problem.
 There are no biases and misreporting in the published
data.
Note: Data which are primary for one may be secondary for the other.

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 CHAPTER 2

2. METHODS OF DATA PRESNTATION

Having collected and edited the data, the next important step is to organize
it. That is to present it in a readily comprehensible condensed form that aids
in order to draw inferences from it. It is also necessary that the like be
separated from the unlike ones.

The presentation of data is broadly classified in to the following two

categories:

 Tabular presentation
 Diagrammatic and Graphic presentation.

The process of arranging data in to classes or categories according to

similarities technically is called classification.

Classification is a preliminary and it prepares the ground for proper

presentation of data.

Definitions:

 Raw data: recorded information in its original collected form,

whether it be counts or measurements, is referred to as raw data.
 Frequency: is the number of values in a specific class of the
distribution.
 Frequency distribution: is the organization of raw data in table form
using classes and frequencies.

There are three basic types of frequency distributions

 Categorical frequency distribution

 Ungrouped frequency distribution
 Grouped frequency distribution

There are specific procedures for constructing each type.

1) Categorical frequency Distribution:

Used for data that can be place in specific categories such as nominal, or
ordinal. e.g. marital status.

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Example: a social worker collected the following data on marital status for 25
persons.(M=married, S=single, W=widowed, D=divorced)

M S D W D
S S M M M
W D S M M
W D D S S
S W W D D

Solution:

Since the data are categorical, discrete classes can be used. There are four types
of marital status M, S, D, and W. These types will be used as class for the
distribution. We follow procedure to construct the frequency distribution.

Step 1: Make a table as shown.

Class Tally Frequency Percent

(1) (2) (3) (4)

M
S
D
W

Step 2: Tally the data and place the result in column (2).

Step 3: Count the tally and place the result in column (3).

Step 4: Find the percentages of values in each class by using;

f
% *100 Where f= frequency of the class, n=total number of value.
n

Percentages are not normally a part of frequency distribution but they can be
added since they are used in certain types diagrammatic such as pie charts.

Step 5: Find the total for column (3) and (4).

Combing all the steps one can construct the following frequency distribution.

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 Class Tally Frequency Percent

(1) (2) (3) (4)

M //// 5 20
S //// // 7 28
D //// // 7 28
W //// 6 24

2) Ungrouped frequency Distribution:

-Is a table of all the potential raw score values that could possible occur in the
data along with the number of times each actually occurred.

-Is often constructed for small set or data on discrete variable.

Constructing ungrouped frequency distribution:

 First find the smallest and largest raw score in the collected data.
 Arrange the data in order of magnitude and count the frequency.
 To facilitate counting one may include a column of tallies.

Example:

The following data represent the mark of 20 students.

80 76 90 85 80
70 60 62 70 85
65 60 63 74 75
76 70 70 80 85

Construct a frequency distribution, which is ungrouped.

Solution:

Step 1: Find the range, Range=Max-Min=90-60=30.

Step 2: Make a table as shown
Step 3: Tally the data.

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 Step 4: Compute the frequency.
Mark Tally Frequency
60 // 2
62 / 1
63 / 1
65 / 1
70 //// 4
74 / 1
75 // 2
76 / 1
80 /// 3
85 /// 3
90 / 1

Each individual value is presented separately, that is why it is named

ungrouped frequency distribution.

3) Grouped frequency Distribution:

-When the range of the data is large, the data must be grouped in to classes that
are more than one unit in width.

Definitions:

 Grouped Frequency Distribution: a frequency distribution when

several numbers are grouped in one class.
 Class limits: Separates one class in a grouped frequency distribution
from another. The limits could actually appear in the data and have gaps
between the upper limits of one class and lower limit of the next.
 Units of measurement (U): the distance between two possible
consecutive measures. It is usually taken as 1, 0.1, 0.01, 0.001, -----.
 Class boundaries: Separates one class in a grouped frequency
distribution from another. The boundaries have one more decimal places
than the row data and therefore do not appear in the data. There is no gap
between the upper boundary of one class and lower boundary of the next
class. The lower class boundary is found by subtracting U/2 from the
corresponding lower class limit and the upper class boundary is found by
adding U/2 to the corresponding upper class limit.
 Class width: the difference between the upper and lower class
boundaries of any class. It is also the difference between the lower limits

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 of any two consecutive classes or the difference between any two
consecutive class marks.
 Class mark (Mid points): it is the average of the lower and upper class
limits or the average of upper and lower class boundary.
 Cumulative frequency: is the number of observations less than/more
than or equal to a specific value.
 Cumulative frequency above: it is the total frequency of all values
greater than or equal to the lower class boundary of a given class.
 Cumulative frequency blow: it is the total frequency of all values less
than or equal to the upper class boundary of a given class.
 Cumulative Frequency Distribution (CFD): it is the tabular
arrangement of class interval together with their corresponding
cumulative frequencies. It can be more than or less than type, depending
on the type of cumulative frequency used.
 Relative frequency (rf): it is the frequency divided by the total
frequency.
 Relative cumulative frequency (rcf): it is the cumulative frequency
divided by the total frequency.

Guidelines for classes

1. There should be between 5 and 20 classes.

2. The classes must be mutually exclusive. This means that no data value
can fall into two different classes
3. The classes must be all inclusive or exhaustive. This means that all
data values must be included.
4. The classes must be continuous. There are no gaps in a frequency
distribution.
5. The classes must be equal in width. The exception here is the first or
last class. It is possible to have an "below ..." or "... and above" class.
This is often used with ages.

Steps for constructing Grouped frequency Distribution

1. Find the largest and smallest values

2. Compute the Range(R) = Maximum - Minimum
3. Select the number of classes desired, usually between 5 and 20 or use
Sturges rule k  1 3.322 log n where k is number of classes desired and
n is total number of observation.

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 4. Find the class width by dividing the range by the number of classes
R
and rounding up, not off. w  .
k
5. Pick a suitable starting point less than or equal to the minimum value.
The starting point is called the lower limit of the first class. Continue
to add the class width to this lower limit to get the rest of the lower
limits.
6. To find the upper limit of the first class, subtract U from the lower
limit of the second class. Then continue to add the class width to this
upper limit to find the rest of the upper limits.
7. Find the boundaries by subtracting U/2 units from the lower limits and
adding U/2 units from the upper limits. The boundaries are also half-
way between the upper limit of one class and the lower limit of the
next class. !may not be necessary to find the boundaries.
8. Tally the data.
9. Find the frequencies.
[Link] the cumulative frequencies. Depending on what you're trying to
accomplish, it may not be necessary to find the cumulative
frequencies.
[Link] necessary, find the relative frequencies and/or relative cumulative
frequencies

Example*:

Construct a frequency distribution for the following data.

11 29 6 33 14 31 22 27 19 20
18 17 22 38 23 21 26 34 39 27

Solutions:

Step 1: Find the highest and the lowest value H=39, L=6

Step 2: Find the range; R=H-L=39-6=33

Step 3: Select the number of classes desired using Sturges formula;

k  1 3.322 log n =1+3.322log (20) =5.32=6(rounding up)

Step 4: Find the class width; w=R/k=33/6=5.5=6 (rounding up)

Step 5: Select the starting point, let it be the minimum observation.

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  6, 12, 18, 24, 30, 36 are the lower class limits.

Step 6: Find the upper class limit; e.g. the first upper class=12-U=12-1=11

 11, 17, 23, 29, 35, 41 are the upper class limits.

So combining step 5 and step 6, one can construct the following classes.

Class limits
6 – 11
12 – 17
18 – 23
24 – 29
30 – 35
36 – 41

Step 7: Find the class boundaries;

E.g. for class 1 Lower class boundary=6-U/2=5.5

Upper class boundary =11+U/2=11.5

 Then continue adding w on both boundaries to obtain the rest

boundaries. By doing so one can obtain the following classes.

Class boundary
5.5 – 11.5
11.5 – 17.5
17.5 – 23.5
23.5 – 29.5
29.5 – 35.5
35.5 – 41.5

Step 8: tally the data.

Step 9: Write the numeric values for the tallies in the frequency column.

Step 10: Find cumulative frequency.

Step 11: Find relative frequency or/and relative cumulative frequency.

The complete frequency distribution follows:

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 Class Class Class Tally Freq. Cf (less Cf (more rf. rcf (less
limit boundary Mark than than than type
type) type)
6 – 11 5.5 – 11.5 8.5 // 2 2 20 0.10 0.10
12 – 17 11.5 – 17.5 14.5 // 2 4 18 0.10 0.20
18 – 23 17.5 – 23.5 20.5 ////// 7 11 16 0.35 0.55
24 – 29 23.5 – 29.5 26.5 //// 4 15 9 0.20 0.75
30 – 35 29.5 – 35.5 32.5 /// 3 18 5 0.15 0.90
36 – 41 35.5 – 41.5 38.5 // 2 20 2 0.10 1.00

Diagrammatic and Graphic presentation of data.

These are techniques for presenting data in visual displays using geometric and
pictures.

Importance:

 They have greater attraction.

 They facilitate comparison.
 They are easily understandable.

-Diagrams are appropriate for presenting discrete data.

-The three most commonly used diagrammatic presentation for discrete as well as
qualitative data are:

 Pie charts
 Pictogram
 Bar charts

Pie chart

- A pie chart is a circle that is divided in to sections or wedges according to the

percentage of frequencies in each category of the distribution. The angle of the
sector is obtained using:

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 Valueofthepart
Angleof sec tor  *100
thewholequantity

Example: Draw a suitable diagram to represent the following population in a town.

Men Women Girls Boys

2500 2000 4000 1500

Solutions:

Step 1: Find the percentage.

Step 2: Find the number of degrees for each class.

Step 3: Using a protractor and compass, graph each section and write its name
corresponding percentage.

Class Frequency Percent Degree

Men 2500 25 90
Women 2000 20 72
Girls 4000 40 144
Boys 1500 15 54

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 CLASS

Boy s Men

Girls Women

Pictogram

-In these diagram, we represent data by means of some picture symbols.

We decide abut a suitable picture to represent a definite number of units
in which the variable is measured.

Example: draw a pictogram to represent the following population of a

town.

Year 1989 1990 1991 1992

Population 2000 3000 5000 7000

Bar Charts:
- A set of bars (thick lines or narrow rectangles) representing some magnitude over
time space.
- They are useful for comparing aggregate over time space.
- Bars can be drawn either vertically or horizontally.
- There are different types of bar charts. The most common being :
 Simple bar chart
 Deviation or two way bar chart
 Broken bar chart
 Component or sub divided bar chart.

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  Multiple bar charts.

Simple Bar Chart

-Are used to display data on one variable.

-They are thick lines (narrow rectangles) having the same breadth. The magnitude
of a quantity is represented by the height /length of the bar.
Example: The following data represent sale by product, 1957- 1959 of a given
company for three products A, B, C.

Product Sales($) Sales($) Sales($)

In 1957 In 1958 In 1959
A 12 14 18
B 24 21 18
C 24 35 54

Solutions:

Sales by product in 1957

30
25
Sales in $

20
15
10
5
0
A B C
product

Component Bar chart

-When there is a desire to show how a total (or aggregate) is divided in to its
component parts, we use component bar chart.
-The bars represent total value of a variable with each total broken in to its component
parts and different colours or designs are used for identifications
Example:
Draw a component bar chart to represent the sales by product from 1957 to 1959.
Solutions:

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 SALES BY PRODUCT 1957-1959

100

80
Sales in $

Product C
60
Product B
40
Product A
20

0
1957 1958 1959
Year of production

Multiple Bar charts

- These are used to display data on more than one variable.
- They are used for comparing different variables at the same time.
Example:
Draw a component bar chart to represent the sales by product from 1957 to 1959.

Solutions:

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 Sales by product 1957-1959

60
50
Sales in $

40 Product A
30 Product B
20 Product C

10
0
1957 1958 1959
Year of production

Graphical Presentation of data

- The histogram, frequency polygon and cumulative frequency graph or ogive is
most commonly applied graphical representation for continuous data.
Procedures for constructing statistical graphs:
 Draw and label the X and Y axes.
 Choose a suitable scale for the frequencies or cumulative frequencies and
label it on the Y axes.
 Represent the class boundaries for the histogram or ogive or the mid points for
the frequency polygon on the X axes.
 Plot the points.
 Draw the bars or lines to connect the points.

