Chapter 3

Summarizing Data:
Statistical Descriptions
 The Mean (Measure of location)

It is calculated by
summing the values
and dividing by the
The Arithmetic Mean is number of values.
the most widely used measure
of location and shows the
central value of the data.
 The Mean Population Mean
For ungrouped data, the
Population Mean is the
sum of all the population
values divided by the total
number of population
values:

where
µ is the population mean
N is the total number of observations.
X is a particular value.
Σ indicates the operation of adding.
 Example
56,000
The Kiers
family owns 42,000
four cars. The 23,000
following is the
current mileage 73,000
on each of the
four cars. Find the mean mileage for the cars.
 The Mean Sample Mean

For ungrouped data, the Sample Mean

is the sum of all the sample values divided
by the number of sample values:

where n is the total number of values in the

sample.
 Example

A sample of
five 14.0,
executives 15.0,
received the 17.0,
following 16.0,
bonus last 15.0
year ($000):

Find the sample mean of five executives?

 Example
• Sun.Com is studying the number of minutes used
monthly by clients in a particular cell phone rate
plan. A random sample of 12 clients showed the
following number of minutes used last month.
90 77 94 89 119 112
91 110 92 100 113 83
• What is the arithmetic mean of minutes used?
 Properties of Mean
• The mean can be calculated for any set of
numerical data
• For any set of numerical data, the mean is
unique Unambiguous value
• The mean takes into account the value of
each item is a set of data
• The sum of the deviations of each value
from the mean will always be zero
 The Weighted Mean

• The Weighted Mean of a set of numbers

X1, X2, ..., Xn, with corresponding weights
w1, w2, ...,wn, is computed from the
following formula:
Example
During a one hour period on a hot
Saturday afternoon cabana boy Chris
served fifty drinks. He sold five
drinks for $0.50, fifteen for $0.75,
fifteen for $0.90, and fifteen for $1.15.
Compute the weighted mean of the
price of the drinks.
 Grand Mean of Combined Data
• A special application of the formula for the
weighted mean arises when finding the
overall mean

n1x1 + n2x2 + … + nkxk Σn.x

X= =
n1 + n2 + … nk Σn
 Example
• In a biology class there are 20 freshmen, 18
sophomores, and 12 juniors. If the freshmen
averaged 68 on an examination, the
sophomores averaged 75, and the juniors
averaged 86, find the mean grade for the
entire class
 The Median (Measure of location)

The Median is the

midpoint of the values after
they have been ordered from
the smallest to the largest.
There are as many
values above the
median as below it in
the data array.

For an even set of values, the median will be the

arithmetic average of the two middle numbers and is
found at the (n+1)/2 ranked observation.
 Example
The ages for a sample of five college students are:
21, 25, 19, 20, 22.

Arranging the data

in ascending order
gives:

19, 20, 21, 22, 25.

Thus the median is

21.
 Example

The heights of four basketball players, in inches,

are: 76, 73, 80, 75.

Arranging the data in

ascending order gives:

The median is found

73, 75, 76, 80
at the (n+1)/2 =
(4+1)/2 =2.5th data
Thus the median is 75.5. point.
 Box Plot
• A box plot is a graphical display, based on
quartiles, that helps to picture a set of data.
• Five pieces of data are needed to construct a
box plot: the Minimum Value, the First
Quartile, the Median, the Third Quartile,
and the Maximum Value.
Example

Based on a sample of 20 deliveries,

Buddy’s Pizza determined the following
information. The minimum delivery time was
13 minutes and the maximum 30 minutes. The
first quartile was 15 minutes, the median 18
minutes, and the third quartile 22 minutes.
Develop a box plot for the delivery times.
Answer
 The Mode (Measure of location)
• The Mode is another measure of location and
represents the value of the observation that
appears most frequently.
• Data can have more than one mode. If it has two
modes, it is referred to as bimodal, three modes,
trimodal, and so forth.
• Example : The exam scores for ten students are:
81, 93, 84, 75, 68, 87, 81, 75, 81, 87. Find the
Mode
 The Range (Measure of
variation)
• The range of a set of data is the largest value
minus the smallest value
• Example: Suppose that in a hospital each patient’s
pulse rate taken three times a day and that on a
certain day the records of two patients show
Patient A: 72 76 74
Patient B: 59 92 71
Find the range of each patient!
 Example
The following represents the current year’s Return on
Equity of the 25 companies in an investor’s portfolio.

Highest value: 22.1 Lowest value: -8.1

Range = Highest value – lowest value
= 22.1-(-8.1)
= 30.2
Additional Note

Midrange

Mid quartile
 Variance and Standard Deviation

• Variance: the arithmetic mean of the squared

deviations from the mean.
• Standard deviation: The square root of the
variance.
• Population Variance Formula:
• Population Standard
Deviation Formula:
X is the value of an observation in the population
μ is the arithmetic mean of the population
N is the number of observations in the population
 Example from Range
• Find Variance and Standard Deviation!
Sample: Variance and Standard
Deviation

Sample variance (s2)

Sample standard deviation (s)

 Example
• The hourly wages earned by a sample of five
students are: $7, $5, $11, $8, $6.
Find the sample variance and standard deviation.
 Coefficient of Variation
• The coefficient of variation (CV) is defined as the ratio of
the standard deviation to the mean : It shows the extent
of variability in relation to the mean of the population.
• Formula: s σ . 100%
V = -- . 100% or V = --
x μ

• Example: A sample of ages of five women in an aerobics

class revealed the following ages: 22, 18, 26, 20 and 24.
Their weights were 115, 159, 141, 137, and 130 pounds.
Find the mean and standard deviation of the ages and use
these values to determine the coefficient of variation
 Description of Grouped Data
• The Median of a sample of data organized in a
frequency distribution is computed by:

• where L is the lower class boundary of the median

class, CF is the cumulative frequency preceding
the median class, f is the frequency of the median
class, and i is the median class interval
Example

Below is the table of monthly wages of ABC corporation;

Wages Frequency
118 – 126 3
127 – 135 5
136 – 144 9
145 – 153 12
154 – 162 5
163 – 171 4
172 - 180 2
Total 40

Find the Median !

 Skewness
• Skewness is the measurement of the lack of
symmetry of the distribution.
• The coefficient of skewness can range from
-3.00 up to 3.00 when using the following
formula:

sk =
(
3 X − Median )
s
 Skewness
• Criteria of Skewness
If SK > 0, curve is positively skewed
If SK = 0, curve is symmetric
If SK < 0, curve is negatively skewed
 Example
• Stock prices on twelve consecutive days for a
major publicly traded company. Find Coefficient
of Skewness
Using the twelve stock prices, we find the mean to be
84.42, standard deviation, 7.18, median, 84.5.

3 (X − Median )
s = = -0.033
k s
 Example
• Look at example of ABC Corporation, find
skewness!
Assignment
Ten out of forty Flight attendants are given an
intensive course in cardiopulmonary
resuscitation (CPR). The following are the
numbers of correct answers they gave on a test
administered after the completion of the course:

21 18 19 10 12
30 14 18 9 13
 Compute for ungrouped data
a. the range
b. Mean
c. Mode
d. Median
e. Q1 and Q3
f. Percentile 80th
g. Sample Standard Deviation
h. Sample Variance
i. Coefficient of variance
j. Midrange
k. Midquartile
l. Construct boxplot
m. Skewness