Week 8 Session 1

Dr Gidraph Michuki
Learning outcomes
• Describe distribution shapes
• Understand how quartiles and percentiles can be used to draw useful
conclusions in a business context
• Use an analysis tool to calculate descriptive statistics –Excel
• Produce graphs using spreadsheets and draw valid conclusions based
on the information derived
• Correlation
• Data summarisation and data presentation
 • Describes how data are distributed
• Measures of shape
Distribution shapes • Symmetric or skewed
Distribution shapes continued…
Measure of variation

• Small standard deviation indicates that

the values are concentrated near the
mean.

• Large standard deviation indicates that

values are dispersed far from the mean.
 Percentiles and
Quartiles indicate the
position of a value
relative to the entire set
of data
Percentiles
Typically used to
describe large data sets
Quartiles
• Quartiles split the ranked data into 4 segments with an equal
number of values per segment
• The first quartile, Q1, is the value for which 25% of the observations
are smaller and 75% are larger
• Q2 is the same as the median (50% are smaller, 50% are larger)
• Only 25% of the observations are greater than the third quartile
Formulas for Quartiles

• First quartile position: Q1 = 0.25(n+1)

• Second quartile position: Q2 = 0.50(n+1)
• Third quartile position: Q3 = 0.75(n+1)
• ‘n’ is the number of observed values
Summary
• Q&A
Week 9 -Session
Dr Gidraph Michuki
Agenda

By the end of this session, learners should be able to:

• Identify different types of analysis tools

• Use an analysis tool to calculate descriptive statistics – Excel

Using EXCEL for descriptive statistics

• Open an Excel sheet on Microsoft Office

• Input data
• Make sure your data analysis tool is enabled on your Excel
• Click on ‘data’
• Go to ‘data analysis’
• Click descriptive statistics
• Choose the columns from where you want the data analysed
• Select the output

• https://www.youtube.com/watch?v=WwHH2Hq7eus
Example:
Calculate the • A business lecturer collected the following
grades from 10 students he taught 4
mean, mean different modules during their first year at
university.
deviation, • The grades were as follows:-
standard
deviation
 Market data Principles of Digital
Professional Principles of analysis
and Social Media
skills Marketing
Marketing
90 95 95 80

80 90 95 80

70 90 90 70
Working
data
60 90 90 60

50 80 90 60

40 80 80 55

40 75 80 55

40 75 80 50

30 70 20 45

30 70 10 45
 Calculate Calculate
• calculate the mean grades for • calculate the range for each
each subject subject

Calculate Calculate

Required: • calculate the difference

between each value in the
distribution and the arithmetic
mean of that distribution
• calculate the mean deviation
for each of the above subjects

Work out Interpret

• Work out the standard • Interpret the data
deviation for each module
Remember
the formula
Summary

• Any questions?