Histogram

A graph which displays the data by using vertical bars of various heights to
represent frequencies. Class boundaries are placed along the horizontal axes. Class
marks and class limits are some times used as quantity on the X axes.

Frequency Polygon:

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- A line graph. The frequency is placed along the vertical axis and classes mid
points are placed along the horizontal axis. It is customer to the next higher and
lower class interval with corresponding frequency of zero, this is to make it a
complete polygon.
Example: Draw a frequency polygon for the above data (example *).
Solutions:
8

4
Value Frequency

0
2. 5 8. 5 14. 5 20. 5 26. 5 32. 5 38. 5 44. 5

Cla ss Mid p oints

Ogive (cumulative frequency polygon)

- A graph showing the cumulative frequency (less than or more than type) plotted
against upper or lower class boundaries respectively. That is class boundaries are
plotted along the horizontal axis and the corresponding cumulative frequencies
are plotted along the vertical axis. The points are joined by a free hand curve.

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 CHAPTER 3
3. MEASURES OF CENTERAL TENDENCY
Introduction
 When we want to make comparison between groups of numbers it is good to have a single value that
is considered to be a good representative of each group. This single value is called the average of the
group. Averages are also called measures of central tendency.
 An average which is representative is called typical average and an average which is not representative
and has only a theoretical value is called a descriptive average. A typical average should posses the
following:
 It should be rigidly defined.
 It should be based on all observation under investigation.
 It should be as little as affected by extreme observations.
 It should be capable of further algebraic treatment.
 It should be as little as affected by fluctuations of sampling.
 It should be ease to calculate and simple to understand.
Objectives:
 To comprehend the data easily.
 To facilitate comparison.
 To make further statistical analysis.
The Summation Notation:
 Let X1, X2 ,X3 …XN be a number of measurements where N is the total number of observation
and Xi is ith observation.
 Very often in statistics an algebraic expression of the form X 1+X2+X3+...+XN is used in a
formula to compute a statistic. It is tedious to write an expression like this very often, so
mathematicians have developed a shorthand notation to represent a sum of scores, called the
summation notation.
N
 The symbol X
i 1
i is a mathematical shorthand for X1+X2+X3+...+XN

The expression is read, "the sum of X sub i from i equals 1 to N." It means "add up all the
numbers."

Example: Suppose the following were scores made on the first homework assignment for five
students in the class: 5, 7, 7, 6, and 8. In this example set of five numbers, where N=5, the
summation could be written:

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 The "i=1" in the bottom of the summation notation tells where to begin the sequence of
summation. If the expression were written with "i=3", the summation would start with the third
number in the set. For example:

In the example set of numbers, this would give the following result:

The "N" in the upper part of the summation notation tells where to end the sequence of
summation. If there were only three scores then the summation and example would be:

Sometimes if the summation notation is used in an expression and the expression must be written a
number of times, as in a proof, then a shorthand notation for the shorthand notation is employed.
When the summation sign "" is used without additional notation, then "i=1" and "N" are assumed.

For example:

PROPERTIES OF SUMMATION
n
1.  k  nk where k is any constant
i 1

2.  kX i
n
 k X i
n
where k is any constant
i 1 i 1

where a and b are any constant

n n
3.  (a  bX
i 1
i )  na  b X i
i 1
n n n
4.  ( X i  Yi )   X i   Yi
i 1 i 1 i 1

The sum of the product of the two variables could be written:

Example: considering the following data determine

Page 24 of 95
 X Y
5 6
7 7
7 8
6 7
8 8
5
a) X
i 1
i

5
b) Y
i 1
i

5
c) 10
i 1
5
d) (X
i 1
i  Yi )
5
e) (X
i 1
i  Yi )
5
f) X Y
i 1
i i

X
2
g) i
i 1
5 5
h) ( X i )( Yi )
i 1 i 1
Solutions:
5
a) X
i 1
i  5  7  7  6  8  33
5
b) Y
i 1
i  6  7  8  7  8  36
5
c) 10  5 *10  50
i 1
5
d) (X
i 1
i  Yi )  (5  6)  (7  7)  (7  8)  (6  7)  (8  8)  69  33  36
5
e) (X
i 1
i  Yi )  (5  6)  (7  7)  (7  8)  (6  7)  (8  8)  3  33  36
5
f) X Y
i 1
i i  5 * 6  7 * 7  7 * 8  6 * 7  8 * 8  241
5

X  5 2  7 2  7 2  6 2  8 2  223
2
g) i
i 1
5 5
h) ( X i )( Yi )  33 * 36  1188
i 1 i 1

Page 25 of 95
Types of measures of central tendency
There are several different measures of central tendency; each has its advantage and disadvantage.
 The Mean (Arithmetic, Geometric and Harmonic)
 The Mode
 The Median
 Quantiles (Quartiles, Deciles and Percentiles)
The choice of these averages depends up on which best fit the property under discussion.

The Arithmetic Mean

 Is defined as the sum of the magnitude of the items divided by the number of items.
 The mean of X1, X2 ,X3 …Xn is denoted by A.M ,m or X and is given by:
X 1  X 2  ...  X n
X 
n
n

X i
X  i 1

n
 If X1 occurs f1 times
 If X2occurs f2 times
 .
 .
 If Xn occurs fn times
k

fX k

f
i i
Then the mean will be X  i 1 , where k is the number of classes and i n
k

f
i 1
i
i 1

Example: Obtain the mean of the following number

2, 7, 8, 2, 7, 3, 7
Solution:
Xi fi Xifi
2 2 4
3 1 3
7 3 21
8 1 8
Total 7 36

f i Xi
36
X  i 1
4
  5.15
f
7
i
i 1
Arithmetic Mean for Grouped Data
If data are given in the shape of a continuous frequency distribution, then the mean is obtained as
follows:
k

 fi X i Xi =the class mark of the ith class and fi = the frequency of the ith class
X  i 1
k
, Where
 i 1
fi

Page 26 of 95
 Example: calculate the mean for the following age distribution.
Class frequency
6- 10 35
11- 15 23
16- 20 15
21- 25 12
26- 30 9
31- 35 6
Solutions:
 First find the class marks
 Find the product of frequency and class marks
 Find mean using the formula.
Class fi Xi Xifi
6- 10 35 8 280
11- 15 23 13 299
16- 20 15 18 270
21- 25 12 23 276
26- 30 9 28 252
31- 35 6 33 198
Total 100 1575

f i Xi
1575
X  i 1
6
  15.75
f
100
i
i 1

Exercises:
1. Marks of 75 students are summarized in the following frequency distribution:

Marks No. of students

40-44 7
45-49 10
50-54 22
55-59 f4
60-64 f5
65-69 6
70-74 3
If 20% of the students have marks between 55 and 59
i. Find the missing frequencies f4 and f5.
ii. Find the mean.
 If the values in a series or mid values of a class are large enough, coding of values is a good device
to simplify the calculations.
 For raw data suppose we have used the following coding system.

Page 27 of 95
 di  X i  A
 X i  di  A
n n

X i  (d i  A)
X  i 1
 i 1

n n
n

d i
 X  A i 1

n
 X  Ad
Where A is an assumed mean and d is the mean of the coded data.
 If the data are expressed in terms of ungrouped frequency distribution
di  X i  A
 X i  di  A
k k

 fi X i  f (d i i  A)
X  i 1
 i 1

n n
k

fd i i
 X  A i 1

n
 X  Ad
 In both cases the true mean is the assumed mean plus the average of the deviations from the
assumed mean.
 Suppose the data is given in the shape of continuous frequency distribution with a constant class
size of w then the following coding is appropriate.
X  A
d  i
iw
 X  wd  A
i i
k k
 f X  f ( wd  A)
i i i i
X  i 1  i 1
n n
k
 f wd
i i
 X  A i 1
n
 X  A  wd
Where: Xi is the original class mark for the ith class.
di is the transformed class mark for the ith class.
A is an assumed mean usually the mean of the class marks.
(i =1, 2… k)
Example:
1. Suppose the deviations of the observations from an assumed mean of 7 are: 1, -1, -2, -2,
0, -3, -2, 2, 0, -3.
a) Find the true mean
b) Find the original observation.
Solutions:

Page 28 of 95
 10
A  7,  d i  10
i 1
a)  10
d   1
10
 X  A  d  7 1  6
The true mean is 6.
b) Using Xi=A+di we obtain the following original observations:
8, 6, 5, 5, 7, 4, 5, 9, 7, 4.
Special properties of Arithmetic mean
1. The sum of the deviations of a set of items from their mean is always zero.
i.e. 
n
( X  X )  0. i
i 1

2. The sum of the squared deviations of a set of items from their mean is the minimum.
n n
i.e.  ( Xi  X )   ( X  A) , A  X
i 1
2

i 1
i
2

3. If X 1 is the mean of n1 observations

If X 2 is the mean of n 2 observations
.
.
If X k is the mean of n k observations
Then the mean of all the observation in all groups often called the combined mean is given by:
k

X 1n1  X 2 n 2  ....  X k n k X n i i
Xc   i 1
n1  n 2  ...n k
k

n i 1
i

Example: In a class there are 30 females and 70 males. If females averaged 60 in an examination
and boys averaged 72, find the mean for the entire class.
Solutions:

Females Males
X 1  60 X 2  72
n1  30 n 2  70
2

X 1 n1  X 2 n 2 X n i i
Xc   i 1

n1  n 2
2

n
i 1
i

30(60)  70(72) 6840

 Xc    68.40
30  70 100

4. If a wrong figure has been used when calculating the mean the correct mean can be obtained
with out repeating the whole process using:
(CorrectValue  WrongValue)
CorrectMea n  WrongMean 
n

Page 29 of 95
 Where n is total number of observations.
Example: An average weight of 10 students was calculated to be [Link] it was discovered
that one weight was misread as 40 instead of 80 k.g. Calculate the correct average weight.
Solutions:
(CorrectValue  WrongValue)
CorrectMea n  WrongMean 
n
(80  40)
CorrectMea n  65   65  4  69k.g.
10
5. The effect of transforming original series on the mean.
a) If a constant k is added/ subtracted to/from every observation then the new mean
will be the old mean± k respectively.
b) If every observations are multiplied by a constant k then the new mean will be k*old
mean
Example:
1. The mean of n Tetracycline Capsules X1, X2, …,Xn are known to be 12 gm. New set of
capsules of another drug are obtained by the linear transformation Yi = 2Xi – 0.5 ( i =
1, 2, …, n ) then what will be the mean of the new set of capsules
Solutions:
NewMean  2 * OldMean  0.5  2 * 12  0.5  23.5
2. The mean of a set of numbers is 500.
a) If 10 is added to each of the numbers in the set, then what will be the mean of the new
set?
b) If each of the numbers in the set are multiplied by -5, then what will be the mean of
the new set?
Solutions:
a).NewMean  OldMean  10  500  10  510
b).NewMean  5 * OldMean  5 * 500  2500
Weighted Mean
 When a proper importance is desired to be given to different data a weighted mean is
appropriate.
 Weights are assigned to each item in proportion to its relative importance.
 Let X1, X2, …Xn be the value of items of a series and W1, W2, …Wn their corresponding
weights , then the weighted mean denoted X w is defined as:
n

X W i i
Xw  i 1
n

W
i 1
i

Example:
A student obtained the following percentage in an examination:
English 60, Biology 75, Mathematics 63, Physics 59, and chemistry [Link] the students
weighted arithmetic mean if weights 1, 2, 1, 3, 3 respectively are allotted to the subjects.
Solutions:

Page 30 of 95
 5

X W i i
60 * 1  75 * 2  63 * 1  59 * 3  55 * 3 615
Xw  i 1
   61.5
1 2  1 3  3
5
10
W
i 1
i

Merits and Demerits of Arithmetic Mean

Merits:
 It is rigidly defined.
 It is based on all observation.
 It is suitable for further mathematical treatment.
 It is stable average, i.e. it is not affected by fluctuations of sampling to some extent.
 It is easy to calculate and simple to understand.
Demerits:
 It is affected by extreme observations.
 It cannot be used in the case of open end classes.
 It cannot be determined by the method of inspection.
 It cannot be used when dealing with qualitative characteristics, such as intelligence, honesty,
beauty.
 It can be a number which does not exist in a serious.
 Sometimes it leads to wrong conclusion if the details of the data from which it is obtained are
not available.
 It gives high weight to high extreme values and less weight to low extreme values.
The Geometric Mean
 The geometric mean of a set of n observation is the nth root of their product.
 The geometric mean of X1, X2 ,X3 …Xn is denoted by G.M and given by:
G.M  n X1 * X 2 * ... * X n
 Taking the logarithms of both sides
1
log( G.M)  log( n X 1 * X 2 * ... * X n )  log( X 1 * X 2 * ... * X n ) n
1 1
 log( G.M)  log( X 1 * X 2 * .... * X n )  (log X 1  log X 2  ...  log X n )
n n
1 n
 log( G.M)   log X i
n i1
 The logarithm of the G.M of a set of observation is the arithmetic mean of
their logarithm.
1 n
 G.M  Anti log(  log X i )
n i 1
Example:
Find the G.M of the numbers 2, 4, 8.
Solutions:
G.M  n X1 * X 2 * ... * X n  3 2 * 4 * 8  3 64  4
Remark: The Geometric Mean is useful and appropriate for finding averages of
ratios.

