Advanced Statistics DISPERSION & NORMAL CURVE

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MATHEMATICS IN THE MODERN

WORLD
STATISTICS
VARIATION AND THE NORMAL CURVE
MEASURES OF DISPERSION
• It is a measure that indicates the degree to which values tend to spread about a central value
which is the Mean.
Example:
Illustrate Measures of Dispersion considering the two sets of values:
Set A: 1, 3, 5, 7, 9
Set B: 3, 4, 5, 6, 7
MEASURES OF DISPERSION
• RANGE – THE DIFFERENCE BETWEEN THE HIGHEST VALUE (H) AND THE
LOWEST VALUE (L) IN THE SET OF DATA.
RANGE = H – L

Example:
1. In a graduating class of 50 Law students, the youngest is 24 years old and the oldest is
42. What is the range?
2. In a graduating class of 50 college students, the youngest is 19 years old and the
oldest is 21. What is the age range of the 50 students? Compared to example 1, how will
you describe this group?
MEASURES OF DISPERSION
3. Two barangays A and B have about the same number of families. Their computed
average monthly incomes turn out to be just about the same at PhP 30,000.00. However, in
barangay A, the lowest monthly family income is PhP 15,000.00 and the highest is PhP
50,000.00. In barangay B, the lowest monthly income is PhP 5,000.00 and the highest is
PhP 90,000.00. Find the income range in the two barangays and interpret your results.
• Disadvantage of the Range – it is influenced by extreme values. In such cases, the extreme
value is discarded (e.g. 1, 3, 5, 7, 9, 70)
MEASURES OF DISPERSION
•  MEAN (ABSOLUTE) DEVIATION – average deviation.
MD =
Example:
Find the Mean Deviation of the set of data: 8, 7, 8, 7, 9, 5, 8, 5, 7, 6
Steps:
1. Find the Mean
2. Find the absolute deviation (term minus the mean)
3. Take the sum of the absolute deviations
4. Divide the sum by the number of terms
MEASURES OF DISPERSION
• The MD of 1 means that while the values under X deviate from the computed mean of 7 by
different amounts, on average the deviation of all the values from the computed mean is 1.

• If compared to MD of other set of data, a MD greater than 1 means more dispersion and a
MD lesser that 1 means less dispersion.
MEASURES OF DISPERSION
• STANDARD
  DEVIATION (SD) – the most commonly used measure of dispersion. It is also
referred to as the Root – Mean – Square value.

Steps in determining the SD:


1. Find the Mean
2. Find the absolute deviations
3. Find the squares of the absolute deviations
4. Take the sum of the squares of the absolute deviations
5. Use formula 1 to determine the SD
MEASURES OF DISPERSION
Example:
Find the standard deviation of the set of data given:
8, 7, 8, 7, 9, 5, 8, 5, 7, 6
MEASURES OF DISPERSION
Example:
1. The IQ scores of a sample of 15 students among freshmen applicants are:

95 131 138 127 90

118 112 98 125 114

138 122 115 135 132

Find:
• The Range
• The Mean Deviation
• The Standard Deviation
MEASURES OF DISPERSION
2. A Fisherman’s daily catch of fish (in kilos) for the past ten days are: 80, 120, 100, 90, 150,
130, 110, 140, 130, 70.
Find:
• The Mean daily catch.
• The Mean Deviation
• The Standard Deviation
THE NORMAL DISTRIBUTION
TWO TYPES OF DISTRIBUTION
• NORMAL DISTRIBUTION – a probability distribution that plots all of its values in a
symmetrical fashion and most of the results are situated around the probability’s mean.
Values are equally likely to plot either above or below the mean.
THE NORMAL DISTRIBUTION
Let us consider the following population characteristics to illustrate a normal distribution:
1. Grade
In a class of students, most will have grades that tend towards the average, whether this
be the Mean, the Median or the Mode. Relatively few will have high grades or low grades.
THE NORMAL DISTRIBUTION
2. Monthly Income
In a barangay, most families will tend to have monthly incomes that are close to the
average income. Relatively few will have high incomes or low incomes.
THE NORMAL DISTRIBUTION
3. Weight
In a random gathering of individuals, most will have weights that are close to what
might be considered average weight. Relatively few will be very heavy or very light.
THE SKEWED DISTRIBUTION
• SKEWED DISTRIBUTION – an unsymmetrical frequency distribution having he mode at a
different value from the mean.
• Using the same population characteristics, a distribution that is skewed to the right (or
positively skewed) may be described as follows:
1. Most students have low grades
2. Most families have low monthly incomes
3. Most individuals have light weights
THE SKEWED DISTRIBUTION
• A distribution that is skewed to the left (or negatively skewed) may be described as follows:
1. Most students have high grades
2. Most families have high monthly incomes
3. Most individuals have heavy weights
PROPERTIES OF A NORMAL CURVE
1. The total area under the Normal Curve is defined to be 1 or 100%.
PROPERTIES OF A NORMAL CURVE
•2.  The values of the Mean, Median, and Mode are the same. The common value is at the mid-
point of the base line, of the Normal Curve.
PROPERTIES OF A NORMAL CURVE
•3.  The Normal Curve is symmetrical about the Mean .
PROPERTIES OF A NORMAL CURVE
4. The right and left tails of the Normal Curve and the base horizontal line X, are asymptotes.
TABLE OF AREAS UNDER THE STANDARD
NORMAL CURVE

