1

11 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western

Chapter 3 Chapter 3
Descriptive Statistics: umerical !easures Descriptive Statistics: umerical !easures
"art # "art #
!easures o$ Distri%ution Shape& 'elative (ocation& !easures o$ Distri%ution Shape& 'elative (ocation&
and Detectin) *utliers and Detectin) *utliers
+,plorator- Data .nal-sis +,plorator- Data .nal-sis
!easures o$ .ssociation #et/een T/o 0aria%les !easures o$ .ssociation #et/een T/o 0aria%les
The Wei)hted !ean and The Wei)hted !ean and
Wor1in) /ith 2rouped Data Wor1in) /ith 2rouped Data
22 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
!easures o$ Distri%ution Shape& !easures o$ Distri%ution Shape&
'elative (ocation& and Detectin) *utliers 'elative (ocation& and Detectin) *utliers
Distri%ution Shape Distri%ution Shape
33- -Scores Scores
Che%-shev4s Theorem Che%-shev4s Theorem
+mpirical 'ule +mpirical 'ule
Detectin) *utliers Detectin) *utliers
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Distri%ution Shape: S1e/ness Distri%ution Shape: S1e/ness
.n important measure o$ the shape o$ a distri%ution .n important measure o$ the shape o$ a distri%ution
is called is called s1e/ness s1e/ness55
The $ormula $or computin) s1e/ness $or a data set is The $ormula $or computin) s1e/ness $or a data set is
some/hat comple,5 some/hat comple,5
S1e/ness can %e easil- computed usin) statistical S1e/ness can %e easil- computed usin) statistical
so$t/are5 so$t/are5
66 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Distri%ution Shape: S1e/ness Distri%ution Shape: S1e/ness
S-mmetric 7not s1e/ed8 S-mmetric 7not s1e/ed8
99S1e/ness is 3ero5 S1e/ness is 3ero5
99!ean and median are e:ual5 !ean and median are e:ual5
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S1e/ness < 0 S1e/ness < 0
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Distri%ution Shape: S1e/ness Distri%ution Shape: S1e/ness
!oderatel- S1e/ed (e$t !oderatel- S1e/ed (e$t
99S1e/ness is ne)ative5 S1e/ness is ne)ative5
99!ean /ill usuall- %e less than the median5 !ean /ill usuall- %e less than the median5
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== Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Distri%ution Shape: S1e/ness Distri%ution Shape: S1e/ness
!oderatel- S1e/ed 'i)ht !oderatel- S1e/ed 'i)ht
99S1e/ness is positive5 S1e/ness is positive5
99!ean /ill usuall- %e more than the median5 !ean /ill usuall- %e more than the median5
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S1e/ness < 531 S1e/ness < 531
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Distri%ution Shape: S1e/ness Distri%ution Shape: S1e/ness
?i)hl- S1e/ed 'i)ht ?i)hl- S1e/ed 'i)ht
99S1e/ness is positive 7o$ten a%ove 15085 S1e/ness is positive 7o$ten a%ove 15085
99!ean /ill usuall- %e more than the median5 !ean /ill usuall- %e more than the median5
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S1e/ness < 1525 S1e/ness < 1525
@@ Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Sevent- e$$icienc- apartments Sevent- e$$icienc- apartments
/ere randoml- sampled in /ere randoml- sampled in
a small colle)e to/n5 The a small colle)e to/n5 The
monthl- rent prices $or monthl- rent prices $or
these apartments are listed these apartments are listed
in ascendin) order on the ne,t slide5 in ascendin) order on the ne,t slide5
Distri%ution Shape: S1e/ness Distri%ution Shape: S1e/ness
+,ample: .partment 'ents +,ample: .partment 'ents
5
AA Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
625 630 630 635 635 635 635 635 660 660
660 660 660 665 665 665 665 665 650 650
650 650 650 650 650 6=0 6=0 6=0 6=5 6=5
6=5 6>0 6>0 6>2 6>5 6>5 6>5 6@0 6@0 6@0
6@0 6@5 6A0 6A0 6A0 500 500 500 500 510
510 515 525 525 525 535 56A 550 5>0 5>0
5>5 5>5 5@0 5A0 =00 =00 =00 =00 =15 =15
Distri%ution Shape: S1e/ness Distri%ution Shape: S1e/ness
10 10 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
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S1e/ness < 5A2 S1e/ness < 5A2
Distri%ution Shape: S1e/ness Distri%ution Shape: S1e/ness
=
11 11 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
The The 33- -score score is o$ten called the standardi3ed value5 is o$ten called the standardi3ed value5
Bt denotes the num%er o$ standard deviations a data Bt denotes the num%er o$ standard deviations a data
value value xx
ii
is $rom the mean5 is $rom the mean5
33- -Scores Scores
z
x x
s
i
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=

