Statistical Theory (Math 125D)

LESSON 2: STATISTICAL MEASURES

Learning Outcomes

At the end of this lesson, the students will be able to:

• Summarize the data using measures of central tendency such as the
mean, median, and mode;
• Describe the data using the measures of variation such as the range,
variance, and standard deviation; and
• Identify the position of an observation using the various measures of
position, such as percentiles, deciles, and quartiles.

2.1 Measures of Central Tendency (for ungrouped data)

- Measures of average which include mean, median and mode.

- A measure which is computed from the sample is called statistic.
- A measure which is computed from the population is called parameter.

Mean

The mean of a data set is the average of all the data values.

∑𝑁 𝑥 ∑𝑛 𝑥
𝜇 = 𝑖=1 𝑖 𝑥̅ = 𝑖=1 𝑖
𝑁 𝑛
Population mean Sample mean

where: N is the number of observation in the population

n is the number of observation in the sample

Note: 𝜇 is read as “mu”, while 𝑥̅ 𝑖𝑠 𝑟𝑒𝑎𝑑 𝑎𝑠 "𝑥 𝑏𝑎𝑟".

Example 1:

Below are the ages of the 11 executives of Company A. Find the mean.

35, 42, 38, 45, 48, 34, 32, 36, 39, 25, 26

Solution:

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Statistical Theory (Math 125D)

The mean age of the executives in Company A is given by:

35 + 42 + ⋯ + 26
𝜇= = 36.4
11

Example 2:

The grades of the selected Public Administration students in Statistics 101 last
semester were collected as follows:

80 84 82 85 86

Find the mean grade.

Solution:
80+84+82+85+86
𝑥̅ = 5
= 83.4

Properties of the Arithmetic Mean:

1. Every set of interval-level and ratio-level data has a mean.

2. All the values are included in computing the mean.
3. A set of data has a unique mean.
4. The mean is affected by unusually large or small data values (outliers).
5. The arithmetic mean is the only measure of central tendency where the
sum of the deviations of each value from the mean is zero, that is,
∑(xi − x̅) = 0.

Median

The median is the value in the middle of the data set when arranged in
ascending/descending order. It is the preferred measure if the data set includes
outliers or extreme values.

Example 3: (For an odd number of observations)

Below are the ages of the selected respondents who participated in a
social research. What is the median age of the respondents?

26 18 27 12 14 72 19

Solution:

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Statistical Theory (Math 125D)

First, arrange the data set in increasing/decreasing order:

12 14 18 19 26 27 72
The middle value is the median which is 𝑥̃=19.

Population median = 𝝁
̃
Sample median = 𝒙
̃

Example 4: (For an even number of observations)

26 18 27 12 14 72 30 19

Solution:
Again, arrange the data set in increasing order:
12 14 18 19 26 27 30 72
The median is the average of the two middle values:
19+26
𝑥̃ = = 22.5
2

Mode

The mode of a data set is the value that occurs with greatest frequency. The
data set can have multiple or no mode at all. If the data have exactly 2 modes, the data
set is called bimodal. If the data have more than two modes, it is called multimodal.

Example 5:

No Mode
Raw Data : 10.3 4.9 8.9 11.7 6.3 7.7

This data set contains no mode, since all values have same frequency.

One Mode
Raw Data : 6.0 4.9 6.0 8.9 6.3 4.9 4.9

The mode is 4.9, since it occurs 3 times and is the most among the data values.

More Than 1 Mode

Raw Data : 21 28 28 41 43 43

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Statistical Theory (Math 125D)

Population mode: 𝝁𝟎
Sample mode = 𝒙𝟎

The modes in the data set are 28 and 43, since both have the most number of
occurrences.

Exercises:

Fifteen hotels were randomly sampled in a Davao City. The prices per night
are presented below:
4250 4300 4300 4350 4350
4400 4400 4400 4450 4450
4500 4500 4500 4500 4500

Find the mean, median and mode.

Weighted Mean

The weighted mean is an average which multiplies each value by its

corresponding weight and dividing the sum of the products by the sum of the weights.

