Professional Documents
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Numerical Measures
Chapter 3
Learning Objectives
LO1 Explain the concept of central tendency.
LO2 Identify and compute the arithmetic mean.
LO3 Determine the median.
LO4 Identify the mode.
LO5 Explain and apply measures of dispersion.
LO6 Compute and interpret the standard deviation.
L07 Compute the mean and standard deviation of
grouped data.
3-2
1.
2.
3.
3-3
3-4
LO2
Population Mean
For ungrouped data, the population mean is the
sum of all the population values divided by the
total number of population values:
3-5
LO2
3-6
LO2
3-7
LO2
3-8
LO2
4.
3-9
LO2
Sample Mean
3-10
LO2
3-11
The Median
MEDIAN The midpoint of the values after they have been
ordered from the smallest to the largest, or the largest to
the smallest.
3.
4.
LO3
EXAMPLES - Median
The ages for a sample
of five college students
are:
21, 25, 19, 20, 22
The Mode
MODE The value of the observation that appears
most frequently.
3-14
LO4
Example - Mode
Using the data regarding the
distance in miles between exits
on I-75 through Kentucky. The
information is repeated below.
What is the modal distance?
Organize the distances into a
frequency table.
3-15
LO2,3,4
3-16
Dispersion
A measure of location, such as the mean or the median, only describes the center
of the data. It is valuable from that standpoint, but it does not tell us anything about
the spread of the data.
For example, if your nature guide told you that the river ahead averaged 3 feet in
depth, would you want to wade across on foot without additional information?
Probably not. You would want to know something about the variation in the depth.
A second reason for studying the dispersion in a set of data is to compare the
spread in two or more distributions.
3-17
LO6
Measures of Dispersion
Range
Mean Deviation
3-18
LO6
EXAMPLE Range
The number of cappuccinos sold at the Starbucks location in the
Orange Country Airport between 4 and 7 p.m. for a sample of 5
days last year were 20, 40, 50, 60, and 80. Determine the range
for the number of cappuccinos sold.
3-19
LO6
Mean Deviation
MEAN DEVIATION The arithmetic mean of the absolute values
of the deviations from the arithmetic mean.
3-20
LO6
x
n
20 40 50 60 80
5
50
3-21
LO7
3-22
3-23
LO8
3-24
LO8
19 17 ... 34 10
12
348
29
12
LO8
(X
N
)2
1,488
124
12
3-26
LO8
Sample Variance
Where :
s 2 is the sample variance
X is the value of each observatio n in the sample
X is the mean of the sample
n is the number of observatio ns in the sample
3-27
LO8
3-28
LO8
Where :
s 2 is the sample variance
X is the value of each observatio n in the sample
X is the mean of the sample
n is the number of observatio ns in the sample
3-29
Chebyshevs Theorem
The arithmetic mean biweekly amount contributed by the
Dupree Paint employees to the companys profit-sharing plan is
$51.54, and the standard deviation is $7.51. At least what
percent of the contributions lie within plus 3.5 standard
deviations and minus 3.5 standard deviations of the mean?
3-30
LO9
3-31
3-32
LO10
3-33
LO10
3-34
LO10
3-35