A Self-regulated Learning Module 1

SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

UNIT 4: MEASURES OF CENTRAL TENDENCY

At the end of the unit, the students must have:

1. Solved the Mean, Median, and Mode for grouped and ungrouped data
2. Solved the quartile, decile, and percentile for grouped and ungrouped data

1.1 Computation of Mean, Median, and Mode from Ungrouped Data

MEASURES OF CENTRAL TENDENCY OR MEASURES OF LOCATION

A measure of location is a value used to describe the center of a set of data.

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I. A measure of location is a value used to describe the center of a set of data

A. The Arithmetic Mean is the most widely reported measure of location

1. It is calculated by adding the values of the observations and dividing by the total number of
observations
a. The formula for a population mean of ungrouped or raw data is

b. The formula for the mean of a sample is

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 2. The major characteristics of the arithmetic mean are:
a. At least the interval scale of measurement is required
b. All the data values are used in the calculations
c. A set of data has only one mean. That is, it is unique.
d. The sum of the deviation from the mean equals zero

B. The weighted mean is found by multiplying each observation by its corresponding weight.
1. The formula for weighted mean is

2. It is a special case of the arithmetic mean

C. The median is the value in the middle of a set of ordered data

1. To find the median, sort the observations from smallest to largest and identify the middle value
2. The major characteristics of the median are
a. At least the ordinal scale of measurement is required
b. It is not influenced by extreme values
c. Fifty percent of the observation are larger than the median
d. It is unique to a set of data

D. The mode the value that occurs most often in a set of data
1. The mode can be found for a nominal-level data
2. A set of data can have more than one mode

EXAMPLES:

1. Compute the mean, median & mode

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 n x Md Mo
1. 12,13,13,14,15,17,19,20,22,24,24,27,29,30,33 15

2. 22,23,24,25,25,25,27,28,29,29,29,30,31,33,33,33,34,35 18

3. 43,44,45,46,47,48,50,51,53,54,57,59,60 14

4. 31,31,33,34,35,36,39,41,41,43,44,46,46,47,49,51,53 17

5. 23,45,21,13,42,23,34,54,34,16,19,35,25,19,22,36 16

2. Metro Bank is studying the number of times the ATM located in Assumption Road is used per day. The
following are the number of times the machine was used daily over each of the last two weeks.
Determine the mean, the median number of times the ATM was used, and the modal number of times
the ATM was used.
83,64,84,76,84,54,75,59,70,61,63,80,84,73
x = Md = Mo =

3. The table shows the percent of the labor force that is unemployed and the size of the labor force for
three provinces in a certain country. Charles Eric, the Director of Economic Develop must present a
report to several companies that are considering locating in the country. What would be an appropriate
unemployment rate to show for the entire country?

Province Percent Unemployed Size of Workers Unemployment Rate

A 4.5 15,300
B 3.0 10,400
C 10.2 150,600

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 ASSESSMENTS:

1. A. Compute the mean, median & mode (15 pts)

n x Md Mo
1. 22,22,22,24,25,26,26,26,28,34,35,36,36,38,42,43.45
2. 8,9,9,9,11,12,13,13,13,14,15,16,17,17,19,23,24,25,27
3. 53,55,57,57,58,59,61,63,63,66,68,69,70,72,83,87,87
4. 10,11,14,14,15,16,20,22,26,27,27,33,36,37,37,37,37
5. 11,35,46,23,43,35,15,51,11,43,34,25,32,14,16,35

B. The annual salaries of quality-control managers in selected areas are shown below. What is the
a.) mean annual salary b.) median annual salary c.) modal annual salary (10 pts)

Area Salary Area Salary Area Salary x

A $35,000 F 58,000 K 50,000
B 49,100 G 60,000 L 60,000 Md
C 60,000 H 60,000 M 71,400
D 60,000 I 40,000 N 60,000 Mo
E 40,000 J 65,000 O 55,000

C. Listed below are several indicators of long-term economic growth in the Philippines. The projections
are through the year 2008 (10 pts)
Economic Indicator Percent Change Economic Indicator Percent Change
Inflation 4.5 Real GNP 2.9
Exports 4.7 Investment (residential) 3.6
Imports 2.3 Investment (non-residential) 2.1
Real Disposal Income 2.9 Productivity (total) 1.4
Consumption 2.7 Productivity (Manufacturing) 5.2

a. What is the mean percent change?

b. What is the median percent change?
c. What is the modal percent change?