Page 31 of 95
The Harmonic Mean

The harmonic mean of X1, X2 , X3 …Xn is denoted by H.M and given by:
n
H.M  n , This is called simple harmonic mean.
1

i 1 X i
In a case of frequency distribution:

H.M  k
n , n   fi
fi

i 1

i 1 X i

If observations X1, X2, …Xn have weights W1, W2, …Wn respectively, then their harmonic mean
is given by

W i
, This is called Weighted Harmonic Mean.
H.M  n
i 1

W
i 1
i Xi

Remark: The Harmonic Mean is useful and appropriate in finding average speeds and average rates.

Example: A cyclist pedals from his house to his college at speed of 10 km/hr and back from the
college to his house at 15 km/hr. Find the average speed.
Solution: Here the distance is constant
The simple H.M is appropriate for this problem.
X1= 10km/hr X2=15km/hr
2
H.M   12km / hr
1 1

10 15

The Mode
- Mode is a value which occurs most frequently in a set of values
- The mode may not exist and even if it does exist, it may not be unique.
- In case of discrete distribution the value having the maximum frequency is the model value.
Examples:
1. Find the mode of 5, 3, 5, 8, 9
Mode =5
2. Find the mode of 8, 9, 9, 7, 8, 2, and 5.
It is a bimodal Data: 8 and 9
3. Find the mode of 4, 12, 3, 6, and 7.
No mode for this data.
- The mode of a set of numbers X1, X2, …Xn is usually denoted by X̂ .

Page 32 of 95
 Mode for Grouped data
If data are given in the shape of continuous frequency distribution, the mode is defined as:

 1 
X̂  L mo  w 
 1   2 
Where:
Xˆ  the mod e of the distributi on
w  the size of the mod al class
 1  f mo  f 1
 2  f mo  f 2
f mo  frequency of the mod al class
f 1  frequency of the class preceeding the mod al class
f 2  frequency of the class following the mod al class
Note: The modal class is a class with the highest frequency.
Example: Following is the distribution of the size of certain farms selected at random from a
district. Calculate the mode of the distribution.

Size of farms No. of farms

5-15 8
15-25 12
25-35 17
35-45 29
45-55 31
55-65 5
65-75 3

Solutions:

45  55 is the mod al class,sin ce it is a class with the highest frequency.

L mo  45
w  10
 1  f mo  f 1  2
 2  f mo  f 2  26
f mo  31
f 1  29
f2  5
ˆ  45  10
X 
2 

 2  26 
 45.71

Merits and Demerits of Mode

Merits:

Page 33 of 95
  It is not affected by extreme observations.
 Easy to calculate and simple to understand.
 It can be calculated for distribution with open end class
Demerits:
 It is not rigidly defined.
 It is not based on all observations
 It is not suitable for further mathematical treatment.
 It is not stable average, i.e. it is affected by fluctuations of sampling to some
extent.
 Often its value is not unique.
Note: being the point of maximum density, mode is especially useful in finding the most popular
size in studies relating to marketing, trade, business, and industry. It is the appropriate average to
be used to find the ideal size.
The Median
- In a distribution, median is the value of the variable which divides it in to two equal halves.
- In an ordered series of data median is an observation lying exactly in the middle of the series. It is the
middle most value in the sense that the number of values less than the median is equal to the number of
values greater than it.
-If X1, X2, …Xn be the observations, then the numbers arranged in ascending order will be X [1], X[2],
…X[n], where X[i] is ith smallest value.
 X[1]< X[2]< …<X[n]
-Median is denoted by X̂ .
Median for ungrouped data

 X ( n1) 2  ,If n is odd.

~ 1
X   (X  X ), If n is even
 2  n 2  ( n 2 )  1


Example: Find the median of the following numbers.
a) 6, 5, 2, 8, 9, 4.
b) 2, 1, 8, 3, 5, 8.
Solutions:
a) First order the data: 2, 4, 5, 6, 8, 9
Here n=6
~ 1
X  (X n  X n )
2 [ ]
2
[  1]
2

1
 (X [3]  X [ 4 ] )
2
1
 ( 5  6 )  5.5
2
b) Order the data :1, 2, 3, 5, 8
Here n=5

Page 34 of 95
 ~ X
X n 1
[ ]
2

 X[3]
3
Median for grouped data

If data are given in the shape of continuous frequency distribution, the median is defined as:
~ w n
X  L med  (  c)
f med 2
Where :
L med  lower class boundary of the median class.
w  the size of the median class
n  total number of observatio ns.
c  the cumulative frequency ( less than type ) preceeding the median class.
f med  thefrequen cy of the median class.

Remark:
The median class is the class with the smallest cumulative frequency (less than type) greater than or equal
to n .
2
Example: Find the median of the following distribution.

Class Frequency
40-44 7
45-49 10
50-54 22
55-59 15
60-64 12
65-69 6
70-74 3
Solutions:
 First find the less than cumulative frequency.
 Identify the median class.
 Find median using formula.

Class Frequency [Link](less

than type)
40-44 7 7
45-49 10 17
50-54 22 39
55-59 15 54
60-64 12 66
65-69 6 72
70-74 3 75

Page 35 of 95
 n 75
  37.5
2 2
39 is the first cumulative frequency to be greater than or equal to 37.5
 50  54 is the median class.

L  49.5, w 5
med
n  75, c  17, f  22
med

~
 X L  w ( n  c)
med f 2
med
 49.5  5 (37.5  17)
22
 54.16
Merits and Demerits of Median
Merits:
 Median is a positional average and hence not influenced by extreme observations.
 Can be calculated in the case of open end intervals.
 Median can be located even if the data are incomplete.
Demerits:
 It is not a good representative of data if the number of items is small.
 It is not amenable to further algebraic treatment.
 It is susceptible to sampling fluctuations.
Quantiles
When a distribution is arranged in order of magnitude of items, the median is the value of the middle
term. Their measures that depend up on their positions in distribution quartiles, deciles, and percentiles
are collectively called quantiles.
Quartiles:
- Quartiles are measures that divide the frequency distribution in to four equal parts.
- The value of the variables corresponding to these divisions are denoted Q1, Q2, and Q3 often
called the first, the second and the third quartile respectively.
- Q1 is a value which has 25% items which are less than or equal to it. Similarly Q2 has 50%items
with value less than or equal to it and Q3 has 75% items whose values are less than or equal to it.
- To find Qi (i=1, 2, 3) we count iN of the classes beginning from the lowest class.
4
- For grouped data: we have the following formula

Page 36 of 95
 Q L Q  w ( iN  c) ,i  1,2,3
i i fQ 4
i
Where :
L Q  lower class boundaryof thequartile class.
i
w  the sizeof thequartile class
N  total numberof observations.
c  the cumulativefrequency(less thantype) preceedingthequartile class.
f Q  thefrequency of thequartile class.
i

Remark:
The quartile class (class containing Qi ) is the class with the smallest cumulative frequency (less than
type) greater than or equal to iN .
4
Deciles:
- Deciles are measures that divide the frequency distribution in to ten equal parts.
- The values of the variables corresponding to these divisions are denoted D1, D2,.. D9 often called
the first, the second,…, the ninth decile respectively.
- To find Di (i=1, 2,..9) we count iN of the classes beginning from the lowest class.
10

- For grouped data: we have the following formula

w iN
Di  L Di  (  c) , i  1,2,...,9
f Di 10
Where :
L Di  lower class boundary of the decile class.
w  the size of the decileclas s
N  total number of observations.
c  the cumulative frequency ( less than type) preceeding the decile class.
f Di  thefrequen cy of the decile class.

Remark:
The decile class (class containing Di )is the class with the smallest cumulative frequency (less than type)
greater than or equal to iN .
10
Percentiles:
- Percentiles are measures that divide the frequency distribution in to hundred equal parts.
- The values of the variables corresponding to these divisions are denoted P1, P2,.. P99 often called
the first, the second,…, the ninety-ninth percentile respectively.
- To find Pi (i=1, 2,..99) we count iN of the classes beginning from the lowest class.
100
- For grouped data: we have the following formula

Page 37 of 95
 w iN
Pi  L Pi  (  c ) , i  1,2,...,99
f Pi 100
Where :
L Pi  lower class boundary of the percentile class.
w  the size of the percentile class
N  total number of observations.
c  the cumulative frequency ( less than type) preceeding the percentile class.
f Pi  thefrequen cy of the percentile class.

Remark:
The percentile class (class containing Pi )is the class with the smallest cumulative frequency (less
than type) greater than or equal to iN .
100
Example: Considering the following distribution
Calculate:
a) All quartiles.
b) The 7th decile.
c) The 90th percentile.
Values Frequency
140- 150 17
150- 160 29
160- 170 42
170- 180 72
180- 190 84
190- 200 107
200- 210 49
210- 220 34
220- 230 31
230- 240 16
240- 250 12
Solutions:
 First find the less than cumulative frequency.
 Use the formula to calculate the required quantile.

Values Frequency [Link](less

than type)
140- 150 17 17
150- 160 29 46
160- 170 42 88
170- 180 72 160
180- 190 84 244
190- 200 107 351
200- 210 49 400
210- 220 34 434
220- 230 31 465
230- 240 16 481
240- 250 12 493

Page 38 of 95
 a) Quartiles:
i. Q1
- determine the class containing the first quartile.
N
 123.25
4
 170  180 is the class containing the first quartile.

LQ  170 ,
1
w 10
N  493 , c  88 , f Q  72
1

w N
 Q1  LQ1  (  c)
fQ 4
1

10
 170  (123.25  88)
72
 174.90

ii. Q2
- determine the class containing the second quartile.
2* N
 246.5
4
 190  200 is the class containing the sec ond quartile.

LQ  190 ,
2
w  10
N  493 , c  244 , f Q  107
2

w 2* N
 Q2  LQ  (  c)
2
fQ 2
4
10
 170  ( 246.5  244)
72
 190.23

iii. Q3
- determine the class containing the third quartile.
3* N
 369.75
4
 200  210 is the class containing the third quartile.

LQ  200 ,
3
w 10
N  493 , c  351 , f Q  49
3

Page 39 of 95
 w 3* N
 Q3  LQ 3  (  c)
fQ 4
3

10
 200  (369.75  351)
49
 203.83

b) D7
- determine the class containing the 7th decile.
7* N
 345.1
10
 190  200 is the class containing the seventh decile.
LD  190 ,
7
w 10
N  493 , c  244 , f D 107
7

w 7* N
 D7  LD  (  c)
7
fD
7
10
10
 190  (345.1  244)
107
 199.45

c) P90
- determine the class containing the 90th percentile.
90 * N
 443.7
100
 220  230 is the class containing the 90th percentile.
LP  220 ,
90
w 10
N  493 , c  434 , f P  3107
90

w 90 * N
 P90  LP  (  c)
90
fP
90
100
10
 220  (443.7  434)
31
 223.13

Page 40 of 95
 CHAPTER 4
4. Measures of Dispersion (Variation)

Introduction and objectives of measuring Variation

-The scatter or spread of items of a distribution is known as dispersion or

variation. In other words the degree to which numerical data tend to spread
about an average value is called dispersion or variation of the data.
-Measures of dispersions are statistical measures which provide ways of
measuring the extent in which data are dispersed or spread out.
Objectives of measuring Variation:

 To judge the reliability of measures of central tendency

 To control variability itself.
 To compare two or more groups of numbers in terms of their
variability.
 To make further statistical analysis.
Absolute and Relative Measures of Dispersion

The measures of dispersion which are expressed in terms of the original unit
of a series are termed as absolute measures. Such measures are not suitable
for comparing the variability of two distributions which are expressed in
different units of measurement and different average size. Relative measures
of dispersions are a ratio or percentage of a measure of absolute dispersion
to an appropriate measure of central tendency and are thus pure numbers
independent of the units of measurement. For comparing the variability of
two distributions (even if they are measured in the same unit), we compute
the relative measure of dispersion instead of absolute measures of
dispersion.

