4 Measures Used To Summarise Data

Statistics for Management Unit 4
Sikkim Manipal University Page No. 47

Unit 4 Measures used to Summarize Data
Structure:
4.1 Introduction
Objectives
4.2 Requisites of a Good Average
4.3 Statistical Averages
4.3.1 Properties of Arithmetic Mean
4.3.2 Merits of Arithmetic Mean
4.3.3 Demerits of Arithmetic Mean
Self Assessment Questions 1
4.4 Median
4.5 Mode
4.6 Geometric Mean
4.7 Harmonic Mean
4.8 Positional Averages
4.9 Standard Deviation
4.10 Summary
4.11 Terminal Questions
4.12 Answer to SAQs and TQs

4.1 Introduction
Mass data, which are collected, classified, tabulated and presented
systematically, is analyzed further to bring its size to a single representative
figure.
The tendency of data to cluster around a figure is known as central
Tendency. Measures of central tendency or averages of first order
describes the concentration of large numbers around a value. It is a single
value which represents all units.

Learning Objectives
1. Understand the concept of Central Tendency
2. Different measures available under computation
3. The concept of dispersion and the different measures available

Objectives of Statistical Averages
i. To present mass data in a concise form
ii. To facilitate comparison
iii. To establish relationship between sets
iv. To provide basis for decision-making

4.2 Requisites of a Good Average
i. It should be simple to calculate and easy to understand
ii. It should be based on all values.
iii. It should not be affected by extreme values
iv. It should not be affected by sampling fluctuation
v. It should be rigidly defined
vi. It should be capable of further algebraic treatment

4.3 Statistical Averages
The commonly used statistical averages are:
a. Arithmetic Mean is defined as the sum of all values divided by number of
values and is represented by X .
b. For discrete data
N X /
=
i
X
Example 1: Arithmetic mean of 15, 17, 22, 21, 19, 26, 20 is given by
20
7
140
7
20 26 19 21 22 17 15
X = =
+ + + + + +
=
i. For discrete data with frequency it is given by
=
i
i i
f
X f
X
Example 2:
Students Age: x
i
: 20 23 25 28 30
No. of students: f
i
: 3 5 10 6 1
24.92
25
623
1 6 10 5 3
1 30 6 28 10 25 5 23 3 20
X = =
+ + + +
+ + + +
=
ii. For continuous distribution X is given by
. .I xC
f
fd
A
+ = X
Where d = (X Assumed Mean) / width of class interval
C.I width of class-interval
X Mid value of the class
Example 3
Height in cms X: 140-150 150-160 160-170 170-180
No. of students: 50 65 80 55

Mid f d = X-155 fd
10
145 50 -1 -50
155 65 0 0
165 80 1 80
175 55 2 110
250 140
Solution:
X=A+ C.I
f
fd

= 10
250
140
155 +
= 155 + 5.6 = 160.6 cm
4.3.1 Properties of Arithmetic Mean
i. Algebraic sum of deviations of a set of values taken from their Mean is
always Zero
i,e (X X ) = 0
ii. Sum of squares of deviations of a set of values from their mean is
always minimum.
i,e (X X )
2
is always minimum.
iii. It is capable of further algebraic treatment. Suppose if X
1
, X
2
.. X
n
are
the means of n
1
, n
2
.n
n
sets of values, then their combined arithmetic
mean value is given by
4 2 1
n n 2 2 1 1
n .... n n
X n ........ X n X n
X
+ + +
+ + +
=
Example 4: If average height of 30 men is 158 cm and average height of
another group of 40 men is 162 cm. Find average height of combined group
Given n
1
= 30 X
1
= 158
n
2
= 40 X
2
= 162
160.28cms
40 30
162 40 158 30
X =
+
+
=
Note: In the above example given any 4 values, we can find the fifth value.
Example 5: That is suppose n
1
= 30 1 X = ?
n
2
= 40 X
2
= 162
X = 160.28

Then 160.28
40 30
162 X 40 X 30 1
=
+
+

Or 30 1 X + 40 X 162 = 160.28 x 30
30 1 X = 11219.6 6480 = 4739.6
157.98
30
4739.6
X1 = =
Example 6: In an office there are 84 employees. The distribution of their
salaries are follows
Salary Rs 2430 2590 2870 3390 4720 5160
Employees 4 28 31 16 3 2

i. Find the mean salary of the employees
ii. Find total salary payed by the office.