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 D. The CEZC Food, Inc pay its hourly employees ₱16.50, ₱19.00, or ₱25 per hour. There 26 hourly
employees, 14 of which are paid at the ₱16.50 rate, 10 at the ₱19.00 rate, and 2 at the ₱25 rate.
(10 pts)

a.) What is the mean hourly rate paid to the 26 employees?

b.) What is the median hourly rate paid to the 26 employees?
c.) What is the modal hourly rate paid to the 26 employees?

1.2 Computation of Mean, Median, and Mode from Grouped Data

GROUPED DATA
Central Variable Formula Where:
tendency
❑ ❑
Mean
❑ fx ❑ fx = summation of f
x
x =∑
❑
∑
❑
N multiplied by x
N= sample size

Median 1 LCB =lower class boundary

md md=LCB+
i ( 2
N −f 1 ) UCB=upper class boundary
fm
1
N = one half the value of N
2
1 f 1 = cumulative frequency less
md=UCB−
( 2
N −f )
i 2
1
fm than N
2
fm = middle frequency
f 2 = remaining cumulative
frequency after fm
Mode mo mo = 3md – 2 x

Example 1:

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Compute the following variables:
variable How to compute the variable
x UL+¿
; UL =upper limit and LL= lower limit
2
(midpoint)

fx Multiply the frequency and midpoint (compute for every class)

Σ fx Add all fx value per class interval
F≤ Cumulative frequency ≤ (start with the lowest class interval)
1 One half the value of N
N
2
f1 1
From the cumulative frequency (F≤), add frequencies that will not exceed N
2
1
Note: f 1value is ≤ N
2

UCB These values are computed after f 1

LCB
fm middle frequency

f2 This value is computed after computing the middle frequency

Checking: f 1+ fm+ f 2 = N

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 Solution:

Measures of Central Tendency (Grouped Data)

Central Formula Substitution Final Answer
Tendency
Mean ❑
4230
❑ fx
x =∑
❑ 60
70.5
N
Median 1 10 ( 30−23 ) 73.62

md=LCB+
i ( 2
N −f 1 ) 69.5+
17
fm
1 10 ( 30−20 ) 73.62

md=UCB−
2
N −f 2i ( ) 79.5−
17
fm
Mode mo = 3md – 2 x 3(73.62)– 2(70.5) 79.86

Example 2:

Class interval f x (midpoint) fx F≤ md

39-41 1
36-38 2
33-35 4
30-32 4
27-29 2
24-26 3

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 21-23 4
18-20 2
i=3 N= 22 Σ fx = 1
N=
2

Solution:

Measures of Central Tendency (Grouped Data)

Central Formula Substitution Final Answer
Tendency
❑
Mean
❑ fx
x =∑
❑
N
Median 1
md=LCB+
( 2
N −f ) i 1

fm
1
md=UCB−
( 2
N −f ) i 2

fm
Mode mo = 3md – 2 x

ASSESSMENTS:
2. Compute the mean, median and mode (Total:40 pts)

Class interval f x (midpoint) fx F≤ md

30-34 10
35-39 14
40-44 30
45-49 46
50-54 21
55-59 17
60-64 12
i= N= Σ fx = 1
N=
2
Table: 20 pts

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 Solution: 20 pts

Measures of Central Tendency (Grouped Data)

Central Formula Substitution Final Answer
Tendency
❑
Mean
❑ fx
x =∑
❑
N
Median 1
md=LCB+
( 2
N −f )
i 1

fm
1
md=UCB−
( 2
N −f )
i 2

fm
Mode mo = 3md – 2 x

1.3 Other Measures of Location

I. Skewness
Another characteristic of a set of data is the shape

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II. Location of values that divides a set of observation into equal parts

a. Quartiles divides a set of observation into four equal parts

b. Deciles divide a set of observation into ten equal parts

c. Percentiles divides a set of observation into one hundred equal parts

FORMULA
Quartiles Deciles Percentiles

Q(n+1) D(n+1) P (n+1)

