IGNOU

MBA

MMPC-5

IMPORTANT QUESTIONS AND ANSWERS

Q1) Explain the concept of probability theory. Also, explain what are the different
approaches to probability theory.

A) Probability Theory

Probability theory is a branch of mathematics that investigates the probabilities

associated with a random phenomenon. A random phenomenon can have several
outcomes. Probability theory describes the chance of occurrence of a particular
outcome by using certain formal concepts.

Probability theory makes use of some fundamentals such as sample space, probability
distributions, random variables, etc. to find the likelihood of occurrence of an event. In
this article, we will take a look at the definition, basics, formulas, examples, and
applications of probability theory.

What is Probability Theory?

Probability theory makes the use of random variables and probability distributions to
assess uncertain situations mathematically. In probability theory, the concept of
probability is used to assign a numerical description to the likelihood of occurrence of
an event. Probability can be defined as the number of favorable outcomes divided by the
total number of possible outcomes of an event

Probability Theory Definition

Probability theory is a field of mathematics and statistics that is concerned with finding
the probabilities associated with random events. There are two main approaches
available to study probability theory. These are theoretical probability and
experimental probability. Theoretical probability is determined on the basis of logical
reasoning without conducting experiments. In contrast, experimental probability is
determined on the basis of historic data by performing repeated experiments.

Probability Theory Example

Suppose the probability of obtaining a number 4 on rolling a fair dice needs to be

established. The number of favorable outcomes is 1. The possible outcomes of the dice
are {1, 2, 3, 4, 5, 6}. This implies that there are a total of 6 outcomes. Thus, the
probability of obtaining 4 on a dice roll, using probability theory, can be computed as 1
/ 6 = 0.167.

Probability Theory Basics

There are some basic terminologies associated with probability theory that aid in the
understanding of this field of mathematics.

Random Experiment

A random experiment, in probability theory, can be defined as a trial that is repeated

multiple times in order to get a well-defined set of possible outcomes. Tossing a coin is
an example of a random experiment.

Sample Space

Sample space can be defined as the set of all possible outcomes that result from
conducting a random experiment. For example, the sample space of tossing a fair coin is
{heads, tails}.

Event

Probability theory defines an event as a set of outcomes of an experiment that forms a

subset of the sample space. The types of events are given as follows:

Independent events: Events that are not affected by other events are independent
events.

Dependent events: Events that are affected by other events are known as dependent
events.

Mutually exclusive events: Events that cannot take place at the same time are mutually
exclusive events.

Equally likely events: Two or more events that have the same chance of occurring are
known as equally likely events.

Exhaustive events: An exhaustive event is one that is equal to the sample space of an
experiment.

Random Variable

In probability theory, a random variable can be defined as a variable that assumes the
value of all possible outcomes of an experiment. There are two types of random
variables as given below.
Discrete Random Variable: Discrete random variables can take an exact countable value
such as 0, 1, 2... It can be described by the cumulative distribution function and the
probability mass function.

Continuous Random Variable: A variable that can take on an infinite number of values is
known as a continuous random variable. The cumulative distribution function and
probability density function are used to define the characteristics of this variable.

Different approaches to probability theory.

Classical approach

This approach traces back to the field where probability was first sistematically
employed, which is gambling (flipping coins, tossing dice and so forth). Gambling
problems are characterized by random experiments which have n possible outcomes,
equally likely to occur. It means that none of them is more or less likely to occur than

other ones, hence they are said to be in a symmetrical position.The idea of the classical
approach is that, given a collection of k elements out of n (where 0≤k≤n), the probability
of occurrence of the event E represented by that collection is equal to:

2. Empirical (sometimes called "A posteriori" or "Frequentist")

This perspective defines probability via a thought experiment.

To get the idea, suppose that we have a die which we are told is weighted, but we don't
know how it is weighted. We could get a rough idea of the probability of each outcome
by tossing the die a large number of times and using the proportion of times that the die
gives that outcome to estimate the probability of that outcome.

This idea is formalized to define the probability of the event A as

P(A) = the limit as n approaches infinity of m/n,
where n is the number of times the process (e.g., tossing the die) is performed, and m is
the number of times the outcome A happens.

(Notice that m and n stand for different things in this definition from what they meant in
Perspective 1.)

