Professional Documents
Culture Documents
ng
ECTURE
OTE
ON
DESCRIPTIVE STATISTICS
(STS 102)
BY
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COURSE CONTENTS
Statistical data: types, sources and methods of collection. Presentation of data: tables,
charts and graphs. Error and Approximations. Frequency and cumulative distributions.
Measures of location, partition, dispersion, Skewness and kurtosis. Rates, Proportion
and index numbers.
READING LISTS
1. Adamu S.O and Johnson Tinuke L (1998): Statistics for Beginners; Book 1.
SAAL Publication. Ibadan. ISBN: 978-34411-3-2
2. Clark G.M and Cooke D (1993): A Basic course in statistics. Third edition.
London: Published by Arnold and Stoughton.
3. Olubosoye O.E, Olaomi J.O and Shittu O.I (2002): Statistics for
Engineering, Physical and Biological sciences. Ibadan: A Divine Touch
Publications.
4. Tmt. V. Varalakshmi et al (2005): Statistics Higher Secondary - First year.
Tamilnadu Textbook Corporation, College Road, Chennai- 600 006
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INTRODUCTION
In the modern world of information and communication technology, the
importance of statistics is very well recognised by all the disciplines. Statistics has
originated as a science of statehood and found applications slowly and steadily in
Agriculture, Economics, Commerce, Biology, Medicine, Industry, planning, education
and so on. As of today, there is no other human walk of life, where statistics cannot
be applied.
Statistics is concerned with the scientific method of collecting, organizing,
summarizing, presenting and analyzing statistical information (data) as well as
drawing valid conclusion on the basis of such analysis. It could be simply defined as
the science of data . Thus, statistics uses facts or numerical data, assembled,
DESCRIPTIVE STATISTICS
This is the act of summarizing and given a descriptive account of numerical
information in form of reports, charts and diagrams. The goal of descriptive
statistics is to gain information from collected data. It begins with collection of data
by either counting or measurement in an inquiry. It involves the summary of specific
aspect of the data, such as averages values and measure of dispersion (spread).
Suitable graphs, diagrams and charts are then used to gain understanding and clear
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ii.
be single valued
iii.
i.
be algebraically tractable
INFERENTIAL STATISTICS
This is the act of making deductive statement about a population from the
quantities computed from its representative sample. It is a process of making
inference or generalizing about the population under certain conditions and
assumptions. Statistical inference involves the processes of estimation of
parameters and hypothesis testing. However, this concept is not in the context of
this course.
USES OF STATISTICS
Statistics can be used among others for:
1) Planning and decision making by individuals, states, business organizations,
research institution etc.
2) Forecasting and prediction for the future based on a good model provided
that its basic assumptions are not violated.
3) Project implementation and control. This is especially useful in on-going
projects such as network analysis, construction of roads and bridges and
implementation of government programs and policies.
4) The assessment of the reliability and validity of measurements and general
points significance tests including power and sample size determination.
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STATISTICAL DATA
Data can be described as a mass of unprocessed information obtained from
measurement of counting of a characteristics or phenomenon. They are raw facts
that have to be processed in numerical form they are called quantitative data. For
instance the collection of ages of students offering STS 102 in a particular session is
an example of this data. But when data are not presented in numerical form, they
are called qualitative data. E.g.: status, sex, religion, etc.
from
respondents
by
personal
interview,
questionnaire,
(iv)
ADVANTAGES
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DISADVANTAGES
Time consuming
2. Secondary data: These are data obtained from publication, newspapers, and
annual reports. They are usually summarized data used for purpose other
than the intended one. These could be obtain from the following:
(i)
(ii)
Research/Media organization
(iii)
Educational institutions
ADVANTAGES
DISADVANTAGES
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2. Interviewing
3. Questionnaire
4. Abstraction from published statistics.
DIRECT OBSERVATION
Observational methods are used mostly in scientific enquiry where data are
observed directly from controlled experiment. It is used more in the natural
sciences through laboratory works than in social sciences. But this is very useful
studying small communities and institutions.
