measures of central tendency (contd…) prepared by: bhakti joshi date: november 28, 2011

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Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

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Page 1: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Measures of Central Tendency (Contd…)

Prepared by: Bhakti JoshiDate: November 28, 2011

Page 2: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Frequency distribution of Weights in Pounds of a sample of packages

Weights Class Frequency of packages (f) Mid-point (x) fx

10.0 – 10.9 1 (10+10.9)/2= 10.5 1*10.5= 10.5

11.0 – 11.9 4 11.5 4*11.5= 46

12.0 – 12.9 6 12.5 6*12.5=75

13.0 – 13.9 8 13.5 8*13.5= 108

14.0 – 14.9 12 14.5 12*14.5= 174

15.0 – 15.9 11 15.5 11*15.5=170.5

16.0 – 16.9 8 16.5 8*16.5=132

17.0 – 17.9 7 17.5 7*17.5=122.5

18.0 – 18.9 6 18.5 6*18.5=111

19.0 – 19.9 2 19.5 2*19.5=39

65 988.5

15.2

Page 3: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Monthly Average Cash Balances of 600 customers

Class (Rupees) Frequency of Customers (f) Mid-point (x) fx

0 – 49.9 78 (0+49.9)/2= 25 78*25= 1950

50.00 - 99.99 123 75 9225

100.00 - 149.99 187 125 23375

150.00 - 199.99 82 175 14350

200.00 – 249.99 51 225 11475

250.00 – 299.99 47 275 12925

300.00 - 349.99 13 325 4225

350.00 – 399.99 9 375 3375

400.00 – 449.99 6 425 2550

450.00 – 499.99 4 475 1900

600 85,350

142.25

Page 4: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Median

Roll No. Age

1 182 183 184 185 196 167 188 179 1810 18

…Central Item of a data set

(N+1) /2 = MN = Number of observationsM= Median

Page 5: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Median

Age Intervals

Frequency of Mobile

Phones Owned (f)

Cumulative Frequency

10 - 15 20 20

15 - 20 40 60

20 - 25 60 120

25 - 30 70 190

30 - 35 60 250

35 - 40 30 280

40 - 45 20 300

Interpretation?

Page 6: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Estimated median weight of the fish caught

Weights Intervals

Frequency of fish

caught (f)

Cumulative Frequency

10-19.5 8 820-29.5 15 2330-39.5 23 4640-49.5 37 8350-59.5 46 12960-69.5 52 18170-79.5 84 26580-89.5 97 36290-99.5 16 378100-109.5 5 383

Item or number that represents median

383+1 / 2= 192nd item

Class that contains the median item

70 – 79.5

Width of the weights interval9.5

Estimated median value?(192 – (181+1) 84

* 9.5 + 70 =

71.13

Page 7: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Mode…Value that is repeated most often in the data set. Mode is not used for ungrouped data

Age Intervals

Frequency of Mobile

Phones Owned (f)

Cumulative Frequency

10 - 15 20 20

15 - 20 40 60

20 - 25 60 120

25 - 30 70 190

30 - 35 60 250

35 - 40 30 280

40 - 45 20 300

Interpretation?

Page 8: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Relationship between Mean-Median-Mode

• Mean < Median < Mode = Negatively (left) Skewed

• Mean> Median> Mode = Positively (right) Skewed

• Mean = Median = Mode = Normal

Page 9: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Negatively (left) Skewed

Positively (right) Skewed

Normal

Page 10: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

ProjectsStock Prices of Companies representing any one of the following industries listed on the BSE or NSE•Textiles•Banking•Automobiles•IT/Telecommunication•Pharmaceutical•Foods & Beverages•Infrastructure•Steel•Oil & Gas•Chemicals

Page 11: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Project Requirements• Select 2 or more stocks of representative industry• Stock prices of minimum 100 data points each• Background of the representative companies– Names– Industry– Occupation (Trading, manufacturing, distribution, etc)– Products/services– Customers

• Select statistical tools to compare and analyze the trends and performance of the stocks in the stock market

Page 13: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Frequency and Distribution Curve

Page 14: Measures of Central Tendency (Contd…) Prepared by: Bhakti Joshi Date: November 28, 2011

Geometric Mean