Solution
Salary (Rs)
(X)
Employees
(f)
fx
2430 4 9720
2590 28 72520
2870 31 88970
3390 16 54240
4720 3 14160
5160 2 10320
Total 84 249930
i. Mean = 2,49,930 =
84
2975.36

ii. Total salary paid by the office = fx = Rs.2,49,930
Example 7: The following data is related to the marks scored by students of
a class in an examination. Calculate the mean.
Percentage
marks
Less
than 10
Less
than 20
Less
than 30
Less
than 40
Less
than 50
Less
than 60
Less
than 70
No. of
students
4 16 20 65 85 97 100
Solution: Since we have cumulative frequency distribution, we convert it to
frequency distribution as follows.
Marks Mid d = X-35 frequency fd
X X 10 (f)
0 10 5 -3 4 -12
10 20 15 -2 12 -24
20 30 25 -1 4 - 4
30 40 35 0 45 0
40 50 45 1 20 20
50 60 55 2 12 24
60 70 65 3 3 9
100 13

3 . 36 10
100
13
35 X = + =
Example 8: Average weight of 100 screws in box A is 10.4 gms. It is
mixed with 150 screws of box B. Average weight of mixed screws is 10.9
gms. Find the average weight of screws of box B
Solution:
Given 1 X = 10.4, n
1
= 100 X = 10.9
2 X = ? n2
We know,
2 1
2 2 1 1
n n
X n X n
X
+
+
=
9 . 10
150 100
X 150 4 . 10 100
2
=
+
+

1040 + 150 2 X = 10.9 x 250 = 2725
150 2 X = 2725 1040 = 1685
2 X =
150
1685
= 11.23 gms
Example 9: A clerk calculated A.M of 50 values as 39.2. However, it was
found that instead of taking two values as 25 and 32, he took them as 52
and 23. find the corrected A.M
Solution:
N = 50 X = 39.2
Total = n X = 39.2 x 50 = 1960
Corrected Total = Present total wrong value + correct values
= 1960 25 32 + 52 + 23 = 1978
Corrected Average =
50
1978
= 39.56
Example 10: Find the missing frequency for the following distribution given
the mean value as 129.
Class
Interval
80 - 100 100 - 120 120 - 140 140 - 160 160 - 180 Total
Frequency 8 - 26 14 10 80

Solution: Let the missing frequency be f then
Mid X f fx
90 8 720
110 f 110f
130 26 3380
150 14 2100
170 10 1700
58+f 7900+110f
Since
X = 129 =
f 58
110f 7900
+
+

129 (58 + f) = 7900 + 110 f
7482 + 129 f = 7900 + 110 f
129f - 110f = 7900 7482
19f = 418
f = 22
Missing frequency is 22
4.3.2 Merits of Arithmetic Mean
i. It is simple to calculate and easy to understand
ii. It is based on all values
iii. It is rigidly defined
iv. It is capable of further algebraic treatment.
v. It is more stable.

4.3.3 Demerits of Arithmetic Mean
1. It is affected by extreme values
2. It can not be determined for distributions with open-end class intervals.
3. It can not be graphically located.
4. Sometimes it is a value which is not in the series.
write True / False
i. For a given set of values if we add a constant 5 to every value then
Arithmetic mean is affected.
ii. Arithmetic mean can be calculated for distribution with open-end
classes.
iii. Arithmetic mean is affected by extreme values
iv. Arithmetic mean of 12, 17, 23, 25, 28, 32 is 22.
4.4 Median
Median of a set of values is the value is the middle most value when they
are arranged in the ascending order of magnitude and is denoted by M.
In case of Discrete series without or with frequency it is given by
M = (n +1)/2th value, if n is odd and M=Average of (n/2)-th and (n/2+1)-th
value if n is even.
Note: To solve problems on Median, arrange data in ascending order or
(1) descending order, (2) Make class-interval as exclusive type.
Example 11: Find the median value of the following
Set values 45, 32, 31, 46, 40, 28, 27, 37, 36, 41, 47, 50
Solution: Arranging in ascending order we have
27, 28, 31, 32, 36, 37, 40, 41, 45, 46, 47, 50
n = 12 Median =
2
th 1 12 +

value = 6.5
th
value
M = 37 + 0.5 (40-37) = 37 + 1.5 = 38.5
Example 12: Find the Median value of x series
X: 12, 16, 10, 14, 17, 20, 15
f: 4, 9, 3, 5, 4, 2, 10
Solution:
X f Cumulative frequency
10 3 3
12 4 7
14 5 12
15 10 22
16 9 31
17 4 35
20 2 37

n = 37 value th 19
2
1 37
2
1 n
=
+
=
+

M = 15
In case of continuous series, it is given by
M = Lower limit of Median class + . I . C
f
Cf 2 / n
c
p

Cf
p
= Cumulative frequency upto previous class
f
c
= frequency of class
C.I = Width of class interval

Example 13: Find the median weight of following distribution.
Weight kg: 30-35 35-40 40-45 45-50 50-55
Frequency: 10 15 40 27 8

Solution: Note it is an exclusive type of interval N /2 = 100 /2 =50
Weight frequency Cumulative frequency
30-35 10 10
35-45 15 25
40 -45 40f
c
65
45 -50 27 92
50-55 8 100
M = 40 + 5
5
25 50

= 43.125

Example 14: Find the median height of the following distribution
Height 145-149 150-154 155-159 160-164 165-169
Freq. 15 22 38 17 8

Solution: Making the class intervals as exclusive type we have
Class interval Frequency Cumulative frequency
144.5 149. 15 15
149.5 154.5 22 37
154.5 159.5 38 75
159.5 164.5 17 92
164.5 169.5 8 100