𝑤1 𝑥1 + 𝑤2 𝑥2 + ⋯ + 𝑤𝑛 𝑥𝑛
𝑥̅𝑤 =
𝑤1 + 𝑤2 + ⋯ + 𝑤𝑛

∑𝑛𝑖=1 𝑤𝑖 𝑥𝑖 ∑𝑛𝑖=1 𝑓𝑖 𝑥𝑖
𝑥̅𝑤 = 𝑛 𝑜𝑟
∑𝑖=1 𝑤𝑖 ∑𝑛𝑖=1 𝑓𝑖

where 𝑤1 , 𝑤2 , … , 𝑤𝑛 are the weights and 𝑥1 , 𝑥2 , … , 𝑥𝑛 are the values.

Note:
The weighted mean presented above is the sample weighted mean. The
notation for the population weighted mean is 𝜇𝑤 whose formula is the same
as 𝑥̅ .

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Statistical Theory (Math 125D)

Example 6:
Ms. Pia Diaz received 83, 85, 90, 87, and 86 for her five 3-unit minor subjects,
and 76 for her 5-unit subject. Compute her grade point average (GPA).

Solution:
Grade Unit
83 3.0
85 3.0
90 3.0
87 3.0
86 3.0
76 5.0

(83)(3.0)+(85)(3.0)+(90)(3.0)+(87)(3.0)+(86)(3.0)+(76)(5.0)
𝑥̅𝑤 = 20

= 83.7

Example 7:
Ms. Catriona Green grades quizzes, 40%; homework, 10%; and final exam,
50%. A student had grades of 78, 95, and 75 respectively, for quizzes, homework, and
final exam. Find the student’s final grade.

Solution:
(78)(. 40) + (95)(. 10) + (75). 50)
𝐺𝑟𝑎𝑑𝑒 =
. 40 + .10 + .50
= 78.2

Example: 10, 5, 8, 10, 12, 5, 5, 12, 6, 2

(10)(2)+(5)(3)+(8)(1)+(12)(2)+(6)(1)+(2)(1)
10

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Statistical Theory (Math 125D)

2.2 MEASURES OF VARIABILITY (For ungrouped data)

Range

The range of a set of data is the difference between the highest and the lowest
values of the data.
Range = Highest – Lowest

Example 8:
The pulse rates of two patients were recorded three times upon arriving in
hospital. The pulse rates for patient A were 72, 76, and 74, while 72, 91, and 59 for
patient B. Note that the mean pulse rate of the two patients is the same, 74, but
observe the difference in variability. Which patient is more varied in pulse rates?
𝑅𝐴 = 76 − 72 = 4
𝑅𝐵 = 91 − 59 = 32

Note:
The range is easy to compute. It only depends on the two extreme values of a
set of data – the lowest and the highest. It does not tell us anything about the
dispersion of the values that fall between the two extremes.

Illustration:

Consider the three sets of data:

SET A 3 18 18 18 18
SET B 3 7 16 16 18
SET C 3 6 9 14 18

Which is more variable?

Based on the table, set C is more variable than sets A and B as can be seen on
the distribution of the data set. However, the range cannot detect these differences of
variability since:

𝑅𝐴 = 18 − 3 = 15
𝑅𝐵 = 18 − 3 = 15
𝑅𝐶 = 18 − 3 = 15

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Statistical Theory (Math 125D)

Variance

The Variance of a set of data is the average square deviation of the values
from the mean.
∑𝑁
𝑖=1(𝑥𝑖 −𝜇 )
2 ∑𝑛
𝑖=1(𝑥𝑖 −𝑥̅ )
2
𝜎2 = 𝑠2 =
𝑁 𝑛−1

Population Variance Sample Variance

where N is the number of observations in the population

n is the number of observations in the sample
µ is the population mean
𝑥̅ is the sample mean

Example 9:
The Human Resource and Management Office of Malaybalay City has to
choose 1 of the two personnel for promotion. The human resource officer considers
the performance ratings in the last 5 years.

