I PUC ECONOMICS PART-I-STATISTICS FOR ECONOMICS

ENGLISH VERSION NOTES

CHAPTERS INCLUDED AS PER THE SYLLABUS FOR THE ACADEMIC

YEAR 2020-2021

CHAPTER-1 INTRODUCTION
CHAPTER-2 COLLECTION OF DATA
CHAPTER-3 ORGANISATION OF DATA
CHAPTER-4 PRESENTATION OF DATA
CHAPTER-5 MEASURES OF CENTRAL TENDENCY
CHAPTER -6 MEASURES OF DISPERSION
CHAPTER-7 CORRELATION
CHAPTER-8 INDEX NUMBERS

Dr. SAVITHA
SHRI GURUDEVA P U COLLEGE BELTHANGADY
D.K
CONTACT NUMBER: 9480791134

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 CHAPTER -1

INTRODUCTION

I Choose the correct answers (each carries ONE mark)

1. If you are in job, you are working for payment, you are called.
a)Unemployed b) Leader c) Employee d) Trustee
2. Scarcity is the root of
a) all economic problems b) Social problems c) political problems d) All problems
3. The long queues at railway station, bus stand, cinema theatres are all manifestations of
a)Publicity b) scarcity c) plenty d) Quantity
4. Alternative uses of resources give rise to the problem of
a)Rights b) Price c) choice d) chance
5. This subject is mainly the study of mankind in the ordinary business of life.
a)History b) Economics c) Political science d) Sociology
II Fill in the blanks (each question carries ONE mark)
1. When you buy goods, you are called a Consumer.
2. When you produce goods, you are called a Producer.
3. When you sell goods for profit, you are called a Seller.
4. Resources are limited, but wants are Unlimited.
5. Data, numbers, equations are being used in Statistics.
III Answer the following questions in a word / sentence (each carries ONE mark)
1. What is economics according to Alfred Marshall?
According to Alfred Marshall “ The subject economics is mainly around the study of
mankind in the ordinary business of life”
2. What is economic data?
Economic data refers to economic issues related to the problems faced by a nation.
3. The National Income is divided into wages, profit, rent, and interest. What it is called?
Distribution.
4. What is Statistics?
Statistics refers to numerical information collected systematically.
IV Answer the following questions in about four sentences ( each question carries TWO
marks)
1. Generally, in which 3 parts economics is discussed?
a) Consumption b) Production c) Distribution
2. Mention the differences between employee and employer.
Employee:A person who is appointed to work for others and receives payment for his work
is called as an employer.
Employer:An Employer is one who employs somebody and pay wage to him.
3. Mention any two scarcities in your daily life.
a) Scarcity of drinking water
b) Scarcity of transport
c) Scarcity of land
4. Write any two resources which have alternative uses.
a) Water b) land c) Sugar
V Answer the following questions in about twelve sentences ( each question carries 4marks)
1. “We are not as lucky as Aladdin in real life” Elucidate this statement.
Aladdin was a lucky guy. He had a magic lamp. Whenever and whatever he wanted, he just
had to rub his magic lamp and a genie appeared to fulfil his wish. In real life we cannot be

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 as lucky as Aladdin. Though, like him we have unlimited wants, we do not have a magic
lamp. For example if you have enough pocket money, you can purchase almost all the
things you wanted. But since your pocket money is limited you have to choose only those
things that you want the most. This is the basic teaching of Economics. In economics we
study how human beings try to satisfy their unlimited wants with limited resources.

2. ‘Scarcity is the root of all economic problems.’ Explain the statement.

Scarcity is the root of all economic problems. If there had been no scarcity there would
have been no economic problem. This would have not necessitated the study of
economics. In our daily life, we face various forms of scarcity. The long queues at railway
booking counters, crowded buses, the rush to get a ticket to watch a movie, are all the
manifestations of scarcity. We face scarcity because our wants are unlimited and the
resources we have to fulfil our wants are limited.
Further, the resources which the producers have are limited and also have alternative uses.
For example take the case of food that we eat every day. It satisfies our want of
nourishment. Farmers employed in agriculture grow crops that produce our food. At any
point of time the resources in agriculture like land, labour, water, chemical fertilizers etc,
are given. All these resources have alternative uses. The same resources can be used in the
production of non- food crops also. Suppose we have all these resources in enough
quantity we could grow both food crops and non-food crops as much as we wanted. Now
the question comes whether we have to produce food crops or non- food crops. Therefore
Scarcity of resources and alternative uses of resources gives rise to all economic problems.

3. Briefly explain how Statistics helps to study economics?

Statistics plays a very important role in the field of Economics. It helps in the study of
economics in many ways:
a) It helps to understand economic problems: By using various statistical tools, effort
is being made to find the causes behind the economic problems with the help of
quantitative and qualitative facts.
b) It enables an economist to present economic facts in a precise and definite form:
Statistics help the economists to present economic facts with accuracy. When the
economic facts are expressed in statistical terms, they become exact. Ex:If you say
9286 people have died in Karnataka due covid-19, is more accurate than thousands
have died in Karnataka due to covid-19.
c) Helps in condensing mass data into a few numerical measures: The statistical
measures like mean, variance, correlation etc help to summarise data. For
example, it would be impossible to remember the income of all the people of a
country. But we can remember average income i.e per capita income.
4. “Statistical methods are no substitute for common sense” Explain with the example.
The statistical methods are no substitute for common sense. It means that the use of
statistics is not good always in all the areas. Sometimes, it gives the result that which does
not suit to the real situation.
There is an interesting story which is told to make fun of statistics. A family of four persons
(husband, wife, and two children) once set out to cross the river. The father knew the
average depth of the river. So he calculated the average height of his family members.
Since the average height of his family members was greater than the average depth of the
river, he thought they could cross safely. Consequently, some members of the family
(children) drowned while crossing the river. Fathers’ use of statistics while crossing the
river failed. It shows the inappropriate use of statistics, instead of using common sense.

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 CHAPTER – 2

COLLECTION OF DATA

I Choose the correct answers (each question carries ONE mark)

1. Which method of collection of Data gives better results?
a) Census b) Sample Survey c) Innovation d) Distribution
2. Which of the following error is more serious?
a)Sampling error b) non- sampling error c) Data error d) Calculation error
3. The method of collection of data in which reactions can be watched is
a)Telephone interview b) Mailing questionnaire c) Personal interview d) E-mail
II Fill in the blanks (each question carries ONE mark.
1. Data collected by the investigator is called Primary Data.
2. The method of interview in obtaining information at a shorter time is Telephone interview.
3. Most expensive method of interview is Personal interview method.
4. The method of Data collection which cannot be used by illiterates are Mailing Questionnaire
5. Census of India is carried out once in 10 years.
III Match the following: (total 5 marks)
(a) Personal interview Pre-testing of questionnaire (4)
(b) Mailing Questionnaire Covers every individual (5)
(c) Telephone interview Loss of questionnaire (2)
(d) Pilot Survey Cheaper or relatively low cost (3)
(e) Census More expensive (1)
IV Answer the following questions in a word / sentence (each question carries ONE mark)
1. What is a variable?
A variable is a value which is subject to change from time to time.
2. Write the meaning of Census?
Census is a survey which includes every element of Population.
3. What is Sample Survey?
A sample survey is the survey conducted on a group or section of population from which
information is to be obtained.
4. Give the meaning of sampling error.
Sampling error refers to the differences between the sample estimate and the actual value
of a characteristic of the population.
5. Expand NSSO.
National Sample Survey Organisation.
6. Expand CSO.
Central Statistical Organisation.
7. Expand DGCIS
Directorate General of Commercial Intelligence and Statistics.
V Answer the following questions in about four sentences (each question carries TWO marks)
1. Mention the two sources of data.
a) Primary Data
b) Secondary Data
2. Write any two qualities of good questionnaire.
a) Questionnaire should not be too long.
b) Questionnaire should be precise and clear.
3. Mention the methods of collecting data.
a) Personal interview method
b) Telephone interview method
c) Mailing Questionnaire.