STANDARD NORMAL CURVE (for Z scores)


TABLE OF AREAS UNDER THE
STANDARD NORMAL CURVE
Areas using Z scores
1. Z = 0 to Z = 1.0
2. Z = 0 to Z = 1.2
3. Z = 0 to Z = 2.24
4. Z = 0 to Z = 3.12
5. Z = 0 to Z = .23
FINDING AREAS UNDER THE
NORMAL CURVE
1. Find the area under the normal curve from Z = 0 to Z = 1.25
2. Find the area from Z = 0 to Z = - 1.25
3. Find the area to the left of Z = 2.0
4. Find the area to the right of Z = - 2.0
5. Find the area to the right of Z = 1.52
6. Find the area to the left of Z = - 1.52
7. Find the area from Z = 1.25 to Z = 2.50
8. Find the area between Z = - 0.52 to Z = - 2.25
9. Find the area from Z = - 2.25 to Z = 1.50
THE Z OR STANDARD SCORE
•Converting
  the values of the Population Characteristics (e.g. grades, weights, and monthly
income) into Z or Standard Scores:
1. Let us assume that the hourly wages of the workers are normally distributed with the
computed mean and standard deviation . The population characteristic of hourly wage is
represented as X. Let us consider the following hourly wages: P110, P120, P90, P80.
Question: How many standard deviations are there between each of the hourly wages and
the Mean, , of P100?
• Between P110 and P100
• Between P120 and P100
• Between P90 and P100
• Between P80 and P100
THE Z OR STANDARD SCORE
•Conclusion:
 
THE NUMBER OF STANDARD DEVIATIONS BETWEEN A GIVEN VALUE OF X
AND THE MEAN, (that is, the population Mean) IS THE STANDARD SCORE OR THE Z
SCORE.

Thus, the Z scores corresponding to the four hourly wages are:


X Z score
P 110 +1
P 120 +2
P 90 - 1
P 80 - 2
Z SCORE FORMULA
•  

Where:
X = particular value of a population characteristic
= population Mean
= population Standard Deviation
FINDING THE Z SCORE
•1.   Given the Mean and the Standard Deviation of a normally distributed population
characteristic, determine the following:
• Z score of 175.87
• Z score of 122.50
• Z score of 100.52
• Z score of 186.32
• Z score of 195.37
PROBLEM APPLICATION
•1.   The hourly wages of 500 skilled workers is found to approximate a Normal Distribution.
The average hourly wage, , is computed to be $100 with a Standard Deviation, , of $10.
Find:
• The percentage of workers whose hourly wages are:
a. From $100 to $110
b. From $110 to $ 130
c. From $80 to $90
• The number of workers whose hourly wages are:
a. Greater than or equal to $115
b. From $75 to $118
c. Greater than or equal to $85
d. Less than or equal to $113
PROBLEM APPLICATION
• The minimum hourly wage of the upper 10% of the workers ( that is, with the highest wages
• The maximum hourly wage of the lower 20% of workers (that is, with the lowest wages)

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