Year 1 Year 2 Year 3 Year 4 Year 5

Personnel A 87 83 84 94 92
Personnel B 88 89 87 86 90

Which personnel should the human resource officer consider for promotion?
Solution:
87+83+84+94+92 88+89+87+86+90
𝑥̅𝐴 = = 88 𝑥̅𝐵 = = 88
5 5

(87−88)2 +(83−88)2 +(84−88)2 +(94−88)2 +(92−88)2

𝑠𝐴2 =
5−1

(−1)2 +(−5)2+(−4)2 +(6)2 +(4)2

=
4
1+25+16+36+16
= 4
94
= 4

𝑠𝐴2 = 23.5

(88−88)2 +(89−88)2 +(87−88)2 +(86−88)2 +(90−88)2

𝑠𝐵2 = 5−1

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Statistical Theory (Math 125D)

(0)2 +(1)2+(−1)2 +(−2)2 +(2)2

= 4
0+1+1+4+4
= 4
10
= 4

𝑠𝐵2 = 2.5
The human resource officer should choose personnel B since he is more
consistent in his performance in the last 5 years.

Example 10:
The prices of all gasoline stations in Malaybalay in the last month were
recorded. The prices were as follows: 44, 44, 45, 45, 43, 46, 45, 47, 46, 44, 47, 44. Find
the variance of the prices.

44 + 44 + 45 + 45 + 43 + 46 + 45 + 47 + 46 + 44 + 47 + 44
𝜇= = 45
12

2
(44 − 45)2 + (44 − 45)2 + (45 − 45)2 + ⋯ + (44 − 45)2
𝜎 =
12
(−1)2+(−1)2+(0)2 +(0)2+(−2)2+(1)2 +(0)2+(2)2 +(1)2 +(−1)2+(2)2 +(−1)2
=
12
1+1+0+0+4+1+0+4+1+1+4+1
= 12
18
= 12

= 1.5

Standard Deviation

The Standard Deviation of a set of data is the average of the square deviation of
the values of the data from the mean. It has the same unit as the given data.

∑𝑁
𝑖=1(𝑥𝑖 −𝜇 )
2 ∑𝑛
𝑖=1(𝑥𝑖 −𝑥̅ )
2
𝜎=√ 𝑁
𝑠=√ 𝑛−1

Population Standard Deviation Sample Standard Deviation

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Statistical Theory (Math 125D)

where N is the number of observation in the population

n is the number of observation in the sample

Example 11:

Find the standard deviations of the previous examples.

Solution:
For example 9,

𝑠𝐴 = √23.5 = 4.8

𝑠𝐵 = √2.5 = 1.6
For example 10,

𝜎 = √1.5 = 1.2

Note: The standard deviation has same unit as the given data.

Mean Deviation

The Mean Absolute Deviation (MAD) of a set of data is defined to as:

|𝑥𝑖 −𝜇| |𝑥𝑖 −𝑥̅ |

𝜇̅𝑀𝐴𝐷 = ∑𝑁
𝑖=1 𝑥̅𝑀𝐴𝐷 = ∑𝑛𝑖=1
𝑁 𝑛

Population MAD Sample MAD

Example 12:
Find the mean absolute deviation of the sample 2, 3, 5, 7, and 8.

Solution:

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Statistical Theory (Math 125D)

2+3+5+7+8
𝑥̅ = =5
5
|2−5|+|3−5|+|5−5|+|7−5|+|8−5|
𝑥̅𝑀𝐴𝐷 = 5
|−3|+|−2|+|0|+|2|+|3|
= 5
3+2+0+2+3
= 5

=2

Coefficient of Variation

The Coefficient of Variation (CV) expresses the variation as a percentage of the

mean, and is calculated as follows:
𝜎
𝐶𝑉 = 𝜇̅ ∙ 100% ̂ = 𝑠 ∙ 100%
𝐶𝑉 𝑥̅

Population CV Sample CV

• Measure of relative dispersion

• Always a %
• CV is the standard deviation expressed as percent of the mean
• CV is unitless. Thus, it is used to compare two or more groups with
different units.
• Weakness: CV is undefined if the mean is zero or if data are negative.
• Thus, CV is used only for variables whose values are 𝑋 ≥ 0

Note:
If you know nothing about the data other than the mean, one way to interpret
the relative magnitude of the standard deviation is to divide it by the mean. This is
called the coefficient of variation.

