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Ss)Question Paper Guess Paper-1 (Solved) Guess Paper-2 (Solved) Chapters Block-1 Data Collection and Analysis Chapier-1 Chapter-2 Chapter-3 Chapter-4 Collection of Data Presentation of Data Measures of Central Tendency Measures of Variation and Skewness Block-2 Probability and Probability Distributors Chapter5 Chapter-6 Chapter7 Chapter-8 Basic Concepts of Probability Discrete Probability Distributions Continuous Probability Distributions Decision Theory Block-3 Sampling and Sampling Distributions Chapter-9 Chapter-10 Chapter-11 Chapter-12 ‘Sampling Methods Sampling Distributions Testing of Hypotheses Chi-Square Tests Block-4 Forecasting Methods ‘Chapter-13 Chapter-14 Chapter-15 Chapter-16 Business Forecasting Correlation Regression Time Series AnalysisShrichakrodhar.com MMPC-005: Quantita Managerial Applications Guess Paper-1 Distinguish between primary and secondary data. Discuss the various methods of collecting, primary data. Indicate the situation in which each of these methods should be used? Ans. Refer to Chapter-1, QNo-2 2. What are the general guidelines of forming a frequency distribution with particular reference to the choice of class intervals and number of classes? ‘Ans, Refer to Chapter-2, Q.No.3 Q3. Review for each of the measure of central tendency, their advantages and disadvantages? ‘Ans. Refer to Chapter-3, Q.No-1 Q4. Explain the concept and significance of Measures of central Tendency? Ans. Refer to Chapter-1, QNo-1 Q5. A study aimes to quantify the organisational climate in any organisation by administering a questionnaire to a sample of its employees. There are 1000-.employees in a company with 100 executives, 200 supervisors and 700 workers. If the/employees are stratified based on this classification and a sample of 100 employees/is)tequired, what should the sample size be from each stratum, if proportional stratified sampling is used? Ans, Refer to Chapter-9, Q.No-3 >. Q6. What is the practical utility of the central limit theorem in applied statistics? Ans, Refer to Chapter-10, QNo-2 Q7. What do you understand by the concépt of forecast control?, Ans, Refer to Chapter-13, Q.No.-4 Q8. Describe the concept of Chi-Square? Ans. Refer to Chapter-2, Q.No-1 Q9. What are the basic steps in establishing a relationship between variables from a given data? ‘Ans, Scientists are forever trying toifind relations between quantities: ‘+ Does the number of mimutes of exercise per weeleinfluence blood pressure? * Does the amount of time reqjiired fora ballf6iroll down a ramp depend on the slope of the Qu. ramp? ° ‘* Does the amount of fertilizer I use on'plants affect their size? Ineach case above, the sciefitists run experiments and collect pairs of numbers for the quantities that they are trying to rélate teach other + (weekly exeréise minutes, systolic blood pressure) , e.g. (35, 136), (0, 155), (200, 121), + (angle‘of raip (deg.), time of ball (sec)), e.g. (5, 17), 20, 6), (45,3), + (cc féxtilizer/sq. meter garden, plant height m.), e.g. (5, 33), (.77, .02), (.01,.54), angie He pairs of numbers representing the angle of the ramy “ le ip and the corresponding “rolling times. She then plots these numbers on a graph as follows: Seo iWhat can you conclude about a relationship between the angle of the ramp Quantitative Analysis for Managerial Ing time (seconds) angle of ramp (deg) ‘and the time the ball rolls? Can you explain this? - Another student does a very careful experiment to relate the growth of plants with the amount of fertilizer used and comes up with the following graph: Plant Helght ve. Fertilizer height (m) 2 18 1 Fertilizer (ec/sq. m.) Is there a relationship between plant height and the amount of fertilizer used? Can you explain this? These examples of seeking a relationship between variables can be quantified by using methods of statistical analysis called Correlation and Regression Consider the earlier graphs from the “ball-rolling” and “fertilizer” experiments: In the graph of time of rolling vs, angle of ramp as the angle increases, does the rolling time generally increase, decrease, or change in an unrelated fashion? Explain your answer from the graph. The correlation coefficient for this data tums out to be -84. Does this agree with your answers above? Explain. In the graph of plant height vs. fertilizer concentration, as the amount of fertilizer per square meter increases, does plant height generally increase, decrease, or change in an unrelated fashion? Explain your answer from the graph ‘The correlation coefficient for this data turns out to be 37. Does this agree with your answers above? Explain. Consider the graph that represents the weight (Ib.) vs. height (in.) for players on last year’s Cincinnati Bengals football teamShrichakradhar.com ___ Hetaht (in. ‘As the height of players increases, does the weight generally ‘© increase, decrease, or change in an unrelated fashion? ‘© Explain your answer from the graph ‘© Guess at the number below that you think best represents the correlation coefficient for this data? Explain your guess. i -75 ii, 03 iii, 73 iv. 9 Consider the graph generated from Dr. Denice Rdbettson’s research on lobsters and their production of eggs. She has measured the number of eggs'pfoduced by a lobster and the lobster's length (mm) Her data is graphed below Lobeter Fecundity Female Size (mm) As the length af thelobster incr#ases)does the number of eggs produced generally ‘© incxéase, decrease, or change in an unrelated fashion? ‘+ Explain Your answer from the graph. ss Guessiat the number below that you think best represents the correlation coefficient for this », data? Explain your guess ‘ae i 89 ii 13 iii, 25 v.91 Q10; What do you understand by time series analysis? How would you go about conducting such an analysis for forecasting the sales of a product in your firm? ‘Ans. Refer to Chapter-16, QNo-1___uantitative Anois for Manageril APPNEENSTE ——— mmpc-005: Quantitative Analysis for Managerial Applications Guess Paper-2 EE eee ———— QL. Discuss the various sources of secondary data. Point out the precautions to be taken while using such data? 5 Ans. Refer to Chapter-1, Q.No.-2 Q2. What are ogives? Point out the role. Discuss the method of of an example. ‘Ans, Refer to Chapter-2, QNo-3 Q3. What are quantiles? Explain and illustrate the concept ‘Ans. The word “quantile” comes from the word quantity. In simple terms, sample is divided into equal-sized, adjacent, subgroups (that’s why it'gsometimes called a “fractile”, It can also refer to dividing a probability distribution into areas of equal probability The median is a quantile; the median is placed in a probability distribution soithaligaactly half of the data is lower than the median and half of the data is above the median. The median guts a distribution into two equal areas and so it is sometimes called 2-quantile Median constructing ogives with the help ts of quattiles, deciles and percentiles? a quantile is where a ‘so below 30% above quantiles; they divide the distebiion into four@qaal paHs, Percentiles are quantiles that divide a Gistribution into 100 equal parts and deciles are quantiles that divide a distribution into 10 equal parts a Some authors refer tothe median as the 0.5 qiantile, which means that the proportion 0.5 (half) will be below the median and O15 will be aboveit. This way of defining quartiles makes sense if you are trying to find a partieularquantilein'@data set (.e. the median). Use the following formula to estimate the ith observation: » } ith observation=q(n ¥1) - where q is the quantile, the propor nis the numberof items in a data’set How to Find Quantiles? a Sample question: Find the number in the following set of data where 20 percent of values fall below ityand 80 percent fall above: 1566911 12 13 19 21 22.3235 36 45 44 55 68 79 8081 88.9091 92 100 112 113 114 120 121 132 145 146 149 150.155 180 189 190 Step T: Order the data from smallest to largest. The data in the question is already in ascending order. Step 2: Count how many observations you have in your data set. this particular data set has 40 items Step 3: Convert any percentage to a decimal for “q’. We are looking for the number where 20 percent of the values fall below it, so convert that to 2. Step 4: Insert your values into the formula: ith observation = q (n +1) ith observation =.2 (40-+1) = 82 ppelow the ith value that you are looking for5 Shrichakradhar.com _ _ vith observation is at 82, 30 we round down to 8 (remembering that this formula fs an ‘Answer: Th i {in the set is 13, which is the number where 20 percent of the values fall estimate). The 8th number below it |. What is the conce oe eration in their solution? ‘Ans, Refer to Chapter-4, QNo-2 Gn. Review for each ofthe measure of central tendency, their advantages and disadvantages ? ‘Ans. Refer to Chapter-3, Q.No-6 O6._ When sampling from a large population, if we want the standard erroFaf the mean to be less than one-half the standard deviation of the population, how large would the sample have to be? (03,6) 5G) 4,Gv) none of these Ans, Refer to Chapter-3, QNo-2 (7. The currently used manufacturing process is known to produce 5% defectives w considered to be too high by the management. An alternative process had been suggested and the management wants to get a sample of some components produced by the alternative process, which is operational at another location! What are the null and the alternative hypotheses relevant for this situation? Please discuss why. ‘Ans. Refer to Chapter-11, QNo-1 < Q8. Why is forecasting so important in business? Identify applications of forecasting for + Long term decisions. * Medium term decisions, * Short term decisions. Ans, Refer to Chapter-13, QNo-1 9. What do you understand by the term correlation? Explain how the study of correlation helps in forecasting demand of a