Types of Measures of Dispersion

Various measures of dispersions are in use. The most commonly used

measures of dispersions are:
1) Range and relative range
2) Quartile deviation and coefficient of Quartile deviation
3) Mean deviation and coefficient of Mean deviation
4) Standard deviation and coefficient of variation.

The Range (R)

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The range is the largest score minus the smallest score. It is a quick and dirty
measure of variability, although when a test is given back to students they
very often wish to know the range of scores. Because the range is greatly
affected by extreme scores, it may give a distorted picture of the scores. The
following two distributions have the same range, 13, yet appear to differ
greatly in the amount of variability.

Distribution 1: 32 35 36 36 37 38 40 42 42 43 43 45
Distribution 2: 32 32 33 33 33 34 34 34 34 34 35 45

For this reason, among others, the range is not the most important measure
of variability.

R LS , L  l arg est observation

S  smallest observation

Range for grouped data:

If data are given in the shape of continuous frequency distribution, the range
is computed as:

R  UCLk  LCL1 , UCLk is upperclasslim it of the last class.

UCL1 is lower class lim it of the first class.

This is some times expressed as:

R  X k  X1 , X k is class mark of the last class.
X 1 is classmark of the first class.

Merits and Demerits of range

Merits:

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  It is rigidly defined.
 It is easy to calculate and simple to understand.
Demerits:
 It is not based on all observation.
 It is highly affected by extreme observations.
 It is affected by fluctuation in sampling.
 It is not liable to further algebraic treatment.
 It cannot be computed in the case of open end distribution.
 It is very sensitive to the size of the sample.
Relative Range (RR)
-it is also sometimes called coefficient of range and given by:
LS R
RR  
LS LS
Example:
1. Find the relative range of the above two distribution.(exercise!)
2. If the range and relative range of a series are 4 and 0.25 respectively. Then
what is the value of:
a) Smallest observation
b) Largest observation
Solutions :( 2)
R  4  L  S  4 _________________(1)
RR  0.25  L  S  16 _____________(2)
Solving (1) and (2) at the same time , one can obtain the following value
L  10 and S  6

The Quartile Deviation (Semi-inter quartile range), Q.D

The inter quartile range is the difference between the third and the first
quartiles of a set of items and semi-inter quartile range is half of the inter
quartile range.
Q3  Q1
Q.D 
2
Coefficient of Quartile Deviation (C.Q.D)

(Q3  Q1 2 2 * Q.D Q3  Q1
C. Q.D   
(Q3  Q1 ) 2 Q3  Q1 Q3  Q1

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 It gives the average amount by which the two quartiles differ from the
median.

Example: Compute Q.D and its coefficient for the following distribution.

Values Frequency
140- 150 17
150- 160 29
160- 170 42
170- 180 72
180- 190 84
190- 200 107
200- 210 49
210- 220 34
220- 230 31
230- 240 16
240- 250 12

Solutions:
In the previous chapter we have obtained the values of all quartiles as:
Q1= 174.90, Q2= 190.23, Q3=203.83

Q3  Q1 203.83  174.90
 Q.D    14.47
2 2
2 * Q.D 2 *14.47
C.Q.D    0.076
Q3  Q1 203.83  174.90

Remark: Q.D or C.Q.D includes only the middle 50% of the observation.

The Mean Deviation (M.D):

The mean deviation of a set of items is defined as the arithmetic mean of the
values of the absolute deviations from a given average. Depending up on the
type of averages used we have different mean deviations.

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a) Mean Deviation about the mean
 Denoted by M.D( X ) and given by

n
 Xi  X
M .D ( X )  i 1
n
 For the case of frequency distribution it is given as:

k
 fi X i  X
M .D ( X )  i 1
n

Steps to calculate M.D ( X ):

1. Find the arithmetic mean, X
2. Find the deviations of each reading from X .
3. Find the arithmetic mean of the deviations, ignoring sign.

b) Mean Deviation about the median.

~
 Denoted by M.D( X ) and given by

n ~
~
 Xi  X
M .D ( X )  i 1
n
 For the case of frequency distribution it is given as:

~
k ~ Steps to calculate M.D ( X ):
~
 fi X i  X
M .D ( X )  i 1
n
~
1. Find the median, X
~
2. Find the deviations of each reading from X .
3. Find the arithmetic mean of the deviations, ignoring sign.

c) Mean Deviation about the mode.

Page 45 of 95
  Denoted by M.D( X̂ ) and given by

X i
ˆ
X
ˆ)
M.D( X i 1
n

 For the case of frequency distribution it is given as:

k
 f i X i  Xˆ
M .D ( Xˆ )  i 1
n

Steps to calculate M.D ( X̂ ):

1. Find the mode, X̂
2. Find the deviations of each reading from X̂ .
3. Find the arithmetic mean of the deviations, ignoring sign.

Examples:
1. The following are the number of visit made by ten mothers to the local
doctor’s surgery. 8, 6, 5, 5, 7, 4, 5, 9, 7, 4
Find mean deviation about mean, median and mode.
Solutions:
First calculate the three averages
~
X  6, X  5.5, Xˆ  5

Then take the deviations of each observation from these averages.

Xi 4 4 5 5 5 6 7 7 8 9 total
X 6
i
2 2 1 1 1 0 1 1 2 3 14
X i  5.5 1.5 1.5 0.5 0.5 0.5 0.5 1.5 1.5 2.5 3.5 14
Xi  5 1 1 0 0 0 1 2 2 3 4 14

10
 X i  6) 14
 M .D ( X )  i 1
  1.4
10 10

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 10

~
 X i  5.5 14
M .D ( X )  i 1
  1.4
10 10

10
 X i  5) 14
M .D ( Xˆ )  i 1
  1.4
10 10

2. Find mean deviation about mean, median and mode for the following
distributions.(exercise)

Class Frequency
40-44 7
45-49 10
50-54 22
55-59 15
60-64 12
65-69 6
70-74 3

Remark: Mean deviation is always minimum about the median.

Coefficient of Mean Deviation (C.M.D)

M .D
C.M .D 
Average about which deviationsare taken

M .D( X )
 C.M .D( X ) 
X
~
~ M .D( X )
C.M .D( X )  ~ 0
X

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 ˆ M .D( Xˆ )
C.M .D( X ) 
Xˆ
Example: calculate the C.M.D about the mean, median and mode for the
data in example 1 above.

Solutions:

M .D
C.M .D 
Average about which deviationsare taken

M .D( X ) 1.4
 C.M .D( X )    0.233
X 6
~
~ M .D( X ) 1.4
C.M .D( X )  ~   0.255
X 5.5
M .D( Xˆ ) 1.4
C.M .D( Xˆ )    0.28
Xˆ 5
Exercise: Identify the merits and demerits of Mean Deviation

The Variance
Population Variance
If we divide the variation by the number of values in the population, we
get something called the population variance. This variance is the "average
squared deviation from the mean".

1
Population Varince   2   ( X i   ) 2 , i  1,2,.....N
N
For the case of frequency distribution it is expressed as:

1
Population Varince   2   f i ( X i   ) 2 , i  1,2,.....k
N
Sample Variance

Page 48 of 95
 One would expect the sample variance to simply be the population
variance with the population mean replaced by the sample mean. However,
one of the major uses of statistics is to estimate the corresponding parameter.
This formula has the problem that the estimated value isn't the same as the
parameter. To counteract this, the sum of the squares of the deviations is
divided by one less than the sample size.

1
Sample Varince  S 2   ( X i  X ) 2 , i  1,2,....., n
n 1
For the case of frequency distribution it is expressed as:

1
Sample Varince  S 2   f i ( X i  X ) 2 , i  1,2,.....k
n 1
We usually use the following short cut formula.
n
 X i  nX 2
2

S 2  i 1 , for raw data.

n 1
k
 f i X i  nX 2
2

S 2  i 1 , for frequencydistribution.
n 1
Standard Deviation

There is a problem with variances. Recall that the deviations were squared.
That means that the units were also squared. To get the units back the same
as the original data values, the square root must be taken.

Populations tan dard deviation     2

The following
Sample s tan dard deviation  s  S 2 steps are used to
calculate the
sample variance:

1. Find the arithmetic mean.

2. Find the difference between each observation and the mean.

Page 49 of 95
 3. Square these differences.
4. Sum the squared differences.
5. Since the data is a sample, divide the number (from step 4 above) by the
number of observations minus one, i.e., n-1 (where n is equal to the number
of observations in the data set).
Class Frequency
40-44 7
45-49 10 Examples: Find the variance and standard
50-54 22 deviation of the following sample data
55-59 15 1. 5, 17, 12, 10.
60-64 12 2. The data is given in the form of frequency
65-69 6 distribution.
70-74 3

Solutions:
1. X  11
Xi 5 10 12 17 Total
(Xi- X ) 2 36 1 1 36 74

n
 ( X i  X )2 74
 S 2  i 1   24.67.
n 1 3
 S  S 2  24.67  4.97.

2. X  55
Xi(C.M) 42 47 52 57 62 67 72 Total
fi(Xi- X ) 2 1183 640 198 60 588 864 867 4400

n
 fi ( X i  X )2 4400
 S 2  i 1   59.46.
n 1 74
 S  S 2  59.46  7.71.

Page 50 of 95
 Special properties of Standard deviations

1.
 ( X i  X )2   ( X i  A) 2 , A  X
n 1 n 1
2. For normal (symmetric distribution the following holds.

 Approximately 68.27% of the data values fall within one standard

deviation of the mean. i.e. with in ( X  S , X  S )
 Approximately 95.45% of the data values fall within two standard
deviations of the mean. i.e. with in ( X  2S , X  2S )
 Approximately 99.73% of the data values fall within three standard
deviations of the mean. i.e. with in ( X  3S , X  3S )

3. Chebyshev's Theorem
For any data set ,no matter what the pattern of variation, the proportion
of the values that fall with in k standard deviations of the mean or
1
( X  kS , X  kS ) will be at least 1  , where k is an number greater
k2
than 1. i.e. the proportion of items falling beyond k standard deviations of
1
the mean is at most
k2
Example: Suppose a distribution has mean 50 and standard deviation
[Link] percent of the numbers are:
a) Between 38 and 62
b) Between 32 and 68
c) Less than 38 or more than 62.
d) Less than 32 or more than 68.

Solutions:

a) 38 and 62 are at equal distance from the mean,50 and this distance is 12
 ks  12
12 12
k  2
S 6

Page 51 of 95
 1
 Applying the above theorem at least (1  ) *100%  75% of the numbers lie
k2
between 38 and 62.

b) Similarly done.
1
c) It is just the complement of a) i.e. at most 2
*100%  25% of the
k
numbers lie less than 32 or more than 62.
d) Similarly done.

Example 2:
The average score of a special test of knowledge of wood refinishing has
a mean of 53 and standard deviation of 6. Find the range of values in which
at least 75% the scores will lie. (Exercise)

4. If the standard deviation of X 1 , X 2 , ..... X n is S , then the standard

deviation of
a) X 1  k , X 2  k , ..... X n  k will also be S
b) kX 1 , kX 2 , .....kX n would be k S
c) a  kX 1 , a  kX 2 , .....a  kX n would be k S
Exercise: Verify each of the above relationship, considering k and a as
constants.