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 4. Write the differences between Census Survey and Sample Survey.
Census Survey Sample Survey
i) It includes every element of the i) Here a representative sample is taken for
population. survey.
ii) There may not be accurate information. ii) Provide reasonably reliable and accurate
iii) It is expensive. information.
iv) It is time consuming iii) It is cheap and cost effective.
iv) It takes less time.

5. Name the methods of selecting samples in Random Sampling.

a) Lottery method.
b) Use of random number table
6. Give the meaning of Pilot Survey.
Once a questionnaire is ready, it is advisable to conduct a try-out with a small group which is
known as Pilot Survey or pre-testing of questionnaire. Pilot survey helps to know the
shortcomings and drawbacks of questionnaire.
VI Answer the following questions in about twelve sentences (each question carries 4 marks)
1. Does the lottery method always give you a random sample? Explain.
It is fact that the lottery method always gives us a random sample. The random sample is the
one where the individual units from the population are selected at random. For instance, the
government wants to determine the impact of the rise in LPG on the household budget of a
particular locality. For this, a representative sample of 30 households has to be taken and
studied. The names of the 300 households of that are written on pieces of paper and mixed
well and 30 names to be interviewed are selected one by one.
In the random sampling, every individual has an equal chance of being selected and the
individuals who are selected are just like the ones who are not selected. In our example all
the 300 sampling units of the population got an equal chance of being included in the sample
of 30 units and hence the sample, such drawn, is a random sample. So the lottery method
always gives us random sample.
However, the lottery method will not give a random sample in the following cases:
i) If the slips are not made of identical size and it is possible to identify the names for numbers
on the slips.
ii) If same name or number is written on more than one slip or if some name or number is
missed out.
2. Briefly explain Sampling errors.
Sampling error refers to the differences between the sample estimate and the actual value of
a characteristic of the population. It is the error that occurs when you make an observation
from the sample taken from the population.
Thus the difference between the actual value of a parameter of the population and its
estimate is the sampling error. It is possible to reduce the magnitude of sampling error by
taking a larger sample.
For example, suppose height of 5 students (in inches) is 50, 55, 60, 65 and 70. Now the average
height will be calculated by adding all these observations and divide the sum by 5 then we get
60 inches. If we select. If we select a sample of two students with height of 50 and 60 inches,
then average height of sample will be 50+60 divided by 2, we get 55 inches. Here the sampling
error of the estimate will be 60(true value) minus 55(estimate)=5

3. What is Random Sampling? Explain briefly.

Random sampling is one where the individual units from the population are selected at
random. For instance, the government wants to determine the impact of the rise in petrol
price on the household budget of particular locality. For this, a representative sample of 30

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 household has to be taken and studied. The names of all the 300 households of that are
written on pieces of paper and mixed well and 30 names to be interviewed are selected one
by one.
In the random sampling, every individual has an equal chance of being selected and the
individuals who are selected are just like the ones who are not selected. In the above example,
all the 300 sampling units of the population got an equal chance of being included in the
sample of 30 units and hence the sample, such drawn, is a random sample. This is called lottery
method. The same could be done using a random number table also.
4. Write briefly about the Census and NSSO.
Census: Census of India is one of the national level agencies for collection, process and
tabulation of the statistical data. It provides the most complete and continuous demographic
record of population. The Census is being regularly conducted every ten years since 1881. The
first census after Independence was conducted in 1951. The Census officials collect
information on various aspects of population such as the size, density, sex-ratio, literacy,
migration, rural-urban distribution, etc. Census data is interpreted and analysed to
understand many economic and social issues in India.
NSSO: The NSSO was established by the Government of India to conduct nation-wide surveys
on socio-economic issues. The NSSO does continuous surveys in successive rounds. The data
collected by NSSO are released through reports and its quarterly journal Sarvekshana . NSSO
provides periodic estimates of literacy, school enrolment, utilisation of educational services,
employment, unemployment etc. The NSSO also collects details of industrial activities and
retail prices for various goods, which are used by the government of India for planning
purpose.

VII Project oriented question (5 marks)

1. Suppose you are a research student and you are asked to conduct a sample survey about the
‘Mid-day meals program’ in schools. Prepare a good questionnaire to support your study.
Questionnaire related to Mid-day meal program

Sl.No Questions Responses

1. Your name
2. Your age
3. Gender Male / Female
4. School Name
5. Number of working people at your
family
6. Monthly family income
7. Resident of Urban / Rural
8. Where do you eat lunch everyday a) House b) Hotel c) School d) Other
9. Do you like eating at schools Yes / No
10. How often like the food served at a) Everyday b) Once in 2 days
your school c) Once in 4 days d) None.
11. Do you get tasty food Yes / No
12. What made you to choose school a) Tasty b) Good Quality
food c) Free of cost d) None
13. Are you satisfied with the taste Yes / No
14. Is the supply of food helpful Yes / No
15. Do you examine quality of food Yes / No
16. Quality of rice used a) Good b) Better
c)Excellent d) Low Quality

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 17. Are vegetables used in every day’s Yes / No
food
18. Do you expect more food Yes / No
19. The quality of vegetables, pulses a) Good b) Better
used are c) Excellent d)Low quality
20. Are you coming to school to have Yes / No
lunch
21. Do you think there should be Yes / No
improvement in Mid-day meals
programs
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 CHAPTER-3

ORGANIZATION OF DATA

I Choose the correct answers ( each question carries 1 mark)

1 The class midpoint is equal to
a) The average of the upper and lower class limit.
b) The product of upper and lower class limit.
c) The ratio of the upper and lower class limit.
d) None of the above.
2 The frequency distribution of two variables is known as
a) Univariate classification b) Bivariate classification
c) Multivariate classification d) None of the above
3 Statistical calculations in classified data are based on
a) The actual values of observation b) The upper class limits
c) The lower class limits d) The class midpoints
4 Under exclusive method
a) The upper class limit of a class is excluded in the class interval.
b) The upper class limit of a class is included in the class interval.
c) The lower class limit of a class is excluded in the class interval.
d) The lower class limit of a class is included in the class interval.
5 Range is the
a) Difference between the largest and the smallest values of a variable.
b) Average of the largest and the smallest observation.
c) Ratio of the largest to the smallest values of a variable.
d) None of the above.
II Fill in the blanks (each question carries 1 mark).
1 Data classified according to geographical areas is called Spatial classification
2 Classification of data according to characteristics and attributes is called Qualitative classification
3 Two ends of a class are called Class limits (upper class limit and lower class limit).
4 Mid point or Class mark is the average of upper and lower limit of a class.
5 In inclusive method of classification upper limit of a class is included.
6 Frequency distribution of discrete variable called Frequency array.
III Answer the following questions in a word / sentence (each question carries 1 mark).
1 What is raw data?
The unclassified data is called as raw data.
2 What is quantitative classification of data?
Classification of data on the basis of quantities like height, weight, age, income, marks etc are called as
Quantitative data.
3 What do you mean by qualitative classification of data?
Classification of data on the basis of certain qualities and attributes like nationality, literacy, religion, sex,
etc is called as Qualitative data.
4 Give the meaning of class limits.
Two ends of a class interval are called as class limits.
5 What is univariate frequency distribution?
Frequency distribution of single variable is called Univariate frequency distribution.
6 Give the meaning of time series data?
Classification of data on the basis of time like year, month, week, day etc, is called time series data.
7 What is spatial classification of data?
Classification of data on the basis of geographical area like country, state, district, village etc, is called as
spatial classification of data.