product? ‘Ans, Refer to Chapter-15, QNo-5 Q10. What would be the considerations in the choice of a forecasting method? There are many types of Forecasting methods and techniques in Supply Chain Management; however, all these types can be broadly. grouped intovthree major categories as outlined below: ‘Qualitative Forecasting: Also known as the Judgniental type of Forecasting, this method relies on the opinion of experts in predicting, the Future. Some of the examples of Qualitative Forecasting are Delphi technique, Salesforce apinionyand Market research. Extrapolative Forecasting: Exttapolative Forecasting is a type of Quantitative Forecasting technique, which uses time series méthods to projéct demand based on the past sales of a specific product category under normal conditions, Sore of the examples of Extrapolative Forecasting, are Moving, average method, Weighted moving average, and Exponential Smoothing. Causal Forecasting: Catisal Forecasting isialso a type of Quantitative Forecasting technique, which uses Statistical? Foreeasting models Based en historical sales data and factors which can influence future demand, p> Le” Some of thé examples of Causal Forecasting are Baromet ine a 1 Forecasting in Supply Chain: For each of the forecasting categories listed above, the factors thahinfluence the future demand include: . cal sales data farious lead times like purchasing, manufacturing & shipping lead times. lanned advertising and marketing efforts. Planned pricing discounts and rebates. ‘Macroeconomic ‘Operating business scenario. Market intelligence and competitor moves, eaaee in selecting a forecasting method, here are some general forecasting characteristics to pt of relative variation? What problem situations call for the use of relative technique, Regression analysis, and6 Characteristics of Forecasting in Supply Chain: Quantitative Analysts for Managerial Applications (MMPC-005), “All forecasts have inherent errors due to assumptions and hence are always pat Forecasts thus need to include the expected value of forecast, range specifying the minimum ‘and maximum forecast and a measure of forecast errors. Short-term forecasts are generally more accurate than long-term foreg process includes consideration of factors which can influence future de short-term factors are more predictable than long-term. ‘Aggregate forecasts are generally more accurate than individual a lower standard of deviation. Disaggregated forecasts have limited In general, farther up the Supply Chain, a company is, the #1 information it receives. Hence, for such companies, agile sys forecast inaccuracies.CO eS Z Chapter-1 Collection of Data (01 Identify the need and significance of data Collection? ecnsravisties, data collection refers to the process of assembling information froma relevant sa oe in onder to solve a research problem. It aids in the evaluation of the problems outcome. The dats collection techniques enable an individual to arrive at an answer to the pertinent question. The majority of organisations employ data collection techniques to make educated guesses about future probabilities and trends. Once the data has been collected, its necessary to organise it "The primary source of information for data collection methods is "Data’, Primary data and secondary data are two distinct types of data. The primary value of data collection iftany research or business process is that it enables the determination of numerous critical aspettsjof the business, most notably its performance. Thus, the data collection process is critical in all,stteams, The method of data collection is classified into two categories, depending on the type ef data ‘+ Methods of Primary Data Collection «Methods of Secondary Data Collection When programmes and businesses make changes to thein products, services, marketing, staffing, procurement, and other operations, they frequentiyrély on data to inform, their decisions. We Giscussed data collection methods in the previ6uB article” and classified. them into primary and secondary methods, We then examined the quilitative and quantitative data collection methods in eee if ‘We will discuss the value of data collection and why organisations should implement systems that enable them to collect high-quality data in thigiarticle. The following list summarises the advantages of data collection. y Data enables you to make well-informed choices: Having pertinent data for your project or business ‘enables you to make sound decisions“ Data provides the evidence necessary to conduct a review of the projects! activities. It assists in determining whatiyou can do next to improve the situation. Data substantiates your decisions ahd instilsconfidence'in youtability to explain your solutions. Without reliable data, you're much more likely to make errors and draw incorrect conclusions. Data assists you in identifying issues: As a projector business, having access to high-quality data enables you to identify problems early. This Way, you can intervene to resolve issues before they develop into full-blown crises, These issues are easily identified using data. Effective data collection and quality control enable your projeét £6 be proactive, rather than reactive, in identifying and resolving challenges. Organizations rely.on data to maintain best practises. Data enables the development of hypotheses: With data, you can establish precise relationships between the variablesiaffecting the pioject. As a result, you'll be able to develop accurate theories that will help you. visitalise what's{Rappening. in various parts of the project. The theories aid in the development of a more complete understanding of the project and in the development of effective solutions For instance, if Company wishes to increase pen sales, they should identify the factors that éont#ibufe.to increased sales and invest in them. By connecting these factors to form a theory, the company ‘will be able to identify the factors that facilitate and inhibit the company’s sales. They can inerease their investment in facilitating factors and reduce sales bartiers. s ‘Your interventions and solutions are justified by data: You can use data to justify or support the projéét’s strategies, purchases, and other decisions. With evidence, you can avoid arguments, delays, and financial loss by directing resources to the appropriate location. Data enables you to advance your ideas. By utilising data to support your argument, you can demonstrate why change is necessary and desirable. Data demonstrates that goals and objectives have been met: When strategies are implemented to ‘overcome a challenge, data collection enables you to determine the effectiveness of your solution. IsQuantitative Analysis for Managerial APPICATIONS (mec-005) 8 ‘determining whether to the desired results oF not? This assists the project it the intervention yielding, maintain or change its strategy — , ‘The data tells the organization's storey: Collecting data from the beginn eo aids in the construction of your storey. It demonstrates how you begary the changes that occu = throughout the project's life, the strategies implemented, the obstacles ‘and successes encountered, and the project's outcomes. a Your approach becomes strategic as a result of data: Occasionally, projects andl businesses operate in ed to do so. If you have data, youncan improve your crganization’s efficiency, eliminate doubt, and instil confidence in your staffs intervention selection. Effective data enables organisations to establish baselines, targets, goals, afi objettives that serve “58 guide for measuring accomplishments. If you have sound data-drivenyeufdance, You AX develop foth long; and short-term strategies. Data collection enables your ofganisation to track its Progress toward success. This way, you can prioritise and direct your scarce TeSOURees, For instance, if Company A wishes to invest additional resources insthe P! require data demonstrating the market demand for pens. The data will justify a production nereass Data assists you in securing funding: Donor-funded organisations, ventiite, capitalists, loan providers, and other financiers are now more data-driventhaatin the past! To secute funding from Honors or investors, projects and businesses must demonstrate their accomplishments. You can only demonstrate outcome using data. Organizations mustdopt evidencetbasedipractises and establish effective data collection systems to document theif agcomplishments. Data reveals your strengths and weaknesses: Data cnables you to identify your strengths and areas for improvement. You can identify your high-performing employees and ascertain what they do differently, This way, you can take the operational’ strategies, andigspread them throughout the organisation, while simultaneously strengthening the weak areas, Data enables you to save both time and money: Oftentimes, projects require a significant amount of time and money to collect data or obtain high-quality information. Having a sophisticated data collection system in place would enable'the organisation to save significant amounts of time and money. This type of system would. enable staffafidymanagement to enter, display, access, and navigate data easily and quickly. Additionally, it provides accurate data to assist the organisation in making sound decisions. Poor data-driven decisions ean be extremely costly to an organisation. Data increases the rate of returnon your investment: Data has been shown to be critical in advancing an organization's return on inyestment. A sophisticated data collection system enables organisations to maximise their potential and. generate multiple revenue streams. Regular revenue and profit analysis enables the company to improve operations, increase sales, improve the quality of services and productsyand ultimately. profit. ing to the end of the