Q= D= P=
4 10 100

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Examples
Ungrouped Data:
● Rank the data from highest to lowest

n=15

Solve for:
Solution
Formula Substitution Answer Interpolation Final Answer
a. Q1 Q(n+1) 1(15+1) 4th item in the No interpolation, the Q 1=¿ 14
Q 1=
4 4 array value is exact

b. Q3 Q(n+1) 3(15+1) 12th item in No interpolation, the Q 3= 27

Q 3=
4 4 the array value is exact

c. D3 D(n+1) 3(15+1) 4.8th item in 15 -14 = 1 D3= 14.80

D3 =
10 10 the array
1 x 0.8 = 0.8
0.8 + 14 = 14.80
d. D6 6(15+1) 9.6th item in 24 – 22 = 2 D6= 23.2
10 the array
D ( n+ 1 ) 1 X 0.6 = 1.2
D6=
10 1.2 + 22 = 23.2

e. P32 P (n+1) 32(15+1) 5.12th item in 17 – 15 = 2 P32= 15.24

P32=
100 100 the array
2 x 0.12 = 0.24
0.24 + 15 = 15.24
f. P85 P (n+1) 85(15+1) 13.6th item in 30 – 29 = 1 P85= 29.6
P85=
100 100 the array
1 x 0.6 = 0.6

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 0.6 + 29 = 29.6

Grouped Data

Class f F< Q1 Q3 D2 D6 P42 P85

interval
39-41 1 22 f 2=3
36-38 2 21 f2= 7 f2=3
33-35 4 19 f 2=16 fm=4 f2=11 fm=4

30-32 4 15 f 2=16 fm=4

27-29 2 11 fm=2
24-26 3 9 f 1=¿15 f1=15

21-23 4 6 fm= 4 fm= 4 f 1=11 f1=9

18-20 2 2 f 1= 2 f 1= 2
i=3 N= LCB 1 3 2 6 42 85
N=5.5 N=16.5 N=4.4 N=13. N=9. N=18.7
22 4 4 10 10 100 100
2 24
UCB 3 1 8 4 58 15
N=16.5 N=5.5 N=17.6 N=8.8 N=12 N=3.3
4 4 10 10 100 100
.76

SOLUTION:
Q1 1 3 ( 5.5−2 ) 23.13

Q =LCB +
( 4
N −f )
i 1 20.5+
4
1
fm

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 3 3 ( 16.5−16 ) 23.13

Q1=UCB−
i ( 4
N −f 2 ) 23.5−
4
fm
Q3 3 3 ( 16.5−15 ) 33.63

Q =LCB +
( 4
N −f )
i 1 32.5+
4
3
fm
1 3 ( 5.5−3 ) 33.63

Q =UCB−
( 4
N −f )
i 2 35.5−
4
3
fm
D2 2 3 ( 4.4−2 ) 22.3

D2=LCB +
10
i (
N −f 1 ) 20.5+
4
fm
8 3 ( 17.6−16 ) 22.3

D =UCB−
( 10
N −f )
i 2 23.5−
4
2
fm
D6 6 3 ( 13.2−11 ) 31.15

D =LCB +
( i
10
N−f ) 1 29.5+
4
6
fm
4 3 ( 8.8−7 ) 31.15

D6=UCB−
10
i
N−f 2 ( ) 32.5−
4
fm
P42 42 3 ( 9.24−9 ) 26.86

P =LCB +
( i
100
N −f ) 1 26.5+
2
42
fm
58 3 ( 12.76−11 ) 26.86

P =UCB−
( i
100
N −f ) 2 29.5−
2
42
fm
P85 85 3 ( 18.7−15 ) 35.28

P85=LCB +
i
100 (
N −f 1 ) 32.5+
4
fm
15 3 ( 3.3−3 ) 35.28

P =UCB−
( i
100
N −f ) 2 35.5−
4
85
fm

ASSESSMENTS:

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For #10 and #11 solve for skewness for both ungrouped data (30 points) and grouped data (50points) using
:

a.

b.

c.

d.

10.
(30 pts.)

11.
(50 pts.)

ASSESSMENTS #12 and # 13: Solve for a. Q 1 b . Q 3 c . D 2 d . D 8 e. P26 f . P92

12. Ungrouped Data (40 points)

12,13,13,14,15,17,19,20,22,24,24,27,29,30,33

13. Grouped Data (60 points)

Class interval f
40 – 44 1
35 – 39 4
30 – 34 9
25 – 29 11
20 – 24 12
15 – 19 11
10 – 14 6
5–9 6

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 i=5 N= 60

UNIT 5: MEASURES OF VARIABILITY

At the end of the unit, the students must have:
1. Solved for range, quartile deviation, mean absolute deviation, and standard deviation for grouped and
ungrouped data
2. Computed for the coefficient of variation

The dispersion is the VARIATION or Spread in a set of data

1.1 Common Measures of Dispersion or Variability of Scores

5.2 Computation of Range, Quartile Deviation, Mean Absolute Deviation and Standard Deviation from
Ungrouped Data

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The major characteristics of a RANGE are:
a. Only two values are used in its calculation
b. It is influenced by extreme values
c. It is easy to compute and understand

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The major characeristics of the MEAN ABSOLUTE DEVIATION are:
a. It is not duly influenced by large or small values
b. All observations are used in the calculation
c. The absolute values are somewhat difficult to work with

The VARIANCE is the mean of the squared deviation from the arithmetic mean.

