Documente Academic
Documente Profesional
Documente Cultură
Microsoft Excel
6th Edition
Chapter 3
Numerical Descriptive Measures
3-1
Learning Objectives
In this chapter, you learn:
To describe the properties of central tendency,
variation, and shape in numerical data
To calculate descriptive summary measures for a
population
To construct and interpret a boxplot
3-2
Summary Definitions
DCOVA
The central tendency is the extent to which all the
data values group around a typical or central value.
3-3
DCOVA
The arithmetic mean (often just called the mean)
is the most common measure of central tendency
Pronounced x-bar
X
i 1
X1 X 2 Xn
Sample size
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
Observed values
3-4
DCOVA
(continued)
11 12 13 14 15 16 17 18 19 20
Mean = 13
11 12 13 14 15 65
13
5
5
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
11 12 13 14 15 16 17 18 19 20
Mean = 14
11 12 13 14 20 70
14
5
5
3-5
11 12 13 14 15 16 17 18 19 20
11 12 13 14 15 16 17 18 19 20
Median = 13
Median = 13
3-6
The location of the median when the values are in numerical order
(smallest to largest):
n 1
Median position
position in the ordered data
2
n 1
Note that
2 is not the value of the median, only the position of
the median in the ranked data
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
3-7
DCOVA
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Mode = 9
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
0 1 2 3 4 5 6
No Mode
3-8
Mean: ($3,000,000/5)
= $600,000
Median: middle value of ranked
data
= $300,000
Mode: most frequent value
= $100,000
3-9
3-10
Arithmetic
Mean
Median
Mode
X
i1
Geometric Mean
XG ( X1 X 2 Xn )1/ n
Middle value
in the ordered
array
Most
frequently
observed
value
Rate of
change of
a variable
over time
3-11
Measures of Variation
DCOVA
Variation
Range
Variance
Standard
Deviation
Coefficient
of Variation
3-12
Measures of Variation:
The Range
DCOVA
13 14
Range = 13 - 1 = 12
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
3-13
Measures of Variation:
Why The Range Can Be Misleading
DCOVA
10
11
12
Range = 12 - 7 = 5
10
11
Range = 12 - 7 = 5
Sensitive to outliers
1,1,1,1,1,1,1,1,1,1,1,2,2,2,2,2,2,2,2,3,3,3,3,4,5
Range = 5 - 1 = 4
1,1,1,1,1,1,1,1,1,1,1,2,2,2,2,2,2,2,2,3,3,3,3,4,120
Range = 120 - 1 = 119
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
3-14
12
Measures of Variation:
The Sample Variance
DCOVA
Average (approximately) of squared deviations
of values from the mean
Sample variance:
S
2
Where
(X
i1
X)
n -1
X = arithmetic mean
n = sample size
Xi = ith value of the variable X
3-15
Measures of Variation:
The Sample Standard Deviation
(X
i1
X)
n -1
3-16
DCOVA
Measures of Variation:
The Standard Deviation
DCOVA
Steps for Computing Standard Deviation
1.
2.
3.
4.
5.
3-17
Measures of Variation:
Sample Standard Deviation:
Calculation Example
Sample
Data (Xi) :
DCOVA
10
12
14
n=8
S
15
17
18
18
24
Mean = X = 16
130
7
4.3095
Measures of Variation:
Comparing Standard Deviations
DCOVA
Data A
11
12
13
14
15
16
17
18
19
20 21
Data B
11
21
12
13
14
15
16
17
18
19
20
Data C
11
12
13
14
15
16
17
18
19
20 21
Mean = 15.5
S = 3.338
Mean = 15.5
S = 0.926
Mean = 15.5
S = 4.570
3-19
Measures of Variation:
Comparing Standard Deviations
DCOVA
Smaller standard deviation
Larger standard deviation
3-20
Measures of Variation:
Summary Characteristics
DCOVA
The more the data are spread out, the greater the
range, variance, and standard deviation.
If the values are all the same (no variation), all these
measures will be zero.
3-21
Measures of Variation:
The Coefficient of Variation
DCOVA
S
CV
X
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
100%
3-22
Measures of Variation:
Comparing Coefficients of Variation
DCOVA
Stock A:
Average price last year = $50
Standard deviation = $5
S
CVA
X
$5
100%
100% 10%
$50
Stock B:
Average price last year = $100
Standard deviation = $5
S
$5
100%
CVB
100% 5%
$100
X
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
3-23
Both stocks
have the same
standard
deviation, but
stock B is less
variable relative
to its price
Measures of Variation:
Comparing Coefficients of Variation
(continued)
Stock A:
Average price last year = $50
Standard deviation = $5
S
CVA
X
DCOVA
$5
100%
100% 10%
$50
Stock C:
Average price last year = $8
Standard deviation = $2
S
CVC
X
$2
100% 100% 25%
$8
3-24
Stock C has a
much smaller
standard
deviation but a
much higher
coefficient of
variation
A data value is considered an extreme outlier if its Zscore is less than -3.0 or greater than +3.0.