project complete darkness. However, you are not requir roduction of pens, they (Q2. Distinguish between primary and Secondary data? ‘Ans. The data uséd, in statistiéal Studies are classified as "primary" or "secondary," depending on whether they were collected specifically for the study or for another purpose, When the data used in a statistical study was gathered under the investigation’s control and supervision, it is referred to as “Primary data”; When data is derived from sources other than the investigator, it is referred to as "secondary data.” The distinction between primary and secondary data is purely qualitative. For instance, data that is \primary in one's hands becomes secondary in another's, Assume an investigator wishes to investigate the labour conditions in a large industrial concem. If he collects the data directly or indirectly through an agent, it is referred to as primary data. However, if this data is used by another party, it becomes secondary data. The term primary data refers to data that is generated for the first time by the researcher. Secondary data is previously collected information by investigator agencies and organisations. Key Difference between Primary and Secondary Data ‘+ Primary data is current information, whereas secondary data is historical information.cStughotadhon co — + Primary data is collected to address the issue at hand, whereas secondary data is collected for non-issue-related purposes. «© Collecting primary data is a time-consuming process. On the other hand, secondary data collection is a quick and simple process, + Surveys, observations, experiments, questionnaires, and personal interviewsiare all primary data collection methods. On the other hand, secondary data sources inelude government publications, websites, books, journal articles, and internal records, among others. «Primary data collection requires a significant investment of time, momiey, and manpower. In comparison, secondary data is inexpensive and readily available. ‘+ Primary data is always tailored to the researcher's specific needs, and the researcher maintains control over the research's quality. By contrast, secondary data is not tailored to the researcher's specific needs, and the researcher has no control over the data's quality. + Primary data is available in its raw form, whereas secondary data is primary data that has been refined. Additionally, secondary data is obtained. when primary data is subjected to statistical analysis. ‘Primary sources of data are more reliable and accurate than/secondary soiirces. + The term primary data refers to data that is genetatedifor the first time by the researcher Secondary data is previously collected information by investigator agencies and organisations. _ + Primary data is current information, whereas'secondary data is historical information. * Primary data is collected to address the'issue at hand, whereas Secondary data is collected for non-issue-related purposes. ‘* Collecting primary data is a time-consuming, process ‘On thélother hand, secondary data collection is a quick and simple proc®séiy. * Surveys, observations, experiments, questionnaires, and petsonal interviews are all primary data collection methods. On the other hand, secondary data sources include government publications, websites, books, jouthal articles, and intemal records, among others, ‘* Primary data collection,requires a significantiinvestment of time, money, and manpower. In ‘comparison, secondary data is inexpensivé and readily available © Primary data is always, tailoted to the Tesearcher's specific needs, and the researcher ‘maintains control over the fesearch’s qualityeBy contrast, secondary data is not tailored to the researcher's specific needs, and the researcher has no control over the data’s quality ‘+ Primary datacis available in its raw form, whereas secondary data is primary data that has been refined. Additionally, secondary data is obtained when primary data is subjected to statistical analysis tim” + Primary sources fof data are! rome faable and accurate than secondary sources. Q3. Describe tite different methods of lccting primary data? Ans, Primary data, also knownas av data, is information that is gathered directly from a source via experiments, Suf¥eys, or observatiotis. Additionally, the primary data collection method is classified into, ss They truly are. 1ods for Collecting Quantitative Data fethods for Collecting Qualitative Data {ne the various data collection methods used in these two data collection methods, for Collecting Quantitative Data: It is based on mathematical calculations and employs a variety of formats, including closed-ended questions, correlation and regression techniques, and ‘mean, median, and mode measures. This method is less expensive than qualitative data collection and can be implemented quickly. Methods for Collecting Qualitative Data: It is completely devoid of mathematical calculations, This ‘method is inextricably linked to non-quantifiable elements. Interviews, questionnaires, observations,ia 05 10 ______ Quantitative Anais for Managerial Applications (MMPC OOS) and case studies are all examples of qualitative data collection methods. This type of data can be collected in a variety of ways. They truly are | Method of Obscrauans When the study is concemed with behavioural science, the observation method is used. This method is meticulously planned. It is subjected to numerous controls and inspections, The various types of observations are as follows: «Observation, both structured and unstructured * Observation, both controlled and uncontrolled ‘+ Participant, observer, and disguised observer Interview Techniques: Oral or verbal responses are used to collect data. It i8/accomplished in two ways, including Personal Interview: In this method, an interviewer is required to ask the other person questions face to face. Personal interviews can be structured or unstructured, focused or unfocused, and so forth. Telephonic Interview: In this method, an interviewer gathers information by contacting individuals over the phone and orally posing questions or eliciting responses. Method of Questionnaire: The respondent is mailed the set of questions using this method. They should read the questionnaire, respond, and then return it. The questions on the form are printed in a specific order. A well-designed survey should include the following, characteristics: «Brief and straightforward Should be in a logical order + Provide sufficient space for responses * Avoid using technical jargon ‘Should be visually appealing in terms.of colour and paper quality in order to capture the respondent's attention. Schedules: This method is comparable 16 the questionnaire method with one exception. The enumerations are appointed specifically t6 fill the schedules. It clarifies the investigation's objectives rn eg Enumerators should be trained to work diligently and patiently. Q4. What is Questionnaire. Design a suitable Questionnaire? Ans, The success of data collection via questionnaire is highly dependent on the skill and imagination with which the questionnaire is designed. A questionnaire that is poorly designed will never be able to collect the necessary data: When developing'the questionnaire, it is critical to keep the following points in mind: se Each questionnaire should include a covering) letter: The covering letter should summarise the study's purpose and.reassuré respondents thatitheir responses will be kept completely confidential. It is desirable to provide Some indu¢ement or motivation to the respondent in order to elicit a more favourable response,\ifhe study's objectives and questionnaire design should be such that the responclent feels Satisfied as a réstilfof his Involvement. The number of questions should be limited: The fewer questions, the greater the likelihood of receiving, better responses and having all questions addressed. Otherwise, the respondent may become disinterested and provide inaccurate information, especially near the end of the questionnaire. When formulating the question, the investigator must take several factors into account, including the study's purpose, time constraints, and available resources. As a general guideline, the ‘number of questions should range from 15 to 40. If the questionnaire contains more than 25 questions, it iste¢ommended that the questionnaire be divided into distinct sections to ensure clarity. Questions should be straightforward, succinct, and unambiguous: The questions should be straightforward, succinct, and easy to understand, with unambiguous responses. For instance, if the inquiry is, "Are you literate?” The respondent may have reservations about literacy's meaning. To some, literacy may imply a university degree, while to others, it may imply the ability to read and write. Thus, it is desirable to indicate whether you have completed (a) high school (b) graduation (c)Shrichokradhor.com ai postgraduate studies, and so forth. According to the investigator's requirements, questions can be Yes/No or multiple choice. Generally, open-ended questions should be avoided , Sensitive or personal questions should be avoided: The questions should not necessitate the disclosure of any private, personal, or confidential information by the respondent. For instance questions about sales, profits, and material happiness should be avoided to thergreatest extent ea formation Tf such questions are necessary for the survey, the respondent should be assured thatthe informa they provide will be kept strictly confidential and will not be used to their detrimentat any cost Calculations should not be required to answer questions: The questions shotildbe phrased in such a way that no calculations are required to answer them. Logical Arrangements: Arrangement that makes sense Data Collection The questions should be