INTERVIEWING
In this method, the person collecting the data is called the interviewer goes to ask
the person (interviewee) direct questions. The interviewer has to go to the
interviewees personally to collect the information required verbally. This makes it
different from the next method called questionnaire method.
QUESTIONNAIRE
A set of questions or statement is assembled to get information on a variable (or a
set of variable). The entire package of questions or statement is called a
questionnaire. Human beings usually are required to respond to the questions or
statements on the questionnaire. Copies of the questionnaire can be administered
personally by its user or sent to people by post. Both interviewing and
questionnaire methods are used in the social sciences where human population is
mostly involved.
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PRESENTATION OF DATA
When raw data are collected, they are organized numerically by distributing
them into classes or categories in order to determine the number of individuals
belonging to each class. Most cases, it is necessary to present data in tables, charts
and diagrams in order to have a clear understanding of the data, and to illustrate the
relationship existing between the variables being examined.
FREQUENCY TABLE
This is a tabular arrangement of data into various classes together with their
corresponding frequencies.
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(a) K = 1 +3.322
(b) K =
3. Determine the width
where
= number of observations.
4. Determine the numbers of observations falling into each class interval i.e. find
the class frequencies.
NOTE: With advent of computers, all these steps can be accomplishes easily.
Exclusive method:
When the class intervals are so fixed that the upper limit of one class is the lower
limit of the next class; it is known as the exclusive method of classification. E.g. Let
some expenditures of some families be as follows:
0 1000, 1000 2000, etc. It is clear that the exclusive method ensures continuity
of data as much as the upper limit of one class is the lower limit of the next class. In
the above example, there are so families whose expenditure is between 0 and
999.99. A family whose expenditure is 1000 would be included in the class interval
1000-2000.
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Inclusive method:
In this method, the overlapping of the class intervals is avoided. Both the lower and
upper limits are included in the class interval. This type of classification may be used
for a grouped frequency distribution for discrete variable like members in a family,
number of workers in a factory etc., where the variable may take only integral
values. It cannot be used with fractional values like age, height, weight etc. In case of
continuous variables, the exclusive method should be used. The inclusive method
should be used in case of discrete variable.
Class limit: it represents the end points of a class interval. {Lower class limit &
Upper class limit}. A class interval which has neither upper class limit nor lower
class limit indicated is called an open class interval e.g. less than 25 , 25 and
above
Class boundaries: The point of demarcation between a class interval and the next
class interval is called boundary. For example, the class boundary of 10-19 is 9.5
19.5
Cumulative frequency: This is the sum of a frequency of the particular class to the
frequencies of the class before it.
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56
48 51 58 63 65 62 49 64 53 59 63 50 61 67 72 56 64 66 49 52
62
71 58 53 63 69 59 64 73 56.
(a) Construct a frequency table for the above data.
(b) Answer the following questions using the table obtained:
(i) how many students scored between 51 and 62?
(ii) how many students scored above 50?
(iii) what is the probability that a student selected at random from the class will
score less than 63?
Solution:
(a) Range (R) =
No of classes
Class size
Frequency Table
Mark
Tally
frequency
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51- 54
55 - 58
59 62
67 70
63 66
11
71 74
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Example 2: The following data represent the ages (in years) of people living in a
housing estate in Abeokuta.
18 31 30 6 16 17 18 43 2 8 32 33 9 18 33 19 21 13 13 14
14
6 52 45 61 23 26 15 14 15 14 27 36 19 37 11 12 11
20 12 39 20 40 69 63 29 64 27 15 28.
Present the above data in a frequency table showing the following columns; class
interval, class boundary, class mark (mid-point), tally, frequency and cumulative
frequency in that order.
Solution:
Range (R)
No of classes
Class width
Class interval Class boundary Class mark
2 11
1.5 11.5
Tally
Frequency
Cum.freq
6.5
7
28
12 21
11.5 21.5
16.5
21
26.5
36
32 41
21.5 31.5
31.5 41.5
36.6
43
41.5 51.5
46.5
45
56.5
47
66.5
50
22 31
42 51
52 61
62 71
51.5 61.5
61.5 71.5
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Exercise 1
Below are the data of weights of 40students women randomly selected in Ogun
state. Prepare a table showing the following columns; class interval, frequency, class
boundary, class mark, and cumulative frequency.
