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Topic III
Topic III
Topic III
Where:
• ni is the absolute frequency of the ith interval;
• fi is the relative frequency of the ith interval;
• ci is the class mark of the ith interval;
• n is the size of the sample
Example: mean
Example: time (in minutes) that 28 employees spend to get to work
Driving Number of
ci
time employees
[0 – 10) 3 5
[10 – 20) 10 15
[20 – 30) 7 25
[30 – 40) 4 35
[40 – 50) 2 45
[50 - 60] 2 55
Centrality Measures: Median
Median
𝑛
− 𝑁#$%
𝑀𝑒𝑑𝑖𝑎𝑛 = 𝑄! = 𝐿" + 2 𝑤"
𝑛"
where:
• LM is the lower bound of the median class (interval containing the median);
• n is the size of the sample;
• Ni-1 is the cumulative frequency of the interval before the median class;
• nM is the absolute frequency of the median class;
• wM is the width of the median class (HM - LM)
• Median Class: ABS CUMUL FREQ HIGHER THAN N/2
Example: Median
Example: time (in minutes) that 28 employees spend to get to work
Driving
ni Ni fi Fi ci
time
[0 – 10) 3 3 0,11 0,11 5
[10 – 20) 10 13 0,36 0,46 15
[20 – 30) 7 20 0,25 0,71 25
[30 – 40) 4 24 0,14 0,86 35
[40 – 50) 2 26 0,07 0,93 45
[50 - 60] 2 28 0,07 1 55
Dispersion Measures: Quartiles
Quartiles
𝑛 3𝑛
− 𝑁#$% − 𝑁#$%
𝑄% = 𝐿&! + 4 𝑤&! 𝑄' = 𝐿&" + 4 𝑤&"
𝑛&! 𝑛&"
where:
• L is the lower bound of the interval
• n is the size of the sample
• Ni-1 is the cumulative frequency of the interval before/above
• 𝑛! is the absolute frequency of the interval of Q
• w is the width of the interval
• The interval that contains Q1 has relative frequency larger than N/4
• The interval that contains Q3 has relative frequency larger than 3N/4
Example: Quartiles
Example: time (in minutes) that 28 employees spends to get to work
Driving
ni Ni fi Fi ci
time
[0 – 10) 3 3 0,11 0,11 5
[10 – 20) 10 13 0,36 0,46 15
[20 – 30) 7 20 0,25 0,71 25
[30 – 40) 4 24 0,14 0,86 35
[40 – 50) 2 26 0,07 0,93 45
[50 - 60] 2 28 0,07 1 55
Dispersion Measures: Variance and Stdev
Variance
&
1 𝑛
𝑆" = * 𝑛# 𝑐#" − 𝑥̅ "
𝑛−1 𝑛 −1
#$%
Standard deviation
𝑆= 𝑆!
where:
• ni is the absolute frequency of the ith class;
• ci is the class mark of the ith class
Example: Variance and Stdev
Example: time (in minutes) that 28 employees spends to get to work
Driving Number of
ci
time employees
[0 – 10) 3 5
[10 – 20) 10 15
[20 – 30) 7 25
[30 – 40) 4 35
[40 – 50) 2 45
[50 - 60] 2 55
Data Transformation
Generic change of unit of measure
𝑋−𝑎
𝑌= 𝑏>0
𝑏
𝑋−𝑎 𝑥̅ − 𝑎
𝑌= 𝑦- =
𝑏 𝑏
Standard Deviation
Standard deviation
If we apply a linear transformation to a spread measure, the spread
measure will be only affected by the change of scale, not by the change
of origin
𝑋−𝑎 𝑠/
𝑌= 𝑠. =
𝑏 𝑏