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 IV Answer the following questions in about four sentences (each question carries 2 marks).
1 Mention the types of variable.
a) Continuous Variable: Continuous Variable can take any numerical value.
b) Discrete Variable: The value of Discrete Variable jumps from one value to another.
2 Differentiate between inclusive and exclusive methods of classification.
Inclusive method: Under this method, upper class limit is included in a class interval. Ex: if we take the class
interval 10-19, the lower limit 10 and upper limit 19, both are included in the class interval 10-19.
Exclusive method: Under this method, the classes are formed in such a way that the upper class limit of
one class will be equal to the lower class limit of the next class. Ex: in class intervals 10-20 and 20-30, the
20 is included in the next class interval i.e., 20-30 and not included in 10-20.
3 Mention the types of classification of data.
a) Quantitative classification.
b) Qualitative classification.
c) Spatial classification.
d) Chronological classification.
4 Give the formula to find out midpoint.
Midpoint = Lower class limit + Upper class limit
2
5 What is frequency?
Frequency refers to how many times the observations have occurred in the given raw data. In other words
it refers to number of times a given value appears in a distribution.
V Answer the following questions in about twelve sentences (each question carries 4 marks).
1 Briefly explain the ‘loss of information’ in classified data.
Once the data are grouped into classes, an individual observation has no significance in further statistical
calculation. This is known as ‘loss of information’ in classified data.
For example, suppose class 100-200 contains 6 values viz., 120, 150, 160, 140,180,190. When such data is
grouped as a class 100-200, then individual values have no significance and only frequency i.e., 6 is recorded
and not their actual values. All values in this class are assumed to be equal to the middle value of class-
interval or class mark. Statistical calculations are based only on the values of midpoint instead of the actual
values. As a result, it leads to considerable loss of information.
2 Difference between continuous and discrete variables.
Continuous Variable Discrete Variable
i) It can take any numerical value i) It can take only certain values.
ii) Its value changes only by finite ‘jumps’.
ii) It may take integral values, fractional values It jumps from one value to another
and values that are not exact fractions. without taking any intermediate value
between them.
iii) Ex: the height of a student, as he grows say iii) Ex: a variable like the ‘number of girls’
from 100-150 cm, would take all the values in in different classes, would assume values
between 100 and 150. that are only whole numbers. It cannot
take any fractional value like 0.5, 1.5, 2.5
v) Other examples of a continuous variable are etc., because ‘half of a student’ is absurd.
weight, time, distance etc. v) Other example of a discrete variable are
population, number of cars, buses and
number appearing on a dice.

VI Answer the following in about twenty sentences (each question carries 6 marks)
1 Prepare a tally marking chart for the marks in economics scored by 70 students in an examination.
28, 17, 15, 22, 29, 21, 23, 27, 18, 12, 7, 2, 9, 4, 1, 8, 3, 10, 5, 20, 16, 12, 8, 4, 33, 27, 21, 15, 3, 36,
27, 21, 15, 3, 37, 16, 28, 9, 2, 4, 6, 32, 31, 29, 18, 14, 13, 15, 11, 9, 7, 1, 5, 37, 32, 23, 24, 20, 19, 25,

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 19, 2, 5, 19, 25, 19, 20, 6, 9, 30.
Class interval of 10
Exclusive method

Class Observations Tally Mark Frequency

interval
1-10 7,2,9,4,1,8,3,5,8,4,3,3,9,2,4,6,9,7,1,5,2,5,6,9 IIIIIIIIIIIIIIIIIIII 24
10-20 17,15,18,12,10,16,12,15,15,16,18,14,13,15,11,19,19,19,19 IIIIIIIIIIIIIIII 19
20-30 28,22,29,21,23,27,20,27,21,27,21,28,29,23,24,20,25,25,20 IIIIIIIIIIIIIIII 19
30-40 33,36,37,32,31,37,32,30. IIIIIII 08
Total 70
2 List the four questions to be addressed while preparing a frequency distribution. Briefly explain any two of
them.
While preparing frequency distribution, the following four questions need to be addressed:
a) How many classes should we have?
b) What should be the size of each class?
c) How should we determine the class limits?
d) How should we get the frequency for each class?

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 CHAPTER -4

PRESENTATION OF DATA

I Choose the correct answers (each question carries 1 mark)

1 Data are presented in sentences is called.
a) Tabular presentation b) Diagrammatic Presentation c) Textual Presentation
d) None of the above
2 A histogram is a
a) One dimensional diagram b) Two dimensional diagram c) Three dimensional diagram
d) Four dimensional diagram
3 Frequency polygon is used in the presentation of
a) Un grouped data b) grouped data c) Both types of data d) none of these
4 Data are expressed in rows and columns is called
a) Pie-chart b) Bar diagram c) Linear diagram d) Table
5 Ogives can be helpful in locating graphically the
a) mode b) mean c) median d) none of the above
II Fill in the blanks (each question carries 1 mark)
1 Arithmetic line graph is also called Time series graph.
2 Component bar diagram are also called sub bar diagram.
3 Body of the table contains actual data.
III Answer the following questions in a word / sentence. (each question carries 1 mark)
1 What is Pie- Chart?
Pie- Chart is a diagram or chart used to represent the total into the breakup of various
components.
2 What do you mean by frequency- polygon?
Frequency –polygon is a plane bounded by straight lines usually four or more lines.
3 What is Multiple-Bar diagram?
Multiple bar diagram is a bar diagram used for comparing two or more sets of data.
4 What is table?
When data are presented in rows and columns along with some explanatory notes, it is called
table.
IV Answer the following questions in about four sentences. (each question carries 2 marks)
1 Name any four parts of tabulation.
a) Stubs
b) Captions
c) Head note
d) Body of the table
2 What are the types of bar diagram
a) Simple bar diagram
b) Multiple bar diagram
c) Component bar diagram
d) Bilateral bar diagram
e) Percentage bar diagram
3 What is Component bar diagram? Give the example.
A Component bar diagram is also known as sub-divided bar diagram, are useful in comparing
different component parts. Ex: Showing production of rice and production of wheat in a single bar
with different divisions.

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 4 How can you obtain a Frequency – curve?
The graphic representation of the frequency distribution is Frequency-curve. We have to plot
the class marks (midpoints) on X-axis and frequency on the Y-axis to obtain frequency curve.

5 What kind of diagrams are more effective in presenting the following

a) Monthly rainfall in a year
b) Composition of the Population of Delhi by religion.
a) Monthly rainfall- Simple bar diagram.
b) Composition of the Population of Delhi – Component bar diagram or Pie-chart.
V Answer the following questions in about twelve sentences (each question carries 4 marks)
1 Draw the format of a table and identify its components.

Table : 5 → Table Number

Population of India → Title
(in crores) → Head Note

Census Year Male Female Total

Stubs 1961 22 20 42* Captions
1971 31 30 61*
1981 40 32 72*
Body of
1991 44 40 84
2001 52 50 102 thetable
2011 62 59 121
Source: Census of India
Foot Note : * Provisional
2 Draw a bar diagram with the help of the following data.
Production of cars of a company in different year.
Years Numbers of cars
2011 150
2012 250
2013 180
2014 090
2015 300
2016 350

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 Production of Cars
400
350
300
250
200
150
100
50
0
2011 2012 2013 2014 2015 2016

Years
VI. Answer the following in about twenty sentences (each question carries 6 marks)

1. Explain the components of the table.

Components of table:

i) Table Number: Table number is given to a table for identification purpose. It is given at the top of
the table.

ii) Title: The title of the table gives about the contents of the table. The title should be very clear and
brief.

iii) Captions: Captions are the column headings given as designation to explain the figures of the
column.

iv) Stubs: These are headings given to rows of the table. The designations of the table are called stubs
and the complete left column is known as stub column.

v) Body of the table: It is the main part and it contains the actual data. Location of any one data in the
table is fixed and determined by the row and column of the table.

vi) Head note: Head note is the unit of measurement of the figures. It should always be stated along
with the title of the table.

vi) Source: It is brief statement or phrase indicating the source of data presented in the table.

vii) Note: It is the last part of the table. It explains the specific feature of the data content of the table
which is not self- explanatory and has not been explained earlier.

2. The following table shows the enrolment by gender at schools (%) of children aged 6-14 years
in a district of Bihar. Draw a component bar diagram by using these data.

Gender Enrolled (in%) Drop outs(in %)

Boy 91.5 8.5
Girl 58.6 41.4
All 78.0 22.0

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 Enrolment by gender at schools (%)
120

100

80

60 Drop outs (in%)

Enroled (in%)
40

20

0
Boy Girl All

Gender
3 ConstructOgive by using the following data.