In other words, imagine tossing the die 100 times, 1000 times, 10,000 times, ... . Each
time we expect to get a better and better approximation to the true probability of the
event A. The mathematical way of describing this is that the true probability is the
limit of the approximations, as the number of tosses "approaches infinity" (that just
means that the number of tosses gets bigger and bigger indefinitely). Example

This view of probability generalizes the first view: If we indeed have a fair die, we
expect that the number we will get from this definition is the same as we will get from
the first definition (e.g., P(getting 1) = 1/6; P(getting an odd number) = 1/2). In
addition, this second definition also works for cases when outcomes are not equally
likely, such as the weighted die. It also works in cases where it doesn't make sense to
talk about the probability of an individual outcome. For example, we may consider
randomly picking a positive integer ( 1, 2, 3, ... ) and ask, "What is the probability that
the number we pick is odd?" Intuitively, the answer should be 1/2, since every other
integer (when counted in order) is odd. To apply this definition, we consider randomly
picking 100 integers, then 1000 integers, then 10,000 integers, ... . Each time we
calculate what fraction of these chosen integers are odd. The resulting sequence of
fractions should give better and better approximations to 1/2.

However, the empirical perspective does have some disadvantages. First, it involves a
thought experiment. In some cases, the experiment could never in practice be carried
out more than once. Consider, for example the probability that the Dow Jones average
will go up tomorrow. There is only one today and one tomorrow. Going from today to
tomorrow is not at all like rolling a die. We can only imagine all possibilities of going
from today to a tomorrow (whatever that means). We can't actually get an
approximation.

A second disadvantage of the empirical perspective is that it leaves open the question of
how large n has to be before we get a good approximation. The example linked above
shows that, as n increases, we may have some wobbling away from the true value,
followed by some wobbling back toward it, so it's not even a steady process.

The empirical view of probability is the one that is used in most statistical inference
procedures. These are called frequentist statistics. The frequentist view is what gives
credibility to standard estimates based on sampling. For example, if we choose a large
enough random sample from a population (for example, if we randomly choose
a sample of 1000 students from the population of all 50,000 students enrolled in the
university), then the average of some measurement (for example, college expenses) for
the sample is a reasonable estimate of the average for the population.

3. Subjective
Subjective probability is an individual person's measure of belief that an event will
occur. With this view of probability, it makes perfectly good sense intuitively to talk
about the probability that the Dow Jones average will go up tomorrow. You can quite
rationally take your subjective view to agree with the classical or empirical views when
they apply, so the subjective perspective can be taken as an expansion of these other
views.

However, subjective probability also has its downsides. First, since it is subjective, one
person's probability (e.g., that the Dow Jones will go up tomorrow) may differ from
another's. This is disturbing to many people. Sill, it models the reality that often people
do differ in their judgments of probability.

The second downside is that subjective probabilities must obey certain "coherence"
(consistency) conditions in order to be workable. For example, if you believe that the
probability that the Dow Jones will go up tomorrow is 60%, then to be consistent you
cannot believe that the probability that the Dow Jones will do down tomorrow is also
60%. It is easy to fall into subjective probabilities that are not coherent.

Q2) Stratified vs. Cluster Sampling

A) Definition of Stratified Sampling

Stratified sampling is a type of probability sampling, in which first of all the population
is bifurcated into various mutually exclusive, homogeneous subgroups (strata), after
that, a subject is selected randomly from each group (stratum), which are then
combined to form a single sample. A stratum is nothing but a homogeneous subset of
the population, and when all the stratum are taken together, it is known as strata.

The common factors in which the population is separated are age, gender, income, race,
religion, etc. An important point to remember is that strata should be collectively
exhaustive so that no individual is left out and also non-overlapping because
overlapping stratum may result in the increase in the selection chances of some
population elements. The sub-types of stratified sampling are:

 Proportionate Stratified Sampling

 Disproportionate Stratified Sampling

Definition of Cluster Sampling

Cluster sampling is defined as a sampling technique in which the population is divided

into already existing groupings (clusters), and then a sample of the cluster is selected
randomly from the population. The term cluster refers to a natural, but heterogeneous,
intact grouping of the members of the population.

The most common variables used in the clustering population are the geographical area,
buildings, school, etc. Heterogeneity of the cluster is an important feature of an ideal
cluster sample design. The types of cluster sampling are given below:

 Single-stage cluster sampling

 Two-stage cluster sampling
 Multistage cluster sampling
Key Differences Between Stratified and Cluster Sampling

The differences between stratified and cluster sampling can be drawn clearly on the
following grounds:

1. A probability sampling procedure in which the population is separated into

different homogeneous segments called ‘strata’, and then the sample is chosen
from the each stratum randomly, is called Stratified Sampling. Cluster Sampling
is a sampling technique in which the units of the population are randomly
selected from already existing groups called ‘cluster.’
2. In stratified sampling the individuals are randomly selected from all the strata, to
constitute the sample. On the other hand cluster sampling, the sample is formed
when all the individuals are taken from randomly selected clusters.
3. In cluster sampling, population elements are selected in aggregates, however, in
the case of stratified sampling the population elements are selected individually
from each stratum.
4. In stratified sampling, there is homogeneity within the group, whereas in the
case of cluster sampling the homogeneity is found between groups.
5. Heterogeneity occurs between groups in stratified sampling. On the contrary, the
members of the group are heterogeneous in cluster sampling.
6. When the sampling method adopted by the researcher is stratified, then the
categories are imposed by him. In contrast, the categories are already existing
groups in cluster sampling.
7. Stratified sampling aims at improving precision and representation. Unlike
cluster sampling whose objective is to improve cost effectiveness and
operational efficiency.

Q3) Decision Tree Approach

A) What is the Pearson correlation coefficient?

Pearson correlation coefficient or Pearson’s correlation coefficient or Pearson’s r is
defined in statistics as the measurement of the strength of the relationship between two
variables and their association with each other.

In simple words, Pearson’s correlation coefficient calculates the effect of change in one
variable when the other variable changes.

For example: Up till a certain age, (in most cases) a child’s height will keep increasing as
his/her age increases. Of course, his/her growth depends upon various factors like
genes, location, diet, lifestyle, etc.

This approach is based on covariance and thus is the best method to measure the
relationship between two variables.

For example:
 Positive linear relationship: In most cases, universally, the income of a person
increases as his/her age increases.
 Negative linear relationship: If the vehicle increases its speed, the time taken to
travel decreases, and vice versa.
From the example above, it is evident that the Pearson correlation coefficient, r, tries to
find out two things – the strength and the direction of the relationship from the given
sample sizes.

Pearson correlation coefficient formula

The correlation coefficient formula finds out the relation between the variables. It returns
the values between -1 and 1. Use the below Pearson coefficient correlation calculator to
measure the strength of two variables.

Pearson correlation coefficient formula:

Where:

N = the number of pairs of scores

Σxy = the sum of the products of paired scores

Σx = the sum of x scores

Σy = the sum of y scores

Σx2 = the sum of squared x scores

Σy2 = the sum of squared y scores

Q4) Mathematical Property of Median

A) Mathematical Properties of Median in Statistics

The recognition of the median is denoted as a very simple amount of central propensity.
For the calculation of a median, the arrangement of the numbers is required by
observing their order of minimum to the maximum value.
The middle value is recognized as the median when an odd number of observations are
there. When we can see an even number of observations, the average of the two middle
values is recognized as the median.

The result (value) which conquers the midpoint location amongst the explanations at
the time of organizing them in ascending or descending order is known as the median.
The median values always are neither beyond nor beneath, just stay in the middle.
The median is also named as the positional average or fiftieth percentile. The median’s
place is reliant on the set of data that involves an odd or even number of scores.

The procedures for properties of the median in statistics are different for the even as
well odd values.

Properties of Mean Median and Mode in Statistics

Let’s discuss the properties of mean median mode in statistics:

Mean

The average of the values can be believed as the Mean. Here, let’s just do the summation
of all the amounts. Then we need to divide the summation by the total amount of
numbers.
Let’s just take an example of a set of numbers and calculate their mean.

Example: 18, 13, 16, 13, 14, 13, 14, 13, 21

Ans: We know that, mean is the usual average, so firstly we need to add them up and
after that, we will divide:
18 + 13 + 16 + 13 + 14 + 13 + 14 + 13 + 21 = 135

Then,
135 ÷ 9 = 15

Did you notice anything? The mean is not a value from the given list. The result is
generally appearing like this. The fact is that sometimes results may appear as per the
enlisted number and sometimes it may not.
Median

The central score for a set of numbers that has been organized in the order of extent is
recognized as the median. We need to take an example to compute the median.
Example: Consider that we have the data below:

15 21 24 36 35 14 17 11 22 25 28
The primary purpose is; we need to reorganize that numbers into the order of amount
(least number first):

11 14 15 17 21 22 24 25 28 35 36

In the table given above, 22 is painted in the bold mark as it is our median mark. It
becomes the middle mark as there are 5 numbers before it and 5 numbers after it.
This procedure does its work satisfactorily while we have an odd set of numbers.

Do you ever wonder what will occur, when you have an even set of numbers?

Alright, you just need to take the central two numbers and calculate the average result.
Thus, if we consider the example below, we will know the best.
Example:

15 21 24 35 14 17 11 22 25 28

As per the principle, we will reorganize that data into an increasing order;

11 14 15 17 21 22 24 25 28 35

We need to consider and take the numbers 21 and 22 and do their average.