96
84
75
80
64
105
87
62
105
103 76 93
75 110 88
97
69
96
73
91
84
96
91
82
81
101
94
108
106
117 99 114 88 60 98
77
ii.
iii.
What is the probability that a woman selected at random from Ogun state
would weight more than 90?
PICTOGRAM
Pictograms or pictographs are representations in form of pictures. They convey
broad meanings and relationships among data. Also they are the simplest way of
presenting information. Pictograms are popularly used in newspapers by journalists
and advertisers.
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to represent a teacher
Maths teachers
Biology teachers
Government teachers
Physics teachers
PIE CHART
A pie chart is a circular graph in which numerical data are represented by sectors of
a circle. The angles of the sectors are proportional to the frequencies of the items
they represent
EXAMPLE 2: In ADAS international school, the lesson periods for each week are
given below.
English 7, Maths 10, Biology 3, Physics 4, Chemistry 3, others 9. Draw a pie chart to
illustrate this information.
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No of period
English
Maths
10
Biology
Physics
Chemistry
Others
Total
36
Angle of sector
The pie chart showing the lesson period in ADAS international school
English
Mathematics
Biology
Physics
Chemistry
Other
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BAR CHART
A bar chart is a statistical graph in which bars (rectangular bars) are drawn such
that their lengths or heights are proportional to the quantities or item they
represent. Each bar is separated by equal gaps.
Example 3: The allotment of time in minutes per week for some of the university
courses in second semester is;
Courses
Minutes
GNS 104
60
MTS 102
120
STS 102
180
ECO 102
120
BFN 108
120
PHS 192
140
Series1
80
60
40
20
0
GNS 104 MTS 102
STS 102
ECO 102
BFN 108
16
PHS 192
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HISTOGRAM
A histogram is a graphical representation of a frequency distribution. It consists of a
number of rectangles. The area of each rectangular bar of a histogram is
proportional to the corresponding frequency. Unlike bar charts, the rectangles are
joined together for histogram.
Height (cm)
Frequency
15
Solution:
174.5
164.5
154.5
144.5
134.5
124.5
Frequency
Height
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Frequency
Cumulative frequency
20 24
25 29
30 34
12
35 39
17
22
27
50 54
18
45
12
57
60 64
60
40 44
45 49
55 59
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Solution: (a)
(b)
Stem
Leaf
2 3 4 5 5 9
0 2 2 4 6 8
1 1 2 3
Stem
Leaf
1 4
3 5 6
0 1 5 6 6 7 8 9
3 4 8 9
Exercise 2:
1. The population by classes of Adas international school is as shown below
Class
II
III
IV
VI
No of pupils
30
25
27
26
22
26
Draw a pictogram, pie chart and a bar chart to represent the information.
2. The age distribution (in years) of a group of 100 individual is given below.
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Ages(x)
No.
of 8
59
10
11
21
14
15 50 25
19
24
29
30
20
17
10
10
34
individuals(f)
Draw a histogram and a cumulative frequency curve for the data.
19
35 39
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Error: For any given figure the correct figure lies in a certain range. Half of this
range is the Error.
Suppose
correct figure;
Absolute error:
Percentage Error
. Relative error
. i.e. percentage Error
Example: The length of a pole is measured as 10meters to the nearest meter. What
is the range of its actual length? Calculate the percentage error.
Solution The actual length of the pole will be between 9.5 and 10.5
Error
Percentage Error
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MEASURES OF LOCATION
These are measures of the centre of a distribution. They are single values that
give a description of the data. They are also referred to as measure of central
tendency. Some of them are arithmetic mean, geometric mean, harmonic mean,
mode, and median.
is defined by
Solution:
.
If the numbers
for short.)