Marks(x) Number of Students (f) Less More

than C.F than C.F
0-20 6 6 64
20-40 5 11 58
40-60 33 44 53
60-80 14 58 20
80-100 6 64 6
Total 64

70
More than ogive
60

50 Less than ogive

40

30

20

10
Median
0
20 40 60 80 100

Marks

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4 Draw an arithmetic line graph using following data.

Value of import and export of India (in 100 crores)

Year Exports Imports

2009-10 8455 13637
2010-11 11370 16835
2011-12 14660 23455
2012-12 16343 26692
2013-14 19050 27154

Exports and Imports of India (in 100 crores )

30000

25000

20000

Exports
15000
Imports

10000

5000

0
2009-10 2010-11 2011-12 2012-13

Year

VII Project oriented question (5 marks)

On the basis of data you have collected data regarding participation of women in your locality in the
below mentioned categories. Construct Pie-Chart.

Status Population
a) Marginal worker 12
b) Main worker 36
c) Non-worker 73

Categories Population In Degree

Marginal worker 12 12/121x360= 35.70
Main worker 36 36/121x360=107.10
Non-worker 73 73/121x360=217.20

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 Total 121 360.00

Population

Marginal worker
Main worker
Non-worker

********************************

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 CHAPTER -5

MEASURES OF CENTRAL TENDENCY

I Choose the correct answers (each question carries 1 mark).

1. Five students obtained 10, 20, 30, 40 and 50 marks respectively. What would be the mean?
a) 35 b) 30 c) 25 d) 40

2. X=Σx /N is concerned with

a) Arithmetic Mean b)Mode c)Median d) Geometric Mean

3. The most commonly used measure of central tendency is

a) Mode b) Median c) Arithmetic Mean d) Percentile

4. Which of the following represent Median?

a)Q1 b) Q3 c) Q4 d) Q2
5. Percentile divide the distribution equal into

a) 100 parts b) 25 parts c) 75 parts d) 50 parts

6. Quartles are the measures which divide the data into

a) 2 equal parts b) 4 equal parts c)1 equal part d) 3 equal parts

7. Assign weights to various item according to their importance is called

a) Arithmetic mean b) Median c) Weighted Arithmetic mean d) mode

8. What would be the median wage for the following wages of 5 labourers 10,20,30,35,38.

a) Rs. 20 b) Rs.10 c) Rs.35 d)Rs. 30.

II Fill in the blanks (each question carries 1 mark).

1. Weighted Arithmetic mean gives relative importance to each item.

2. 3rd quartile and 75percentileare the same .
3. There are 3 quartiles in a series .
4. Medium is not affected by the extreme values.
5. Most frequently observed value in a series is called Mode. .
6. A distribution with more than two modes is called Multi-modal. .

III. match the following ; (total 5 marks).

1. Arithmetic mean 1) Positional value (2)

2. Median 2) 𝑥̅(1)
3. ΣN 3) Q3(5)
4. Q1, Q2, P25, P50, 4) Total number of observations (3)
5. 3 (N+1) 5) Division values (4)
2

17
IV. Answer the following questions in a word/ sentence (each question carries 1 mark)

1. What is meant by central tendency?

Central tendency is one of the statistical tools which summarize the data in a single value in such a
way that this single value can represent the entire data.

2. What is the meaning of Arithmetic mean?

Arithmetic mean is defined as the sum of the values of all observations divided by number of
observations.

3. Define Median?

Median is the middle element when data set is arranged in order of the magnitude.

4. Pocket money of 8 students is Rs. 6,12,18,24,30,36,42 and 48. Calculate arithmetic mean.

̅ = ΣX=215=27
X N 8

5.Write the formula for weighted mean?

𝛴𝑊𝑋
𝑊𝑀= 𝛴𝑊

6.What do you mean by percentiles?

Percentiles are those measures which divides the distribution into hundred equal parts.

7. What is Bi-model?
A distribution having two modes is said to be Bi-modal.

8. Calculate mode from the following data?

X= 10,8,10,6,4,12,10,8,10,18,16,10,18,16.
10 is the mode as it has occurred maximum times.

V. Answer the following questions in about four sentences (each question carries 2 marks)

1. What are the types of measures of central tendency?

There are 3 types of measures of central tendency viz., Mean, Median and Mode.

2. Calculate arithmetic mean from the following data?

Marks obtained by 10 students 30, 62, 47, 25, 52, 39, 56, 66, 12, 24.
X= 30+62+47+25+52+39+56+66+12+24=413

ΣX
̅
X=
N
413
̅
X = 10

̅
X =41.3

3. Calculate the value of median from the following data.

18
X: 5, 7, 9, 12, 11, 8, 7, 15, 25.

We need to put the values in ascending order-

Sl.No. X
1 5 N+1 2
M=Value of ( ) item
2
2 7 9+1
3 7 M=Value of ( 2 )2 item
10
4 8 M=Value of ( 2 )2 item
5 9 M=Value of 5thitem
6 11 M= 9
7 12
8 15
9 25

4. How do you classify modal series?

Modal series can be classified as:

a) Uni-modal b) Bi-modal c) Multi-modal

5. What is mode? Give formula to find out mode in continuous series.

Mode is the most frequently observed data value.

The following formula is used to calculate Mode for continuous series:
D1
M = L + D1 +D2xh
VI. Answer the following questions in about twelve sentences (each question carries 4 marks)

1. Calculate the arithmetic mean from the following data.

X 5 10 15 20 25 30 35 40
f 5 7 9 10 8 6 5 2

x f fx
5 5 25 ∑ fx
x̅= N
10 7 70 1065
15 9 135 =
52
20 10 200 = 20.48
25 8 200
30 6 180
35 5 175
40 2 80
Total N=52 Σfx=1065

2. Define weighted mean? How do you calculate it? Explain.

While calculating arithmetic mean, sometimes, it is essential to give weightage to various items
according to their importance. This is called weighted arithmetic mean. For example if there are
two commodities rice and apple and we are interested in finding the average of these two

19
 commodities we may assign more weight to rice and less weight to apple, because rice is more
important than apple to us.
Weighted arithmetic mean gives different weights to different items according to their
importance while calculating mean.
The formula used to calculate weighted arithmetic mean is-
𝑞1 𝑝1+ 𝑞2 𝑝2
Weighted arithmetic mean =
𝑞1+ 𝑞2

3. Name and define any three statistical averages.

There are many statistical measures of central tendency or averages.
The most commonly used averages are as follows:

• Arithmetic mean
• Median
• Mode

i) Arithmetic mean : Arithmetic mean is the most commonly used measure of averages. It is
defined as the sum of the values of all observations divided by the number of observations.
ΣX
It is generally calculated by the formula: ̅
X= N
The calculation of Arithmetic mean can be studied under 2 broad categories viz.,
• Arithmetic mean for ungrouped data
• Arithmetic mean for grouped data
The Arithmetic mean can be calculated through direct method, assumed mean method and
step deviation method. In each method different formula is used.

ii) Median: Median is the positional value of the variable which divides the distribution into
two equal parts. Median is considered as the middle element when the data set is arranged in order
of the magnitude. It can be easily computed by arranging data in ascending order. If there are even
numbers in the data, there will be two observations which fall in the middle. The median in this case
computed as the arithmetic mean of two middle values.

Median can be calculated by using the following formuaL

𝑛+1 th
Median=Size of ( ) item.
2

iii) Mode: Mode is the most frequently observed data value. It is the value which is repeated
highest number of times in a series. It is indicated by Mo.

For continuous series mode, mode is calculated by using the following formula-
𝐷1
Mo= L+𝐷 X h
1+𝐷2

4. Calculate median from the following data.

Weight 40 50 60 70 80 90
No. of persons 3 17 24 16 8 2

20
 Weight (x) F Cf
40 3 3
50 17 20
60 24 44
70 16 60
80 8 68
90 2 70
70

𝑁+1 th
Median = Size of ( ) item
2

70+1 th
Median – Size of ( ) item
2

71
Median = Size of ( 2 )thitem

Median = 35.5th item

Median = 60

6. Calculate the lower quartile from the following data.

X: 22, 26, 14, 30,18,11,35,41,12, 32.