(21 + 22) / 2 = 21.5

So this will be the median point.

Mode

The most common number in our information set is recognized as the mode.

We can represent on a histogram as the uppermost bar in a bar chart or histogram as

per the picture given below. Thus, we assume the mode as the most prevalent choice
sometimes. The illustration in the picture will show you about the mode:

Properties of Mean Median and Mode in Psychological Statistics

Now, we are going to provide information regarding this aspect.
It will help you to recite and understand research articles for projects, containing charts,
statistical analyses, and interpreting graphs.

Properties of the Median with Formula in Statistics

Let’s calculate the median for the individual series as given below:
 The arrangement of data should be in ascending or descending order.

 For the odd-sized sample

The median = value of (n+1n+1/2)th item.

Here, n = cumulative frequency
 For the even-sized sample

The median = ½ [ value of (n / 2)th item + value of (n/2n/2 + 1)th item]

Here, n = cumulative frequency

Let’s calculate the median for discrete series which is given below:
 The data must be organized in ascending or descending order.

 The computation of cumulative frequencies is required.

 Median = (n/2)th term,

n = cumulative frequency.
For a continuous distribution, the median formula is:

Median = l +
N2−CfN2−Cf* i

Here,
Frequency of the median class = f

The sum of all frequencies = N

The lower limit of the median class = l

The cumulative frequency of the group earlier to the median group = C

The width of the median class = i
Q5) Decision Tree Approach

A) What is a Decision Tree

A decision tree is a map of the possible outcomes of a series of related choices. It allows
an individual or organization to weigh possible actions against one another based on
their costs, probabilities, and benefits.

As the name goes, it uses a tree-like model of decisions. They can be used either to drive
informal discussion or to map out an algorithm that predicts the best choice
mathematically.

A decision tree typically starts with a single node, which branches into possible
outcomes. Each of those outcomes leads to additional nodes, which branch off into other
possibilities. This gives it a tree-like shape.

Advantages & Disadvantages of Decision Trees

Advantages

 Decision trees generate understandable rules.

 Decision trees perform classification without requiring much computation.
 Decision trees are capable of handling both continuous and categorical variables.
 Decision trees provide a clear indication of which fields are most important for
prediction or classification.
Disadvantages

 Decision trees are less appropriate for estimation tasks where the goal is to
predict the value of a continuous attribute.
 Decision trees are prone to errors in classification problems with many class and
a relatively small number of training examples.

Q6) 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.
A) Definition of Primary Data

Primary data is data originated for the first time by the researcher through direct efforts
and experience, specifically for the purpose of addressing his research problem. Also
known as the first hand or raw data. Primary data collection is quite expensive, as the
research is conducted by the organisation or agency itself, which requires resources like
investment and manpower. The data collection is under direct control and supervision
of the investigator.

The data can be collected through various methods like surveys, observations, physical
testing, mailed questionnaires, questionnaire filled and sent by enumerators, personal
interviews, telephonic interviews, focus groups, case studies, etc.

Definition of Secondary Data

Secondary data implies second-hand information which is already collected and

recorded by any person other than the user for a purpose, not relating to the current
research problem. It is the readily available form of data collected from various sources
like censuses, government publications, internal records of the organisation, reports,
books, journal articles, websites and so on.

Secondary data offer several advantages as it is easily available, saves time and cost of
the researcher. But there are some disadvantages associated with this, as the data is
gathered for the purposes other than the problem in mind, so the usefulness of the data
may be limited in a number of ways like relevance and accuracy.

Moreover, the objective and the method adopted for acquiring data may not be suitable
to the current situation. Therefore, before using secondary data, these factors should be
kept in mind.

Key Differences Between Primary and Secondary Data

The fundamental differences between primary and secondary data are discussed in the
following points:
 1. The term primary data refers to the data originated by the researcher for the
first time. Secondary data is the already existing data, collected by the
investigator agencies and organisations earlier.
2. Primary data is a real-time data whereas secondary data is one which relates to
the past.
3. Primary data is collected for addressing the problem at hand while secondary
data is collected for purposes other than the problem at hand.
4. Primary data collection is a very involved process. On the other hand, secondary
data collection process is rapid and easy.
5. Primary data collection sources include surveys, observations, experiments,
questionnaire, personal interview, etc. On the contrary, secondary data collection
sources are government publications, websites, books, journal articles, internal
records etc.
6. Primary data collection requires a large amount of resources like time, cost and
manpower. Conversely, secondary data is relatively inexpensive and quickly
available.
7. Primary data is always specific to the researcher’s needs, and he controls the
quality of research. In contrast, secondary data is neither specific to the
researcher’s need, nor he has control over the data quality.
8. Primary data is available in the raw form whereas secondary data is the refined
form of primary data. It can also be said that secondary data is obtained when
statistical methods are applied to the primary data.
9. Data collected through primary sources are more reliable and accurate as
compared to the secondary sources.

