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Chapter One Introduction: Statistics I Com Part 2
Chapter One Introduction: Statistics I Com Part 2
Chapter One Introduction: Statistics I Com Part 2
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
Page | 2
Ans: A measurable quantity which can vary (differ) from one individual to another or
one object to another object is called variable. For e.g. height of students, weight of
children. It is denoted by the letters of alphabet e.g. x, y, z etc.
Ans: Statistical analysis will be productive only when data will be error free so editing
of data makes data error free.
Ans: The numerical raw data is arranged in ascending or descending order is called
an array.
Example:
Array the following data in ascending or descending order 6, 4, 13, 7, 10, 16,
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
Page | 5
19.
Solution:
Array in ascending order is 4, 6, 7, 10, 13, 16, and 19
Array in descending order id 19, 16, 13, 10, 7, 6, and 4
Ans: The relative frequency is the fraction or proportion of the total number of items
belonging to a class. This definition is applicable to both quantitative and categorical
(qualitative) data.
Ans: (1) It shows trend (2) It gives understanding of data (3) It is easy to understand
Q.No.6. Explain the “Direct Method” for finding the arithmetic mean.
Ans: There are two formulas one for ungroup data and one for group data. In ungroup
data XX=∑X/n where ∑X= sum of all X variable values and n means count of X
variable. In group data XX=∑fX/∑f where ∑fX= sum of relevant frequencies multiply by
relevant variable X and ∑f= sum of all the frequencies.
n1XX1+n2XX2+n3XX3+
XXc= ……nkXXk
n1+n2+n3+……nk
∑niXXi
XXc=
∑ni
Important Formulas
Arithmetic Mean
Nature of Data
Method’s Name
Ungrouped Data Grouped Data
Direct Method
Indirect or
Short-Cut Method
Method of
Step-Deviation
Where
Indicates values of the variable .
Indicates number of values of .
Indicates frequency of different groups.
Indicates assumed mean.
Indicates deviation from i.e,
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
P a g e | 11
Where
= Lower class boundary of the model class
= Frequency of the median class
= Number of values or total frequency
= Cumulative frequency of the class preceding the median class
= Class interval size of the model class
Mode
Mode from Ungrouped Data:
Mode is calculated from ungrouped data by inspecting the given data.
We pick out that value which occur the greatest numbers of times in the data.
Or
Where
= Lower class boundary of the model class
= Frequency of the model class (maximum frequency)
= Frequency preceding the model class frequency
= Frequency following the model class frequency
= Class interval size of the model class
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
P a g e | 12
Where:
Stands for weighted arithmetic mean.
Stands for values of the items and
Stands for weight of the item
Harmonic Mean
Geometric Mean
For Ungrouped Data For Grouped Data
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
P a g e | 13
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
P a g e | 14
1. The price index numbers are used to measure change in the price of a
commodities. It helps in comparing the changes in the prices of one
commodity with another.
5. The index numbers of import prices and export prices are used to measure
the change in the terms of trade of a country.
6. The index numbers are used to measure seasonal variation and cyclical
variation in a time series.
7. The index numbers measure the purchasing power of money and determine
the real wages.
Simple Composite
Weighted Un Weighted
Aggregative Aggregative
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt
P a g e | 16
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political Economy Howard
University, Behavioral Economics (Toronto University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost & Management Accountancy Pakistan.
Teaching at Punjab College of excellence in Commerce Kamra Cantt