3-25
XX
Z
S
where X represents the data value
X is the sample mean
S is the sample standard deviation
3-26
DCOVA
Suppose the mean math SAT score is 490, with a
standard deviation of 100.
Compute the Z-score for a test score of 620.
X X 620 490 130
Z
1 .3
S
100
100
A score of 620 is 1.3 standard deviations above the
mean and would not be considered an outlier.
3-27
Shape of a Distribution
DCOVA
Skewness
Kurtosis
3-28
Shape of a Distribution
(Skewness)
DCOVA
Symmetric or skewed
Left-Skewed
Symmetric
Right-Skewed
Mean = Median
Skewness
Statistic
<0
>0
3-29
Shape of a Distribution
(Kurtosis)
DCOVA
Flatter Than
Bell-Shaped
Kurtosis
Statistic
<0
Sharper Peak
Than Bell-Shaped
>0
3-30
3-31
3-32
3-33
Excel output
DCOVA
Microsoft Excel
descriptive statistics output,
using the house price data:
House Prices:
$2,000,000
500,000
300,000
100,000
100,000
3-34
Quartile Measures
DCOVA
25%
Q1
25%
Q2
25%
Q3
The first quartile, Q1, is the value for which 25% of the
observations are smaller and 75% are larger
Q2 is the same as the median (50% of the observations
are smaller and 50% are larger)
Only 25% of the observations are greater than the third
quartile
3-35
Quartile Measures:
Locating Quartiles
DCOVA
Find a quartile by determining the value in the
appropriate position in the ranked data, where
First quartile position:
Q1 = (n+1)/4
ranked value
ranked value
3-36
Quartile Measures:
Calculation Rules
DCOVA
When calculating the ranked position use the
following rules
3-37
Quartile Measures:
Locating Quartiles
DCOVA
(n = 9)
Q1 is in the (9+1)/4 = 2.5 position of the ranked data
so use the value half way between the 2nd and 3rd values,
so
Q1 = 12.5
3-38
Quartile Measures
Calculating The Quartiles: Example
DCOVA
(n = 9)
Q1 is in the (9+1)/4 = 2.5 position of the ranked data,
so
Q1 = (12+13)/2 = 12.5
Q2 = median = 16
Q3 = (18+21)/2 = 19.5
3-39
Quartile Measures:
The Interquartile Range (IQR)
DCOVA
Measures like Q1, Q3, and IQR that are not influenced
by outliers are called resistant measures
3-40
minimum
Q1
25%
12
Median
(Q2)
25%
30
25%
45
Q3
maximum
25%
57
70
Interquartile range
= 57 30 = 27
3-41
3-42
Symmetric
Right-Skewed
Median Xsmallest
Median Xsmallest
Median Xsmallest
>
<
Xlargest Median
Xlargest Median
Xlargest Median
Q1 Xsmallest
Q1 Xsmallest
Q1 Xsmallest
>
<
Xlargest Q3
Xlargest Q3
Xlargest Q3
Median Q1
Median Q1
Median Q1
>
<
Q3 Median
Q3 Median
Q3 Median
3-43
DCOVA
Xsmallest
Q1
25%
of data
Median
25%
Q3
25% of data
Xlargest
3-44
Xsmallest
DCOVA
Q1
Median
Q3
Xlargest
3-45
Q1
Q2 Q3
Symmetric
Q1 Q2 Q3
DCOVA
Right-Skewed
Q1 Q2 Q3
3-46
Boxplot Example
DCOVA
Q1
Q2
23 5
0 2 3 5
Q3
Xlargest
27
27
27
3-47
Numerical Descriptive
Measures for a Population
DCOVA
3-48
DCOVA
The population mean is the sum of the values in
the population divided by the population size, N
N
Where
X
i 1
X1 X 2 XN
= population mean
N = population size
Xi = ith value of the variable X
3-49
DCOVA
Average of squared deviations of values from
the mean
N
Population variance:
2
Where
(X
i1
= population mean
N = population size
Xi = ith value of the variable X
3-50
2
(X
)
i
i 1
N
3-51
Population
Parameter
Mean
Variance
Standard
Deviation
Sample
Statistic
S2
3-52
DCOVA
The empirical rule approximates the variation of
data in a bell-shaped distribution
Approximately 68% of the data in a bell shaped
distribution is within 1 standard deviation of the
mean or 1
68%
1
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
3-53
95%
99.7%
3-54
DCOVA
Suppose that the variable Math SAT scores is bellshaped with a mean of 500 and a standard deviation
of 90. Then,
68% of all test takers scored between 410 and 590
(500 90).
(500 180).
(500 270).
3-55
r = -1
Y
r = -.6
Y
r = +1
r = +.3
r=0
3-56
3-57
Select Data
Choose Data Analysis
Choose Correlation &
Click OK
3-58
DCOVA
4.
5.
3-59
r = .733
There is a relatively
strong positive linear
relationship between test
score #1 and test score
#2.
3-60
Chapter Summary
Boxplots
3-61