Lower Quartile or first Quartile is denoted by Q1

Sl. No. X(in

ascending
order)
1 11
2 12
3 14
4 18
5 22
6 26
7 30
8 32
9 35
10 41

𝑁+1 th
Q1=𝑆𝑖𝑧𝑒 𝑜𝑓 ( ) item
4

10+1 th
Q1=𝑆𝑖𝑧𝑒 𝑜𝑓 ( ) item
4

11
Q1=𝑆𝑖𝑧𝑒 𝑜𝑓 ( 4 )th item

Q1=𝑆𝑖𝑧𝑒 𝑜𝑓2.75thitem

Q1=Size of 2nd item+0.75th item

21
i.e, Size of 2nd item+0.75 (3rd item -2nd item)

Q1= 12+0.75(14-12)

= 12+0.75(2)

= 12+1.51

Q1= 13.5

VII. Answer the following in about twenty sentences. (Each question carries 6 marks)

1. Calculate arithmetic mean by direct, assumed mean and step deviation methods for the following
data.

X: 40, 50, 55, 78, 58.

Direct method:

x
40
50
55
78
58
281

∑𝒙
𝐱̅= 𝑵

𝟐𝟖𝟏
𝐱̅= 𝟓

𝐱̅=𝟓𝟔. 𝟐

Assumed mean method:

∑𝒅
𝐱̅=A + 𝑵

X d= x-A
(A=40)
40=A 0
50 10
55 15
78 38
58 18
∑ 𝒅=81
∑𝒅
𝐱̅=A + 𝑵

𝟖𝟏
𝐱̅=40 +
𝟓

𝐱̅=40 + 16.2

22
𝐱̅=𝟓𝟔. 𝟐

Step Deviation method:

∑ 𝒅′
𝐱̅=𝑨 + x𝒄
𝑵

X d= x-A 𝒅
d’= 𝒄
(A=40)
(c=10)
40=A 0 =0/10=0
50 10 =10/10=1.0
55 15 =15/10=1.5
78 38 =38/10=3.8
58 18 =18/10=1.8
∑ 𝒅′ =8.1
∑ 𝒅′
𝐱̅=𝑨 + x𝒄
𝑵

8.1
x̅=40 + x 10
5

8.1
x̅=40 + x 10
5

81
x̅=40 +
5

x̅=40 + 16.2

𝐱̅=𝟓𝟔. 𝟐

2. Calculate average marks of the following students by using-

a) Direct method b) step deviation method.

Marks(x) 0-10 10-20 20-30 30-40 40-50 50-60 60-70

No. of students 5 12 15 25 8 3 2

𝑑
x Mid Value d=X-A d’= 𝑐
f fx fd’
(x) (A=5) (c=10)
0-10 5 5=A 25 0 0 0
10-20 12 15 180 10 1 12
20-30 15 25 375 20 2 30
30-40 25 35 875 30 3 75
40-50 8 45 360 40 4 32
50-60 3 55 165 50 5 15
60-70 2 65 130 60 6 12
N=70 Σfx=2110 Σfd’=176

Direct method:

∑ 𝒇𝒙
𝐱̅= 𝑵

23
 𝟐𝟏𝟏𝟎
𝐱̅= 𝟕𝟎

𝐱̅=𝟑𝟎. 𝟏𝟒

Step deviation method:

∑ 𝒅′
𝐱̅=𝑨 + x𝒄
𝑵

𝟏𝟕𝟔
𝐱̅=𝟓 + x 𝟏𝟎
𝟕𝟎

𝐱̅=𝟓 + 𝟐. 𝟓𝟏𝟒x 𝟏𝟎

𝐱̅=𝟓 + 𝟐𝟓. 𝟏𝟒

𝐱̅=𝟑𝟎. 𝟏𝟒

3. Find the median for the following data.

Wages 60-70 50-60 40-50 30-40 20-30

No. of 7 21 11 6 5
workers

Wages(in No. of workers c.f

ascending
order)
20-30 5 5
30-40 6 11
40-50 11 22
50-60 21 43
60-70 7 50

50

𝑁
Median = Size of ( 2 )th item

50
= Size of ( 2 )th item

=Size of 25th item

= 50-60

To calculate the exact Median following formula is used:

𝑁
−𝑐𝑓
Median=L+⌊ 2 ⌋x i i denotes width of the class
𝑓

cf denotes c.f of preceding class to the median class

24
 50
−22
Median=50+⌊ 2 21 ⌋x 10

25−22
Median=50+⌊ ⌋x 10
21

3
Median=50+⌊ ⌋x 10
21

30
Median=50+⌊21⌋x 10

Median=50+1.47

Median=5𝟏. 𝟒𝟕

4. Calculate Q1, Q2 andQ3from the following data.

15, 21, 26, 30, 40, 45, 50, 54, 60, 65, 70.

Sl.No x
1 15
2 21
3 26
4 30
5 40
6 45
7 50
8 54
9 60
10 65
11 70

𝑁+1 th
Q1=Size of ( ) item
4

11+1 th
Q1 =Size of ( ) item
4

12
Q1 =Size of ( 4 )th item

Q1 =Size of 3𝑟𝑑 item

Q1 =26

𝑁+1 th
Q2=Size of ( ) item
2

25
 11+1 th
Q2=Size of ( ) item
2

12
Q2=Size of ( 2 )th item

Q2=Size of (6)th item

Q2=45.

𝑁+1 th
Q3=Size of ⌊3 ( )⌋ item
4

11+1 th
Q3=Size of ⌊3 ( )⌋ item
4

12
Q3=Size of ⌊3 ( 4 )⌋th item

36
Q3=Size of ⌊( )⌋th item
4

Q3=Size of 9th item

Q3= 60

5. Calculate Q1, Q2 and Q3 from the following data:

22, 26, 14, 30, 18, 11, 35, 41, 12, 32.

Sl.No X
(in
ascending
order)
1 11
2 12
3 14
4 18
5 22
6 26
7 30
8 32
9 35
10 41

26
 𝑁+1 th
Q1=Size of ( ) item
4

10+1 th
Q1=Size of ( ) item
4

11
Q1=Size of ( 4 )th item

Q1=Size of 2.75th item

Q1=Size of 2nd +0.75(3rd item-2nd item)

Q1=12 +0.75(14-12)

Q1=12 +0.75(2)

Q1=12 +1.5

Q1=13.5

𝑁+1 th
Q2=Size of ( ) item
2

10+1 th
Q2=Size of ( ) item
2

11
Q2=Size of ( 2 )th item

Q2=Size of (5.5)th item

5𝑡ℎ+6𝑡ℎ
Q2=Size of ( ) item
2

40+45
Q2= 2

85
Q2= 2

Q2=𝟒𝟐. 𝟓

𝑁+1 th
Q3=Size of ⌊3 ( 4
)⌋ item

10+1 th
Q3=Size of ⌊3 ( 4
)⌋ item

11
Q3=Size of ⌊3 ( 4 )⌋th item

33
Q3=Size of ⌊( 4 )⌋th item

Q3=Size of 8.25th item

Q3=Size of 8th item+0.25(9th item-8th item)

27
Q3=32+0.25(35-32)

Q3=32+0.25(3)

Q3=32+0.75

Q3= 32.75

6.Find the mode of labour family from following data

Monthly income (*in 000) Cumulative frequency

Below 50 97
Below 45 95
Below 40 90
Below 35 80
Below 30 60
Below 25 30
Below 20 12
Below 15 4

Arrange the classes in ascending order and accordingly the Cumulative frequency.

Monthly income (*in 000) Cumulative frequency f

10-15 4 4
15-20 12 (12-4)= 8
20-25 30 (30-12)=18
25-30 60 (60-30)=30
30-35 80 (80-60)=20
35-40 90 (90-80)=10
40-45 95 (95-90)=5
45-50 97 (97-95)=2

From the above table we can locate 25-30 as Modal class as it has occurred maximum times.

To find exact mode, the following formula is used.