arranged logically so that responses are continuous and the respondent does not feel compelled to refer back to previous questions. It is desirable for the questionnaire to begin with some introductory questions, followed by critical survey questions, and conclude with some light questions, so that the respondent's overall impression is one of happiness. Contrast and Footnotes: The questionnaire should include somé}of these quiestions to ensure the information provided is reliable. For instance, when an iricome question is asked, it is desirable to include the following: “are you an income tax assessee?" To ensure clarity, itis desirable to include footnotes foF eertain questions thatlmay raise respondents! doubts. The purpose of footnotes is to dispel any doubts that may arise while answering the questions, For instance, if a question refers to anjincome Yange such as 1000-2000, 2000-3000, etc., a person earning exactly Rs. 2,000 should be aware of which income elass he should fall into. Q5. Describe the concept of census vs. Sample?, Ans, When secondary data for the problem under study is unavailable, it may be decided to collect primary data through original investigation. This primary inyestigation may be conducted using a census (or complete enumeration) or a sampling technique. WRen an investigator gathers data on every single item in a population, this is referred tovaSithe census method or complete enumeration survey. However, when an investigator examines a representative sample of the total population and draws conclusions about the populatioh as a whole, this is referred to as the sampling method. In both cases, the investigator is intétested in examining some population characteristics. The advantage of the census method is that it allows for the collection of data on every aspect of the Population. Additionally, the, data collected. is’ more precise. The census method's primary disadvantage is that it is extremely expensive and time consuming, Furthermore, in certain practical quality control situations, such as determiningsthe tensile strength of a steel specimen by stretching it until it breaks, it is physically impossible) to inspect each and every item because quality testing results in thedtem's destruction, Generally, itis nofinecessary to'sttidy, every unit of the population in order to draw conclusions. If a sample agen of the,population, our study of the sample will yield accurate inferences about th masa whole fy It = s that the sampling method is far more widely used in practise than the census metho: ibe the designing of Questionnaire? Success of data collection by questionnaire is highly dependent on the ability and {imagination with which the questionnaire is constructed. A questionnaire that is poorly designed will never be able to collect the necessary data. In ‘When creating the questionnaire, there are some critical aspects to bear in mind are: Each questionnaire should have a covering letter.Applications (MMPC-005)_ “The covering letter should emphasise the study's goal and reaffirm the All responses will be kept strictly secret, That is desirable. Some form of encouragement or motivation is supplied to the respondent in order for them to perform better. The study's objectives and questionnaire design should be in such a way that the respondent finds satisfaction from his involvement. The number of questions should be limited: The less, the better the more specifigythe query, the greater the likelihood of receiving superior responses and obtaining all the inquiriesyhave been addressed. Otherwise, the response may develop apathy and offer erroneous responses, especially at the end of the questionnaire. When posing the query, the investigator must consider various factors. elements such as the objective of the study, the available time and resources, AS result As a general rule, the number of questions should range between 15 and 40. In the event that the number of questions exceeds 25, it is preferable that the To ensure clarity, the questionnaire should be separated into several sections. Questions should be straightforward, succinct, and unambiguous: The inquiries should be succinct, simple to comprehend, and structured in such a way that their responses are unambiguous. For instance, if the inquiry is, "Are you literate?” The respondent may have reservations about the concept of literacy. To a degree of literacy may refer to a university degree, while others, may refer to the ability to read and write. The term "write" could refer to literacy As a result, itis desirable to indicate whether you have passed (a) high school (b) graduation (c) postgraduate studies, and so forth. Questions may arise. be of the Yes/No variety, or mullfiple ¢hoice, depending, on the nature of the need, investigator. Generally, open-ended queries should be avoided Sensitive or personal questions should be avoided: The Questions should not be worded in such a way that they compel the respondent to disclose anything. information that is private, personal, or confidential. For instance, inquiries about to salespprofits, monetary happiness, and so forth should be avoided at all costs. If such questions af@ important fot the survey, the respondent should be assured. the respondent that the information he or she provides will be kept totally confidential confidential and shall not be exploited to their detriment at any cost. Calculations should not be required fo answer questions; The inquiries should be phrased in such a way that they do not necessitate any calculations. Arrangement that makes sense Data Collection The questions should be arranged rationally So that There is Consistency in the responder's statements, and the respondent does not feeLcompelled to revert to the preceding questions. It is desirable for the questionnaire to be self-admihistered: should /beginwith some introduction questions and then move on to more critical ones. critical to the suryey'sisuccess and concluding with a few light questions to ensure that the overall: The respondent's perception.is one of happiness. Cross-checking and footnotes: The questionnaire should include some of these features inquiries that serve as a check on theinformation’s veracity supplied. Q7. What are the sources of Secondary Data? Ans, The sources) of secondary data may be divided into two broad categories, published and unpublished; q Published. Sources: There are a number of national and international organizations which collect statistical datayand publish their findings in statistical reports periodically. Some of the national organizations which collect, compile and publish statistical data are : Central Statistical Organization (CS0)j National Sample Survey Organization (NSSO); Office of the Registrar General and Census ‘Commissioner of India; Labour Bureau; Federation of Indian Chambers of Commerce and Industry; Indian Council of Agricultural Research (ICAR); The Economic Times; The Financial Express etc. Some of the international agencies which provide valuable statistical data on a variety of social- economic and political events are: United Nations 15 Organization (UNO), World Health Organization (WHO); Intemational Collection of Data Labour Organization (ILO); International Monetary Fund (IMF); World Bank ete.13 Shtichakradbar.com ___ = Unpublished Sources: All statistical data need no the published. A major sources of statistical data produced by government, semigovernment, private and public organizations is based on the dat itawn from internal records. This data based on internal records provides authentic statistical data and is much cheaper as compared to primary data. Some example of the internal records include roll, the amount of taw materials, cash receipts and cash book etc. Itmay be pointed have access to unpublished information. employees’ pay! out that itis very difficult to Q8. What are the precautions in the use of Secondary Data? ‘Ans. Before relying on published data, itis necessary to do a thorough examifltion. The user should use extreme caution while utilising secondary data and should not take it at face Value. The reason for this could be that such data is rife with inaccuracies due to bias, insufficient sample size, definitional flaws, and computational errors, among other factors. As such, pfior ta)utilising such data, the following points should be considered. Suitability: The investigator must ensure that the data collected ig appropriate for the investig: hand. A data set's applicability can be determined by comparing it to the type and scope of the research. > Reliability: Tt is critical to establish the reliability of séeondary source data and the degree of confidence with which we may use it. When determining the dependability of @ata, itis critical to determine whether the collecting agency is objective, whether the data)are drawn from a representative sample, and whether the data have been appropriately processed. Adequacy: While data from secondary sources may be’available; thein reach may be limited, and hence may not fulfil the investigation’ aim. The'datalmay satisfy only a portion of the investigator's requirements or may apply toa different time period. ‘Only when the investigator is completely satisfied with all 6f the preceding points may he use this data as a starting point for further examination. ation at Q9. Explain the terms ‘Population’ ahd ‘sample’. Explain why it is sometimes necessary and often desirable to collect information about the population: by conducting a sample survey instead of complete enumeration? i Ans. Population: Population in. research is a-complete Set of elements that possess a standard parameter between them. We are alliaware of whatithe word ‘population’ means in our everyday life. Frequently it is used to describe the human population or the total number of people living in a geographic area of our country or state./The.