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Statistical Theory (Math 125D)

Example 13:
Consider two sampled data sets with different units. In data set 1, the mean
is 80 and standard deviation is 12, while in data set 2 the mean is .50 and its standard
deviation is .20. Which data set is more variable?

Solution:
Given:

Data Set 1 Data Set 2

Mean 80 cm .50 m
SD 12 cm .20 m

For data set 1:

̂1 = 12 × 100% = 15%
𝐶𝑉 80

For data set 2:

̂2 = .20 × 100% = 40%
𝐶𝑉 .50

The computations indicate that data set 2 is more variable than data set 1.

Note:
Knowing nothing else about the data, the CV helps us see that even a lower
standard deviation doesn’t mean less variable data.

2.3 MEASURES OF RELATIVE POSITION (For ungrouped data)

It is a measurement of a specific data value’s relative position in comparison

with other data values. The measures are percentiles, deciles, and quartiles.

Percentiles

The percentiles are the values in the sorted data set which is divided in 100
equal parts. The kth percentile is the value in which k percent of the data are below
it. The percentiles are denote by 𝑃𝑘 where 𝑘 = 1, 2, 3, … , 99.

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Statistical Theory (Math 125D)

Steps for Finding Percentiles:

1. Sort/arrange the data set in ascending order.

2. The position of the kth percentile is determine using the index:
𝑘
𝑖=( )𝑛
100

where n = number of observations in a data set

3. The kth percentile is the value in the ith position. If the value of 𝑖 is not an
integer, round it up.
4. If 𝑖 is an integer or a whole number, the kth percentile is the average of the
values in 𝑖th and (𝑖 + 1)th positions.

Example 14:

Below are the ages of the employees in the Traffic Management Department
(TMD) in the City of Malaybalay.

22 25 25 27 27 28 28 28
30 30 31 32 32 32 34 34
35 35 36 36 36 36 37 37
38 38 39 39 40 40 41 41
43 44 45 47 49 51 52 55

Find the P85 and P48 and interpret the results.

Solution:

85
𝑖=( ) × 40 = 34
100

Note that the obtained value of 𝑖 is a whole number. So, the 𝑃85 is the average
44+45
of the 34th and 35th observations. Hence, 𝑃85 = 2 = 44.5. This value means the
85% of the employees under the traffic management department have ages below
44.5 years.

For the 𝑃48 , we compute:

48
𝑖=( ) × 40 = 19.2
100

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Statistical Theory (Math 125D)

Since the computed 𝑖 is not a whole number, then the 𝑃48 is the 20th value
which is 36. This means that 48% of the employees under traffic management
department are below 36 years of age.

Deciles

The deciles are the values in the data set sorted in 10 equal parts. The values
are denoted by 𝐷1 , 𝐷2 , … , 𝐷9 .

Note that:

First Decile (𝐷1 ) = 10th Percentile

Second Decile (𝐷2 ) = 20th Percentile
. .
. .
. .
Ninth Decile (𝐷9 ) = 90th percentile

Example 15:

Find the D7 in the data set found in example 14.

Solution:
7
𝑖=( ) × 40 = 27
10
39+39
The value of 𝐷7 is the average of the 27th and 28th values. Hence, 𝐷7 = =
2
39. This means that 70% of the employees under the TMD is below 39 years of age.

Note:

The same with percentile, if the computed index 𝑖 is not an integer, then its
value is rounded up to the next whole number.

Quartiles

The quartiles are the values in the data set sorted in 4 equal parts. The values
are denoted by 𝑄1 , 𝑄2 , and , 𝑄3 .