𝐷1
Mo=25+ ×ℎ
𝐷1 +𝐷2

12
Mo=25+12+10 × 5

12
Mo=25+22 × 5

Mo=25+0.54 × 5

Mo=25+2.72

Mo=27.72

L = Lower limit of Modal class.

28
D1 = Difference between frequency of the modal class and frequency of the preceding modal class.

D2 = Difference between frequency of the modal class and frequency of the succeeding modal class.

h = class interval of the distribution.

VIII. Project oriented question (5 marks)

1. As per recorded temperature per two hours in a day from 6 am to 6 pm, calculate the range and
mean temperature of day.

Hour Temperature
(0celcius)
6-8 18
8-10 24
10-12 26
12-14 29
14-16 30
16-18 25

Hour Temperature
(0 Celsius)
6-8 18
8-10 24
10-12 26
12-14 29
14-16 30
16-18 25
Total 178

Rang e = Largest – Smallest = 35-25

Range = 100 Celsius

𝛴𝑥 178
𝑥̅ = =
𝑁 6

𝑥̅ = 29.66

N: Number of observations

Σx: Sum of the temperature of the day

The mean temperature of the day is 29.660 Celsius.

************************************

29
 CHAPTER-6
MEASURES OF DISPERSION

I
Answer the following questions in a word/sentence .(each question carries 1 mark)
1 Inter-quartile range is based upon middle of this value in a distribution.
a) 30% b) 20% c) 50% d) 25%
2. For Q.D we need to calculate this value along with Q3
a) Q2 b) Q4 c) Q1 d) Q0
3. Co-efficient of range=
𝑳−𝑺 𝑅−𝐿 𝐿+𝑆
a) 𝑳+𝑺 b) 𝑅+𝐿 c) 𝐿−𝑆 d) None of the above
4. What is the graphical measure available to measure dispersion
a)Lorenz curve b) Marshal curve c) Production curve d) None of the above

II Answer the following questions in a word or sentences.

1. What is Dispersion?
Dispersion refers to the extent to which values in a distribution differ from the average of the
distribution.
2. How do Range and Quartile deviation measure the dispersion?
Range and Quartile deviation measure the dispersion by calculating the spread within which the
values lie.
3. How do mean deviation and standard deviation measure the dispersion?
The Mean Deviation and Standard Deviation measure the dispersion by calculating the extent to
which the values differ from the average.
4. Give the meaning of Standard Deviation.
Standard Deviation is the positive square root of the mean of squared deviations from mean.
5. What is Mean Deviation?
Mean Deviation is the Arithmetic mean of the differences of the values from their average. The
average used is either arithmetic mean or median.
III Answer the following questions in about four sentences. (each question carries 2 marks)
1. Which quartiles are used to calculate inter quartile range? Give the formula of it?
The upper and lower quartiles are used to calculate inter quartile range. It is calculated by using the
formula
Inter Quartile Range= Q3-Q1
2. What is Standard Deviation? Write the formula of it’s assumed mean method.
Standard Deviation is the positive square root of the mean of the squared deviations from Mean.
2
∑𝑓𝑑2 ∑𝑓𝑑′
𝑆. 𝐷 = √ −( ) X𝐶
𝑁 𝑁

3. Mention the different measures of Dispersion.

Measures of Dispersion are-
• Range
• Quartile Deviation
• Mean Deviation
• Standard Deviation
IV Answer the following questions in about twelve sentences each.(Each question carries 4 marks)

30
 1. The yield of Jowar (in tonnes) per acre for 10 districts of a state is as under
District A B C D E F G H I J
Jowar 22 29 12 23 18 15 12 34 18 12
Calculate the Mean Deviation from Mean
X Deviations from Mean
̅|
|D|= X-X
22 2.5
29 9.5
12 7.5
13 3.5
18 1.5
15 4.5
12 7.5
34 14.5
18 1.5
12 7.5
195 60

𝛴𝑋 195
𝑋̅= 𝑁 = 10 =19.5
̅ =19.5
𝑿

Σ|D| 60
M.D from Mean = = =6
𝑁 10

MD𝑋̅ = 6 tonnes.
2 The yield of Rice per acre for 10 districts of a state is as under

District A B C D E F G H I J
Rice 23 18 12 22 29 12 24 18 12 15
Calculate the Mean Deviation from Median

First we need to write yield of Rice in ascending order

Rice
12
12
12
15
18
18
22
23
24
29

𝑁+1 th
Median = Size of 〈 〉 item
2
10+1 th
= Size of ( ) item
2
11 th
= Size of ( 2 ) item.
= Size of (5.5)thitem

31
 5𝑡ℎ 𝑖𝑡𝑒𝑚+6𝑡ℎ 𝑖𝑡𝑒𝑚
Median =Size of 2
18+18
Median = 2
36
Median =
2
Median = 18
Rice Deviations from Median
|D|=[𝑋 − 𝑀𝑒𝑑𝑖𝑎𝑛]
12 6
12 6
12 6
15 3
18 0
18 0
22 4
23 5
24 6
29 11
Σ|D|=47

Mean Deviation from Median “

𝛴|𝐷| 47
MDM= 𝑁 =10=4.7
MDM= 4.7 tonnes

3. Calculate the Mean Deviation using mean for the following distribution.

Classes Frequencies
20-40 3
40-80 6
80-100 20
100-120 12
120-140 9
Total 50

Calculation of Mean Deviation by mean

Classes Frequencies Mid-Point Fm ̅

|D|=m-𝒙 f|D|
(F) (m)
20-40 3 30 90 64.8 194.4
40-80 6 60 360 34.8 208.8
80-100 20 90 1800 4.8 96.00
100-120 12 110 1320 15.2 182.4
120-140 9 130 1170 35.2 316.8
Total 50 4740 998.4

𝛴𝑓𝑚 4740
𝑋̅= 𝑁 = 50 = 94.8
̅ =94.8
𝑿
̅)
Mean Deviation from Mean (MD𝒙
𝛴𝑓|𝐷| 998.4
MD𝑋̅ = = = 19.97
𝑁 50

32
 MD𝑿̅ =19.97

4. Calculate Q.D and its coefficient for the following data.

78 ,80, 80, 82, 82, 84 , 84, ,86, 86, 88,88,90.

x f cf
78 1 1
80 2 3
82 2 5
84 2 7
86 2 9
88 2 11
90 1 12
12

𝑄3−𝑄1
Q.D= 2
To calculate Q.D we need to calculate Q3and Q1
3(𝑁+1)𝑡ℎ
Q3 =Size of item
4
3(12+1)𝑡ℎ
= Size of 4
3(13)
= Size of ( 4 )
3(13) 𝑡ℎ
= Size of ( 4 )
39 𝑡ℎ
= Size of ( 4 ) item

= Size of 9.75th item

= Size of 9th+0.75th (10th-9th)item
= 86+0.75(88-86)
= 86+0.75(2)
= 86+1.5
Q3= 87.5

𝑁+1 𝑡ℎ
Q1= Size of ( ) item
4

12+1 𝑡ℎ
Q1= Size of ( ) item
4

13 𝑡ℎ
Q1= Size of ( 4 ) item

Q1= Size of 3.25th item

= 3rd+0.25(4th-3rd item)
= 80+0.25(82-80)
= 80+0.25(2)
Q1= 80+0.5
Q1 = 80.5

33
 𝑄3 −𝑄1
Q.D= 2

87.5−80.5
Q.D= 2
7
Q.D=2
Q.D= 3.5

𝑄 −𝑄 87.5−80.5 7
Co-efficient of Q.D= 𝑄3 +𝑄1 =87.5+80.5 =168
3 1

Co-efficient of Q.D = 0.0416

5. Find Mean Deviation from mean for the following distribution.

Height (Inches) 60 61 62 63 64 65 66 67 68
No. of Persons 2 1 14 29 25 12 10 4 2

Height No. of points(f) fx ̅

|d|=x-𝒙 f|d|
60 2 120 3.8 7.6
61 1 61 2.8 2.8
62 14 868 1.8 25.2
63 29 1827 0.8 23.2
64 25 1600 0.2 5
65 12 780 1.2 14.4
66 10 660 2.2 22
67 4 268 3.2 12.8
68 2 136 4.2 8.4

