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Data Analysis in Operations Management

The document outlines key concepts in data interpretation relevant to operations and supply chain management, including frequency distribution, scatter plots, histograms, bar graphs, pie charts, and measures of central tendency and dispersion. It explains how to summarize data using various graphical representations and statistical measures such as mean, median, mode, range, variance, and standard deviation. Additionally, it covers quartiles and percentiles to further analyze data distribution.

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0% found this document useful (0 votes)
4 views26 pages

Data Analysis in Operations Management

The document outlines key concepts in data interpretation relevant to operations and supply chain management, including frequency distribution, scatter plots, histograms, bar graphs, pie charts, and measures of central tendency and dispersion. It explains how to summarize data using various graphical representations and statistical measures such as mean, median, mode, range, variance, and standard deviation. Additionally, it covers quartiles and percentiles to further analyze data distribution.

Uploaded by

usharanim
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Welcome to

GITAM
Presenter
Name

Operations & Supply Chain


Module -4
Data Interpretation
Syllabus
Frequency Distribution,
 Scatter Plot, Histogram, Bar Graph, Pie Chart,
Measures of Central Tendency (Mean, Median, Mode),
 Measures of Dispersion (Range, Variance, Standard Deviation),
 Quartiles and Percentiles.

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Frequency Distribution A frequency distribution is a table that
shows the number of occurrences (frequency) of different
values or categories in a dataset. It helps summarize large
datasets to understand how often each value occurs.
Example:
Suppose we surveyed the shoe sizes of 20 people, and the sizes
are as follows:
7, 8, 9, 7, 7, 9, 10, 8, 8, 9, 7, 6, 10, 6, 7, 9, 8, 10, 7, 8

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Shoes Frequency
6 2
7 6
8 5
9 4
10 3

This is a frequency distribution of the shoe sizes.


Figure:
Imagine a table listing the shoe sizes and their frequencies.
You can also visualize this data in a bar graph.

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Scatter Plot
A scatter plot displays values for typically two variables, showing how
one variable is related to the other. Each point represents a pair of
values. Scatter plots are used to identify correlations or trends
between two continuous variables.
Example:
Let’s say we have a dataset that contains the number of study hours
and corresponding exam scores of students.
Hours Studied Exam Score
2 60
3 65
4 70
5 75
6 85
7 90
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Figure:
The x-axis represents hours studied, and the y-axis represents
the exam scores. Each point on the scatter plot corresponds to
one pair of values (e.g., 2 hours, 60 points). We can use this to
visualize the positive correlation between study time and exam
scores.
Histogram
A histogram is similar to a bar graph but is used to represent
the distribution of numerical data. It shows the frequency of
data within certain ranges (called bins). Unlike a bar graph, the
bars in a histogram touch each other to indicate that the data is
continuous.

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Example:
Suppose we measure the heights (in cm) of 10 people, and the data is as
follows: 150, 155, 160, 165, 170, 175, 180, 185, 190, 195
Height (cm) Frequency
150-160 3
160 - 170 3
170 - 180 2
180-190 1
190-200 1

Figure:
The x-axis represents height intervals, and the y-axis represents
frequency. Bars will show the number of people falling into each
height category.
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Bar Graph
A bar graph uses rectangular bars to represent different categories of
data, where the height or length of each bar is proportional to the value
it represents. Bar graphs are useful for comparing discrete categories.
Example:
Let’s look at the number of cars sold by different dealerships in a
month:

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Dealership Cars Sold
A 50
B 75
C 30
D 100

Figure:
On the x-axis, we have the dealerships (A, B, C, D), and on the y-axis, the
number of cars sold. Each bar represents a dealership's car sales.

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Pie Chart
A pie chart is a circular chart divided into slices, with each slice representing a
proportion of the whole. It’s best used to visualize percentages or parts of a
whole.
Example:
Here’s the percentage distribution of students in different courses:

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Course Percentage
Science 30%
Math 20%
History 25%
Art 15%
Sports 10%

Figure:
A pie chart will have slices representing the different courses, with
the size of each slice corresponding to its percentage (e.g., Science
would take up 30% of the pie).