50
2
100
3
N
= = Median class is 154.5 159.5
Median = 21 . 156
38
65
4 . 154
38
5 13
5 . 154 5
38
37 50
5 . 154 = + = + = |
\
|
+
x
x
Example 15: Find the missing frequency for the following data given that its
median is 34
Class interval Frequency
0 10 4
10 20 9
20 30 -
30 40 20
40 50 18
50 60 7
60 70 3

Solution: Since Median is 34, it falls in the class-interval 30 40. Let f be
the missing frequency. Therefore we have
0 10 4 4
10 20 9 13
20 30 - 13 + f
30 40 20 33 + f
40 50 18 51 + f
50 60 7 58 + f
60 70 3 61 + f

Median = . .
2 /
. . I C
f
Cf N
L L
c
p
+
34 = 30 +
2
f 61+
- (13 + f)
10
20

10
5
f 2 26 4 61 30 34
+ =

16 = 35 f
Or f = 35 16 = 19
Missing frequency is 19
Merits of median
1. It can be easily understood and computed.
2. It is not affected by extreme values.
3. It can be determined graphically (ogives).
4. It can be used for qualitative data.
5. It can be calculated for distributions with open-end classes.
Demerits of Median
1. It is not based on all values.
2. It is not capable of further algebraic treatment.

4.5 Mode
Mode is the value which has the highest frequency and is denoted by Z.
Modal value is most useful for business people. For example shoe and
ready made garment manufacturers will like to know the modal size of the
people to plan their operations.
For discrete data with or without frequency it is that value corresponding to
highest frequency
Example 16: The following data relate to size of shoes. Find the mode.
6, 7, 6, 8, 9, 9, 9, 10, 8, 7, 7, 9, 10, 9, 9, 9, 8, 8, 11

Solution: Arranging the data in ascending order
Size Frequency
6 3
7 3
8 4
9 7
10 2
11 1
Modal value = 9 which corresponding to the highest frequency 7.
For continuous frequency distribution it is given by
Mode = . .
2
. . I C
f f f
f f
L L
s p m
p m
+
Where
L.L. = Lower limit of Modal class
f
m
= frequency of modal class
f
p
= frequency of previous class
f
s
= frequency of succeeding class
C.I = Width of class interval
Example 17: Praveen apartment builders found the number of customers
who wishes to have plinth area of their apartments as follows:
Plinth Area Sq ft No. of customers
600 800 4
800 1000 10
1000 1200 15 f
p

1200 1400 25 f
m

1400 1600 12 f
s

1600 1800 8
Above 1800 2

Find the modal plinth area
Solution: we note that the intervals are exclusive type. Highest frequency
is 25. Therefore corresponding interval is 1200 1400, which is called
Modal class.
Mode = 1200 + 200
12 15 25 2
15 25

= 1200 +
23
2000

= 1200 +
Example 18: The distribution of average monthly balances of customers in
a nationalized bank is as follows. The mode of the distribution is 119. find
the total number of customers surveyed.
Class Interval Frequency
0 50 78
50 100 123
100 150 -
150 200 82
200 250 51
250 300 47
300 350 18
350 400 9
400 450 6
450 - 500 4

Solution: Let the missing frequency be f since the mode is given to be
119, Modal class is 100 150. f
m
= f f
p
= 123 f
s
= 82
C.I = 50
119 = 100 + 50
83 123 f 2
123 f

119 100 = 50
205 f 2
123 f

Or 19 (2f 205) = 50 (f-123)
38f 3895 = 50f 6150
6150 3895 = 50f 38f
2255 = 12 f
Or f = 188
12
2255
=
f = 188
Total Number of customers surveyed = 601
Merits of Mode
1. In many cases it can be found by inspection.
3. It can be calculated for distributions with open end classes.
4. It can be located graphically.
5. It can be used for qualitative data.
Demerits of Mode
i. It is not based on all values.
ii. It is not capable of further mathematical treatment.
iii. It is much affected by sampling fluctuations.

Empirical Relationship between Mean, Median and Mode.
Mean Mode = 3 (Mean Median), which is same, Mode = 3 Median 2
Mean.

4.6 Geometric Mean
The geometric mean of a series of n positive numbers is given by
i. In case of discrete series without frequency
GM =
n
n
x x x .... .......... .
2 1

ii. In case of Discrete series with frequency
GM =
n
fn
n
2 f
2
1 f
1
X .......... X . X
Where n = f
1
+ f
2
+ .. + f
n

iii. In case of continuous series
GM =
fn
n
n 2 f
2
1 f
1
X .. .......... X . X
Where n = f
1
+ f
2
+ . + f
n
and x
1
, x
2
are the mid points of class
intervals.
It is also given by G.M = antilog
N
x log