Frequency (f)
Solution
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No. of customers
2.0 2.4
2.5 2.9
3.0 3.4
3.5 3.9
4.0 4.4
10
18
10
Solution:
Waiting (in min) No of customers Class mark mid-value(X)
1.5 1.9
1.7
5.1
10
2.2
22
2.5 2.9
18
2.7
48.6
3.5 3.9
2.0 2.4
3.0 3.4
10
3.2
32
3.7
25.9
4.0 4.4
4.2
8.4
= 2.84
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from A, i.e.
Therefore,
since
Pension in N
25
30
35
40
45
No of person
30
35 A
40
45
3
25
25 35 = -10 - 70
30 35 = -5
- 25
40 35 = 5
20
35 35 = 0
45 35 = 10 30
- 45
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Example 5: Consider the data in example 3, using a suitable assume mean, compute
the mean.
Solution:
Waiting time
1.5 1.9
1.7
-1
-3
2.0 2.4
10
2.2
-0.5
-5
18
2.7 A
3.0 3.4
10
3.2
0.5
3.7
4.2
1.5
2.5 2.9
3.5 3.9
4.0 4.4
50
NOTE: It is always easier to select the class mark with the longest frequency as the
assumed mean.
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ADVANTAGE OF MEAN
The mean is an average that considers all the observations in the data set. It is single
and easy to compute and it is the most widely used average.
DISAVANTAGE OF MEAN
Its value is greatly affected by the extremely too large or too small observation.
mean of the reciprocals of the numbers. It is used when dealing with the rates of the
type
per
(such as kilometers per hour, Naira per liter). The formula is expressed
thus:
H.M
If
Solution:
H.M
Note:
(i) Calculation takes into account every value
(ii) Extreme values have least effect
(iii) The formula breaks down when o is one of the observations.
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is the
G.M
If
is the frequency of
, then
G.M
H.M
G.M
A.M
The equality signs hold only if all the observations are identical.
THE MEDIAN
This is the value of the variable that divides a distribution into two equal
parts when the values are arranged in order of magnitude. If there are
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(odd)
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ordered list.
i.e.
are given as
is odd, therefore
The median,
are given as
Solution:
is odd.
Median,
Where:
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Total frequency
Cumulative frequency before the median class
Frequency of the median class.
Class size or width.
Example3: The table below shows the height of 70 men randomly selected at Sango
Ota.
Height
118-126
154-162
163-171
172-180
No of rods
10
14
18
Frequency
Cumulative frequency
118 126
10
18
136 144
14
32
18
50
154 162
59
66
172 180
70
127 135
145 153
163 171
70
. The sum of first three classes frequency is 32 which therefore means
that the median lies in the fourth class and this is the median class. Then
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THE MODE
The mode is the value of the data which occurs most frequently. A set of data
may have no, one, two or more modes. A distribution is said to be uni-model,
bimodal and multimodal if it has one, two and more than two modes respectively.
E .g: The mode of scores 2, 5, 2, 6, 7 is 2.
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11 20
Class
frequency 6
21 30
20
31 40
12
41 - 50
10
51 60
9
61 70
9
Mode,
Exercise 3
1. Find the mean, median and mode of the following observations: 5,
6,10,15,22,16,6,10,6.
2. The six numbers 4, 9,8,7,4 and Y, have mean of 7. Find the value of Y.
3. From the data below
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21 23
Class
Frequency 2
24 26
5
27 29
30 32
33 35
7
36 38
3
37 41
1
MEASURES OF PARTITION
From the previous section, we ve seen that the median is an average that
divides a distribution into two equal parts. So also these are other quantity that
divides a set of data (in an array) into different equal parts. Such data must have
been arranged in order of magnitude. Some of the partition values are: the quartile,
deciles and percentiles.
THE QUARTILES
Quartiles divide a set of data in an array into four equal parts.
For ungrouped data, the distribution is first arranged in ascending order of
magnitude.
Then
First Quartiles:
Second Quartile:
Third Quartile:
Where
The quality in reference
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class
class
class.