Examples:
1. The mean and standard deviation of n Tetracycline Capsules
X 1 , X 2 , ..... X n are known to be 12 gm and 3 gm respectively. New set
of capsules of another drug are obtained by the linear transformation Yi =
2Xi – 0.5 ( i = 1, 2, …, n ) then what will be the standard deviation of the
new set of capsules
2. The mean and the standard deviation of a set of numbers are respectively
500 and 10.
a. If 10 is added to each of the numbers in the set, then
what will be the variance and standard deviation of
the new set?
b. If each of the numbers in the set are multiplied by -5,
then what will be the variance and standard deviation
of the new set?
Solutions:

Page 52 of 95
 1. Using c) above the new standard deviation = k S  2 * 3  6
2. a. They will remain the same.
b. New standard deviation=  k S  5 *10  50

Coefficient of Variation (C.V)

 Is defined as the ratio of standard deviation to the mean usually expressed

as percents.
S
C.V  *100
X
 The distribution having less C.V is said to be less variable or more
consistent.
Examples:
1. An analysis of the monthly wages paid (in Birr) to workers in two firms A and B
belonging to the same industry gives the following results

Value Firm A Firm B

Mean wage 52.5 47.5
Median wage 50.5 45.5
Variance 100 121

In which firm A or B is there greater variability in individual wages?

Solutions:
Calculate coefficient of variation for both firms.
SA 10
[Link]  *100  *100  19.05%
XA 52.5
S 11
[Link]  B *100  *100  23.16%
XB 47.5
Since [Link] < [Link], in firm B there is greater variability in individual wages.
2. A meteorologist interested in the consistency of temperatures in three cities
during a given week collected the following data. The temperatures for the five
days of the week in the three cities were

City 1 25 24 23 26 17
City2 22 21 24 22 20
City3 32 27 35 24 28

Page 53 of 95
 Which city have the most consistent temperature, based on these data?
(Exercise)

Standard Scores (Z-scores)

 If X is a measurement from a distribution with mean X and

standard deviation S, then its value in standard units is

X 
Z , for population.


XX
Z , for sample
S
 Z gives the deviations from the mean in units of standard deviation
 Z gives the number of standard deviation a particular observation
lie above or below the mean.
 It is used to compare two observations coming from different
groups.
Examples:
1. Two sections were given introduction to statistics examinations. The
following information was given.

Value Section 1 Section 2

Mean 78 90
[Link] 6 5

Student A from section 1 scored 90 and student B from section 2 scored

[Link] speaking who performed better?

Solutions:
Calculate the standard score of both students.
X A  X 1 90  78
ZA   2
S1 6
X B  X 2 95  90
ZB   1
S2 5
 Student A performed better relative to his section because the score of
student A is two standard deviation above the mean score of his section

Page 54 of 95
while, the score of student B is only one standard deviation above the mean
score of his section.
2. Two groups of people were trained to perform a certain task and tested to
find out which group is faster to learn the task. For the two groups the
following information was given:

Value Group one Group two

Mean 10.4 min 11.9 min
[Link]. 1.2 min 1.3 min
Relatively speaking:
a) Which group is more consistent in its performance
b) Suppose a person A from group one take 9.2 minutes
while person B from Group two take 9.3 minutes,
who was faster in performing the task? Why?

Solutions:
a) Use coefficient of variation.
S1 1.2
C.V1  *100  *100  11.54%
X1 10.4
S 1.3
C.V2  2 *100  *100  10.92%
X2 11.9
Since C.V2 < C.V1, group 2 is more consistent.
b) Calculate the standard score of A and B

X A  X 1 9.2  10.4
ZA    1
S1 1.2
X B  X 2 9.3  11.9
ZB    2
S2 1.3
Child B is faster because the time taken by child B is two standard
deviation shorter than the average time taken by group 2 while, the time
taken by child A is only one standard deviation shorter than the average time
taken by group 1.

Moments

Page 55 of 95
 - If X is a variable that assume the values X1, X2,…..,Xn then
1. The rth moment is defined as:
X  X 2  ...  X n
r r r
X  1
r
n
n
 Xi
r

 i 1
n
- For the case of frequency distribution this is expressed as:

k
 fi X i
r

X r  i 1
n
- If r  1 ,it is the simple arithmetic mean, this is called the first moment.

2. The rth moment about the mean ( the rth central moment)

- Denoted by Mr and defined as:

n n
(Xi  X ) r

(n  1) i 1
( X i  X )r
M r  i 1 
n n n 1
- For the case of frequency distribution this is expressed as:

k
 fi ( X i  X )r
M r  i 1
n
- If r  2 , it is population variance, this is called the second central moment.
If we assume n 1  n ,it is also the sample variance.

3. The rth moment about any number A is defined as:

Page 56 of 95
 '
- Denoted by M r and
n n
 ( X i  A) r 
(n  1) i 1
( X i  A) r
M r  i 1 
'

n n n 1
- For the case of frequency distribution this is expressed as:

k
 f i ( X i  A) r
M r  i 1
'

Example:
1. Find the first two moments for the following set of numbers 2, 3, 7
2. Find the first three central moments of the numbers in problem 1
3. Find the third moment about the number 3 of the numbers in problem 1.
Solutions:
1. Use the rth moment formula.
n
 Xi
r

X r  i 1
n
23 7
 X1  4 X
3
2 2  32  7 2
X 
2
 20.67
3

2. Use the rth central moment formula.

Page 57 of 95
 n
 ( X i  X )r
M r  i 1
n
(2  4)  (3  4)  (7  4)
 M1  0
3
(2  4) 2  (3  4) 2  (7  4) 2
M2   4.67
3
(2  4)3  (3  4)3  (7  4)3
M3  6
3

3. Use the rth moment about A.

n
 ( X i  A) r
M r  i 1
n
(2  3)3  (3  3)3  (7  3)3
 M3   21
'

Skewness

- Skewness is the degree of asymmetry or departure from symmetry of a

distribution.
- A skewed frequency distribution is one that is not symmetrical.
- Skewness is concerned with the shape of the curve not size.
- If the frequency curve (smoothed frequency polygon) of a distribution has
a longer tail to the right of the central maximum than to the left, the
distribution is said to be skewed to the right or said to have positive
skewness. If it has a longer tail to the left of the central maximum than to

Page 58 of 95
 the right, it is said to be skewed to the left or said to have negative
skewness.
- For moderately skewed distribution, the following relation holds among
the three commonly used measures of central tendency.
Mean  Mode  3 * (Mean  Median)

Measures of Skewness
- Denoted by  3
- There are various measures of skewness.
1. The Pearsonian coefficient of skewness
Mean  Mode X  Xˆ
3  
S tan dard deviation S
2. The Bowley’s coefficient of skewness ( coefficient of skewness
based on quartiles)
(Q3  Q2 )  (Q2  Q1 ) Q3  Q1  2Q2
3  
Q3  Q1 Q3  Q1
3. The moment coefficient of skewness

M3 M3 M3
3    , Where  is the population s tan dard deviation .
M2
32
( 2 )3 2  3
The shape of the curve is determined by the value of  3
 If  3  0 then the distributi on is positively skewed .
 If  3  0 then the distribution is symmetric .
 If  3  0 then the distributi on is negatively skewed .

Remark:
o In a positively skewed distribution, smaller observations
are more frequent than larger observations. i.e. the
majority of the observations have a value below an
average.
o In a negatively skewed distribution, smaller observations
are less frequent than larger observations. i.e. the majority
of the observations have a value above an average.

Examples:

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1. Suppose the mean, the mode, and the standard deviation of a certain
distribution are 32, 30.5 and 10 respectively. What is the shape of the
curve representing the distribution?
Solutions:
Use the Pearsonian coefficient of skewness
Mean  Mode 32  30.5
3    0.15
S tan dard deviation 10
 3  0  The distribution is positively skewed.
2. In a frequency distribution, the coefficient of skewness based on the
quartiles is given to be 0.5. If the sum of the upper and lower quartile
is 28 and the median is 11, find the values of the upper and lower
quartiles.
Solutions:
~
Given:  3  0.5, X  Q2  11 Required: Q1 ,Q3
Q1  Q3  28...........................(*)

(Q3  Q2 )  (Q2  Q1 ) Q3  Q1  2Q2

3    0 .5
Q3  Q1 Q3  Q1
Substituting the given values , one can obtain the following
Q3  Q1  12...................................(**)
Solving (*) and (**) at the same time we obtain the following values
Q1  8 and Q3  20

3. Some characteristics of annually family income distribution (in Birr)

in two regions is as follows:
Region Mean Median Standard Deviation
A 6250 5100 960
B 6980 5500 940
a) Calculate coefficient of skewness for each region
b) For which region is, the income distribution more skewed. Give
your interpretation for this Region
c) For which region is the income more consistent?

Solutions: (exercise)

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4. For a moderately skewed frequency distribution, the mean is 10 and
the median is 8.5. If the coefficient of variation is 20%, find the
Pearsonian coefficient of skewness and the probable mode of the
distribution. (exercise)

5. The sum of fifteen observations, whose mode is 8, was found to be

150 with coefficient of variation of 20%
(a) Calculate the pearsonian coefficient of skewness and give
appropriate conclusion.
(b) Are smaller values more or less frequent than bigger values for this
distribution?
(c) If a constant k was added on each observation, what will be the
new pearsonian coefficient of skewness? Show your steps. What
do you conclude from this?
Solutions: (exercise)

Kurtosis

Kurtosis is the degree of peakdness of a distribution, usally taken relative

to a normal distribution. A distribution having relatively high peak is
called leptokurtic. If a curve representing a distribution is flat topped, it is
called platykurtic. The normal distribution which is not very high peaked
or flat topped is called mesokurtic.
Measures of kurtosis
The moment coefficient of kurtosis:
 Denoted by  4 and given by
M4 M4
4   4
M2
2

Where : M 4 is the fourthmoment about the mean.
M 2 is the sec ond moment about the mean.
 is the population s tan dard deviation.
The peakdness depends on the value of  4 .
 If  4  3 then the curveis leptokurtic.
 If  4  3 then the curveis mesokurtic.
 If  4  3 then the curveis platykurtic.

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 Examples:
1. If the first four central moments of a distribution are:
M 1  0, M 2  16, M 3  60, M 4  162
a) Compute a measure of skewness
b) Compute a measure of kurtosis and give your
interpretation.

Solutions:
M3  60
3    0.94  0
a) M2
32
163 2
 The distribution is negativelyskewed.

M 4 162
4  2
 2  0.6  3
b) M2 16
 The curveis platykurtic.

2. The median and the mode of a mesokurtic distribution are 32 and 34

respectively. The 4th moment about the mean is 243. Compute the
Pearsonian coefficient of skewness and identify the type of skewness.
Assume (n-1 = n).

3. If the standard deviation of a symmetric distribution is 10, what should be

the value of the fourth moment so that the distribution is mesokurtic?
Solutions (exercise).

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 CHAPTER 5
5. ELEMENTARY PROBABILITY
Introduction
 Probability theory is the foundation upon which the logic of inference is built.
 It helps us to cope up with uncertainty.
 In general, probability is the chance of an outcome of an experiment. It is the
measure of how likely an outcome is to occur.
Definitions of some probability terms
1. Experiment: Any process of observation or measurement or any process which
generates well defined outcome.
2. Probability Experiment: It is an experiment that can be repeated any number of times under
similar conditions and it is possible to enumerate the total number of outcomes with out
predicting an individual outcome. It is also called random experiment.
Example: If a fair die is rolled once it is possible to list all the possible outcomes i.e.1, 2, 3, 4, 5, 6
but it is not possible to predict which outcome will occur.
3. Outcome :The result of a single trial of a random experiment
4. Sample Space: Set of all possible outcomes of a probability experiment
5. Event: It is a subset of sample space. It is a statement about one or more outcomes of random
experiment .They are denoted by capital letters.
Example: Considering the above experiment let A be the event of odd numbers, B be the event of
even numbers, and C be the event of number 8.
 A  1,3,5
B  2,4,6
C    or empty space or impossible event
Remark: If S (sample space) has n members then there are exactly 2n subsets or events.
6. Equally Likely Events: Events which have the same chance of occurring.
7. Complement of an Event: the complement of an event A means non-occurrence of A and is
' c
denoted by A , or A , or A contains those points of the sample space which don’t
belong
to A.
8. Elementary Event: an event having only a single element or sample point.
9. Mutually Exclusive Events: Two events which cannot happen at the same time.
10. Independent Events: Two events are independent if the occurrence of one does not affect
the probability of the other occurring.
11. Dependent Events: Two events are dependent if the first event affects the outcome or
occurrence of the second event in a way the probability is changed.