12 12 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
33- -Scores Scores
. data value less than the sample mean /ill have a . data value less than the sample mean /ill have a
33- -score less than 3ero5 score less than 3ero5
. data value )reater than the sample mean /ill have . data value )reater than the sample mean /ill have
a 3 a 3- -score )reater than 3ero5 score )reater than 3ero5
. data value e:ual to the sample mean /ill have a . data value e:ual to the sample mean /ill have a
33- -score o$ 3ero5 score o$ 3ero5
.n o%servation4s 3 .n o%servation4s 3- -score is a measure o$ the relative score is a measure o$ the relative
location o$ the o%servation in a data set5 location o$ the o%servation in a data set5
>
13 13 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
33- -Score o$ Smallest 0alue 76258 Score o$ Smallest 0alue 76258
625 6A05@0
1520
565>6
i
x x
z
s

= = =
-1520 -1511 -1511 -1502 -1502 -1502 -1502 -1502 -05A3 -05A3
-05A3 -05A3 -05A3 -05@6 -05@6 -05@6 -05@6 -05@6 -05>5 -05>5
-05>5 -05>5 -05>5 -05>5 -05>5 -055= -055= -055= -056> -056>
-056> -053@ -053@ -0536 -052A -052A -052A -0520 -0520 -0520
-0520 -0511 -0501 -0501 -0501 051> 051> 051> 051> 0535
0535 0566 05=2 05=2 05=2 05@1 150= 150@ 1565 1565
1556 1556 15=3 15@1 15AA 15AA 15AA 15AA 252> 252>
zz- -Scores Scores
Standardi3ed 0alues $or .partment 'ents Standardi3ed 0alues $or .partment 'ents
16 16 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Che%-shev4s Theorem Che%-shev4s Theorem
.t least 71 .t least 71 - - 1/ 1/zz
22
8 o$ the items in 8 o$ the items in an- an- data set /ill %e data set /ill %e
/ithin /ithin zz standard deviations o$ the mean& /here standard deviations o$ the mean& /here z z is is
an- value )reater than 15 an- value )reater than 15
@
15 15 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
.t least o$ the data values must %e .t least o$ the data values must %e
/ithin o$ the mean5 /ithin o$ the mean5
>5C >5C
zz < 2 standard deviations < 2 standard deviations
Che%-shev4s Theorem Che%-shev4s Theorem
.t least o$ the data values must %e .t least o$ the data values must %e
/ithin o$ the mean5 /ithin o$ the mean5
@AC @AC
zz < 3 standard deviations < 3 standard deviations
.t least o$ the data values must %e .t least o$ the data values must %e
/ithin o$ the mean5 /ithin o$ the mean5
A6C A6C
zz < 6 standard deviations < 6 standard deviations
1= 1= Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
;or e,ample: ;or e,ample:
Che%-shev4s Theorem Che%-shev4s Theorem
(et (et zz < 155 /ith < 6A05@0 and < 155 /ith < 6A05@0 and s s < 565>6 < 565>6 x
.t least 71 .t least 71 1/71558 1/71558
22
8 < 1 8 < 1 0566 < 055= or 5=C 0566 < 055= or 5=C
o$ the rent values must %e %et/een o$ the rent values must %e %et/een
x - - zz7 7s s8 < 6A05@0 8 < 6A05@0 1557565>68 < 60A 1557565>68 < 60A
and and
x
D D zz7 7s s8 < 6A05@0 D 1557565>68 < 5>3 8 < 6A05@0 D 1557565>68 < 5>3
7.ctuall-& @=C o$ the rent values 7.ctuall-& @=C o$ the rent values
are %et/een 60A and 5>358 are %et/een 60A and 5>358
A
1> 1> Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
+mpirical 'ule +mpirical 'ule
;or data havin) a %ell ;or data havin) a %ell- -shaped distri%ution: shaped distri%ution:
o$ the values o$ a normal random varia%le o$ the values o$ a normal random varia%le
are /ithin o$ its mean5 are /ithin o$ its mean5
=@52=C =@52=C
D/ D/- - 1 standard deviation 1 standard deviation
o$ the values o$ a normal random varia%le o$ the values o$ a normal random varia%le
are /ithin o$ its mean5 are /ithin o$ its mean5
A5566C A5566C
D/ D/- - 2 standard deviations 2 standard deviations
o$ the values o$ a normal random varia%le o$ the values o$ a normal random varia%le
are /ithin o$ its mean5 are /ithin o$ its mean5
AA5>2C AA5>2C
D/ D/- - 3 standard deviations 3 standard deviations
1@ 1@ Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
+mpirical 'ule +mpirical 'ule
xx
EE 33 EE 11
EE 22
D 1 D 1
D 2 D 2
D 3 D 3