Following are the methods of collecting primary data :

Direct personal investigation method : This method is suitable for such investigation,
where the scope is limited or of local nature and in which more importance is given to
accuracy, purity and confidentiality of data. In this method, the investigator himself goes
in the area of investigation and establishes personal and direct contact with the person
who provides information and collects data on the basis of examination and experience.
In a limited area, investigations in context to income-expenditure, conditions of living of
workers, educated unemployment, etc. are usually done through this method.
Indirect oral investigation method : Under this method, information is not obtained
from persons who have direct relationship with the problem, rather data is collected by
oral questioning of a third parties. This data is indirectly associated with the root
problem under investigation. Direct contact is not established with the persons from
whom the information has to be obtained. This method is used when the area of
investigation is broader. Information through local residents and correspondents :

Information through local residents and correspondents is the method in which the
investigator appoints local residents and special correspondents who send information
on the basis of their experience time to time.

Information through schedules to be filled by the informant method : In this method,

the investigator prepares a list of questions associated with the enquiry. These
questionnaire are printed and sent by post to those persons from whom the information
is to be obtained. Along with these, he also sends a letter of request in which request is
made to send them back by a fixed date and to maintain confidentiality.

Filling of schedules by the enumerators : In this method, a list of questions associated

with enquiry is prepared and it is handed over to the enumerators. The enumerators
ask related questions from the information providers and write their answers in the list.
Enumerators are trained in this work and they are also familiar with the regional
language.

Q7) Explain the purpose and methods of classification of data giving suitable
examples.

A) Definition

Classification means arranging the mass of data into different classes or groups on the
basis of their similarities and resemblances. All similar items of data are put in one class
and all dissimilar items of data are put in different classes. Statistical data is classified
according to its characteristics. For example, if we have collected data regarding the
number of students admitted to a university in a year, the students can be classified on
the basis of sex. In this case, all male students will be put in one class and all female
students will be put in another class. The students can also be classified on the basis of
age, marks, marital status, height, etc. The set of characteristics we choose for the
classification of the data depends upon the objective of the study. For example, if we
want to study the religions mix of the students, we classify the students on the basis of
religion.

Purpose of Classificaiton:

Classification helps in achieving the following objectives:

1) It helps in presenting the mass of data in a concise and simple form.

2) It divides the mass of data on the basis of similarities and resemblances so as to

enable comparison.

3) It is a process of presenting raw data in a systematic manner enabling us to draw

meaningful conclusions.

4) It provides a basis for tabulation and analysis of data.

5) It provides us a meaningful pattern in the data and enables us to identify the possible
characteristics in the data.

Methods of Classification

There are two methods of classification: i) classification according to attributes, and ii)
classification according to variables.
Classification According to Attributes

An attribute is a qualitative characteristic which cannot be expressed numerically. Only

the presence or absence of an attribute can be known. For example. intelligence,
religion, caste, sex, etc., are attributes. You cannot quantify these characteristics. When
classification is to be done on the basis of attributes, groups are differentiated either by
the presence or absence of the attribute (e.g. male and female) or by its differing
qualities. The qualities of an attribute can easily be differentiated by means of some
natural line of demarcation. Based on this natural difference, we can determine the
group into which a particular item is placed. For instance, if we select colour of hair as
the basis of classification, there will be a group of brown haired people and another
group of black haired people. There are two types of classification based on attributes.

1) Simple Classification : In simple classification the data is classified on the basis of

only one attribute. The data classified on the basis of sex will be an example of simple
classification.
2) Manifold Classification: In this classification the data is classified on the basis of
more than one attribute. For example, the data relating to the number of students in a
university can be classified on the basis of their sex and marital.
Classification According to Variables
Variables refer to quantifiable characteristics of data and can be expressed numerically.
Examples of variable are wages, age, height, weight, marks, distance etc. All these
variables can be expressed in quantitative terms. In this form of classification, the data
is shown in the form of a frequency distribution. A frequency distribution is a tabular
Presentation that generally organises data into classes, and shows the number of
observations (frequencies) falling into each of these classes. Based on the number of
variables used, there are three categories of frequency distribution: 1) uni-variate
frequency distribution, 2) bi-variate fequency distribution, and 3). Multi-variate
frequency distribution.
1) Uni-variate Frequency Distribution : The frequency distribution with one variable
is called a uni-variate frequency distribution. For example, the students in a class may
be classified on the basis of marks obained by them.
2) Bi-variate Frequency Distribution: The frequency distribution with two variable is
called bi-variate frequency distribution. If a frequency distribution shows two variables
it is known as bi-variate frequency distribution.
3) Multi-variate Frequency Distribution: The frequency & distribution with more
than two variables is called multivariate frequency distribution. For example, the
students in a class may be classified on the basis of marks, age and sex.

