Business Statistics (B.

com I)

Formulas For Measures of central Tendency & Dispersion

Arithmetic Mean
Nature of Data
Method’s Name
Ungrouped Data Grouped Data
Direct Method
Indirect or
Short-Cut Method
Method of
Step-Deviation
Where
Indicates values of the variable .
Indicates number of values of .
Indicates frequency of different groups.
Indicates assumed mean.
Indicates deviation from i.e,

Step-deviation and Indicates common divisor

Indicates size of class or class interval in case of grouped data.
Summation or addition.
Median
Median from Ungrouped Data:

Median = Value of item

Note: Another simple method to calculate median for ungrouped data is as follows:
1. For odd values just pick the central most value that will be the median.
2. For even values just ad up the two central most values and divide it by 2 the answer
will be the median.
Median from Grouped Data:

Where
= Lower class boundary of the model class
= Frequency of the median class
= Number of values or total frequency
= Cumulative frequency of the class preceding the median class
= Class interval size of the model class

Mode
Mode from Ungrouped Data:
Mode is calculated from ungrouped data by inspecting the given data. We pick out
that value which occur the greatest numbers of times in the data.

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Mode from Grouped Data:

When frequency distribution with equal class interval sizes, the class which has
maximum frequency is called model class.

Or

Where
= Lower class boundary of the model class
= Frequency of the model class (maximum frequency)
= Frequency preceding the model class frequency
= Frequency following the model class frequency
= Class interval size of the model class
Mode from Discrete Data:
When the data follows discrete set of values, the mode may be found by inspection.
Mode is the value of X corresponding to the maximum frequency.
Geometric Mean
For Ungrouped Data For Grouped Data

Harmonic Mean
For Ungrouped Data For Grouped Data

Weighted Arithmetic Mean

Where:
Stands for weighted arithmetic mean.
Stands for values of the items and
Stands for weight of the item

Quartiles
Quartile for Individual Observations (Ungrouped Data):

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Quartile for a Frequency Distribution (Discrete Data):

Quartile for Grouped Frequency Distribution:

Deciles
Deciles for Individual Observations (Ungrouped Data):

Quartile for a Frequency Distribution (Discrete Data):

Quartile for Grouped Frequency Distribution:

Percentiles:

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Measures of Dispersion
1. The Range:
For Ungrouped Data
Range = R = X m − X o
Where X m = the largest value.
X o = the smallest value.

For Grouped Data

Range = R = Upper class boundary of the highest class – lower class boundary of the lowest class or

Range = R = Class Marks (X) of the highest class – Class Marks of the lowest class
Coefficient Of Range

Xm − Xo
Coefficient of Range =
Xm + Xo
2. Semi Inter Quartile Range or Quartile Deviation
Q3 − Q1
S.I.Q.R = Q.D =
2
Where Q1 = First, Lower quartile
Q3 = Third, Upper quartile
Coefficient Of Quartile Deviation
Q3 − Q1
Coefficient of Q.D =
Q3 + Q1
Where Q1 = First, Lower quartile
Q3 = Third, Upper quartile

3.Mean Deviation or Average Deviation

1. Mean Deviation From Mean

For Ungrouped Data

M.D =  X −X
n
Or
M.D =  X − Mean
n

For Grouped Data

M.D = f X −X
f
Or

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M.D = f X − Mean
f
Coefficient Of Mean Deviation From Mean
Mean Deviation From Mean
Coefficient of M.D from Mean =
Mean
Or

M .D From X
Coefficient of M.D from Mean =
X

2. Mean Deviation From Median

For Ungrouped Data

M.D =
 X − Median
n
For Grouped Data

M.D =
f X − Median
f

Coefficient Of Mean Deviation From Median

Mean Deviation From Median

Coefficient of M.D from Median =
Median
3. Mean Deviation From Mode

For Ungrouped Data

M.D = ∑ X-Mode
n
For Grouped Data

Coefficient Of Mean Deviation From Mode

4.Standard Deviation (S)

Methods of Standard Deviation

I.Direct Method
II.Short Cut Method
III.Coding Method or Step-Deviation Method

1. Direct Method

For Ungrouped Data

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X X
2
S.D = S =
2

−  
n  n 
or
( X − X )
2

S.D = S =
n

For Grouped Data

 fX   fX
2
2

S.D = S = − 
f  f
 

 f (X − X )
2
S.D = S =
f
2. Short Cut Method

For Ungrouped Data

D D
2 2

S.D = S = −   Where D= X – A
n  n 

For Grouped Data

 fD   fD 
2
2
S.D = S = −
f   f 
 

3. Coding Method or Step-Deviation Method

For Ungrouped Data

u  u 
2 2

S.D = S = h  −   Where
n  n 
X −A D
u= or
h h

For Grouped Data

 fu   fu 
2
2
S.D = S = h  −
f   f 
 
Coefficient Of Standard Deviation
S .D
Coefficient of S.D =
X

5 Variance ( S 2 )
Methods of Variance
1. Direct Method
2. Short Cut Method
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3. Coding Method or Step-Deviation Method

1. Direct Method
For Ungrouped Data
X X
2
2
2

Var(X) = S = −  
n  n 

( X − X )
2
2
Var(X) = S =
n

For Grouped Data

= 
  fX
2
fX 2

−
2
Var(X) = S 
f  f
 

 f (X − X )
2
2
Var(X) = S =
f
2. Short Cut Method

For Ungrouped Data

D D
2 2

Var(X) = S
2
= −   Where D= X – A
n  n 
For Grouped Data

 fD   fD 
2
2

−
  f 
2
Var(X) = S =
f  

3. Coding Method or Step-Deviation Method

For Ungrouped Data

 
Var(X) = S = h 2    u −   u  
2 2
2
Where
 n  n  
   
X −A D
u= or
h h

For Grouped Data

 fu 2   fu  

2
2
Var(X) = S = h  − 
  f  
2

 f   


Coefficient Of Variation (C.V)

S .D
Coefficient of Variation = C.V =  100
X

7. Coefficient of Skewness (SK)

Karl Pearson’s Coefficient of Skewness

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Mean − Mode
SK =
S .D

3 ( Mean − Median )
SK =
S .D

Bowly’s Quartile Coefficient of Skewness

Q3 + Q1 − 2Median
SK =
Q3 − Q1

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