=@52=C =@52=C
A5566C A5566C
AA5>2C AA5>2C
10
1A 1A Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Detectin) *utliers Detectin) *utliers
.n .n outlier outlier is an unusuall- small or unusuall- lar)e is an unusuall- small or unusuall- lar)e
value in a data set5 value in a data set5
. data value /ith a 3 . data value /ith a 3- -score less than score less than - -3 or )reater 3 or )reater
than D3 mi)ht %e considered an outlier5 than D3 mi)ht %e considered an outlier5
Bt mi)ht %e: Bt mi)ht %e:
99 an incorrectl- recorded data value an incorrectl- recorded data value
99 a data value that /as incorrectl- included in the a data value that /as incorrectl- included in the
data set data set
99 a correctl- recorded data value that %elon)s in a correctl- recorded data value that %elon)s in
the data set the data set
20 20 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Detectin) *utliers Detectin) *utliers
-1520 -1511 -1511 -1502 -1502 -1502 -1502 -1502 -05A3 -05A3
-05A3 -05A3 -05A3 -05@6 -05@6 -05@6 -05@6 -05@6 -05>5 -05>5
-05>5 -05>5 -05>5 -05>5 -05>5 -055= -055= -055= -056> -056>
-056> -053@ -053@ -0536 -052A -052A -052A -0520 -0520 -0520
-0520 -0511 -0501 -0501 -0501 051> 051> 051> 051> 0535
0535 0566 05=2 05=2 05=2 05@1 150= 150@ 1565 1565
1556 1556 15=3 15@1 15AA 15AA 15AA 15AA 252> 252>
The most e,treme 3 The most e,treme 3- -scores are scores are - -1520 and 252> 1520 and 252>
Fsin) G Fsin) GzzG G HH 3 as the criterion $or an outlier& there are 3 as the criterion $or an outlier& there are
no outliers in this data set5 no outliers in this data set5
Standardi3ed 0alues $or .partment 'ents Standardi3ed 0alues $or .partment 'ents
11
21 21 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
+,plorator- Data .nal-sis +,plorator- Data .nal-sis
;ive ;ive- -um%er Summar- um%er Summar-
#o, "lot #o, "lot
22 22 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
;ive ;ive- -um%er Summar- um%er Summar-
11 Smallest 0alue Smallest 0alue
;irst Iuartile ;irst Iuartile
!edian !edian
Third Iuartile Third Iuartile
(ar)est 0alue (ar)est 0alue
22
33
66
55
12
23 23 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
;ive ;ive- -um%er Summar- um%er Summar-
625 630 630 635 635 635 635 635 660 660
660 660 660 665 665 665 665 665 650 650
650 650 650 650 650 6=0 6=0 6=0 6=5 6=5
6=5 6>0 6>0 6>2 6>5 6>5 6>5 6@0 6@0 6@0
6@0 6@5 6A0 6A0 6A0 500 500 500 500 510
510 515 525 525 525 535 56A 550 5>0 5>0
5>5 5>5 5@0 5A0 =00 =00 =00 =00 =15 =15
(o/est 0alue < 625 (o/est 0alue < 625 ;irst Iuartile < 665 ;irst Iuartile < 665
!edian < 6>5 !edian < 6>5
Third Iuartile < 525 Third Iuartile < 525 (ar)est 0alue < =15 (ar)est 0alue < =15
26 26 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
3>5 3>5 600 600 625 625 650 650 6>5 6>5 500 500 525 525 550 550 5>5 5>5 =00 =00 =25 =25
. %o, is dra/n /ith its ends located at the $irst and . %o, is dra/n /ith its ends located at the $irst and
third :uartiles5 third :uartiles5