DECILES
The values of the variable that divide the frequency of the distribution into
ten equal parts are known as deciles and are denoted by
the fifth
Where
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PERCENTILE
The values of the variable that divide the frequency of the distribution into
hundred equal parts are known as percentiles and are generally denoted by
The fiftieth percentile is the median.
Where
Example: For the table below, find by calculation (using appropriate expression)
(i) Lower quartile,
(ii) Upper Quartile,
(iii) 6th Deciles,
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20 29 30 39 40 49 50 59 60 69 70 79 80 89 90 99
Frequency 8
10
14
26
Solution
Marks
20 29
30 39
10
18
40 49
14
32
50 59
26
32
60 69
20
58
70 79
16
78
98
90 99
100
80 89
100
34
20
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(iii)
(iv)
MEASURES OF DISPERSION
Dispersion or variation is degree of scatter or variation of individual value of a
variable about the central value such as the median or the mean. These include
range, mean deviation, semi-interquartile range, variance, standard deviation and
coefficient of variation.
THE RANGE
This is the simplest method of measuring dispersions. It is the difference
between the largest and the smallest value in a set of data. It is commonly used in
statistical quality control. However, the range may fail to discriminate if the
distributions are of different types.
Coefficient of Range
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by:
In a grouped data
(ii)
Mean ( )
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(iii)
Mean Deviation
(iv)
Example2: The table below shown the frequency distribution of the scores of 42
students in MTS 101
Scores
09
No of student 2
10 19
5
20 29
8
30 39
12
Find the mean deviation from the mean for the data.
37
40 49
9
50 59
5
60 69
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Solution:
Classes
midpoint
09
4.5
-29.52
29.52
59.04
10 19
14.5
72.5
-19.52
19.52
97.60
20 29
24.5
196
-9.52
9.52
76.16
30 39
34.5
12
414
0.48
0.48
5.76
40 49
44.5
400.5
10.48
10.48
94.32
54.5
272.5
20.48
20.48
102.4
60 69
64.5
64.5
30.48
30.48
30.48
42
1429
50 59
465.76
(small
mean of the squares of the deviation of the given observation from their arithmetic
mean . Thus, given
as a set of
is given by:
(Alternatively,
. )
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Note: We use
MERIT
(i)
(ii)
DEMERIT
(i)
THE VARIANCE
The variance of a set of observations is defined as the square of the standard
deviation and is thus given by
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COEFFICIENT OF VARIATION/DISPERSION
This is a dimension less quantity that measures the relative variation between two
servers observed in different units. The coefficients of variation are obtained by
dividing the standard deviation by the mean and multiply it by 100. Symbolically
SOLUTION
Hence C.V
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Ages(in years)
Frequency
50 54
55 59 60 64
10
SOLUTION
Classes
50 54
52
52
-20.06
55 59
57
2 114
-15.06
60 64
62 10 620
-10.06
1012.04
65 69
67 12 804
-5.06
307.24
70 74
72 18 1296
-0.06
75 79
77 25 1925
4.94
610.09
80 84
82
9.94
889.23
738
77 5549
402.40
453.61
0.07
3674.68
C.V
41
65 69
12
70 74
18
75 79
25
80 84
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Exercise 4
The data below represents the scores by 150 applicants in an achievement text for
the post of Botanist in a large company:
Scores
Frequency
10 19
1
20 29
6
30 39 40 49 50 59 60 69 70 79 80 89 90 99
9
31
42
32
17
10
Estimate
(i)
(ii)
(iii)
(iv)
Standard deviation
(v)
(vi)
D4
(vii) P26
(viii) coefficient of variation
about the shape of the curve which we can draw with the help of the given data. If in
a distribution mean in median
median
mean
median
42
mode
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Mean, median and mode coincide and the spread of the frequencies is the
same on both sides of the centre point of the curve.
(b) Positively Skewed distribution:
mode
median mean
In a positive skewed distribution, the value of the mean is the maximum and
that of the mode is the least, and the median lies in between the two. The
frequencies are spread out over a grater range of values on the right hand side
than they are on the left hand side.
(c) Negatively Skewed distribution:
Measures of Skewness
The important measures of skewness are:
(i)
(ii)
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(iii)
.