Example 19: The growth in bad-debt expense for Das office supply
company over the last few years is as follows. Calculate the average
percentage increase in bad-debt expense over this time period.
Year: 1992 1993 1994 1995 1996 1997 1998
Expense Rate: 1.11 1.09 1.075 1.08 1.095 1.08 1.20
Solution:
G.M = 7 (1.20) (1.08) (1.095) (1.08) (1.075) (1.09) (1.11) = 1.09675
Therefore the average increase is 1.09675 1 = 0.09675 %
Example 20: The share-price of a particular company was moving up and
down. The following data consolidates its movement for past 6 months.
Find the appropriate average share-price.
Share Price 110 115 118 119 120
Frequency 4 11 21 6 2
Solution:
Share Price X frequency Log X f log x
110 4 2.0414 8.1656
115 11 2.0607 22.6677
118 21 2.0719 43.5099
119 6 2.0755 12.4530
120 2 2.0792 4.1584
Total 44 - 90.9546

The geometric Mean is
GM = antilog
N
x log
= antilog
)
`
44
9546 . 90

= antilog 2.0672 = 116.7

Example 21: The sales of a product increased at the rate of 18% and 8% in
two successive years. In the next two years it decreased at the rate of 5 %
and 4 %. Find the average rate of growth.

Solution: Let the initial rate be 1
X Log X
1.18 0.0719
1.08 0.0334
0.95 1.9777
0.96 1.9823
Total 0.0653
G.M = antilog of
N
x log

Antilog of
)
`
4
0653 . 0

Rate growth increased by 3.9 %
When ever data deal with rates, ratios, growth rate, etc geometric mean is
the best measure
Note: Geometric mean is not defined even if one of the value is zero or
negative.

4.7 Harmonic Mean
If x
1
, x
2
, x
n
are n values for discrete series without frequency then
their Harmonic Mean
H.M.=
) x / 1 (
N
1

For Discrete series with frequency
) x / f (
N
1 i

H.M =
) x / f (
N
1 i

Where f
i
is the corresponding frequencies
Example 22: calculate harmonic mean of 9.7, 9.8, 9.5, 9.4, 9.7
X f /
9.7 0.10.31
9.8 0.10.20
9.5 0.1053
9.4 0.1064
9.7 0.1031
Total 0.5199
HM =
5199 . 0
5
= 9.6172
Example 23: Find the harmonic mean of the following distribution.
X 121 122 123 124 125
f 5 25 36 37 20
Solution:
X f f / X
121 5 0.04132
122 25 0.20492
123 36 0.29268
124 37 0.29839
125 20 0.16000
Total 123 0.99731

H.M =
99731 . 0
123
= 123.33
Example 24: In a locality the distribution of average speed of birds in the
evening were observed to be as follows. Find average speed of birds using
harmonic mean.
Class Interval 80 82 82 84 84 86 86 88
Frequency 5 7 3 2

Solution:
Mid x f f / x
81 5 0.06173
83 7 0.08434
85 3 0.03520
87 2 0.02299
Total 17 0.20435

The harmonic mean =
20435 . 0
17
= 83.191

Is the following statements True / False
a. Mode is based on all values
b. Mode = 3 Median Mean
c. Geometric mean is used when we are interested in rate of growth of any
phenomena.
d. Harmonic Mean exists if one of the values is zero.
e. A.M < G.M < H.M for any two values a and b.
f. Arithmetic mean can be calculated accurately even when the distribution
has open-end class.
g. Mode can be located graphically.
h. Mode is used when data is on interval scale.
Appropriate situations for the use of various Averages
1. Arithmetic mean is used when
a. In depth study of the variable is needed
b. The variable is continuous
c. The variable is additive in nature
d. The data are in the interval or ratio scale
e. When the distribution is symmetrical
2. Median is used when
a. the variable is discrete
b. there exists abnormal values
c. the distribution is skewed
d. the extreme values are missing
e. the characteristics studied are qualitative type
f. the data are on the ordinal scale.
3. Mode is used when
a. the variable is discrete
b. there exists abnormal values
c. the distribution is skewed
d. the extreme values are missing
e. the characteristics studied are qualitative type
4. Geometric mean is used when
a. the rate of growth, ratios and percentages are to be studied
b. the variable is of multiplicative nature
5. Harmonic mean is used when
a. the study is related to speed, time
b. Average of rates which produce equal effects has to be found

4.8 Positional Averages (Quartiles)
Median is the midvalue of series of data. It divides the distribution into
two equal portions. Similarly we can divide a given distribution into four, ten
or hundred or any other number of equal portions.
Quartiles: When distribution is divided into four equal portions, then we get
first quartile (Q
1
), second Quartile (Q
2
= Median) and third quartile (Q
3
) as
the positional averages.
For discrete series with or without frequency Q
1
is given by (N+1 / 4)
th
value
and Q
3
is given by
4
)) 1 n ( 3 ( +
value
For continuous distribution Q
1
and Q
3
are given by
. .
4 /
. .
1
I xC
Fc
Cf N
L L Q
p
+ =
. .
4 / 3
. .
3
I xC
Fc
Cf N
L L Q
p
+ =
Example 25: Weekly sales of a product on 8 different shops are as follows.
Calculate the Quartiles.
Sales in units: 309, 312, 305, 307, 310, 308, 308, 306, 308
Solution:
Arranging the data is ascending order. We have
(
+
4
1 n