“poptilation’ in research doesn’t necessarily have to be human. It can be any parameter of data that possesses a common trait. Example: The total number of “Pet! Stores on SunsetBoulevard in Los Angeles, California Sample: A samplé is 4 smaller part of the whole, ie, a subset of the entire population. It is representativélof the population in a stitdy, When conducting surveys, the sample is the members of the population who,are invited t6)participate in the survey. Hence said, a sample is a subgroup or subset within the population. This sample can be studied to investigate the characteristics or behavior of the entire popilation data. Samples of data are created using various research methods like probability sampling and non- probability) sampling, Sampling methods vary according to research types, based on the kind of inquityand the quality of information required ‘Baample; A cat food company would like to know all the pet stores where it can sell its canned fish. ‘Theompany has population data on the total number of pet stores on Sunset Boulevard. This pet food manufacturer can now create an online research sample by only selecting the pet stores that sell cat food. The data characteristics are studied. The results are displayed in statistics and reports analyzed for business insights. Using data from the sample, the company can uncover ways to ‘grow its business into the total population of pet stores, * Here are the most common sampling techniques: ‘Sampling techniques are broadly classified as two types:4 Quantitative Analysis for Managerial Applications (MMPC-005) Probability sampling and non- probability sampling, 1) Probability sampling Samples chosen based on the theory of probability + Simple random sampling = Cluster sampling + Systematic sampling, ‘+ Stratified random sampling r (2) Non-Probability sampling: Samples chosen based on the researcher's subjective judgment. + Convenience sampling + Judgemental or Purposive sampling + Snowball sampling, * Quota sampling How to choose high-quality samples: Although we make sure that all the members of a population have an equal chance to be included in the sample, it does not mean that the samples derived from a particular population and satistying the criterion will be alike. They will still vary from one another. This variation can be slight or substantial. For example, a set of samples of healthy people’s body tempefature will show-a.very less difference. But the difference in these people's systolic blood pressure would be sizeable, It is also observed that the accuracy of the data depends/on the’ize of the sample,/The accuracy is much lesser with a smaller sample size compared to using a larger sample for the study. Thus, if two, three or more samples are derived from a population, the bigger they are, the more they tend to resemble each other. Population vs Sample ~Reasons to choose a sample from a given population: Sampling is a must to conduct any research study. Here are the top segen reasons to use a'sample; ‘+ Practicality: In most cases, a population eain be too large to collect accurate data ~ whic not practical. Samples offer a representation of the Whole population if sampled accordingly. Samples allow researchers to collect data that can be analyzed to provide insights into the entire population, > ‘+ It offers urgent data: When it comes to research, the Amount of time available can be a defining factor for a study. A sample provides alsmaller set of the population for review, that delivers data that is useful to represent thé whole population. Surveying a smaller sample, as ‘opposed to the entire population, can-save precious time for researchers and offer urgent data 4 + Cost-effective: The Cost of conducting research is often a parameter for the study. Researchers must do'the best with the resources they have at hand, to carry out a survey and gain accurate insights. Surveying a representative sample of a population is cost-effective as it requires fewer resolirces —like computers, researchers, interviewers, servers, and data collection ¢enters, > * Accuracy of representation: Depending on the method of sampling, research conducted on a sample an be accurate With, lesser non-response bias, than if performed by the census. A sample that is selected using the non-probability method is an accurate representation of the population. This data collected can be used to gather insight into the whole community. Inferential statistics: Inferential statistics is a process by which representative data is used to infer insights about the entire population. Data collected from a sample represents the whole poptilation. Inferential statistics can only be obtained using data samples, ‘+ Attimes, a sample is more accurate than a census: A census of an entire population does not always offer accurate data due to errors such as inconsistency in responses, or non-response bias. carefully obtained sample, however, does away with this sampling bias and provides ‘more accurate data — that adequately represents the population. * Manageable: Sometimes, collecting an entire population of data is near impossible as some populations are too challenging to come by. In this case, a sample can be used to represent the study as it is feasible, manageable, and accessible.Strichakradnorcom —_—— Chapter-2 Presentation of Data : «need and significance of presentation of data? funrative that serves the presentations purpose. We've seen hundreds of presentations and developed our own set of bet practises for presenting data toa variety of auenge. Some of these sights are self-evident, while others are less so, However, these tips shoul help you successful organise, visualise, and verbalise your presentations. Reduce Text and Increase Visuals: Oftentimes, when presenting large data sets, we believe that including a lot of text on the graphs is beneficial because it helps explain the graph a litle bit better This isa bad idea because it results in a jumbled graph that does not present well as people attempt to process the visual nature of the data set being presented. This is an example of a presentation that contains a lot of data but not enough text Choose What Makes Sense Among Lines, Bars, and Pies: This is something, that must be carefully considered. Line graphs, bar graphs, and pie graphs all hay@ a’place in your presentation, depending, fon the context and message you're conveying to yout audience. Line. graphs are excellent for presenting data that changes over time, Bars are excellent for grouping items. Pies are ideal for expressing percentages. Knowing which graphi type makes the most sense can assist you in communicating your data to your audience. Consolidate Information: At times, we present data without taking advantage of the opportunity to consolidate multiple graphs into a single graph! Consider the growth of'search engine marketing on a variety of device platforms, including desktopptablet, and mobile, One could create three separate bar graphs illustrating the growth of search engine farketing, but combining them into one creates a ‘more powerful image for the audience. This could have been broken up into three separate graphs in the graph below, but the presenter choge to consolidate into, one. Simplify Your Data: Make an attémpt 6 avoid making the data appear too complicated. We discussed data consolidation im, the ‘previous “ection but there are times when too much consolidation can make the data too complex for th@/audience to consume. Bear in mind that your audience must navigate back and forth between vou. and the graphs you're discussing, By keeping the graphs as simple as possible, you can aid yout audience in comprehending your message. Locate labels in close proximity to data points: Erequently, data legends and labels are missing. The presenter makes the assumption that the audierice will take their verbal cues seriously. Alternatively, when legends and labels aré-present, they are frequently displayed in isolation from associated data points. This forces,the audience to,gean back and forth visually. When creating a legend, group the points together in the. graph’s uppersright or bottom right corner. This way, the audience can easily view the pointsnd return theinattentiorite the graph as you speak Utilize Video to Enhance Data Presentations; Our ally is video. It engages viewers, diversifies the visuals, and aids.in conveying a message and telling a storey. After a particular data set, don't be afraid tofinelude a video that helps'explain the data's purpose or reasoning. Justify the data axes: While you may believe this is self-evident, explaining the axis prior to any s critical. It should take you no more than 5-15 seconds to convey a basic understanding, <és' meanings. Be Afraid To Dig A Little Deeper Into the Numbers: Without being impenetrable, do not be afraid to explain the numbers. While discussing numbers is never enjoyable for an audience, if there are ways to incorporate the graph and data into a storey that serves the presentation's purpose and ‘meaning, work to do so. You can never assume that your audience understands what you are saying or conveying, which is why delving into the numbers can be critical to driving home your message. Analyze Your Data For Brand Consistency: Do not be afraid to incorporate additional brand consistency and colour schemes into your data sets, It's nice to represent your brand, and doing so with consistent colours and text helps reinforce your brand throughout the presentation.ications (MMPC-005 416 ____auantatve Analysis or Manager Apotcations MPC). Q2. Explain the necessity of classifying data and various types of Cla Ans. After data has been collected and edited in a systematic manner, is classification, Classification is the process of grouping data