;
is given by:
KURTOSIS
The expression Kurtosis is used to describe the peakedness of a normal
curve. The three measures central tendency, dispersion and skewness, describe
the characteristics of frequency distributions. But these studies will not give us a
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Leptokurtic. If the frequency curve is more flat than normal curve, it is designated
as Platykurtic.
L
Measures of Kurtosis
The measure of kurtosis of a frequency distribution based on moment is denoted by
and is given by:
.
If
If
If
Example 1: Calculate Karl Pearson s coefficient of skewness for the following data:
25, 15, 23, 40, 27, 25, 23, 25, 20.
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Solution: Computation of mean and standard deviation using assume mean method:
Size
Deviation from A
25
25
15
-10
100
23
-2
40
15
225
27
25
23
-2
25
20
-5
25
Mean
Mode
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Example 2: Find Karl Pearson s coefficient of skewness for the given distribution:
Class 0 5
F
6 11
5
12 17
7
18 23
13
24 29
21
30 35
16
36 41
8
42 47
3
Mid Point ( )
05
2.5
-23.28
541.96
1083.92
8.5
42.5
-17.28
298.59
1492.95
12 17
14.5
101.5
-11.28
127.24
890.68
18 23
20.5
13
266.5
-5.28
27.88
362.44
24 29
26.5
21
556.5
0.72
0.52
10.92
30 35
32.5
16
520
6.72
45.16
722.56
38.5
308
12.72
161.79
1294.32
42 47
44.5
133.5
18.72
350.44
1051.32
6 11
36 41
Mean
Standard deviation
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.
Therefore,
Karl Pearson s coefficient of skewness
Example 3: Find the Bowley s coefficient of skewness for the following series:
2, 4, 6, 8, 10, 12, 14, 16, 18, 20, 22.
Solution: The given data in order: 2, 4, 6, 10, 12, 14, 16, 18, 20, and 22.
size of
size of
th item
th item
size of
th item
th item
size of
Median
size of
th item
size of
th item
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Since skewness
Example 4: Calculate
(measure
10
15
20
25
20
15
10
Solution:
First Moment:
where
Second Moment:
Third Moment:
Fourth Moment:
30 33
Frequency 2
34 37
4
38 41
26
Solution:
49
and
42 45
47
46 49
15
50 53
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Mark
Mid Point ( )
30 33
31.5
63
-11.48
131.79
263.58
34 37
35.5
142
-7.48
55.95
223.80
38 41
39.5
26
1027
-3.48
12.11
314.87
42 45
43.5
47
2044.5
0.52
0.27
12.71
46 49
47.5
15
712.5
4.52
20.43
306.46
50 53
51.5
309
8.52
72.59
435.54
100
4298
1556.96
-1512.95
-3025.91
17368.71
34737.42
-18.51
-1674.04
3130.45
12521.79
-42.14
-1095.64
146.66
3813.16
0.14
6.58
0.07
3.44
92.35
1385.25
417.40
6261.02
618.47
3710.82
5269.37
31616.22
-692.94
88952.90
. Since
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Exercise 5
Calculate the
Class 10 14
f
and
15 19
4
20 24
8
25 29 30 34 35 39 40 44 45 49
19
35
20
Example: If the voting age population (people 18 years and above) in Ifo ward I
consists of 550 males and 600 females. What is the proportion of males?
Solution:
, Total population
Proportion of males,
.
.
Rates
When proportion refers to the number of events or cases occurring during
certain period of time, it becomes a rate and is usually expressed as so many per
1000. Thus we refer to birth rate as the number of birth per 1000 population in a
year. So also we have death rate, migration rate, marriage rate etc.
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INDEX NUMBERS
There are various types of index numbers, but in brief, we shall discuss three
kinds, namely: (a) Price Index (b) Quality Index (c) Value Index.
(a)
Price Index
(b)
Quantity Index
This is the changes in the volume of goods produced or consumed. They are
useful and helpful to study the output in an economy.