305, 306, 307, 308, 309, 310, 312

Q
1
=
(
+
4
1 n

th
Value =
(
+
4
1 8
th
Value = 2.25
th
value
= 2
nd
value + 0.25 (third value second value)
= 306 + 0.25 (307 306)
= 306.25
4
) 1 n ( 2
Q
2
+
= th value
= 2.25 x 2 = 4.5
th
value
= 4
th
value + 0.5 (5
th
value 4
th
value)
= 308 + 0.5 (30/ - 308) = 308
4
) 1 n ( 3
Q
3
+
= th Value
= 2.25 x 3 = 6.75
th
value
= 6
th
value + 0.75 (7
th
value 6
th
value)
= 309 + 0.75 (310 309)
= 309 + 0.75 = 309.75

Example 26: The distribution of weight of students of 1
st
standard of a
school is as follows. Find the Quartiles.
Class Interval 13 - 18 18 - 20 20 - 21 21 - 22 22 - 23 23 - 25 25 30
Frequency 22 27 51 42 32 16 10
Solution:
P
20
class
Q
1
class and Q
2
class
D
7
class
Q
3
class
N=200 value th 50
4
Value Nth
Q
1
= =
02 . 20 1
51
49 50
20 Q
1
=
+ =
value th
2
N
Q
2
=
value th 100 value th
2
N
Q
2
= =
21 1
51
49 100
20 Q
2
=
+ =
Value th 150
4
NthValue 3
Q
3
= =
25 . 22 1
32
142 150
22 Q
3
=
+ =

Deciles: For deciles we divide N / 10 and multiply by required deciles value
Example 27: Suppose we want 7
th
Decile for the above problem, then it is
given by
D
7
= value th 140
10
200 7
10
NthValue 7
=
=
13 18 22 22
18 20 27 49
20 21 51 100
21 22 42 142
22 23 32 174
23 25 16 190
25 30 10 200
D =
D
7
= 1
42
100 140 21
+

= 21 + 0.95
= 21.95
Percentiles: To find percentiles we divide N/100 and multiply by required
percentile value.
Example 28: for the above problem (Example 5). Suppose we want 20
th

percentile then
100
200 20
100
Value Nth
20 P
20
= =
= 40
th
value
2
27
40 49 18
P
20

+
=
67 . 18
27
18
=
Tick or cross whether the following statements are correct or wrong.
a. Quantiles are positional value.
b. Quantiles help us to find percentage of readings below or above a
certain value.
c. Q
2
= P
50
= D
7
= Median
Weighted Averages: Suppose the values x
1
, x
2
, . x
n
are assigned the
weights w
1
, w
2
w
n
then their weighted average is given by
=
W
Wx
Xw
and their weighted Geometric Mean is given by
Gw = antilog
W
x log W

Note: W acts as frequency
Example 29: A professor assigns 5, 10, 10, 20, as weights for assignments,
presentations, first test and final test respectively. Moni and Mani got the
following percentages in the above categories. Find the weighted
percentage.

Classification Moni Mani Weight
Assignment 60 40 5
Presentation 80 60 10
First Test 50 100 10
Find Test 100 70 20
50

Solution: For Moni
50
20 x 100 10 x 5 10 x 80 5 x 60
Xw
+ + +
=
= 72 %
For Mani
50
20 x 70 10 x 100 10 x 60 5 x 40
Xw
+ + +
=
= 64 %
i) Can we say that cost of living index numbers calculated are based on
weighted Average
ii) Many of the items which we use in our life can be assigned weights, Is it
true or false.
Dispersion:
It describes another characteristics of a distribution. Consider the following
two distribution of weights of a product produced by two machines.
Machine A B
Sample size 1000 1000
Average wt 80 80
Minimum wt 20 40
Maximum wt 140 100

Machine B produces products with weights much closer to the average than
Machine A. As a manufacturer or customer we would choose Machine B. In
other words we choose that machine whose spread is smaller.
The property of deviations of values from the average is called Dispersion or
Variations. The degree of variations is found by the measures of variations.
Various measures used to find the degree of variations are
1. Range (R)
2. Quartile Deviations ( Q.D)
3. Mean Deviations (M.D)
4. Standard Deviations (S.D)
They have units of measurement attached to them. Therefore they are
known as absolute measures of variations. However we may want to
compare two different distributions whose measurements are one in terms
of Kg and another in terms of cm. Then we use the following relative
measures that do not have any units attached to them. They are
1. Coefficient of Range
2. Coefficient of Quartile Deviations
3. Coefficient of Mean Deviations
4. Coefficient of Variations.
They are known as Relative measures.
In this unit we study both simultaneously.
Prerequisite of a good measure of variations are
1. It should be easy to understand and simple to calculate.
2. It should be based on all values.
3. It should be rigidly defined.
4. It should not be affected by extreme values.
5. It should not be affected by sampling fluctuations.
6. It should be capable of further algebraic treatment.
Range
Range is the difference between highest and lowest value of the data.
R = H-L H: Highest value
L: Lowest value
Coefficient of Range = H-L
H+L
Merits
i. It is easily understood and simple to calculate
ii. It is rigidly defined
Demerits
i. It is affected by extreme values
ii. It is not based on all values. It uses extreme values only.
Use:
1. It is used in Statistical Quality control
2. When the study does not require deep analysis
3. When data has no abnormal values.
Example 30: Find the Range of the following discrete series 26, 28, 28, 26,
28, 30, 27, 29, 26, 24
Solution: R = 30-24 = 6
Example 31: Find the Range of the following continuous series
Class Interval 0-5 5-10 10-15 15-20 20-25
Frequency 10 15 25 12 8