#o, "lot #o, "lot
. vertical line is dra/n in the %o, at the location o$ . vertical line is dra/n in the %o, at the location o$
the median 7second :uartile85 the median 7second :uartile85
I1 < 665 I1 < 665 I3 < 525 I3 < 525
I2 < 6>5 I2 < 6>5
13
25 25 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
#o, "lot #o, "lot
(imits are located 7not dra/n8 usin) the inter:uartile (imits are located 7not dra/n8 usin) the inter:uartile
ran)e 7BI'85 ran)e 7BI'85
Data outside these limits are considered Data outside these limits are considered outliers outliers55
The locations o$ each outlier is sho/n /ith the The locations o$ each outlier is sho/n /ith the
s-m%ol s-m%ol
J J
55
K continued K continued
2= 2= Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
#o, "lot #o, "lot
(o/er (imit: I1 (o/er (imit: I1 - - 1557BI'8 < 665 1557BI'8 < 665 - - 1557>58 < 33255 1557>58 < 33255
Fpper (imit: I3 D 1557BI'8 < 525 D 1557>58 < =3>55 Fpper (imit: I3 D 1557BI'8 < 525 D 1557>58 < =3>55
The lo/er limit is located 1557BI'8 %elo/ The lo/er limit is located 1557BI'8 %elo/ QQ15 15
The upper limit is located 1557BI'8 a%ove The upper limit is located 1557BI'8 a%ove QQ35 35
There are no outliers 7values less than 33255 or There are no outliers 7values less than 33255 or
)reater than =3>558 in the apartment rent data5 )reater than =3>558 in the apartment rent data5
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2> 2> Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
#o, "lot #o, "lot
Whis1ers 7dashed lines8 are dra/n $rom the ends o$ Whis1ers 7dashed lines8 are dra/n $rom the ends o$
the %o, to the smallest and lar)est data values inside the %o, to the smallest and lar)est data values inside
the limits5 the limits5
3>5 3>5 600 600 625 625 650 650 6>5 6>5 500 500 525 525 550 550 5>5 5>5 =00 =00 =25 =25
Smallest value Smallest value
inside limits < 625 inside limits < 625
(ar)est value (ar)est value
inside limits < =15 inside limits < =15
2@ 2@ Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
!easures o$ .ssociation !easures o$ .ssociation
#et/een T/o 0aria%les #et/een T/o 0aria%les
Covariance Covariance
Correlation Coe$$icient Correlation Coe$$icient
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2A 2A Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Covariance Covariance
"ositive values indicate a positive relationship5 "ositive values indicate a positive relationship5
e)ative values indicate a ne)ative relationship5 e)ative values indicate a ne)ative relationship5
The The covariance covariance is a measure o$ the linear association is a measure o$ the linear association
%et/een t/o varia%les5 %et/een t/o varia%les5
30 30 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Covariance Covariance
The correlation coe$$icient is computed as $ollo/s: The correlation coe$$icient is computed as $ollo/s:
$or $or
samples samples
$or $or
populations populations
s
x x y y
n
xy
i i
=