(c)
Value Index
Value index numbers compare the total value of a certain period with total
value in the base period. Here a total vale is equal to the price of commodity
multiplied by the quantity consumed.
NOTATION: For any index number, two time periods are needed for comparison.
These are called the Base period and the Current year. The period of
the year which is used as a basis year and the other is the current year.
The various notations used are as given below:
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Definition (The weight): Different weights are used in different part of the country
for a particular commodity. For instance, congo western part of Nigeria, mudu
northern part etc.
Un weighted
Simple
aggregate
index
numbers
Weighted
Simple
average of
price
relative
53
Weighted
aggregate
index
number
Weighted
average of
price
relative
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Example 1: Calculate index numbers from the following data by simple aggregate
method taking prices of 2007 as base.
Commodity
2013
80
95
50
60
90
100
65
97
Solution:
Commodity
2013
80
95
50
60
90
100
65
97
285
352
Total
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S.A.P.I,
Example 2: From the following data, construct an index for 2012 taking 2011 as
base by the average of price relative using (a) arithmetic mean (b) geometric mean.
Commodity
Price in 2011
Price in 2012
Beans
50
70
Elubo
40
60
Rice
80
100
Garri
20
30
Solution:
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50
70
140
2.1461
Elubo
40
60
150
2.1761
Rice
80
100
125
2.0969
Garri
20
30
150
2.1761
Total 565
8.5952
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2. Paasche s method
6. Kelly s method
. Laspeyres method
This is a weighted aggregate price index, where the weights are determined
by quantity in the based period and is given by:
Laspeyre s price index
. Paasches method
It is a weighted aggregate price index in which the weight are determined by
the quantities in the current year. The formula for constructing the index is given
by:
Paasche s price index
This is the geometric mean of the Laspeyre and Paasche indices. Symbolically,
Fisher s )deal index method
4. Bowleys method
This is the arithmetic mean of Laspeyre s and Paasche s method. Symbolically,
Bowley s price index number
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6. Kellys method
Kelly has suggested the following formula for constructing the index
number:
Kelly s price index number
where
weights.
Example 3: Construct price index number from the following data by applying (a)
Laspeyre s method b Paasche s method and c Fisher s ideal method.
Commodity
2000
Price Quantity
2012
Price Quantity
12
10
15
12
18
20
Solution:
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Commodity
A
16
10
32
20
12
10
60
50
72
60
15
12
60
48
75
60
18
20
36
40
72
80
172
148
251
220
L.A.P.I.N
P.R.I.N
F.I.I.N
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Commodity
Base year
Current year
Quantity Price
Quantity
Price
10
20
15
15
20
25
30
Solution:
Commodity
A
10
30
24
40
32
20
15
15
20
300
225
400
300
25
30
50
75
60
90
500
422
380
324
(a) B.P.I.N
(b) M.E.P.I.N
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Commodity
Quantity
Price
1999
2000
20
15
Solution: (ere the quantities are given in common and so we can use Kelly s index
price number.
K.P.I.N
Remark:
1. For Quantity or Volume index number, interchange
and
(based on Laspeyre)
where
and
value
Exercise 6
1. Five feed components are to be used in the construction of an animal
feedstuff index number. From the figures given in the following table,
calculate
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(i)
(ii)
(iii)
(iv)
(v)
(vi)
1914
Price per ton
2014
Consumption(tons)
40
3600
41
2750
39
2750
53
1500
38
2050
35
2350
37
500
30
750
36
1475
24
2850
Price
2010
Total value
Price
Total value
10
100
12
180
12
240
15
450
15
225
17
340
Hint: Quantity
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3. Construct the consumer price index number for 2012 on the basis of 2002
from the following data using Aggregate expenditure method.
Price in
Commodity
Quantity consumed
2002
2012
100
12
25
10
20
15
18
4. Calculate consumer price index by using Family Budget method for year 2013
with 2012 as base year from the following data.
Price in
Items
Weights
Food
35
150
140
Rent
20
75
90
Clothing
10
25
30
Fuel
15
50
60
Miscellaneous
20
60
80
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