The major characteristics of the VARIANCE are:

a. All observations are used in the calculation
b. It is not duly influenced by extreme
observation
c. The units are somewhat difficult to work
with; they are the original units squared

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 The STANDARD DEVIATION is the square root of the variance.

The major characteristics of the STANDARD DEVIATION are:

a. It is not in the same units as the original data
b. It is the square root of the average squared distance from the mean
c. It cannot be negative
d. It is the widely reported measure of dispersion

EXAMPLE: Ungrouped Data:

x x-x /x - x / /x - x /2
1 12 -8.8 8.8 77.44
2 13 -7.8 7.8 60.84
3 13 -7.8 7.8 60.84
4 14 -6.8 6.8 46.24
5 15 -5.8 5.8 33.64
6 17 -3.8 3.8 14.44
7 19 -1.8 1.8 3.24
8 20 -0.8 0.8 0.64

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 9 22 1.2 1.2 1.44
10 24 3.2 3.2 10.24
11 24 3.2 3.2 10.24
12 27 6.2 6.2 38.44
13 29 8.2 8.2 67.24
14 30 9.2 9.2 84.64
15 33 12.2 12.2 148.84
n=15 Σx=312 Σ/x- x / = 86.8 Σ/x - x /2 = 658.4

Solution:

Required Variable Used Formula Substitution Final Answer

Range R R= HV - LV 33 - 12 21
Interquartile Range IQR IQR = Q3- Q1 33.63 – 23.13 10.5
Quartile Deviation QD Q3−Q1 10.5 5.25
QD =
2 2
Mean Absolute MAD x /¿ 86.8 5.78
MAD = Σ/ x− ¿
Deviation/Mean n 15
Deviation
Standard Deviation s Σ/ x−x /¿2 658.4 6.86
s=
√ n−1
¿
√ 14
Variance s2 s2 = (s)2 6.862 47.06

5.3 Computation of Range, Semi-Interquartile Range, Mean Absolute Deviation and Standard Deviation
from Grouped Data

GROUPED DATA
Variable FORMULA Where:
used
RANGE R R = UBUC - LBLC UBLC = upper boundary of the
upper class
LBLC = lower boundary of the

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 lower class
MEAN ABSOLUTE f = frequency
DEVIATION
Σ fd d = difference of x and x
MAD =
N
MAD where x = midpoint

x = mean
❑
∑ ❑ fx
where : x = ❑
N
N = sample size
STANDARD
DEVIATION ❑

δ
√
δ = N ∑ ❑ f x 2−¿ ¿ ¿
❑

VARIANCE δ2 δ2 = ¿
Semi-Interquartile SIR QD Q3−Q1
Range SIR =
2
=
2

EXAMPLE: Grouped Data

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Required Formula Substitution Final Answer
RANGE R = UBUC - LBLC 41.2-17.5 24
MEAN ABSOLUTE 117 5.32
DEVIATION 22
Σ fd
MAD =
N
STANDARD ( 22 x 18907 )−( 631)2 6.21
DEVIATION

√
❑
δ = N ∑ ❑ f x 2−¿ ¿ ¿
❑
√ 22(21)

VARIANCE δ2 = ¿ 6.212 38.56

SIR QD Q3−Q1 33.63−23.13 5.25

SIR =
2
= 2
2

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1.4 Coefficient of Variation

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ASSESSMENTS:
For assessments #14 and # 15: Solve for a. R b . MAD c . δ d . δ 2

14. Ungrouped Data (30 points)

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 22,23,24,25,25,25,27,28,29,29,29,30,31,33,33,33,34,35

15. Grouped Data (45 points)

Class interval f
40 – 44 1
35 – 39 4
30 – 34 9
25 – 29 11
20 – 24 12
15 – 19 11
10 – 14 6
5–9 6
i=5 N= 60