Solution: R = 25-0 = 25
Note: If the class intervals are open then Range is not defined.
Quartile Deviations
Unlike range, it does not involve the extreme values. It is defined as

2
) measure Absolute (
. D . Q
Q Q
1 3

Coefficient of Q.D =
) measure lative (Re
Q Q
Q Q
1 3
1 3
+

Note:
1. Q
3
-Q
1
is called inter quartile range
2. Q
3
-Q
1
gives the middle 50% of reading. Q
3
and Q
1
are also known as
upper and lower limit of middle 50% of readings.
Example 32: Compute the inter quartile range, Q.D and coefficient of Q.D
for the following age distributions.
Age(Years) 18 21 22 24 27 30 32
Frequency 7 13 20 36 14 8 2

Solutions:
Age (Years) Frequency Cumulative Frequency
18 7 7
21 13 20
22 20 40
24 36 76
27 14 90
30 8 98
32 2 100
Total 100

value th 25 . 25
4
Value th 1 100
Q
1
=
+
=
Q
1
= 22
value th 75 . 75 Value
4
th ) 1 100 ( 3
Q
3
+
=
Q
3
= 24
Inter quartile Range = 24-22 = 2 Yrs
year 1
2
22 24
. D . Q =
=
26
2
22 24
22 24
. D . Q of t Coefficien =
+
=
Example 33: Find the inter quartile Range, Q.D and coefficient of Q.D for
the demand distribution of toothpaste packs for various price categories.
Price category Rs/unit 5-9 10-14 15-19 20-24 25-29
Frequency 15 25 38 14 8

Solution: First we make the class interval as exclusive type
Price Rs/Unit Frequency Cumulative Frequency
4.5-9.5 15 15
9.5-14.5 25 40 Q
1
class
14.5-19.5 38 78
19.5-24.5 14 92
24.5-29.5 8 100
Total 100

value th 25
4
Value th 100
Q
1
= =
of Q.D =
61 . 29
61 . 8
5 . 10 11 . 19
5 . 10 11 . 19
=

Merits:
1. It is easy to understand and compute
2. It is rigidly defined
Demerits:
2. It is affected by sampling fluctuations.

Mean Deviation:
It is defined as the mean of absolute deviations of the values from central
value.
The Mean deviation from Mean for discrete series without frequency is given
by
For data with frequency it is given by
N
) X X (
) X .( D . M
0

=
In case of continuous series X represents Mid value of class-interval.
Similarly we can have Mean Deviation from Median or Mode. X is replaced
by Median or Mode in the above formulae
However Mean Deviation from Median is the least. It is known as Minimal
property of Mean Deviation.
The corresponding Relative measures are coefficient of Mean Deviation.
X
) X .( D . M
. D . M of t Coefficien
X
=
Median
) Median .( D . M
. D . M of t Coefficien
X
=
Example 34: Calculate mean deviation and also coefficient of Mean
deviation using i) Mean and ii) Median. Compare the results.
Heights of plants (cms) 140, 147,143,145,144,150,142,141
Solution:
X
From Mean
x 145
From Median
x 143.5
140 5 3.5
141 4 2.5
142 3 1.5
143 2 0.5
144 1 0.5
145 0 1.5
147 2 3.5
158 13 6.5
1160 30 20.0

145
8
1160
) X ( = =
Mean Deviation from Mean = 75 . 3
8
30
X X = =

Median is
2
th ) 1 8 ( +
value = 4.5
th

Median = 143 + 0.5 (144 143) = 143.5
Mean Deviation from Median = 5 . 2
8
20
=
Coefficient of MD ) X ( = 0258 . 0
145
75 . 3
=

Coefficient of MD ) X ( = 001742 . 0
5 . 143
5 . 2
=

Mean Deviation from Median is less than M.D from Mean

Example 35: The following is the distribution of employees of a firm
according to their efficiency. Find Mean Deviation and coefficient of Mean
Deviation from i) Mean, ii) Median
Efficiency Index 18-22 22-26 26-30 30-34 34-38
Employees 20 30 11 3 1

Solution:
Efficiency
Index
frequency
d = X 28
4
fd f | || |X - 24| || | Cf | || |X Med)| || | f| || |X Med)| || |
18 22 20 -2 -40 80 20 3.63 72.60
22 26 30 -1 -30 0 50 0.34 10.20
26 30 11 0 0 44 61 4.34 47.74
30 34 3 1 3 24 64 8.34 25.02
34 38 1 2 2 12 65 12.34 12.34
65 -65 160 168.00
24 4
65
65 28
) X ( =
=
46 . 2
65
160
) X .( D . M = =
1025 . 0
25
46 . 2
) X .( D .. M of t Coefficien = =
5 . 32
2
65
2
Value Nth
= =
Median class is 22 26
4
30
20 5 . 32
22 Media
+ =
63 . 23 63 . 1 22
30
49 22
= + =
+
=
58 . 2
85
168
) Median .( D . M = =
1091 . 0
3 . 6 . 23
58 . 2
) Median from ( . D .. M of t Coefficien = =
Merits and Demerits of Mean Deviation
Merits
1. It is based on all values.
2. It is less affected by extreme values.
3. It is not affected much by sampling fluctuations.
Demerits
2. It does not take into account negative signs.
Uses of M.D
It is used when sample size is small. It is preferred in Statistical analysis of
certain economic, business and social phenomena.