Q8) What are ogives? Point out the role. Discuss the method of constructing
ogives with the help of an example.

A)The word Ogive is a term used in architecture to describe curves or curved shapes.
Ogives are graphs that are used to estimate how many numbers lie below or above a
particular variable or value in data. To construct an Ogive, firstly, the cumulative
frequency of the variables is calculated using a frequency table. It is done by adding the
frequencies of all the previous variables in the given data set. The result or the last
number in the cumulative frequency table is always equal to the total frequencies of the
variables. The most commonly used graphs of the frequency distribution are histogram,
frequency polygon, frequency curve, Ogives (cumulative frequency curves).

Ogive Definition
The Ogive is defined as the frequency distribution graph of a series. The Ogive is a graph
of a cumulative distribution, which explains data values on the horizontal plane axis and
either the cumulative relative frequencies, the cumulative frequencies or cumulative per
cent frequencies on the vertical axis.
Cumulative frequency is defined as the sum of all the previous frequencies up to the
current point. To find the popularity of the given data or the likelihood of the data that
fall within the certain frequency range, Ogive curve helps in finding those details
accurately.
Create the Ogive by plotting the point corresponding to the cumulative frequency of
each class interval. Most of the Statisticians use Ogive curve, to illustrate the data in the
pictorial representation. It helps in estimating the number of observations which are
less than or equal to the particular value.

Ogive Graph
The graphs of the frequency distribution are frequency graphs that are used to exhibit
the characteristics of discrete and continuous data. Such figures are more appealing to
the eye than the tabulated data. It helps us to facilitate the comparative study of two or
more frequency distributions. We can relate the shape and pattern of the two frequency
distributions.
The two methods of Ogives are:

 Less than Ogive

 Greater than or more than Ogive
The graph given above represents less than and the greater than Ogive curve. The rising
curve (Brown Curve) represents the less than Ogive, and the falling curve (Green Curve)
represents the greater than Ogive.

Less than Ogive

The frequencies of all preceding classes are added to the frequency of a class. This series
is called the less than cumulative series. It is constructed by adding the first-class
frequency to the second-class frequency and then to the third class frequency and so on.
The downward cumulation results in the less than cumulative series.

Greater than or More than Ogive

The frequencies of the succeeding classes are added to the frequency of a class. This
series is called the more than or greater than cumulative series. It is constructed by
subtracting the first class, second class frequency from the total, third class frequency
from that and so on. The upward cumulation result is greater than or more than the
cumulative series.

Ogive Chart
An Ogive Chart is a curve of the cumulative frequency distribution or cumulative
relative frequency distribution. For drawing such a curve, the frequencies must be
expressed as a percentage of the total frequency. Then, such percentages are cumulated
and plotted, as in the case of an Ogive. Below are the steps to construct the less than and
greater than Ogive.
How to Draw Less Than Ogive Curve?

 Draw and mark the horizontal and vertical axes.

 Take the cumulative frequencies along the y-axis (vertical axis) and the upper-
class limits on the x-axis (horizontal axis).
 Against each upper-class limit, plot the cumulative frequencies.
 Connect the points with a continuous curve.
How to Draw Greater than or More than Ogive Curve?

 Draw and mark the horizontal and vertical axes.

 Take the cumulative frequencies along the y-axis (vertical axis) and the lower-
class limits on the x-axis (horizontal axis).
 Against each lower-class limit, plot the cumulative frequencies.
 Connect the points with a continuous curve.

Uses of Ogive Curve

Ogive Graph or the cumulative frequency graphs are used to find the median of the
given set of data. If both, less than and greater than, cumulative frequency curve is
drawn on the same graph, we can easily find the median value. The point in which, both
the curve intersects, corresponding to the x-axis, gives the median value. Apart from
finding the medians, Ogives are used in computing the percentiles of the data set values.
Ogive Example
Question 1:
Construct the more than cumulative frequency table and draw the Ogive for the below-
given data.