based z differences. It's similar to the process of sorting mail at a post office, where ot destinations is separated into distinct compartments after being carefully sorted fromamassive heap, Data classification enables a business or organisation to ensure compliance federal data handling policies, as well as to improve and maximise data security, Apart from making data more accessible and retrievable, a well-designed data ¢lassi d track. While any combination of the following cation \ssification? the first step in presenting data on their similarities and mail for various with internal, local, and ification system also makes critical data easier to manipulate an attributes may be achieved, most businesses and data professionals approach data classi projects with a specific objective in mind. The most frequently pursued objectives include, but are not limited to the following: . Confidentiality: A classification system that prioritises confidentiality aver other characteristics will place a premium on security controls, such as user permissions and eneryption. Data Integrity: A system that prioritises data integrity will require additional storage, user permissions, and appropriate access channels. Data Accessibility: When security and integrity are not critical, it is simplest to make data more accessible to users, Q3. What are ogives? Point out the role. Discuss the method of constructing ogives with the help of an example? Ans, The term "Ogive" is an architectural term that tefers to curves or curved shapes. Ogives are graphs used to determine the number of numbers that lie below or above a given variable or value in data. To create an Ogive, one must first caléulate the cumulative frequency of the variables using a frequency table. This is accomplished by adding the frequencies of all preceding variables in the data set. The result, or the final value in the cumulative frequeney table, is always equal to the sum of the variables’ frequencies. The histogram, frequency polygon, frequency curve, and Ogives are the most frequently used graphs of the frequency distribution (cumulative frequency curves). The Ogive is defined as a series's frequency distribution graph. ‘The Ogive is a cumulative distribution graph that illustrates data values on the horizontal plane axis and cumulative relative frequencies, cumulative frequencies, or cumulative percent frequencies on the vertical axis. Cumulative frequency is defined as the sum 6f all previous frequencies up to and including the current one. To determine the popularity of a set of data or the likelihood of data falling within a given frequency range, the Ogive curve assists in accurately determining those details. Plot the point corresponding. to the cumulative frequency of each class interval to create the Ogive. The majority of statisticians employ the Ogive curve to visualise data in a pictorial representation. It assists in determining the number of observations that are less than or equal to a specified value. Graph of the Ogive: The frequency distribution graphs are used to illustrate the characteristics of discrete and continuous data. These figures are more visually appealing than tabulated data. It enables uso compare two or more frequency distributions. The shape and pattern of the two frequency distributions are comparable. Ogiyes employs two distinct methods: ~ se» Not as much as Ogive |» More than or equal to Ogive ‘Theigtaph above illustrates the difference between the less than and greater than Ogive curves. The rising curve (Brown Curve) indicates that the value is less than Ogive, while the falling curve (Green Curve indicates that the value is greater than Ogive. Not as much as Ogive: All preceding classes’ frequencies are added to the frequency of a class. This is referred to as the non-cumulative series. It is constructed by multiplying the first-class frequency by the second-class frequency, which is then multiplied by the third-class frequency, and so forth. The downward cumulation produces a series that is less than cumulative.“trichakrodhar.com - eater than Ogive: The frequencies of succeeding classes are multiplied by the " lass. This series is referred 1 the TF ater than OF frequency of the preceding © s 0 as the cumulative series gre Fr ote hy subacting he fists secon les, and hid cn frequencies the total, and so on. The result of the upward cumulation is greater than or equal to the cumulative Oake Diagram: A cumulative frequency distribution or cumulative relative frequency/distribution ‘curve is referred to as an Ogive Chart. The frequencies must be expressed as a percentage of the total .d and More than or Gi frequency when creating such a curve. Then, as with an Oxive, such percentages atv cumulated plotted. The steps for constructing the less than and greater than Ogives areisted below Curve That Is Less Than The Ogive Curve = The horizontal and vertical axes should be drawn and marked: © Cumulative frequencies are plotted along the y-axis (vertical axis), and upper-class limits are plotted along the x-axis (horizontal axis). ‘© Plot the cumulative frequencies against each upper-class limit. © Acontinuous curve should be used to connect the points. Draw a Curve that is greater than or equal to the Ogive Curve ‘© The horizontal and vertical axes should be drawn and marked. ‘* Cumulative frequencies are plotted along'the y-axisi(vertical axis), and Jower-class limits are plotted along the x-axis (horizontal axis). ‘© Plot the cumulative frequencies for each lowereclass limit. © Acontinuous curve should be used to comfiget the poirtts: Utilization of the Ogive Curve: To find the median of a set of data, the Ogive Graph or cumulative frequency graphs are used. When both the less than andigreater than cumulative frequency curves are plotted on the same graph, the’median value is easilysdetermined. The median value is determined by the point at whichiboth curves intersect, Corresponding to the x-axis. Apart from calculating the medians, Ogives are used fo compu the percentiles of the values in a data set. Q4. Describe and Present/a frequency distribtition in the form of bar diagram, frequency polygon, and ogives? » ‘Ans. Frequency distribution charts, which’ Rude both diagrams and graphs, are advantageous because they facilitate the! interpretation of data. A frequency distribution can be visualised in a number of ways. The following section discusses in detail the four most frequently used methods for togram, charting frequency distributions «) Fisioea Glin B © Bar Diagram) A © Polygottof Frequency 1) a “ sion agemnatG a atil rerhsrepteoas most frequently used diagram type is the bar diagram. Numerous such diagrams ious characteristics of data can be found in newspapers, journals, exhibitions, and even ion. For instance, bar diagrams make it simple to visualise a company’s population, pet aPitarincome, sales, and profits. I's worth noting that a bar is a thick line whose width is displayed to draw the viewer's attention. A bar diagram can be vertical or horizontal in orientation, To create a bar diagram, we use the X-axis to represent the characteristic (or attribute) under consideration and the Y-axis to represent the corresponding value. It is desirable to mention the value represented by the bar at the bar's top To demonstrate how to draw a bar diagram, we've used India's population figures (in millions) as follows:‘ial Applications (MIMPC-005) a8 Quantitative Analysis for Manage! .d and easily understood visual Histogram: Histograms are one of the most frequently use 8! 8 eq : lection of rectangles with areas representations of frequency distributions. A histogram is a coll proportional to the frequencies in a frequency distribution. To create a histogram, we take the variable’s class limits on the hdrizontal axis or X-axis and the frequencies of the class intervals shown on the horizontal axis 6n the vertical axisior Y-axis. If theclass intervals are equal in width, then the histogram's vertical barSjare also equal in width. On the other hand, if the class intervals are not equal, the frequencies muist Be adjusted to account for the class interval’s width susidanam Le 4 se 1 2 a Polygon of Frequency: The fiequency polygon illustrates the frequency distribution graphically. A polygon is a closed figure with a large number of sides) ‘A frequency polygon is formed by connecting the iidpoints of each rectangle's upper horizontal side with straight lines. To Complete the polygon, an additional class with a zero frequency is assumed at each end, If we draw a smooth cuve over these points in such a way that the area enclosed by the curve is approximately,equalltg’the area enclosed by the polygon, we have a frequency curve. The following figure itustrale tng same data smoothediout to create a frequency curve, another way of presenting thedata, > =19 Shrchokrodhorcom Ogives: Ogives are graphs used 10 determine the number of numbers that le below or above a variable or value in data, To create an Ogive, one must first calculate the cumulative frequency of the Variables using a frequency table. This is accomplished by adding the frequencies of all precoding variables in the data set. The result, or the final value in the cumulative frequency table, is always equal to the sum of the variables' frequencies. The histogram, frequency polygon,requency curve, land Ogives are the most frequently used graphs of the frequency distribution (cumulative frequency curves) se Q5. Describe the objectives of Classification? Ans. ¢ The main objective of classification is tol@liminate the éompleXity of collected data-items (Figures) and give them a simple and brief form! ‘+ With the help of classification, the similarty2dissmilarity of facts is clarified * The purpose of classification is to make facts comparable. ‘© The purpose of classification is to. make a