Total 99 6320 121.4

𝛴𝑓𝑥
𝑥̅ =𝑁
6320
= 99 = 63.8
̅= 63.8
𝒙

M.D𝑥̅ = 𝛴𝑓|𝑑|
𝑁
121.4
=
99
M.D𝒙̅ = 1.22

6. Calculate co-efficient of M.D from Median for the following frequency distribution.
X 5 6 7 8 9 10
f 8 12 18 8 2 1

x f c.f |d|=x-Me f|d|

5 8 8 2 16
6 12 20 1 12
7 18 38 0 00
8 2 46 1 8
9 4 48 2 4

34
 10 1 49 3 3
Total 49 43

𝑁+1 th
Median = Size of ( ) item
2
49+1 𝑡ℎ
= Size of ( 2 ) item
50 𝑡ℎ
Median = Size of ( 2 ) item
= Size of 25th item
Median= 7
𝛴𝑓|𝑑| 43
M.DMe= 𝑁 =49
M.DMe= 0.87

𝑀𝐷
Co-efficient of M.D= 𝑀 𝑚𝑒
𝑚𝑒
0.87
= 7
Co-efficient of M.D= 0.124

7. Find the Standard Deviation for the following data.

8,9,15,23,5,11,19,8,10,12
x d=(x-𝑥̅ ) 𝑑2
8 -4 16
9 -3 9
15 3 9
23 11 121
5 -7 49
11 -1 1
19 7 49
8 -4 16
10 -2 4
12 0 0

120 274

𝛴𝑥
𝑥̅ = 𝑁
120
= 10

̅= 𝟏𝟐
𝒙

𝛴𝑑2
σ=√
𝑛

274
σ=√ 10
σ =√27.4
σ= 5.23

35
 V Answer the following about twenty sentences (each question carries 6 marks)

1 The yield of Sugar cane per acre for 10 districts of a state is as under:
District A B C D E F G H I J
Sugar-cane 12 10 15 19 21 16 18 9 25 10
Calculate Standard Deviation and Co-efficient variation.
Standard Deviation by Actual Mean method:
x d=(x-𝑥̅ ) 𝑑2
12 -3.5 12.25
10 -5.5 30.25
15 -0.5 0.25
19 3.5 12.25
21 5.5 30.25
16 0.5 0.25
18 2.5 6.25
9 -6.5 42.25
25 9.5 90.25
10 -5.5 30.25

155 -- 254.5

𝛴𝑥
𝑥̅ = 𝑁

155
= 10
̅= 15.5
𝒙

Standard Deviation
𝜮𝒅𝟐
𝝈=√ 𝒏

𝟐𝟓𝟒.𝟓
𝝈=√ 𝟏𝟎
σ=√𝟐𝟓. 𝟒𝟓
σ=5.044

𝜎
C.V=𝑥̅ x 100
5.04
= x 100
15.5
C.V = 32.516

36
 2 Calculate the Standard Deviation for the following distribution.
Classes Frequencies
0-20 9
20-40 12
40-60 20
60-80 6
80-100 3
50

Classes Freque Mid- d=m-A d ‘=m-A fd ‘ d ‘2 fd ‘2

ncy (f) Point (m) A=50 C
C=10
0-20 9 10 -40 -4 -36 16 144
20-40 12 30 -20 -2 -24 4 48
40-60 20 50-A 0 0 0 0 20
60-80 6 70 20 2 12 4 24
80-100 3 90 40 4 12 16 48
Total -36 284

∑𝑓𝑑2 ∑𝑓𝑑′ 2
σ= √ − ( ) X 𝐶
𝑁 𝑁

284 −36 2
σ= √ 50 − ( 50 ) X 10

σ = √5.68 − (−0.72)2 x10

σ = √5.68 − 0.52 x10

σ = √5.16 x10
σ = 2.27 x10
σ = 22.70

3. Calculate Co-efficient of Q.D for the following distribution.

Wages(Rs.) 60-64 64-68 68-72 72-76 76-80 80-84 84-88
No. of workers 12 18 16 14 12 8 8

Wages (Rs.) No. of workers (f) c.f

60-64 12 12
64-68 18 30
68-72 16 46
72-76 14 60
76-80 12 72
80-84 8 80
84-88 8 88
88

𝑄3 −𝑄1
Q.D= 2
𝑛 th
Q1=( 4 ) item

37
 88
= ( 4 )th item
= 22nd item
Q1 falls in 64-68
To find exact Q1 following formula is used

𝑛
4 −𝑐𝑓
Q1= L+⌈ ⌉x i
𝑓

88
4 −12
Q1= 64+⌈ ⌉x 4
18
22−12
Q1= 64+⌈ 18 ⌉x 4
10
Q1= 64+⌈18⌉x 4
Q1= 64+⌈0.55⌉x 4

Q1= 64+2.22
Q1= 66.22

Calculation of Q3
3(𝑛) th
Q3 = Size of ( ) item
4

3(88) th
Q3 = Size of ( ) item
4
264 th
Q3 = Size of ( ) item
4

Q3 = Size of 66th item

Q3 falls in 76-80
To calculate exact Q3 the following formula is used
3𝑛
4
−𝑐𝑓
Q3= L+⌈ ⌉x i
𝑓
264
4
−60
Q3= 76+⌈ ⌉x 4
12
66−60
Q3= 76+⌈ 12 ⌉x 4
6
Q3= 76+⌈12⌉x 4
Q3= 76+⌈0.5⌉x 4
Q3= 76+2
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 Q3= 78
𝑄3 −𝑄1
Q.D= 2

78−66.22
Q.D= 2
11.78
Q.D= 2
Q.D= 𝟓. 𝟖𝟗

𝑄3 −𝑄1
Co-efficient of Q.D =
𝑄3 +𝑄1

78−66.22
Co-efficient of Q.D =
78+66.22

11.78
Co-efficient of Q.D =
144.22

Co-efficient of Q.D = 𝟎. 𝟎𝟖𝟏𝟔

4. Calculate the Standard Deviation and variance for the following distribution by deviation method.
X 8 11 17 20 25 30 35
F 2 3 4 1 5 7 3

x f fx D=x-A 𝑑 fd’ d’2 fd’2

d ‘ =𝑐
A=20
8 2 16 -12 -4 -8 16 32
11 3 33 -9 -3 -9 9 27
17 4 68 -3 -1 -4 1 4
20 1 20 0 0 0 0 0
25 5 125 5 1.6 8 2.56 12.8
30 7 210 10 3.3 23.1 10.89 76.23
35 3 105 15 5 15 25 75
2
25 ∑fx=577 ∑fd’=25.1 ∑fd’ =227.03
Standard Deviation:

∑𝑓𝑑′2 ∑𝑓𝑑′2 2
σ= √ −( ) xc
∑𝑓 ∑𝑓

227.03 25.1 2
σ= √ − ( ) x3
25 25
σ = √9.0812 − (1.004)2 x 3

σ = √9.0812 − 1.008 x 3

σ = √8.0732 x 3

σ = 2.841 x 3
σ = 8.524

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 Variance or Co-efficient of Variation:

σ
C.V =𝑥̅ x 100
∑𝑓𝑥
𝑥̅ = ∑𝑓

∑𝑓𝑥
𝑥̅ = ∑𝑓

𝑥̅ =23.08

8.524
C.v =̅̅̅̅̅̅̅̅ x 100
23.08

C.v = 𝟑𝟔. 𝟗𝟑

******

40
 CHAPTER-8
INDEX NUMBERS

I. Choose the correct answers (each question carries 1 mark)

𝛴𝑃 𝑄
1. The formula P01=𝛴𝑃1 𝑄0 x100 is given by
0 0
a) Laspeyer b) Paasche c) Marshal d) Fisher
2. In index number of which year price is assumed to be 100
a) Current year b) Base year c) Selection of prices d) None of the above
3. Laspeyer’s index is based on
a) Base year quantity b) Current year quantity c) Both of them d) Average of current and base
4. Paasche’s index is based on
a) Current year quantity b) Base year quantity c) Both of them d) None of these.