4.9 Standard deviation
Measures of dispersion Range and Q.D are not based on all values. Mean
deviation based on all values does not take into consideration the sign.
Therefore a measure that removes both drawbacks is given by standard
Deviation (S.D).
The standard deviation of a set of values is the positive square root of mean
of the squared deviations of the values from their arithmetic mean. It is
denoted by (sigma).
For discrete series without frequency it is given by
Variance = ) A (
N
) X X (
2

= Variance
For discrete series with frequency and continuous it is given by
Variance = ) B (
f
) X X ( f
2

= Variance
Where X is the mid value of class interval for continuous series
Alternative form for (A) & (B) S.D are

For (A)
Variance =
2
2
) d (
N
d

= Variance

For (B)
Variance =
2
2
.) F . C (
f
fd
N
fd
(
(

= Variance
Where d = X-A: A is assumed mean
Note: the Square of Standard deviation is called Variance. Denoted
by
2
.
Example 36: Calculate the S.D for Variation in temperature observed during
two months at Bangalore.
Temp
0
c 18 19 20 21 22 23 24 25 Total
Frequency 3 5 8 16 12 8 5 3 60

Solution:
X f d = x-21 fd fd
2

18 3 -3 -9 27
19 5 -2 -10 20
20 8 -1 -8 8
21 16 0 0 0
22 12 1 12 12
23 8 2 16 32
24 5 3 15 45
25 3 4 12 48
60 28 192

1
60
28
21 X + =
= 21 + 0.47 = 21.47

2
= . I . C
60
28
60
192
2

= 3.2 0.217 = 1.727
Example 37: The diastolic blood pressure of men is distributed as fallows.
Find the standard deviation and variance.
Pressure(men) 78-80 80-82 82-84 84-86 86-88 88-90
No of Men 3 15 26 23 9 4

Solution:
Class
Interval
Mid
value X
Frequen
cy f
d = x-83
2
fd fd
2

78-80 79 3 -2 -6 12
80-82 81 15 -1 -15 15
82-84 83 26 0 0 0
84-86 85 23 1 23 23
86-88 87 9 2 18 36
88-90 89 4 3 12 36
80 32 122

2
= I . C
f
fd
N
fd
2 2
(
(
2
=
2
2
) 2 (
80
32
32
122

X 2 = 2 X 1.168 = 2.336 mm
Variance =
2
= (2.336)
2
= 5.46 (mm)
2

Properties of standard deviation
1. It is independent of origin but not independent of scale.
2. Standard deviation is always greater than or equal to zero.
3. It is the least of all root mean square deviations.
4. Suppose the mean of n
1
values is x
1
and that of n
2
with standard
deviations
1
and
2
then the combine standard deviation of both the
values is given by
Variance: Variance ;
n n
) d ( n ) d ( n
2 1
2
2
2
2 2
2
1
2
1
=
+
+ + +
1

Where d
1
= X 1 X d
2
= X 2 X
X being the combined mean of n
1
and n
2
values
Example 38: The average weight of 100 apples from area A is 150gms
with standard deviation of 10gms. Similarly the average weight of 200
apples from area B is 200gms with standard deviation of 15gms. Find the
combine standard deviation.
Solution:
Given n
1
= 100 n
2
= 200
1 X = 150 2 X = 200

1
= 10
2
= 15
Combined Average =
2 1
2
2
1
1
n n
X n X n
+
+

200 100
200 200 150 100
+
+
=
200 100
200 200 150 100
+
+
=
33 . 183
300
55000
300
40000 15000
= =
+
=
= 18.3.33 gms
d
2
= (150 183.33)
2
= (33.33)
2
= 1110.889
d
2
= (200 183.33)
2
= (16.66)
2
= 277.5556
=
200 100
) 5556 . 277 200 ( 200 ) 8889 . 1110 100 ( 100
+
+ + +

= 26.87
Merits and demerits of standard deviation.
Merits
1. It is rigidly defined.
2. It is based on all values.
3. It is capable of further algebraic treatment.
4. It is not very much affected by sampling fluctuations.