Marks 1-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80

Frequency 3 8 12 14 10 6 5 2

Solution:
“More than” Cumulative Frequency Table:

Marks Frequency More than Cumulative Frequency

More than 1 3 60

More than 11 8 57

More than 21 12 49

More than 31 14 37

More than 41 10 23

More than 51 6 13

More than 61 5 7

More than 71 2 2

Plotting an Ogive:
Plot the points with coordinates such as (70.5, 2), (60.5, 7), (50.5, 13), (40.5, 23), (30.5,
37), (20.5, 49), (10.5, 57), (0.5, 60).
An Ogive is connected to a point on the x-axis, that represents the actual upper limit of
the last class, i.e.,( 80.5, 0)
Take x-axis, 1 cm = 10 marks
Y-axis = 1 cm – 10 c.f
More than the Ogive Curve:

Q9) ) Review for each of the measure of central tendency, their advantages and
disadvantages.
A) Mean, median and mode

Mean
Mean is the most commonly used measures of central tendency. It actually represents
the average of the given collection of data. It is applicable for both continuous and
discrete data.
It is equal to the sum of all the values in the collection of data divided by the total
number of values.

Median
Median is the middle value among the observed set of values and is calculated by
arranging the values in ascending order or in descending order and then choosing the
middle value. Generally median represents the mid-value of the given set of data when
arranged in a particular order.

Mode
The most frequent number occurring in the data set is known as the mode. Mode is the
number from a data set which has the highest frequency and is calculated by counting
the number of times each data value occurs.
Advantages of Mean

1) The definition of mean is rigid which is a quality of a good measure of central

tendency.

2) It is not only easy to understand but also easy to calculate.

3) All the scores in the distribution are considered when mean is computed.

4) Further mathematical calculations can be carried out on the basis of mean.

5) Fluctuations in sampling are least likely to affect mean.

Limitations of Mean

1) Outliers or extreme values can have an impact on mean.

2) When there are open ended classes, such as 10 and above or below 5, mean cannot
be computed. In such cases median and mode can be computed. This is mainly because
in such distributions mid point cannot be determined to carry out calculations.

3) If a score in the data is missing or lost or not clear, then mean cannot be computed
unless mean is computed for rest of the data by not considering the lost score and
dropping it all together.

4) It is not possible to determine mean through inspection. Further, it cannot be

determined based on a graph.

5) It is not suitable for data that is skewed or is very asymmetrical as then in such cases
mean will not adequately represent the data.

Advantages of Median 1) The definition of median is rigid which is a quality of a good

measure of central tendency. 2) It is easy to understand and calculate. 3) It is not
affected by outliers or extreme scores in data. 4) Unless the median falls in an open
ended class, it can be computed for grouped data with open ended classes. 5) In certain
cases it is possible to identify median through inspection as well as graphically.

Limitations of Median 1) Some statistical procedures using median are quite complex.
Computation of median can be time consuming when large data is involved because the
data needs to be arranged in an order before median is computed. 2) Median cannot be
computed exactly when an ungrouped data is even. In such cases, median is estimated
as mean of the scores in the middle of the distribution. 3) It is not based on each and
every score in the distribution. 4) It can be affected by sampling fluctuations and thus
can be termed as less stable than mean.

Advantages of Mode 1) It is not only easy to comprehend and calculate but it can also be
determined by mere inspection. 2) It can be used with quantitative as well as qualitative
data. 3) It is not affected by outliers or extreme scores. 4) Even if a distribution has one
or more than one open ended classe(s), mode can easily be computed.
Limitations of Mode 1) It is sometimes possible that the scores in the data vary from
each other and in such cases the data may have no mode. 2) Mode cannot be rigidly
defined. 3) In case of bimodal, trimodal or multimodal distribution, interpretation and
comparison becomes difficult. 4) Mode is not based on the whole distribution. 5) It may
not be possible to compute further mathematical procedures based on mode. 6)
Sampling fluctuations can have an impact on mode.

Q10) What are quantiles? Explain and illustrate the concepts of quartiles, deciles
and percentiles.