Example: .What is the sample space for the following experiment

a) Toss a die one time.

b) Toss a coin two times.
c) A light bulb is manufactured. It is tested for its life length by time.

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 Solution
a) S={1,2,3,4,5,6}
b) S={(HH),(HT),(TH),(TT)}
c) S={t /t≥0}
 Sample space can be
 Countable ( finite or infinite)
 Uncountable.
Counting Rules
In order to calculate probabilities, we have to know
 The number of elements of an event
 The number of elements of the sample space.
That is in order to judge what is probable, we have to know what is possible.
In order to determine the number of outcomes, one can use several rules of counting.
- The addition rule
- The multiplication rule
- Permutation rule
- Combination rule
To list the outcomes of the sequence of events, a useful device called tree diagram is used.

Example: A student goes to the nearest snack to have a breakfast. He can take tea, coffee, or
milk with bread, cake and sandwich. How many possibilities does he have?

Solutions:

Tea
Bread
Cake
Sandwich
Coeffee
Bread
Cake
Milk Sandwich

Bread
Cake

Sandwich

 There are nine possibilities.

The Multiplication Rule:

If a choice consists of k steps of which the first can be made in n1 ways, the second can be
made in n2 ways, …, the kth can be made in nk ways, then the whole choice can be made in
(n1 * n2 * ........ * nk ) ways .

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Example: The digits 0, 1, 2, 3, and 4 are to be used in 4 digit identification card. How many
different cards are possible if a) Repetitions are permitted.
b) Repetitions are not permitted.
Solutions
a)
1st digit 2nd digit 3rd digit 4th digit
5 5 5 5
There are four steps
1. Selecting the 1st digit, this can be made in 5 ways.
2. Selecting the 2nd digit, this can be made in 5 ways.
3. Selecting the 3rd digit, this can be made in 5 ways.
4. Selecting the 4th digit, this can be made in 5 ways.

 5 * 5 * 5 * 5  625 differentcards are possible.

b)
1st digit 2nd digit 3rd digit 4th digit
5 4 3 2

There are four steps

1. Selecting the 1st digit, this can be made in 5 ways.
2. Selecting the 2nd digit, this can be made in 4 ways.
3. Selecting the 3rd digit, this can be made in 3 ways.
4. Selecting the 4th digit, this can be made in 2 ways.

 5 * 4 * 3 * 2  120 differentcards are possible.

Permutation
An arrangement of n objects in a specified order is called permutation of the objects.
Permutation Rules:
1. The number of permutations of n distinct objects taken all together is n!
Where n! n * (n  1) * (n  2) * ..... * 3 * 2 *1
2. The arrangement of n objects in a specified order using r objects at a time is called
the permutation of n objects taken r objects at a time. It is written as n Pr and the
formula is
n!
Pr 
( n  r )!
n

3. The number of permutations of n objects in which k1 are alike k2 are alike etc is
n!

k1!*k 2 * ... * k n
Example:

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 1. Suppose we have a letters A,B, C, D
a) How many permutations are there taking all the four?
b) How many permutations are there if two letters are used at a time?
2. How many different permutations can be made from the letters in the word
“CORRECTION”?
Solutions: 1. a)
Here n  4, there are four disnict object
 There are 4! 24 permutations.
b)
Here n  4, r  2
4! 24
 There are 4 P2    12 permutations.
(4  2)! 2
2.
Here n  10
Of which 2 are C , 2 are O, 2 are R ,1E ,1T ,1I ,1N
 K1  2, k 2  2, k 3  2, k 4  k 5  k 6  k 7  1
U sin g the 3rd rule of permutatio n , there are
10!
 453600 permutatio ns.
2!*2!*2!*1!*1!*1!*1!
Exercises:
1. Six different statistics books, seven different physics books, and 3 different
Economics books are arranged on a shelf. How many different arrangements are
possible if;
i. The books in each particular subject must all stand together
ii. Only the statistics books must stand together
2. If the permutation of the word WHITE is selected at random, how many of the
permutations
i. Begins with a consonant?
ii. Ends with a vowel?
iii. Has a consonant and vowels alternating?
Combination
A selection of objects with out regard to order is called combination.
Example: Given the letters A, B, C, and D list the permutation and combination for selecting
two letters.
Solutions:
Permutation Combination
AB BA CA DA AB BC
AC BC CB DB AC BD
AD BD CD DC AD DC
Note that in permutation AB is different from BA. But in combination AB is the same as BA.
Combination Rule

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The number of combinations of r objects selected from n objects is denoted by
n
C
n r or   and is given by the formula:
r
n n!
  
 r  (n  r )!*r!
Examples:
1. In how many ways a committee of 5 people is chosen out of 9 people?
Solutions:
n9 , r 5
n n! 9!
     126 ways
 
r ( n  r )!*r! 4!* 5!
2. Among 15 clocks there are two defectives .In how many ways can an inspector chose
three of the clocks for inspection so that:
a) There is no restriction.
b) None of the defective clock is included.
c) Only one of the defective clocks is included.
d) Two of the defective clock is included.
Solutions: n=15 of which 2 are defective and 13 are non-defective; and r=3

a) If there is no restriction select three clocks from 15 clocks and this can be
done in :
n  15 , r  3
n n! 15!
     455 ways
 
r ( n  r )!*r! 12!*3!

b) None of the defective clocks is included.

This is equivalent to zero defective and three non defective, which can be done
in:
 2  13 
  *    286 ways.
0  3 
c) Only one of the defective clocks is included.
This is equivalent to one defective and two non defective, which can be done in:
 2  13 
  *    156 ways.
1  2 
d) Two of the defective clock is included.
This is equivalent to two defective and one non defective, which can be done in:

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  2  13 
  *    13 ways.
 2  3 
Exercises:
1. Out of 5 Mathematician and 7 Statistician a committee consisting of 2
Mathematician and 3 Statistician is to be formed. In how many ways this can
be done if
a) There is no restriction
b) One particular Statistician should be included
c) Two particular Mathematicians can not be included on the committee.
2. If 3 books are picked at random from a shelf containing 5 novels, 3 books of
poems, and a dictionary, in how many ways this can be done if
a) There is no restriction.
b) The dictionary is selected?
c) 2 novels and 1 book of poems are selected?

Approaches to measuring Probability

There are four different conceptual approaches to the study of probability theory. These
are:
 The classical approach.
 The frequentist approach.
 The axiomatic approach.
 The subjective approach.

The classical approach

This approach is used when:
- All outcomes are equally likely.
- Total number of outcome is finite, say N.
Definition: If a random experiment with N equally likely outcomes is conducted and out
of these NA outcomes are favorable to the event A, then the probability that event A occur
denoted P(A) is defined as:
N A No. of outcomes favourableto A n( A)
P( A)   
N Total number of outcomes n( S )
Examples:

1. A fair die is tossed once. What is the probability of getting

a) Number 4?
b) An odd number?
c) An even number?
d) Number 8?
Solutions:
First identify the sample space, say S

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 S  1, 2, 3, 4, 5, 6
 N  n( S )  6
a) Let A be the event of number 4 c) Let A be the event of even numbers
A  4 A  2,4,6
 N A  n( A)  1  N A  n( A)  3
n( A) n( A)
P( A)  1 6 P( A)   3 6  0.5
n( S ) n( S )
b) Let A be the event of odd numbers d) Let A be the event of number 8
A  1,3,5 A  {}
 N A  n( A)  3  N A  n( A)  0
n( A) n( A)
P( A)   3 6  0.5 P( A)  0 60
n( S ) n( S )
2. A box of 80 candles consists of 30 defective and 50 non defective candles. If 10 of
this candles are selected at random, what is the probability that
a) All will be defective.
b) 6 will be non defective
c) All will be non defective

Solutions:
 80 
Total selection     N  n( S )
10 
a) Let A be the event that all will be defective.
 30   50 
Total way in which A occur    *    N A  n( A)
 10   0 
 30   50 
 * 
n( A)  10   0 
 P ( A)    0.00001825
n( S )  80 
 
 10 
b) Let A be the event that 6 will be non-defective.

 30   50 
Total way in which A occur    *    N A  n( A)
4 6
 30   50 
 * 
n( A)  4   6 
 P ( A)    0.265
n( S )  80 
 
 10 
c) Let A be the event that all will be non-defective.

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  30   50 
Total way in which A occur    *    N A  n( A)
 0   10 
 30   50 
 * 
n( A)  0   10 
 P ( A)    0.00624
n( S )  80 
 
 10 
Exercises:
1. What is the probability that a waitress will refuse to serve alcoholic beverages to
only three minors if she randomly checks the I.D’s of five students from among
ten students of which four are not of legal age?

2. If 3 books are picked at random from a shelf containing 5 novels, 3 books of

poems, and a dictionary, what is the probability that
a) The dictionary is selected?
b) 2 novels and 1 book of poems are selected?
 Short coming of the classical approach:
This approach is not applicable when:
- The total number of outcomes is infinite.
- Outcomes are not equally likely.

The Frequentist Approach

This is based on the relative frequencies of outcomes belonging to an event.
Definition: The probability of an event A is the proportion of outcomes favorable to A in the
long run when the experiment is repeated under same condition.
NA
P( A)  lim
N  N
Example: If records show that 60 out of 100,000 bulbs produced are defective. What is the
probability of a newly produced bulb to be defective?

Solution: Let A be the event that the newly produced bulb is defective.
NA 60
P ( A)  lim   0.0006
N  N 100 ,000
Axiomatic Approach:
Let E be a random experiment and S be a sample space associated with E. With each event
A a real number called the probability of A satisfies the following properties called axioms of
probability or postulates of probability.
1. P( A)  0
2. P(S )  1, S is the sure event.

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 3. If A and B are mutually exclusive events, the probability that one or the other occur
equals the sum of the two probabilities. i.e. P( A  B)  P( A)  P( B)
4. If A and B are independent events, the probability that both will occur is the product
of the two probabilities. i.e. P(A ∩ B) = P(A)*P(B)
5. P( A' )  1  P( A)
6. 0  P( A)  1
7. P(ø) =0, ø is the impossible event.
Remark: Venn-diagrams can be used to solve probability problems.

A
AUB A∩B
In general p( A  B)  p( A)  p( B)  p( A  B)

Conditional probability and Independency

Conditional Events: If the occurrence of one event has an effect on the next occurrence
of the other event then the two events are conditional or dependant events.

Example: Suppose we have two red and three white balls in a bag
1. Draw a ball with replacement

Since the first drawn ball is replaced for a second draw it doesn’t affect the
second draw. For this reason A and B are independent. Then if we let
2
A= the event that the first draw is red p( A) 
5
2
B= the event that the second draw is red  p( B) 
5
2. Draw a ball without replacement

This is conditional b/c the first drawn ball is not to be replaced for a second draw
in that it does affect the second draw. If we let
2
A= the event that the first draw is red p ( A) 
5
B= the event that the second draw is red  p( B)  ?
Let B= the event that the second draw is red given that the first draw is red P(B) = 1/4

Conditional probability of an event

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The conditional probability of an event A given that B has already occurred, denoted by
p( A B) is
p( A  B)
p( A B) = , p( B)  0
p( B)
Remark: (1) p( A B)  1  p( A B)
'

(2) p( B A)  1  p( B A)
'

Examples
1. For a student enrolling at freshman at certain university the probability is 0.25 that
he/she will get scholarship and 0.75 that he/she will graduate. If the probability is
0.2 that he/she will get scholarship and will also graduate. What is the probability
that a student who get a scholarship graduate?

Solution: Let A= the event that a student will get a scholarship

B= the event that a student will graduate
given p ( A)  0.25, p ( B)  0.75, p A  B   0.20
Re quired pB A
p A  B  0.20
p  B A    0.80
p  A 0.25
2. If the probability that a research project will be well planned is 0.60 and the
probability that it will be well planned and well executed is 0.54, what is the
probability that it will be well executed given that it is well planned?
Solution; Let A= the event that a research project will be well
Planned
B= the event that a research project will be well
Executed
given p ( A)  0.60, p A  B   0.54
Re quired pB A
p A  B  0.54
p  B A    0.90
p  A 0.60
Exercise: A lot consists of 20 defective and 80 non-defective items from which two
items are chosen without replacement. Events A & B are defined as A = the first item
chosen is defective, B = the second item chosen is defective
a) What is the probability that both items are defective?
b) What is the probability that the second item is defective?