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Statistical Theory (Math 125D)

Relationship of quartiles to percentiles and deciles:

𝑄1 = 𝑃25 , 𝑄2 = 𝑃50 , and 𝑄3 = 𝑃75

Example 16:

Find the Q2 and Q3 in the data set presented example 14. Interpret the results

Solution:

For 𝑄2 ,
2
𝑖 = ( ) × 40 = 20
4

The computed 𝑖 shows that the 𝑄2 is the average of 20th and 21st values in the
36+36
data set. Hence, 𝑄2 = 2 = 36. This means that 50% of the employees under TMD
are below 36 years of year.

Interquartile Range

The interquartile range (IQR) is a measure of variability, based on dividing

a data set into quartiles. The interquartile range is given by:

𝐼𝑄𝑅 = 𝑄3 − 𝑄1

• It is the range for the middle 50% of the data.

• It overcomes the sensitivity to extreme data values—it is not effected by the
extreme values.

Example 17:

Find the interquartile range of the following data: 35, 25, 11, 0, 2, 10, 6, 5, 20,
14, and 30.

STEPS:
Step 1: Arrange the number in increasing order:
0, 2, 5, 6, 10, 11, 14, 20, 25, 30, 35

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Statistical Theory (Math 125D)

Step 2: Find the median

0, 2, 5, 6, 10, 11, 14, 20, 25, 30, 35

Step 3: Place parentheses around the numbers above and below

the median.
(0, 2, 5, 6, 10), 11, (14, 20, 25, 30, 35)

Step 4: Find Q1 and Q3

(Q1 is the median of the first half of the data. Q3 is the median
of the 2nd half of data)

(0, 2, 5, 6, 10), 11, (14, 20, 25, 30, 35)

Hence, Q1=5 and Q3=25.

Step 5: Subtract Q1 from Q3

𝐼𝑄𝑅 = 𝑄3 − 𝑄1 = 25 – 5 = 20

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Statistical Theory (Math 125D)

Chebyshev’s Theorem

1
At least the fraction 1 − 𝑘 2 of the measurements of any set of data must lie
within k standard deviations of the mean.

Interval for population data: (𝜇 − 𝑘𝜎, 𝜇 − 𝑘𝜎)

Interval for sample data: (𝑥̅ − 𝑘𝑠, 𝑥̅ + 𝑘𝑠)

Example 18:

Random samples of 2,120 students in a State University have mean IQ score of

128 and a standard deviation of 5. Determine the interval containing at least 1,590 of
the IQs in the sample. Draw a statistical inference concerning the IQs of the students.

Solution:
1 1,590
1 − 𝑘 2 = 2,120
1,590 1
1 − 2,120 = 𝑘 2
3 1
1 − 4 = 𝑘2
1 1
= 𝑘2 ⟹ 𝑘2 = 4 ⟹ 𝑘=2
4

The interval is:

(128 − 2(5) , 128 + 2(5)) = (128 − 10 , 128 + 10)
= (118 , 138)

Therefore, at least 1,590 (or 75%) of the students have IQs between 118 and
138.
Example 19:

Refer to example 18, in what range can we be sure that no more than 120 of
the scores fall?

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Statistical Theory (Math 125D)

2.4 z-score

The z-score is the measure as to the number of standard deviations an

observation, 𝑥, is below or above the mean. It is defined as
𝒙−𝝁
𝒛=
𝝈

Note:
1. The positive value of z-score is the number of standard deviations an
observation is above the mean, while the negative z-score is the number of
standard deviations an observation is below the mean.

2. Z-score is unit-less, which allows us to compare two observations measured

in completely different units.

Example 20:
Mr. Reyes made a grade of 83 in Mathematics and a grade of 89 in English. The
performances of the classes where Mr. Reyes was in are as follows:

Class Mean Std. Deviation

Mathematics 75 3
English 88 2

Which subject did Mr. Reyes perform better?

Solution:

83−75
𝑧𝑀 = = 2.67
3

The value 2.67 means that Mr. Reyes’ grade is 2.67 standard deviations above
the whole Mathematics class performance.
89−88
𝑧𝐸 = = 0.5
2

The value 0.5 means that Mr. Reyes’ grade is 0.5 standard deviations above the
whole English class performance.