( )( )
1

xy
i x i y
x y
N
=
( )( )
1=
31 31 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Correlation Coe$$icient Correlation Coe$$icient
0alues near D1 indicate a 0alues near D1 indicate a stron) positive linear stron) positive linear
relationship relationship55
0alues near 0alues near - -1 indicate a 1 indicate a stron) ne)ative linear stron) ne)ative linear
relationship relationship5 5
The coe$$icient can ta1e on values %et/een The coe$$icient can ta1e on values %et/een - -1 and D15 1 and D15
32 32 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
The correlation coe$$icient is computed as $ollo/s: The correlation coe$$icient is computed as $ollo/s:
$or $or
samples samples
$or $or
populations populations
r
s
s s
xy
xy
x y
=


xy
xy
x y
=
Correlation Coe$$icient Correlation Coe$$icient
1>
33 33 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Correlation Coe$$icient Correlation Coe$$icient
Lust %ecause t/o varia%les are hi)hl- correlated& it Lust %ecause t/o varia%les are hi)hl- correlated& it
does not mean that one varia%le is the cause o$ the does not mean that one varia%le is the cause o$ the
other5 other5
Correlation is a measure o$ linear association and not Correlation is a measure o$ linear association and not
necessaril- causation5 necessaril- causation5
36 36 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
. )ol$er is interested in investi)atin) . )ol$er is interested in investi)atin)
the relationship& i$ an-& %et/een drivin) the relationship& i$ an-& %et/een drivin)
distance and 1@ distance and 1@- -hole score5 hole score5
2>>5= 2>>5=
25A55 25A55
2=A51 2=A51
2=>50 2=>50
2555= 2555=
2>25A 2>25A
=A =A
>1 >1
>0 >0
>0 >0
>1 >1
=A =A
.vera)e Drivin) .vera)e Drivin)
Distance 7-ds58 Distance 7-ds58
.vera)e .vera)e
1@ 1@- -?ole Score ?ole Score
Covariance and Correlation Coe$$icient Covariance and Correlation Coe$$icient
1@
35 35 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Covariance and Correlation Coe$$icient Covariance and Correlation Coe$$icient
2>>5= 2>>5=
25A55 25A55
2=A51 2=A51
2=>50 2=>50
2555= 2555=
2>25A 2>25A
=A =A
>1 >1
>0 >0
>0 >0
>1 >1
=A =A
xx yy
105=5 105=5
- ->565 >565
2515 2515
0505 0505
- -11535 11535
55A5 55A5
- -150 150
150 150
00
00
150 150
- -150 150
- -105=5 105=5
- ->565 >565
00
00
- -11535 11535
- -55A5 55A5
.vera)e .vera)e
Std5 Dev5 Std5 Dev5
2=>50 2=>50 >050 >050 - -35560 35560
@521A2 @521A2 5@A66 5@A66
Total Total
3= 3= Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Sample Covariance Sample Covariance
Sample Correlation Coe$$icient Sample Correlation Coe$$icient
Covariance and Correlation Coe$$icient Covariance and Correlation Coe$$icient
>50@
-5A=31
7@521A2875@A668
xy
xy
x y
s
r
s s

= = =
7 87 8
35560
>50@
1 = 1
i i
xy
x x y y
s
n


= = =

1A
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The Wei)hted !ean and The Wei)hted !ean and
Wor1in) /ith 2rouped Data Wor1in) /ith 2rouped Data
Wei)hted !ean Wei)hted !ean
!ean $or 2rouped Data !ean $or 2rouped Data
0ariance $or 2rouped Data 0ariance $or 2rouped Data
Standard Deviation $or 2rouped Data Standard Deviation $or 2rouped Data
3@ 3@ Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Wei)hted !ean Wei)hted !ean
When the mean is computed %- )ivin) each data When the mean is computed %- )ivin) each data
value a /ei)ht that re$lects its importance& it is value a /ei)ht that re$lects its importance& it is
re$erred to as a re$erred to as a /ei)hted mean /ei)hted mean55
Bn the computation o$ a )rade point avera)e 72".8& Bn the computation o$ a )rade point avera)e 72".8&
the /ei)hts are the num%er o$ credit hours earned $or the /ei)hts are the num%er o$ credit hours earned $or
each )rade5 each )rade5
When data values var- in importance& the anal-st When data values var- in importance& the anal-st
must choose the /ei)ht that %est re$lects the must choose the /ei)ht that %est re$lects the
importance o$ each value5 importance o$ each value5
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3A 3A Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Wei)hted !ean Wei)hted !ean
/here: /here:
xx
ii
< value o$ o%servation < value o$ o%servation ii
w w
i i
< /ei)ht $or o%servation < /ei)ht $or o%servation ii
60 60 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
2rouped Data 2rouped Data
The /ei)hted mean computation can %e used to The /ei)hted mean computation can %e used to
o%tain appro,imations o$ the mean& variance& and o%tain appro,imations o$ the mean& variance& and
standard deviation $or the )rouped data5 standard deviation $or the )rouped data5
To compute the /ei)hted mean& /e treat the To compute the /ei)hted mean& /e treat the
midpoint o$ each class midpoint o$ each class as thou)h it /ere the mean as thou)h it /ere the mean
o$ all items in the class5 o$ all items in the class5
We compute a /ei)hted mean o$ the class midpoints We compute a /ei)hted mean o$ the class midpoints
usin) the usin) the class $re:uencies as /ei)hts class $re:uencies as /ei)hts55
Similarl-& in computin) the variance and standard Similarl-& in computin) the variance and standard
deviation& the class $re:uencies are used as /ei)hts5 deviation& the class $re:uencies are used as /ei)hts5
21
61 61 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
!ean $or 2rouped Data !ean $or 2rouped Data
i i
f M
x
n
=