Note: for any two events A and B the following relation holds.

pB   pB A. p A  p B A' . p A'   
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Probability of Independent Events

Two events A and B are independent if and only if p A  B   p A. pB 

 
Here p A B  p A ,    
PB A pB  
Example; A box contains four black and six white balls. What is the probability of
getting two black balls in drawing one after the other under the following conditions?
a. The first ball drawn is not replaced
b. The first ball drawn is replaced
Solution; Let A= first drawn ball is black
B= second drawn is black

Required p A  B 
a. p A  B  pB A. p A  3 / 94 10  2 15
b. p A  B  p A. pB  4 104 10  4 25

Page 73 of 95
 CHAPTER 6
RANDOM VARIABLES AND PROBABILITY DISTRIBUTIONS
Definition: A random variable is a numerical description of the outcomes of the experiment or
a numerical valued function defined on sample space, usually denoted by capital letters.
Example: If X is a random variable, then it is a function from the elements of the sample space
to the set of real numbers. i.e. X is a function X: S  R
A random variable takes a possible outcome and assigns a number to it.
Example: Flip a coin three times, let X be the number of heads in three tosses.
 S  HHH , HHT , HTH , HTT , THH , THT , TTH , TTT 
 X HHH   3,
X HHT   X HTH   X THH   2,
X HTT   X THT   X TTH   1
X TTT   0
X = {0, 1, 2, 3, 4, 5}
X assumes a specific number of values with some probabilities.
Random variables are of two types:
1. Discrete random variable: are variables which can assume only a specific number of
values. They have values that can be counted
Examples:
 Toss coin n times and count the number of heads.
 Number of children in a family.
 Number of car accidents per week.
 Number of defective items in a given company.
 Number of bacteria per two cubic centimeter of water.
2. Continuous random variable: are variables that can assume all values between any two
give values.
Examples:
 Height of students at certain college.
 Mark of a student.
 Life time of light bulbs.
 Length of time required to complete a given training.

Probability Distribution

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 Definition: a probability distribution consists of value that a random variable can assume and
the corresponding probabilities of the values.
Example: Consider the experiment of tossing a coin three times. Let X is the number of
heads. Construct the probability distribution of X.
Solution:
 First identify the possible value that X can assume.
 Calculate the probability of each possible distinct value of X and express X in the
form of frequency distribution.

X x 0 1 2 3

P X  x  18 38 38 18

 Probability distribution is denoted by P for discrete and by f for continuous random

variable.
Properties of Probability Distribution:
1.
P( x)  0, if X is discrete.
f ( x)  0, if X is continuous.
2.

 P X  x   1 , if X is discrete.
x

 f ( x)dx  1 , if is continuous.
x

Note:
1. If X is a continuous random variable then
b
P(a  X  b)   f ( x)dx
a
2. Probability of a fixed value of a continuous random variable is zero.
 P(a  X  b)  P(a  X  b)  P(a  X  b)  P(a  X  b)
3. If X is discrete random variable then

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 b 1
P ( a  X  b)   P ( x )
x  a 1
b 1
P ( a  X  b)   p ( x )
xa
b
P ( a  X  b)   P ( x )
x  a 1
b
P ( a  X  b)   P ( x )
xa
4. Probability means area for continuous random variable.

Introduction to expectation
Definition:
1. Let a discrete random variable X assume the values X1, X2, ….,Xn with the
probabilities P(X1), P(X2), ….,P(Xn) respectively. Then the expected value of X,
denoted as E(X) is defined as:
E ( X )  X 1 P( X 1 )  X 2 P( X 2 )  ....  X n P( X n )
n
  X i P( X i )
i 1
2. Let X be a continuous random variable assuming the values in the interval (a, b) such
b b
that  f ( x)dx  1,then E ( X )   x f ( x)dx
a a

Examples:
1. What is the expected value of a random variable X obtained by tossing a coin
three times where X is the number of heads?
Solution:
First construct the probability distribution of X

X x 0 1 2 3

P X  x  1 8 38 38 18

 E ( X )  X 1 P( X 1 )  X 2 P( X 2 )  ....  X n P( X n )
 0 *1 8  1 * 3 8  .....  2 *1 8
 1.5
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 2. Suppose a charity organization is mailing printed return-address stickers to over
one million homes in Ethiopia. Each recipient is asked to donate either $1, $2, $5,
$10, $15, or $20. Based on past experience, the amount a person donates is
believed to follow the following probability distribution:

X x $1 $2 $5 $10 $15 $20

P X  x  0.1 0.2 0.3 0.2 0.15 0.05

What is expected that an average donor to contribute?

Solution:

X x $1 $2 $5 $10 $15 $20 Total

P X  x  0.1 0.2 0.3 0.2 0.15 0.05 1

xP( X  x) 0.1 0.4 1.5 2 2.25 1 7.25

6
 E ( X )   xi P( X  xi )  $7.25
i 1

Mean and Variance of a random variable

Let X is given random variable.
1. The expected value of X is its mean
 Mean of X  E(X )
2. The variance of X is given by:

Varianceof X  var( X )  E ( X 2 )  [ E ( X )]2

Where:
n
E ( X )   xi P( X  xi ) , if X is discrete
2 2

i 1

  x 2 f ( x)dx , if X is continuous.
x
Examples:
1. Find the mean and the variance of a random variable X in example 2 above.
Solution:

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 X x $1 $2 $5 $10 $15 $20 Total

P X  x  0.1 0.2 0.3 0.2 0.15 0.05 1

xP( X  x) 0.1 0.4 1.5 2 2.25 1 7.25

x 2 P( X  x) 0.1 0.8 7.5 20 33.75 20 82.15

 E ( X )  7.25
Var( X )  E ( X 2 )  [ E ( X )]2  82.15  7.252  29.59
Exercise: Two dice are rolled. Let X is a random variable denoting the sum of the numbers
on the two dice.
i) Give the probability distribution of X
ii) Compute the expected value of X and its variance
 There are some general rules for mathematical expectation.
Let X and Y are random variables and k is a constant.
RULE 1: E (k )  k
RULE 2: Var(k )  k

RULE 3: E(kX )  kE( X )

RULE 4: Var(kX )  k
2
Var( X )
RULE 5: E( X  Y )  E( X )  E(Y )
Common Discrete Probability Distributions
1. Binomial Distribution
A binomial experiment is a probability experiment that satisfies the following four
requirements called assumptions of a binomial distribution.
1. The experiment consists of n identical trials.
2. Each trial has only one of the two possible mutually exclusive outcomes, success or
a failure.
3. The probability of each outcome does not change from trial to trial, and
4. The trials are independent, thus we must sample with replacement.

Examples of binomial experiments

 Tossing a coin 20 times to see how many tails occur.

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  Asking 200 people if they watch BBC news.
 Registering a newly produced product as defective or non defective.
 Asking 100 people if they favor the ruling party.
 Rolling a die to see if a 5 appears.
Definition: The outcomes of the binomial experiment and the corresponding probabilities of these
outcomes are called Binomial Distribution.
Let P  the probability of success
q  1  p  the probability of failureon any given trial
Then the probability of getting x successes in n trials becomes:

n
P( X  x)    p x q n  x , x  0,1,2,...., n
 x
And this is some times written as: X ~ Bin(n, p)
When using the binomial formula to solve problems, we have to identify three things:
 The number of trials ( n )
 The probability of a success on any one trial ( p ) and
 The number of successes desired ( X ).
Examples:
1. What is the probability of getting three heads by tossing a fair con four times?
Solution: Let X be the number of heads in tossing a fair coin four times
X ~ Bin(n  4, p  0.50)
n
 P ( X  x)    p x q n  x , x  0,1,2,3,4
 x
 4
  0.5 x 0.54  x
 x
 4
  0.54
 x
 4
 P ( X  3)   0.54  0.25
 3
2. Suppose that an examination consists of six true and false questions, and assume that a student
has no knowledge of the subject matter. The probability that the student will guess the correct

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answer to the first question is 30%. Likewise, the probability of guessing each of the remaining
questions correctly is also 30%.
a) What is the probability of getting more than three correct answers?
b) What is the probability of getting at least two correct answers?
c) What is the probability of getting at most three correct answers?
d) What is the probability of getting less than five correct answers?
Solution: Let X = the number of correct answers that the student gets.
X ~ Bin(n  6, p  0.30)
a) P( X  3)  ?
n
 P( X  x)    p x q n  x , x  0,1,2,..6
 x
6
  0.3 x 0.7 6  x
 x

 P( X  3)  P( X  4)  P( X  5)  P( X  6)
 0.060  0.010  0.001
 0.071
Thus, we may conclude that if 30% of the exam questions are answered by guessing, the
probability is 0.071 (or 7.1%) that more than four of the questions are answered correctly
by the student.
b) P( X  2)  ?
P ( X  2)  P ( X  2)  P ( X  3)  P ( X  4)  P ( X  5)  P ( X  6)
 0.324  0.185  0.060  0.010  0.001
 0.58
c) P( X  3)  ?
P( X  3)  P( X  0)  P( X  1)  P ( X  2)  P( X  3)
 0.118  0.303  0.324  0.185
 0.93
d) P( X  5)  ?

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 P( X  5)  1  P( X  5)
 1  {P( X  5)  P( X  6)}
 1  (0.010  0.001)
 0.989
Exercises:
a. Suppose that 4% of all TVs made by A&B Company in 2000 are defective. If eight of
these TVs are randomly selected from across the country and tested, what is the
probability that exactly three of them are defective? Assume that each TV is made
independently of the others.
b. An allergist claims that 45% of the patients she tests are allergic to some type of weed.
What is the probability that
I. Exactly 3 of her next 4 patients are allergic to weeds?
II. None of her next 4 patients are allergic to weeds?
c. Explain why the following experiments are not Binomial
I. Rolling a die until a 6 appears.
II. Asking 20 people how old they are.
III. Drawing 5 cards from a deck for a poker hand.
Remark: If X is a binomial random variable with parameters n and p then

E( X )  np , Var( X )  npq
2. Poisson Distribution
A random variable X is said to have a Poisson distribution if its probability distribution is
given by:

x e  
P( X  x)  , x  0,1,2,......
x!
Where   the averagenumber.
The Poisson distribution depends only on the average number of occurrences per unit
time of space.
The Poisson distribution is used as a distribution of rare events, such as: Arrivals,
Accidents, Number of misprints, Hereditary, Natural disasters like earth quake, etc.
The process that gives rise to such events is called Poisson process.

Example: If 1.6 accidents can be expected an intersection on any given day, what is the
probability that there will be 3 accidents on any given day?
Solution: Let X =the number of accidents,   1.6

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 1.6 x e 1.6
X  poisson1.6  p X  x  
x!
1.63 e 1.6
p X  3   0.1380
3!
Exercise: On the average, five smokers pass a certain street corners every ten minutes,
what is the probability that during a given 10 minutes the number of smokers passing will
be
a. 6 or fewer
b. 7 or more
c. Exactly 8…….
If X is a Poisson random variable with parameter  then

E(X )   , Var(X )  
Note: The Poisson probability distribution provides a close approximation to the binomial
probability distribution when n is large and p is quite small or quite large with   np .
(np) x e  ( np)
P( X  x)  , x  0,1,2,......
x!
Where   np  the average number.
Usually we use this approximation if np  5 . In other words, if n  20 and np  5 [or
n(1  p)  5 ], then we may use Poisson distribution as an approximation to binomial
distribution.
Example: Find the binomial probability P(X=3) by using the Poisson distribution if p  0.01
and n  200 . Solution:
U sin g Poisson ,   np  0.01* 200  2
23 e  2
 P( X  3)   0.1804
3!
U sin g Binomial , n  200, p  0.01
 200 
 P( X  3)   (0.01)3 (0.99)99  0.1814
 3 

Common Continuous Probability Distributions

1. Normal Distribution

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 A random variable X is said to have a normal distribution if its probability density function is
1 x  2
1   
2  
f ( x)  e ,    x  ,      ,   0
 2
Where   E ( X ),  2  Variance( X )
 and  2 are the Parametersof the Normal Distribution.
Properties of Normal Distribution:
1. It is bell shaped and is symmetrical about its mean and it is mesokurtic. The maximum
1
ordinate is at x   and is given by f ( x) 
 2
2. It is asymptotic to the axis, i.e., it extends indefinitely in either direction from the mean.
3. It is a continuous distribution.
4. It is a family of curves, i.e., every unique pair of mean and standard deviation defines a
different normal distribution. Thus, the normal distribution is completely described by two
parameters: mean and standard deviation.
5. Total area under the curve sums to 1, i.e., the area of the distribution on each side of the

mean is 0.5.   f ( x)dx  1

6. It is unimodal, i.e., values mound up only in the center of the curve.
7. Mean  Median  mod e  
8. The probability that a random variable will have a value between any two points is equal to
the area under the curve between those points.
Note: To facilitate the use of normal distribution, the following distribution known as the
standard normal distribution was derived by using the transformation

X 
1
1 2z 2

Z  f ( z)  e
 2

Properties of the Standard Normal Distribution:

- Same as a normal distribution, but also mean is zero, variance is one, standard Deviation is
one
- Areas under the standard normal distribution curve have been tabulated in various ways.
The most common ones are the areas between Z  0 and a positive value of Z .