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Statistical Theory (Math 125D)

Example 21:
Typing is one of the skills a secretary should possess. In order to evaluate
candidates for these positions, a local employment agency administers three
standardized typing samples. A time penalty has been incorporated into the scoring
of each sample based on the number of typing errors. Ms. Anna Gozales is applying
for the three firms as a secretary. The mean and standard deviation for each test,
together with the score achieved by Ms. Gonzales, are given below:

Ms. Gonzales’ Standard

Firms Mean
Score Deviation
Real Estate 145 sec 190 sec 32 sec
Medical 8 min 11 min 3 min
Scientific 38 min 30 min 2 min

What type of position does Ms. Gonzales seem to be best suited?

Solution:
145−190
𝑧𝑅 = = −1.41
32

8 − 11
𝑧𝑀 = = −1
3
38 − 30
𝑧𝑆 = =4
2

The results suggest that Ms. Gonzales is best suited to real estate firm.

2.5 Skewness and Kurtosis

Skewness

Skewness is a measure of the lack of symmetry of the distribution of data set.

The distribution of data set is said to be symmetric if it looks the same to the
left and right of its center point. Otherwise, it is called skewed.

Coefficient of Skewness:

The skewness of the data set can be computed using the formulas:

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Statistical Theory (Math 125D)

3(𝜇 − 𝜇̃ ) 3(𝑥̅ − 𝑥̃ )
𝑠𝑘 = ̂=
𝑠𝑘
𝜎 𝑠

Positively skewed / skewed to the Negatively skewed/skewed to the left,

right, if sk > 0 if sk < 0

Symmetric, if sk = 0

The figures show that the distribution is positively skewed if the bulk of
observations is on the left side data set; it is negatively skewed if the bulk is on the
right side; and symmetric if the bulk is at the center or the distributions of the left and
right of the data set are the same.

Note that if the distribution is negatively skewed, the mean < median < mode.
That is,

If the distribution is positively skewed,Median

Mean the mean Mode
> median > mode

Mode Median Mean

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Statistical Theory (Math 125D)

If the distribution is symmetric, the mean = median = mode

Mean
Median
Mode

Example 22:
Consider the set of sampled data set 6, 8, 10, 10, 12, 14. Compute the skewness.

Solution:
6+8+10+10+12+14
𝑥̅ = = 10
6

(6−10)2 +(8−10)2+(10−10)2+(10−10)2+(12−10)2+(14−10)2
𝑠=√ = 2.83
6−1

𝑥̃ = 10

So, the skewness is:

3(10 − 10)
̂=
𝑠𝑘 =0
2.83

This means that the distribution of the given data set is symmetric.

Example 23:

Find the measure of skewness of the following sampled data: 27, 18, 9, 1, 2, 7,
6, 5, 15, 12, and 19.

Solution:

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Statistical Theory (Math 125D)

27+18+9+1+2+7+6+5+15+12+19
𝑥̅ = = 11
11

(27−11)2+(18−11)2+(9−11)2 +⋯+(19−11)2
𝑠=√ = 8.05
6−1
𝑥̃ = 9

So, the skewness is:

3(11 − 9)
̂=
𝑠𝑘 = 0.75
8.05

This means that the distribution of the given data set is symmetric.

Kurtosis

Kurtosis is the measure of the degree of peakedness/ flatness of a distribution.

Types of Kurtosis:

1. Leptokurtic

The distribution of the data set involves large number of scores/value

at the center of the distribution.

2. Platykurtic

The values/scores are distributed over a wider range about the center
making the hump of the curve flat.

3. Mesokurtic

The values/scores are moderately distributed about the center of the

distribution. It is not too flat and not too peaked.

MARLON S. FRIAS, Ph.D. | BUKIDNON STATE UNIVERSITY 21

Statistical Theory (Math 125D)

Leptokurtic Platykurtic

Mesokurtic

MARLON S. FRIAS, Ph.D. | BUKIDNON STATE UNIVERSITY 22