N
M f
i i
=
/here: /here:
ff
i i
< $re:uenc- o$ class < $re:uenc- o$ class ii
MM
i i
< midpoint o$ class < midpoint o$ class ii
Sample Data Sample Data
"opulation Data "opulation Data
62 62 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
2iven %elo/ is the previous sample o$ monthl- rents 2iven %elo/ is the previous sample o$ monthl- rents
$or >0 e$$icienc- apartments& presented here as )rouped $or >0 e$$icienc- apartments& presented here as )rouped
data in the $orm o$ a $re:uenc- distri%ution5 data in the $orm o$ a $re:uenc- distri%ution5
Rent ($) Frequency
420-439 8
440-459 17
460-479 12
480-499 8
500-519 7
520-539 4
540-559 2
560-579 4
580-599 2
600-619 6
Sample !ean $or 2rouped Data Sample !ean $or 2rouped Data
22
63 63 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Sample !ean $or 2rouped Data Sample !ean $or 2rouped Data
This appro,imation This appro,imation
di$$ers %- M2561 $rom di$$ers %- M2561 $rom
the actual sample the actual sample
mean o$ M6A05@05 mean o$ M6A05@05
36& 525
6A3521
>0
x = =
Rent ($) f
i
420-439 8
440-459 17
460-479 12
480-499 8
500-519 7
520-539 4
540-559 2
560-579 4
580-599 2
600-619 6
Total 70
M
i
429.5
449.5
469.5
489.5
509.5
529.5
549.5
569.5
589.5
609.5
f
i
M
i
3436.0
7641.5
5634.0
3916.0
3566.5
2118.0
1099.0
2278.0
1179.0
3657.0
34525.0
66 66 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
0ariance $or 2rouped Data 0ariance $or 2rouped Data
s
f M x
n
i i 2
2
1
=

( )

2
2
=
f M
N
i i
( )
;or sample data ;or sample data
;or population data ;or population data
23
65 65 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Rent ($) f
i
420-439 8
440-459 17
460-479 12
480-499 8
500-519 7
520-539 4
540-559 2
560-579 4
580-599 2
600-619 6
Total 70
M
i
429.5
449.5
469.5
489.5
509.5
529.5
549.5
569.5
589.5
609.5
Sample 0ariance $or 2rouped Data Sample 0ariance $or 2rouped Data
M
i
- x
-63.7
-43.7
-23.7
-3.7
16.3
36.3
56.3
76.3
96.3
116.3
f
i
(M
i
- x)
2
32471.71
32479.59
6745.97
110.11
1857.55
5267.86
6337.13
23280.66
18543.53
81140.18
208234.29
(M
i
- x)
2
4058.96
1910.56
562.16
13.76
265.36
1316.96
3168.56
5820.16
9271.76
13523.36
continued continued
6= 6= Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
3& 01>5@A 565A6 s = =
s s
22
< 20@&23652A/7>0 < 20@&23652A/7>0 EE 18 < 3&01>5@A 18 < 3&01>5@A
This appro,imation di$$ers %- onl- M520 This appro,imation di$$ers %- onl- M520
$rom the actual standard deviation o$ M565>65 $rom the actual standard deviation o$ M565>65
Sample 0ariance $or 2rouped Data Sample 0ariance $or 2rouped Data
Sample 0ariance Sample 0ariance
Sample Standard Deviation Sample Standard Deviation
26
6> 6> Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
+nd o$ Chapter 3& "art # +nd o$ Chapter 3& "art #