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- Given normal distributed random variable X with mean  and s tan dard deviation 
a X  b
P ( a  X  b)  P (   )
  
a b
 P ( a  X  b)  P ( Z )
 
Note:
P ( a  X  b)  P ( a  X  b)
 P ( a  X  b)
 P ( a  X  b)
Examples:
1. Find the area under the standard normal distribution which lies
a) Between Z  0 and Z  0.96
Solution:
Area  P(0  Z  0.96)  0.3315

b) Between Z  1.45 and Z  0

Solution:
Area  P (1.45  Z  0)
 P (0  Z  1.45)
 0.4265
c) To the right of Z  0.35
Solution:
Area  P( Z  0.35)
 P(0.35  Z  0)  P( Z  0)
 P(0  Z  0.35)  P( Z  0)
 0.1368  0.50  0.6368
d) To the left of Z  0.35
Solution:

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 Area  P ( Z  0.35)
 1  P ( Z  0.35)
 1  0.6368  0.3632

e) Between Z  0.67 and Z  0.75

Solution:

Area  P(0.67  Z  0.75)

 P(0.67  Z  0)  P(0  Z  0.75)
 P(0  Z  0.67)  P(0  Z  0.75)
 0.2486  0.2734  0.5220
f) Between Z  0.25 and Z  1.25
Solution:
Area  P (0.25  Z  1.25)
 P (0  Z  1.25)  P(0  Z  0.25)
 0.3934  0.0987  0.2957
2. Find the value of Z if
a) The normal curve area between 0 and z(positive) is 0.4726
Solution
P (0  Z  z )  0.4726 and from table
P (0  Z  1.92)  0.4726
 z  1.92.....uniqueness of Areea.
b) The area to the left of z is 0.9868
Solution

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 P( Z  z )  0.9868
 P( Z  0)  P(0  Z  z )
 0.50  P(0  Z  z )
 P(0  Z  z )  0.9868  0.50  0.4868
and from table
P(0  Z  2.2)  0.4868
 z  2.2

3. A random variable X has a normal distribution with mean 80 and standard deviation
4.8. What is the probability that it will take a value
a) Less than 87.2
b) Greater than 76.4
c) Between 81.2 and 86.0
Solution
X is normal with mean,   80, s tan dard deviation,   4.8
a)
X  87.2  
P( X  87.2)  P(  )
 
87.2  80
 P( Z  )
4.8
 P( Z  1.5)
 P( Z  0)  P(0  Z  1.5)
 0.50  0.4332  0.9332

b)

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 X  76.4  
P( X  76.4)  P(  )
 
76.4  80
 P( Z  )
4.8
 P( Z  0.75)
 P( Z  0)  P(0  Z  0.75)
 0.50  0.2734  0.7734
c)

81.2   X  86.0  
P(81.2  X  86.0)  P(   )
  
81.2  80 86.0  80
 P( Z )
4.8 4.8
 P(0.25  Z  1.25)
 P(0  Z  1.25)  P(0  Z  1.25)
 0.3934  0.0987  0.2957
4. A normal distribution has mean [Link] its standard deviation if 20.0% of the area
under the normal curve lies to the right of 72.9
Solution
X  72.9  
P ( X  72.9)  0.2005  P(  )  0.2005
 
72.9  62.4
 P( Z  )  0.2005

10.5
 P( Z  )  0.2005

10.5
 P (0  Z  )  0.50  0.2005  0.2995

And from table P (0  Z  0.84)  0.2995
10.5
  0.84

   12.5
5. A random variable has a normal distribution with   5 .Find its mean if the
probability that the random variable will assume a value less than 52.5 is 0.6915.

Page 87 of 95
 Solution
52.5  
P( Z  z )  P( Z  )  0.6915
5
 P(0  Z  z )  0.6915  0.50  0.1915.
But from the table
 P(0  Z  0.5)  0.1915
52.5  
z  0.5
5
   50
Exercise: Of a large group of men, 5% are less than 60 inches in height and 40% are
between 60 & 65 inches. Assuming a normal distribution, find the mean and standard
deviation of heights.

Page 88 of 95
 CHAPTER 7
7. Sampling and Sampling Distribution
Introduction
Given a variable X, if we arrange its values in ascending order and assign probability to
each of the values or if we present Xi in a form of relative frequency distribution the
result is called Sampling Distribution of X.
Definitions:
1. Parameter: Characteristic or measure obtained from a population.
2. Statistic: Characteristic or measure obtained from a sample.
3. Sampling: The process or method of sample selection from the population.
4. Sampling unit: the ultimate unit to be sampled or elements of the population to
be sampled.
Examples:
 If some body studies Scio-economic status of the households, households are the
sampling unit.
 If one studies performance of freshman students in some college, the student is
the sampling unit.
5. Sampling frame: is the list of all elements in a population under study.
Examples:
- List of households.
- List of students in the registrar office.
6. Errors in sample survey:
There are two types of errors
a) Sampling error:
- It is the discrepancy between the population value and sample value.
- May arise due to inappropriate sampling techniques applied
b) Non sampling errors: are errors due to procedure bias such as:
- Due to incorrect responses
- Measurement
- Errors at different stages in processing the data.
 The Need for Sampling
- Reduced cost
- Greater speed
- Greater accuracy
- Greater scope
- More detailed information can be obtained.

 There are two types of sampling.

1. Random Sampling or probability sampling
- It is a method of sampling in which all elements in the population have a pre-assigned
non-zero probability to be included in to the sample.
Examples:
 Simple random sampling
 Stratified random samplingn

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  Cluster sampling
 Systematic sampling
i. Simple Random Sampling:
- It is a method of selecting items from a population such that every possible
sample of specific size has an equal chance of being selected. In this case,
sampling may be with or without replacement. Or
- All elements in the population have the same pre-assigned non-zero probability
to be included in to the sample.
- Simple random sampling can be done either using the lottery method or table of
random numbers.

ii. Stratified Random Sampling:

- The population will be divided in to non-overlapping but exhaustive groups
called strata.
- Simple random samples will be chosen from each stratum.
- Elements in the same strata should be more or less homogeneous while different
in different strata.
- It is applied if the population is heterogeneous.
- Some of the criteria for dividing a population into strata are: Sex (male, female);
Age (under 18, 18 to 28, 29 to 39,); Occupation (blue-collar, professional, and
other).

iii. Cluster Sampling:

- The population is divided in to non-overlapping groups called clusters.
- A simple random sample of groups or cluster of elements is chosen and all the
sampling units in the selected clusters will be surveyed.
- Clusters are formed in a way that elements with in a cluster are heterogeneous,
i.e. observations in each cluster should be more or less dissimilar.
- Cluster sampling is useful when it is difficult or costly to generate a simple
random sample. For example, to estimate the average annual household income
in a large city we use cluster sampling, because to use simple random sampling
we need a complete list of households in the city from which to sample. To use
stratified random sampling, we would again need the list of households. A less
expensive way is to let each block within the city represent a cluster. A sample
of clusters could then be randomly selected, and every household within these
clusters could be interviewed to find the average annual household income.

iv. Systematic Sampling:

- A complete list of all elements with in the population (sampling frame) is
required.
- The procedure starts in determining the first element to be included in the
sample.
- Then the technique is to take the kth item from the sampling frame.

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 - Let,
N
N  population size, n  sample size, k   sampling int erval.
n

- Chose any number between 1 and k . Suppose it is j (1  j  k ) .

- The j unit is selected at first and then ( j  k ) , ( j  2k ) ,....etc until
th th th

the required sample size is reached.

2. Non Random Sampling or non-probability sampling

- It is a sampling technique in which the choice of individuals for a sample depends on
the basis of convenience, personal choice or interest.
Examples:
 Judgment sampling.
 Convenience sampling
 Quota Sampling.
1. Judgment Sampling
- In this case, the person taking the sample has direct or indirect control over
which items are selected for the sample.
2. Convenience Sampling
- In this method, the decision maker selects a sample from the population in a
manner that is relatively easy and convenient.
3. Quota Sampling
- In this method, the decision maker requires the sample to contain a certain
number of items with a given characteristic. Many political polls are, in part,
quota sampling.

Note: let N  population size, n  sample size.

[Link] simple random sampling is used

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  We have N n possible samples if sampling is with replacement.
N
 We have   possible samples if sampling is without
n
replacement.
2. After this on wards, we consider that samples are drawn from a given
population using simple random sampling.

Sampling Distribution of the sample mean

- Sampling distribution of the sample mean is a theoretical probability distribution that

shows the functional relation ship between the possible values of a given sample mean
based on samples of size n and the probability associated with each value, for all
possible samples of size n drawn from that particular population.
- There are commonly three properties of interest of a given sampling distribution.
 Its Mean
 Its Variance
 Its Functional form.
Steps for the construction of Sampling Distribution of the mean

1. From a finite population of size N , randomly draw all possible samples of size
n.
2. Calculate the mean for each sample.
3. Summarize the mean obtained in step 2 in terms of frequency distribution or
relative frequency distribution.

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Example: Suppose we have a population of size N  5 , consisting of the age of five
children: 6, 8, 10, 12, and 14. Take samples of size 2 with replacement and construct
sampling distribution of the sample mean.
Solution: N  5, n  2
 We have N  5  25 possible samples since sampling is with replacement.
n 2

Step 1: Draw all possible samples:

6 8 10 12 14
6 (6, 6) (6, 8) (6, 10) (6, 12) (6, 14)
8 (8,6) (8,8) (8,10) (8,12) (8,14)
10 (10,6) (10,8) (10,10) (10,12) (10,14)
12 (12,6) (12,8) (12,10) (12,12) (12,14)
14 (12,6) (14,8) (12,10) (12,12) (12,14)
Step 2: Calculate the mean for each sample:
6 8 10 12 14
6 6 7 8 9 10
8 7 8 9 10 11
10 8 9 10 11 12
12 9 10 11 12 13
14 10 11 12 13 14
Step 3: Summarize the mean obtained in step 2 in terms of frequency distribution.
X Frequency
6 1
7 2
8 3
9 4
10 5
11 4
12 3
13 2
14 1

a) Find the mean of X, say X

X  
X i f i 250
  10  
 fi 25

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 X , say  X
2
b) Find the variance of ,

 ( X i   X ) 2 f i 100
X 2
   42
 fi 25

Remark:
1. In general if sampling is with replacement
2
X  2

n
2. If sampling is without replacement
2  N n
X  2
 
n  N 1 
3. In any case the sample mean is unbiased estimator of the population mean. i.e.
 X    E ( X )   (Show!)

- Sampling may be from a normally distributed population or from a non-normally

distributed population.
- When sampling is from a normally distributed population, the distribution of X will
possess the following property.

1. The distribution of X will be normal

2. The mean of X is equal to the population mean , i.e.  X 
3. The variance of X is equal to the population variance divided by the sample size,
2
 X ~ N ( , )
2 n
i.e.  X 
2

n X 
Z  ~ N (0,1)
 n
Central Limit Theorem
Given a population of any functional form with mean  and finite variance  , the
2

sampling distribution of X , computed from samples of size n from the population will be

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 2
approximately normally distributed with mean  and variance , when the sample size is
n
large.

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