logical aftangement of the data. ‘+ The purpose of classification isto provide scientific basif'to the data. ‘+ The purpose of classification(s to ifierease the usefulfess of data. ‘+ The purpose of classification isalso to form/fhe Basis of tabulation. ‘The primary feature of proper Classification is thabiit makes the data comprehensive. It will cover every item in a set and segregatéithem in appropiate groups. Every data set lacks clarity owing to its volume, ‘This classification brings much-needed clarity and ‘makes it easier to navigates > Gas Data in a set is ofteri Scattered) in varios pliges. Classification brings similar information under a single group and improvesthe homogeneity. Every impressive classification must've elasticity, so that, if the purpose of classification changes the basis of itcan changeeasily. | 4, ian Ani: (Q6. What are'the general guidelines)of forming a frequency distribution with particular reference to the choice ofclass interval I number of classes? Ans. justiber of Classes: The number of classes pretty much depends on the size of the data. In sail is'@’common practice to keep the number of classes between 5 and 20. Too many classes ‘yilDkill the purpose of data condensation into meaningful groups. At the same time, too few clasees OF a loss of information. Therefore, we always need to strike an appropriate balance. coop Variable: It is vital to determine the range of variable data by taking the difference between the largest and the smallest values in the data. The range of a variable allows us to pick up the correct number of classes Class Interval - Divide Range By Number Of Classes: To determine the approximate width or class interval, divide range (from step 2) by the number of classes and round to next higher whole number The result of the division will give us equal class-interval. If equal class-intervals are inconvenient oy maybe undesirable, then classes of unequal size are used. But in practice, intervals that are multiples of 5 or 10, are commonly used as people can understand them easily.Quantitative Anaiysis for Managerial Applications (MMPC-005) 20 1e or a number less Determine Class Limits: The lowest class usually starts with the smallest data valu b than it. It is better if it is a multiple of class-interval, Find the upper-class boundary by adding the width of the class-interval to the lower class-boundary and write down the upper-class limits too. The open-end classes, ic, lasses with the lowermost or uppermost class boundary unknown, should be avoided if possible. By adding the class-interval repeatedly, you should determine the remaining, and class boundaries. We should place the lowest class at the top, and the rest should fol rrding to size, In some cases, we may prefer to put the highest class atthe top. Distribute Data Into Classes: The best way to distribute the data into iate classes is by using a “Tally-Column” where values are tabulated against suitable ‘ly making short i to place the first bars or tally marks to represent them. It is customary for convenien four bars vertically and the fifth one diagonally and to leave a tallies in the frequency column, We usually omit the tally column ‘final presentation of the frequency distribution. But in case of a small number of value the gape ‘values should’ be’ shown: against each class to mitigate the chances of error. Finally, lal the frequency column to validate that all the data, ©Chapter-3 Measures of Central Tendency Strichakrodhar.com 1 Explain the concept and significance of Measures of central Tendency? ‘Ans, The central tendency is a descriptive summary of a dataset represented by a single value that represents the data distributions centre. Central tendency is a subset of descriptive statistics that includes the variability (dispersion) of a dataset Central tendency is a fundamental concept in statistics. While it does not gontain information about the individual values in the dataset, it does provide a comprehensive summary of the entire collection Central tendency measures, ie, condensing a large amount of data intda single value, enable us to get a sense of the entire set of data, For instance, itis impossible to recall thelindividual incomes of India's millions of wage earners. However, if we obtain the average income, we obtain a single vale that represents the entire population. Additionally, measures of central tendency enable usto compat€ two or more sets of data. For instance, the average April sales figures can be compated to previous months’ sales figures. Central Tendency Measures: Generally, the following measures can be used tédescribe a dataset's central tendency: The mean (Average) ofa dataset is the sum of all lis inthe dataset divided By the total numberof values in the dataset. b> The median value in an ascending-ordered dataset (ffom the smallest value to the largest value). If a dataset has an even number of values, the egy alue is équal t6lthe mean of the two middle values, Mode: Defines the value that occurs the mst fredliently in'a datas A dataset may contain multiple modes in some cases, while others may é@ntainiino modes ata. While the measures mentioned above’areithe most frequently used to define central tendency, there are several others, including the geometric mean, harmonic mean, midrange, and geometric median. ‘The central tendency measuré that is cRosen is fetetmined by the properties of the dataset, For example, the mode is the only measute of central y that is appropriate for categorical data, whereas the median is optimal inal data, While the mean is generally cgnsidered to ‘measure of central tendency for quantitative data, this is not always thé tase. For instafite, thélmean may not be appropriate when dealing with quantitative datasets that contain extreme large or small values. Extreme values have a tendency to distort the mean. As.aestlfy you mayewish to;eonsider additional measures. A formula or definition ¢an be used'to deférmine the measures of central tendency. Additionally, they can be identified using’ graph sib distribution. Take note that the mean, median, and mode are all Ioéatedh.in the sai meleaion the graph for datasets with anormal distribution, (i, aie22 {Quantitative Anolyss for Managerial Aplications (MMPC-005) weighted Arithmetic Q2. Compute various measures of central tendency, such as arithmetic mean, mean, median, mode, Geometric mean and Harmonic mean? ‘Ans.The term “central tendency" refers to “the statistical property that identifies a single value as representative of an entire distribution.” [2] Its objective is to provide an accurate description of all data, tis the lone value that is most characteristic/tepresentative of the data collected: This aspect of data description is referred to as "number crunching.” Three commonly used measutes of central tendency are the mean, median, and mode. Mean: The mean is the most frequently used criterion for central tendency means, including arithmetic, weighted, geometric (GM), and harmonic (HM). When the term mean’ isused without an adjective, it generally refers to the arithmetic mean. Arithmetic Mean: The arithmetic mean (or, more simply, "mean’) is the average. It is calculated by ‘multiplying the total number of values in the data set by the total number of observations. If we have the raw data, the formula returns the mean. E Arithmetic Mean Formula vy. There are several types of i = Arithmetic Mean = >—) € Arithmetic Mean = Sex Where (the uppercase Greek letter sigma) denotes summation, denotes the individual value, and n denotes the sample size (sample size). Because research articles published in journals do not include raw data, readers can compute the mean using the frequency distribution (if provided). ‘An external file that contains a photograph, illustration, or other image. Where f denotes the frequency, X denotes the class interval's midpoint, and n denotes the number of observations. The standard statistical notations are discussed in (in relation to measures of central tendency). The reader is advised that the mean derived from the frequency distribution is not identical to the mean derived from the raw data, As the number of intervals increases, it approaches the mean calculated from the raw data. Weighted mean: When certain values in a data set are more significant than others, the weighted mean is calculated. Each of the values xiis assigned a weightwi to reflect its significance.. Weighted Mean Formula = _ LWwixX wo lw, When a weighted mean is used to represent the average length of stay of a patient in a hospital, the total number of cases admitted to each ward serves as the weight. Geometric Mean: It is defined as the arithmetic mean of logarithmic values. Additionally, it is ‘expressed as the nth root of an observation's product. Geometric Mean of a and b Quick formula x =Vab Alternate formulas23 Shrichakradhar.com —- re an appropriate measure when Values change exponentially and when a skewed distribution GM is an approPta into a syminetical distribution using the log tansformation, Genetically smoatiied organisms are more frequently used in microbiological and serological research, One paint disadvantage of GMs tha it cannot be used with zero or negative values Pat Mean Iris the reciprocal ofthe observations’ arithmetic mean aan ei reciprocal of IMs the mean of individual observations’ reciprocle al in situations where values’ reciprocals are more useful. HM is,tased to calculate the HM is useful i ction of groups, each of which has a unique sample-size, average sample size of a colle Harmonic _ Mean Formula (+ Degree of Variance between the mean ‘ If all values in a data set are identical, then all threé means (arithmetic mean, geometric mean, and harmonic mean) are identical. As data variability, ineréases, the difference between these means increases as well. The