II. Fill in the blanks (each question carries 1 mark)

1. Index numbers are expressed in Percentages.

2. Inflation affects the Cost of living of common people.
3. Using current year quantities as weights is known as Paasche’s Price Index.
4. P1 and P0 indicate the price of the commodity in the current and base period respectively.

III. Match the following. (total 5 marks)

A B
CPI a) Producer Price Index (5)
WPI b) Agriculture Price Index (4)
IPI c) Consumer Price Index (1)
API d) Wholesale Price Index (2)
PPI e) Industrial Production Index (3)
IV. Answer the following questions in a word / sentence (each question carries 1 mark)

1. What is an index number?

An index number is a statistical device for measuring changes in the magnitude of a group of related
variables.
2. What is price relative?
Price relative refers to percentages of current prices with reference to base year prices.
3. What is inflation?
A general rise in the price of all goods and services is called inflation.
4. Write the formula for calculating index of industrial production.
The formula for calculating index of industrial production is-
𝛴𝑞1 x W
Index of industrial production= 𝛴W

41
5. What is SENSEX?
SENSEX is the short form of Bombay stock Exchange Sensitive Index with 1978-79 as base. It is the
benchmark index for the Indian Stock Market.
V. Answer the following questions in about four sentences (each question carries 2 marks)
1. Mention some important index numbers.
Following are the few important index numbers:

a) Consumer Price Index

b) Wholesale Price Index
c) SENSEX
d) Producer Price Index
e) Industrial Production Index
f) Agricultural Production Index

2. What is consumer price index number? How do you calculate it?

Consumer Price Index is the index which measures the average change in retail prices. The
Consumer Price Index is calculated with the help of following formula:
𝛴𝑊𝑅
CPI= 𝛴𝑊

3. What is wholesale price index? Write its drawbacks.

The wholesale price index number indicates the change in the general price level. It acts as an
indicator of the rate of inflation.
The main drawbacks of WPI are:
* It does not have any reference consumer category.
* It does not include items from services like barber charges, repairing etc.

4. What is industrial production index? Which year is the base for their index on India?
The industrial production index measures changes in the level of industrial production comprising
many industries. They measure the overall change in the total volume of industrial production.
In India, the industrial production index is currently calculated every month with 2004-2005 as the
base.

VI. Answer the following questions in about twelve sentences (each question carries 4 marks)

1. Calculate weighted average of price relative index from the following data.

Items Weight in %
A 40
B 30
C 20
D 10
Base year price (Rs.) Current year price (Rs.)
2 4
5 6
4 5
2 3

Items Weight in % Base year Current year 𝑷 RW

R=𝑷𝟏 x 100
𝟎
(W) price (P0) price (P1)
A 40 2 4 200 8000
B 30 5 6 120 3600
C 20 4 5 125 2500
D 10 2 3 150 1500

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 Total 100 15,600
Calculation of weighted average of price relative index
P
𝛴𝑊[P1x100] 𝛴𝑊𝑅 15600
0
P01= OR P01= = =156
𝛴𝑊 𝛴𝑊 100
P01= 156

2. Compute the cost of living index number for the following data.
Commodities Q0 P0 P1
Wheat 20 10 12
Rice 5 30 35
Ghee 2 20 30
Sugar 4 25 40

Commodities Q0 (W) P0 P1 𝑷𝟏 RW
R= 𝐱𝟏𝟎𝟎
𝑷𝟎
Wheat 20 10 12 120 2400
Rice 5 30 35 116.6 582.5
Ghee 2 20 30 150 300
Sugar 4 25 40 160 640
Total 31 3922.5

Calculating of cost living index or consumer price index is calculated as follows:

𝛴𝑊𝑃 3922.5
CPI= = = 126.53
𝛴𝑊 31
CPI=126.53
Comment : It means there is increase by 26.53% in prices.

3. Calculate index numbers from the following data by Laspeyer’s method.

Commodity P0 Q0 P1 Q1
A 8.0 5 10 11
B 8.5 6 9 9
C 9.0 4 12 6

Laspeyer’s method:
Commodity p0 q0 p1 q1 p1q0 p0q0
A 8.0 5 10 11 50 40
B 8.5 6 9 9 54 51
C 9.0 4 12 6 48 36
Total 152 127

𝛴𝑝 𝑞 152
p01=𝛴𝑝1 𝑞0x100 =127 x100
0 0

P01=119.68

VII. Answer the following in about 20 sentences (each question carries 6 marks)
1.Explain the difficulties in construction of Consumer Price Index number.
The following are the difficulties in construction of Consumer Price Index:

43
a) Index numbers are not based on all items:As index numbers are generally based on a sample, it is
not possible to take into account each every item in the construction of index.
b) Index numbers are not free from errors: In every stage of the construction of index numbers,
starting from selection of commodities to the choice of formulae there is a chance of error being
introduced.
c) Index numbers are meant for particular purpose: An index number is used to measure the change
for a particular purpose only.
d) Index numbers prepared for particular place or particular class cannot be used for different places
or different classes of people: Prices used in the construction of consumer price index are retail prices,
which vary from place to place and consumer to consumer. Therefore, index numbers prepared for
such prices cannot be used in different places and different classes of people.
e) Index numbers prepared for particular time cannot be used for different time:Index numbers
include so many commodities of unstable quality, which will not be used at different point of time.
The above characteristics of index numbers create difficulties in construction of Consumer Price Index
number.

2. Write a short note on CPI, WPI,and IIP.

a) Consumer Price Index (CPI): The Consumer Price Index measures the average change in retail prices.
It is also called as Cost of living index. In India three CPIs are constructed. They are CPI for industrial
workers, CPI for new series and CPI for agricultural labourers.
The following formula is used for CPI:
𝛴𝑊𝑅
CPI= 𝛴𝑊
b) Wholesale Price Index (WPI): The wholesale price index number indicates the change in the general
price level. The WPI acts as an indicator of changes in the economy. In India, the first wholesale price
index was compiled in 1947. The latest wholesale price index number in India is constructed with 2004-
2005 as the base year.
c) Index of Industrial Production (IIP): The index number of industrial production measures changes
in the level of industrial production comprising many industries.
The IIP is calculated with the help of following formula:
𝛴𝑞1 x 𝑤
IIP= x 100
𝛴𝑊
In India, it is currently calculated every month with 2004-2005 as base year.

3. Calculate price index number by a) Laspeyer’s method b) Paasche’s method

Commodity 1990 1995

Price Quantity Price Quantity
A 20 15 30 20
B 15 10 20 15
C 30 20 25 10
D 10 5 12 10

Commodity 1990 1995

Price Quantity Price Quantity p1q0 p0q0 p1q1 p0q1
(p0) (q0) (p1) (q1)

44
 A 20 15 30 20 450 300 600 400
B 15 10 20 15 200 150 300 225
C 30 20 25 10 500 600 250 300
D 10 5 12 10 60 50 120 100
Total 1210 1100 1270 1025

Laspeyer’s method:
𝛴𝑝 𝑞
p01=𝛴𝑝1 𝑞0 x 100
0 0
1210
= x 100
1100
= 1.1 x 100
P01 = 110

Paasche’s method:

𝛴𝑝 𝑞
P10= 𝛴𝑝1 𝑞1 x 100
0 1
1270
P10 = x 100
1025

P10 = 1.239 x 100

P10 = 123.9
VIII. Project oriented question (5 marks)

1.Write a note on SENSEX.

SENSEX is the short form ofSensitive Index of Bombay Stock Exchange with 1978-79 as base year. The
value of SENSEX is with reference to this period. It is the benchmark index for the Indian stock market.
It consists of 30 companies which are the leaders in their respective industries. If the SENSEX rises, it
indicates that market is doing well and investors expect better earnings from companies. It also
indicates as growing confidence of investors in the basic health of the economy.

SENSEX is the oldest index in India and has acquired a unique place in the collective consciousness of
investors. This index is widely used to measure the performance of Indian stock market. It is the pulse
of Indian capital market.

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