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Definitions
• Central tendency refers to the value derived from the
random variables from the set of data that reflects the
center of the data distribution.
• It is a single value that describes a data set by
identifying the middle of the central position within the
given dataset. Sometimes these measures are called
the standards of middle or the central location.
• The central tendency is a concept in the field of
statistics which explains the central value in a set of
data. It helps in summarizing and describing a data set
through the identification of a single value which will
represent the midpoint of the center point of the entire
distribution.
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TYPES OF CENTRAL TENDENCY
There are three methods or types of central tendency.
They are:
(a)Mathematical Averages – (i) Arithmetic Mean (Mean),
(ii) Geometric Mean and (iii) Harmonic
Mean
(b)Positional Averages – (i) Median and (ii) Mode
Mean – This can also be explained as the average of all
the values in a data set. This is the calculation of
arithmetic average which takes into account the sum
total of all the values and divides it by the total number
of values. The mean can be influenced by values that
differ significantly from the actual data which are called
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outliers and also normally avoided in case of skewed
• Median – Median represents the entire data set’s
middle value which and it is important to arrange the
numerical data in an ascending or descending order so
that the actual middle value can be depicted. It is
widely used for distributions that are skewed and also in
case or ordinal numbers which represent a position or a
rank among group of people or objects.
• Mode – This depicts the data which occurs most
frequently in the set. There can be one , two or multiple
modes in a set of data and is very useful in identifying
categories that are very common.

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Mean :
The sum of the data values divided by the number of values.
Mean =

Median :

The median is the number that falls in the middle position


once the data has been organized . Organized data means
the numbers are arranged from smallest to largest or from
largest to smallest .
If n = odd number, then median will be found =observation .

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If n = even number, then median will be found =
=
Mode:
The mode of a set of data is simply the value that appears most
frequently in the set.
• Sample mean
• Population mean

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Indirect or Short – cut Method :

Where

=
Step –Deviation method:

Where
h= the width of the class interval
A = arbitrary assumed mean

= mid-value of the class interval

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Direct Method:

Median for grouped data :

Where = identify the median class interval or observation , i.e .,


cumulative frequency equal or greater than the value of or observation
= lower class limit of the median class interval .
cf = Cumulative frequency of the class prior to the median class interval
f = frequency of the median class
h = width of the median class interval
n = total number of observations in the distributions .

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Mode for Grouped data:

Where lower limit of the modal class,


= size of the class interval,
frequency of the modal class,
frequency of the class preceding the modal
class,
frequency of class succeeding the modal
class .

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Measures of Dispersion: Range, Variance, and Standard
Deviation
Measures of dispersion describe how spread out the values in a dataset
are. They help us understand the variability of the data. The main
measures of dispersion are range, variance, and standard deviation.
Range:
The range is the simplest measure of dispersion and is calculated
as the difference between the largest and smallest values in a
dataset.
Range=Maximum value−Minimum value
Example:
For the dataset 10,15,22,26,30
the range is: 30−10=20

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Variance is a measure based on the distance each data value
is from the mean (Deviation square ) It is denoted by

=
=
Standard Deviation is a measured based on the distance each
data value from mean . (Square root of variance ). It is
denoted by

=
=
=
=

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Operations & Supply Chain
Quartiles and Percentiles
Quartiles:
Quartiles divide a dataset into four equal parts after sorting the data in
ascending order. Each quartile contains 25% of the data points. There are
three quartiles:
Q1 (First Quartile): The 25th percentile, which means 25% of the data falls
below this point.
Q2 (Second Quartile): The 50th percentile, also known as the median. It
divides the dataset in half.
Q3 (Third Quartile): The 75th percentile, meaning 75% of the data falls
below this point.
Example of Quartiles:
Suppose we have the following dataset of 10 numbers representing the ages
of a group of people:

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15, 18, 21, 24, 27, 30, 33, 36, 39, 42
Q1 (First Quartile) = 21 (25% of the data falls below this point)
Q2 (Second Quartile) = 30 (Median, 50% of the data falls below this point)
Q3 (Third Quartile) = 39 (75% of the data falls below this point)
Percentiles:
Percentiles divide the dataset into 100 equal parts. A percentile indicates the
value below which a certain percentage of observations fall. For example, the
90th percentile means 90% of the data is below that point.
Example of Percentiles:
A score at the 85th percentile means the test-taker scored better than 85%
of other test-takers.

Operations & Supply Chain

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