arithmetic mean is always greater than the geometric mean (GM), which is always greater than the harmonic mean (HM). The other central tendency measures (médian.and mode) and, the guidelines for selecting the appropriate central tendency measure will be disctssed in the subseQuent issue Q3. Describe the Relationship among various Averages? ‘Ans, A symmetrical (bell-shaped) (distribution is,of@in which the mean, median, and mode all coincide. If distribution is skewed (not symmetrical), the mean, median, and mode will not be equal ‘A very interesting relationship’@xists between th@meani/median, and mode in a moderately skewed distribution. It is possible to demonstrate (that the) distance between the mean and median is approximately one-third of the distance between thé mean and mode in these types of distributions. ‘This is illustrated below for two distinct’classes of such distributions. ‘This relationship canbe expressed as follows. ‘Mean - Median = 1/3 (Mean - Mode) or Mode = 3 Median - 2 Mearty, ms Similarly, wean express the approximate relationship for median in terms of mean and mode. Also this can be éxpressed for mearviniterms of median and mode. Thus, if we know any of the two values of the avs, the third value ofthe average canbe determined from this approximate relationship, ‘consider a moderately skewed distribution in which mean and median is 35.4 and 34.3 / Calculate the value of mode. To compute the value of mode, we use the approximate ipMeasures of Central Tendency. “3 Median - 2 Mean =343)-254) = 1029-708 =321 ‘Therefore the value of mode is 32.1a Quantitative Analysis for Managerial Frequency —+ Variable —> (Qi. What are the properties of a good measure of central tendency? Ans. The central tendency is the descriptive summary of a data set. Through the single value from the dataset, it reflects the centre of the data distribution. Moreoyer, it dees not provide information regarding individual data from the dataset, where it gives a summaty of the dataset. Generally, the central tendency of a dataset can be defined using some of the measures in statistics. The central tendency is stated as the statistical measure that represents the single value of the entire distribution or a dataset, It aims to provide an accurate @éscription of the entire data in the distribution, Properties of a good measure of central tendency are.- ‘+ Itshould be rigidly defined, ‘* Itshould include all observations. ‘+ _ itshould be simple to understand and/@asy {o calculate. ‘+ itshould be capable of further mathematical treatment. ‘+ Itshould be least affected by extteme observations, ‘+ itshould possess sampling, stability. He Q5. Explain the mathematical property of Median? Ans. The important mathematical property of the medians that the sum of the absolute deviations about the median is a minimum. In Symbols 531X-Med:| is minimum. Although the median is not as popular as the arithmetic mean, itdoes have the advantage of being both easy to determine and easy to explain. As illustrated earlier, the median is.affeeted by the number of observations rather than the values of the observations; hence it will be less distorted as a representative value than the arithmetic mean. An additionaladvantage of the medians that it may be computed for an open-end distribution. The major disadvantage of median is that further mathematical treatments cannot be done. However, sineeitiiedian is a positional average, its value is not determined by each and every observation. 06. Review for each of the measure’of central tendency, their advantages and disadvantages? Ans If the distribution’s longer tail is skewed toward higher values(or thélright, the skewness is positive. Positive skewness occurs when the mean is inereased by somé unusually large values, resulting in the mean being greater than the median and mode! Me To be precise, the normal distribution}is @ probabilityMdistribution that is devoid of skewness. Consider the image below, which depicts a symmetrical distribution. A symmetrical distribution is essentially a normal distribution, and as you. can segit is symmetrical on both sides of the dashed line. Apart from this, skewnessiS classified into two types? Positive Skewness + Negative Skewness : a Medion Nec) Netan wee eon: | Mee Positive {0 Symmetrical Negative > Skew Og Distribution Skew properties of a good measure of variation ? ed measure of variation should possess, as far as possible, the same properties as those of a ie of central tendency. It should be simple to understand, ‘* It should be easy to compute. © Itshould be rigidly defined. ‘+ _ It should be based on each and every item of the distribution. ‘+ Itshould have sampling stability. * _ Itshould not be affected by the extreme items,30 Quantitative Analysis for Managerial Applications (MMPC-005), Q5. Describe the concept of absolute and relative measures of variation? ‘Ans, The second important characteristic of a distribution is given by variability. ‘Two distributions may be identical in respect of its first important characteristic Le. and yet they may differ on account of scatterness. central tendency ‘The following figure shows a number of distributions having identical measure ofeental tendency and yet varying measure of scatterness. Obviously, distribution is having the amount o} Varia jation of the Variability for a given set of observations may be defined as the amout ‘observations, usually, from an appropriate measure of central tendency. Measures of variability may be broadly classified into ‘+ Measures of absolute varial ‘+ Measures of relative variability Measures of Absolute Variability “Measures of absolute variability are classified into + Range ‘+ Mean Deviation ‘+ Standard Deviation + Quartile Deviation Measures of Relative Variability Likewise, we have the following measures of ‘+ Coefficient of range Coefficient of Mean Deviation + Coefficient of Variation + Coefficient of Quartile Deviation Difference Between Absolute and Relative! ty b We may note the following points of measures of absolute and relative variability. jon © Absolute measures are on the iriable under consideration whereas the relative measure of vs it free. stributi measures and not absolute measure of a eta:See Chapter-5 _ Basic Concepts of Probability gol = SEIS ala aiid = I cet an by Probability. Define its Approaches also? ee tp synonymous with possibility. It is a branch of mathematics thatstudies the probability ofa random event occuring, The value is between 0 and 1. Probability was,introsuced in ein hematies to allow forthe prediction ofthe likelihood of events occurring, Probability isa term that refers to the degree to which something is likely to occur. This is theiffindamental theory of probability, which is also used in probability distributions in which you will lam about the possible vencomes gf « random experiment, To determine the probability of occurrence of a single event, We must first determine the total number of possible outcomes. Classical Approach: This approach is derived from the field in whichiprobability was first applied systematically, namely gambling (flipping coins, tossing dice and so forth). Gambling problems are defined by random experiments with n possible outcomes, all of which are equally likely to occur. ‘That is, none of them are more or less likely to occur than theligthers; thu8jithey are said to be symmetrical. The classical approach holds that given a collection of k elements out of n (wheré0kn), the probability of an event E occurring is equal to: _ Number of outcome favourable to E P(©) = Wamber of allpossible outcome ofthe experiment Approach based on frequency (or empirical data): This approach was formally introduced in the field of natural science, where the symmetrical position assumption fails miserably. Rather than that, this approach is based on the notion that seVeral experiments)can be conducted under certain conditions that are considered equivalent. Each experiment may r@sult in success or failure. Thus, given n random experiments conducted under equivalent eéiditions, the frequency of "success (which is an event F) is defined as follows)» i Relative Frequency = Subgroup Count/,Total Count Po.” Subjective Approach: This is the most intuitive definition 8f probability, developed by probabilist B de Finetti. Indeed, according tathat view, the probabilitylof an event is defined as the degree of belief person attaches to it based on the’ information aWailable to him or her. This reasoning holds true only if rationality is assumed, which implies that people act coherently. Allow me to providelamore precise defititionConsider a lottery in which you have a chance to win an amount equal to S if event E occurs. ‘ 2, Explain the concept of Sample Space and How to find a Sample Space? Ans. A sample space is a set or collection Of possible outcomes of a random experiment. The sample space is denofed bythe letter." The term “events” refers to the subset of possible outcomes of an experiment4Depending on the @xperiment, a sample space may contain a variety of outcomes. If the sample space coritains a finite number of outcomes, it is referred to as a discrete or finite sample Sp v Within cuily braces, the sample spaces for a random experiment are specified. Between the sample the events, there is a distinction. We obtain the sample space, S, for rolling a die as 1, 2,3, 4, 5 the event can be written as 1, 3, 5, which represents the set of odd numbers and 2, 4, 6 which represents the set of even numbers. The results of an experiment are unpredictable, and the sample space becomes the universal set for certain experiments. Several examples include the following: Coin Tossing: When flipping a coin, two possible outcomes exist, such as head or til. As a result, the sample space for this experiment is as follows: S=H, T= Head, Tail a