Demerits
1. It is difficult to understand.
2. It gives undue weight age for extreme values.
3. It cannot be calculated for classes with open end interval.
Coefficient of variation: When we want to compare two different sets of
values pertaining to different characteristic or pertaining to same
characteristics, then we use coefficient of variation. It is a relative measure
expressed in percentage and is defined as
C. V% = 100
Mean
. D . S

It is used to compare the homogeneity or stability or uniformity or
consistency of two or more sets of data.
A low value of coefficient of variation indicates a low degree of variation.
Example 39: Find Standard deviations of the following two series and state
which is more stable.
Series A: 192, 288, 236, 229, 184, 160, 384, 291, 330, 243
Series B: 31, 48, 13, 51, 38, 43, 50, 36, 47, 82

Solution:
Series A
X
d = x-260 d
2

192 -68 4624
288 28 784
236 -24 576
229 -31 961
184 -76 5776
160 0 0
384 124 15376
291 31 961
330 70 4900
43 -17 289
+37 34247

X = 260 +
10
37
= 263.7
2
=
2
2
) 4 . 58 (
10
37
10
34247
=
(
= 58.4
C.V% = % 15 . 22 100
7 . 263
4 . 58
=

Series B
X
X
2

31 961
48 2304
13 169
51 2601
38 1444
43 1849
50 2500
36 1296
47 2209
82 6724
Total 439 22057

X = 43.9

2
=
2
) 69 . 16 (
10
4392
10
22057
=

C.V.% = % 02 . 38 100
9 . 43
69 . 16
=

Since c.v for series A (22.15) is less than c.v for series B (38.02), series A is
more stable.
Example 40: The bursting and tensile strength of a type of paper showed
the following results
Bursting Strength Tensile Strength
Mean 40 130
S.D 6 15

Which characteristic is more variable?
C.V for Bursting Strength
= % 15 100
40
6
=
C.V for Tensile Strength
= % 54 . 11 100
30
15
=
Since C.V % for bursting strength is higher, it varies more.
State True or False
1. Standard deviation is based on all values.
2. Standard deviation of a set of values is increased if every value of the
set is increased by a constant.

3. Standard deviation can be calculated for distributions with open-end
classes.
4. C.V % can be used to compare the variability of two sets of data
measuring the same characteristics.

4.10 Summary
Measures of Central Tendency and Measures of Dispersion summarise
mass data in terms of its two important features i) with respect to nature of
data to cluster around a central value and ii) with respect their spread from
their central value.
4.11 Terminal Questions
1. In an office there are 84 employees. Their salaries are as given below
Salary / day 60 70 80 90 100 120
Employees 3 5 8 10 4 2
Find the Mean Salary per day
2. A survey of 128 smokers revealed the following frequency distribution
of daily expenses on smoking. Find the mean expenses and standard
deviation. Determine coefficient of variation.
Expenditure (Rs.) 10 - 20 20 - 30 30 - 40 40 - 50 50 - 60 60 - 70 70 - 80
No. of Smokers 23 44 35 12 9 3 2
3. The average price /kg of Grade A tea is Rs.120 and that of grade B
tea is Rs.100. A trader mixes them and sells the mixture for Rs.115.
Find proportion of grade A and grade B in the mixture.

4. For the following distribution find the median and mode
% Marks 0 - 10 10 - 20 20 - 30 30 - 40 40 - 50 50 - 60 60 - 70
No. of Smokers 4 9 19 20 18 7 80
5. Find the Geometric mean of the following distribution
X 110 115 118 119 120
f 4 11 21 6 2

6. Find the harmonic mean of the following distribution
X 121 122 123 124 125
f 5 25 36 37 20

7. Find the Quartile deviation and the coefficient of Quartile deviation give.
Age group 15-20 20-25 25-30 30-35 35-40 40-45 Above 45
% of people exercise
regularly
15 31 19 15 8 7 7
8. Given sum of upper and lower quartiles as 122 and their difference as
23; Find the quartile deviation of the series.
9. If C.V% = 22 and S.D = 4. Find the mean
10. The following is the distribution of age at the time of first delivery of 65
women.
Age 18 22 22 26 26 30 30 34 34 38
Frequency 20 30 11 3 1
Find Mean deviation from Mean and Median.
11. Given data on two series as
n
1
= 15 n
2
= 20
X
1
= 40 X
2
= 50
1
= 3
1
= 5
Find the combined mean, S.D and coefficient of variation.

12. Mean and S.D of lengths of tails of 8 rats were found to be 4.7 cm and
0.8 cm respectively. However one reading was taken as 3.6 cm
instead of 6.3 cm. Find the corrected Mean and Standard deviation.
4.12 Answers to SAQs and TQs
i. True ii. False iii. True iv. False
a. False b. False c. True d. False e. False
f. false g. True h. True.
a. Correct () b. Correct () c. Wrong (x)
i. Yes ii. True
i. True ii. False iii. False iv. True
Terminal Questions
1) 84.69
2) 31.64
3) 1:1
4) 34
5) 116.7 cm
6) 123.33
7) Q.D = 11.07 Coefficient of Q.D = 0.338
8) 11.5
9) 18.18
10) 2.462
11) Combined Mean = 45.7 Combined S.D = 6.53, C.V = 14.29
12) Corrected Mean = 5.0375 cm Corrected S.D = 0.8336

4 Measures Used To Summarise Data

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Statistics for Management Unit 4

Sikkim Manipal University Page No. 47

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