UNIT 6: THE NORMAL PROBABILITY DISTRIBUTION

At the end of the unit, the students must have:
1. Illustrated a normal curve
2. Identified the properties of normal curve
3. Determined the standard score using the given raw score
4. Solved for the area of the shaded region
5. Applied the standard score in word problems
6. Found the probability of the shaded region

6.1 Normal Distribution

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6.2 Properties of Normal Curve

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6.3 Standard Scores

6.4 Application of Normal Curve

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Examples:
The monthly weekly salaries of employees of a certain company have a mean of ₱5,000 and a standard deviation of
₱1,000. What is the probability that an employee selected at random will have a salary of:
a. More than ₱4,250
b. More than ₱6,700
c. Between ₱3,500 and ₱7,770
d. Between ₱6,500 and ₱7,750

What will be the equivalent salary of an employee that cover:

e. The upper 35% of the company
f. The 60% of the company
g. The middle 85% of the company

SOLUTION:
a. More than ₱4,250

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 Solution:
x−μ 4,250−5,000
Z= δ = 1000
= −0.75 δ

Use table 5 to locate the equivalent area of 0.75

A1=0.2734

AT = A1 +0.50

AT = 0.2735 + 0.50 = 0.7734

b. More than ₱6,700

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 Solution:
x−μ 6,700−5,000
Z= = = 1.7δ
δ 1,000
Use table 5 to locate the equivalent area of 1.7

c. Between ₱3,500 and ₱7,770

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 x−μ 3,500−5,000 x−μ 7,770−5,000
z 1= = z 2= =
δ 1,000 δ 1,000

z 1=¿ -1.5δ z 2=¿2.77δ

d. Between ₱6,500 and ₱7,750

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 x1−μ
Z1= = 6,500−5000
1,000
= 1.5δ ; A1= 0.4332
δ
x −μ
Z2= 2 = 7,750−5000
1,000
= 2.75δ ; A 2= 0.4970
δ
At = A2 - A1= 0.0638

e. The upper 35% of the employees

Find the equivalent value of x, given A= 0.15

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By interpolation solve for the z-value:

Z value Area
0.39 = 0.1517
0.01 d z = 0.15 0.002 0.0037
0.38 = 0.1480

By ratio and proportion, solve for d:

d 0.002
=
0.01 0.0037

0.002 x 0.01
d= = 0.0054
0.0037

z= 0.38 + 0.0054
z= 0.3853
Solve for the value of x:
x=± zδ+ μ
x= zδ+ μ
= (0.3853 x 1,000) + 5,000
x= ₱5,385.30

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f. The lower 60% of the company

Find the equivalent value of x, given A = 0.10

By interpolation solve for the z-value:

Z value Area
0.26 = 0.1026
0.01 d z = 0.10 0.0013 0.0039

0.25 = 0.0987

By ratio and proportion, solve for d:

d 0.0013
=
0.01 0.0039

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 0.0013 x 0.01
d= = 0.0033
0.0039

z= 0.25 + 0.0033
z= 0.2533
Solve for the value of x:
x=± zδ+ μ
x=zδ+ μ
= (0.2533 x 1,000) + 5,000
x= ₱5,253.30

g. The middle 85% of the company

Find the equivalent value of x, given A = 0.425

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 0.425

By interpolation solve for the z-value:

Z value Area
1.44 = 0.4251
0.01 d z = 0.425 0.0014 0.0015

1.43 = 0.4236

By ratio and proportion, solve for d:

d 0.0014
=
0.01 0.0015

0.0014 x 0.01
d= = 0.0093
0.0015

z= 1.43+ 0.0033
± z= 1.4333

Solve for the value of x:

x=± zδ+ μ
x1=zδ+ μ
= (1.4333 x 1,000) + 5,000
x1= ₱ 6,433.33

x2=−zδ+ μ
= (-1.4333 x 1,000) + 5,000
x2= ₱ 3,566.70

6.5 Kurtosis and Skewness

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ASSESSMENT #16:

From past records the number of complaints received per day by the complaint department of a department
store has a δ =5.5 complaints . Assuming that the number of complaints is normally distributed, (60 points)

a. What is the mean number of complaints received per day if the probability that the complaint department
received less than 25 complaints is 0.063?
b. What is the probability that the complaint department will receive
b.1. less than 45 complaints in a day?
b.2. between 35 and 40 complaints in a day?
c. How many complaints did the complaint department receive if the probability is
c.1. less than 0.3825
c.2. more than 0.4596

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