A)

1. Mean, Median and Mode 3. Population Variance, Standard deviat

(Previous method)

1. Formula & Examples

Formula

1. Quartile
Qi class = (in4)th value of the observation
Qi=L+in4-cff⋅c, where i=1,2,3

2. Deciles
Di class = (in10)th value of the observation
Di=L+in10-cff⋅c, where i=1,2,3, ..., 9

3. Percentiles
Pi class = (in100)th value of the observation
Pi=L+in100-cff⋅c, where i=1,2,3, ..., 99

Examples
1. Calculate Quartile-3, Deciles-7, Percentiles-20 from the following grouped data

Class Frequency
2-4 3

4-6 4

6-8 2

8 - 10 1

Solution:

Frequency
Class cf
f

2-4 3 3

4-6 4 7

6-8 2 9

8 - 10 1 10

--- --- ---

n = 10 --

Here, n=10

Q3 class :

Class with (3n4)th value of the observation in cf column

=(3⋅104)th value of the observation in cf column

=(7.5)th value of the observation in cf column

and it lies in the class 6-8.

∴Q3 class : 6-8

The lower boundary point of 6-8 is 6.

∴L=6

Q3=L+3n4-cff⋅c

=6+7.5-72⋅2

=6+0.52⋅2

=6+0.5

=6.5

D7 class :

Class with (7n10)th value of the observation in cf column

=(7⋅1010)th value of the observation in cf column

=(7)th value of the observation in cf column

and it lies in the class 4-6.

∴D7 class : 4-6

The lower boundary point of 4-6 is 4.

∴L=4

D7=L+7n10-cff⋅c

=4+7-34⋅2

=4+44⋅2

=4+2
=6

P20 class :

Class with (20n100)th value of the observation in cf column

=(20⋅10100)th value of the observation in cf column

=(2)th value of the observation in cf column

and it lies in the class 2-4.

∴P20 class : 2-4

The lower boundary point of 2-4 is 2.

∴L=2

P20=L+20n100-cff⋅c

=2+2-03⋅2

=2+23⋅2

=2+1.3333

=3.3333

2. Calculate Quartile-3, Deciles-7, Percentiles-20 from the following grouped data

X Frequency

0 1

1 5
2 10

3 6

4 3

Solution:

Frequency
x cf
f

0 1 1

1 5 6

2 10 16

3 6 22

4 3 25

--- --- ---

n = 25 --

Here, n=25

Q3=(3(n+1)4)th value of the observation

=(3⋅264)th value of the observation

=(19.5)th value of the observation

=3

D7=(7(n+1)10)th value of the observation

=(7⋅2610)th value of the observation

=(18.2)th value of the observation

=3

P20=(20(n+1)100)th value of the observation

=(20⋅26100)th value of the observation

=(5.2)th value of the observation

=1

Q11) Discuss the important of measuring variability for managerial decision

making.

A) What is Variability?

Variability is a term used to describe how much data points in any statistical
distribution differ from each other and from their mean value. The statistical
tools used to measure variability are range, standard deviation, and variance.

Measures of variation can help convey meaningful information about sets of data.
Because variability can provide a lot of information about data, it is important to know
the different measures of variation. Learning about the measures of variation helps you
understand how to use this data. In this article, we discuss what the measures of
variations are, define the types of measures of variation and provide jobs that use
variation statistics.

What are measures of variation in statistics?

Measures of variation in statistics are ways to describe the distribution or dispersion of

your data. In other words, it shows how far apart data points are from each other.
Statisticians use measures of variation to summarize their data. You can draw many
conclusions by using measures of variation, such as high and low variability. High
variability can mean that the data is less consistent while low variability data is more
consistent. You can use measures of variation to measure, analyze or describe trends in
your data, which can apply to many careers that use statistics.

Types of measures of statistics

Here are some types of measures of statistics that you can use to describe your data:

Range

Range is one of the simplest measures of variation. It is the lowest point of data
subtracted from the highest point of data. For example, if your highest point is 10 and
your lowest point is 3, then your range would be 7. The range tells you a general idea of
how widely spread your data is. Because range is so simple and only uses two pieces of
data, consider using it with other measures of variation so you have a variety of ways to
measure and analyze the variability of your data.

Variance

Variance is the average squared variations of values from the mean. It compares every
piece of value to the mean, which is why variance differs from the other measures of
variation. Variance also displays the spread of the data set. Typically, the more spread
out your data is, the larger the variance is. Statisticians use variance to compare pieces
of data to one another to see how they relate. Variance is standard deviation squared,
which denotes that values of variance are larger than the other values. To calculate the
variance, simply square your standard deviation:

S=8

S2= 8 × 8 = 64

where:

S = standard deviation

If your standard deviation is 8, then your variance would be 64.

Quartiles

Quartiles divide your data into four equal sections, or quarters. They divide the data in
ascending order, meaning there are the lower two quartiles and the higher two
quartiles. Statisticians divide their data by percentage: the lowest and the second-
lowest 25% and the highest and second-highest 25%, which are respectively called the
first quartile, second quartile, third quartile and fourth quartile. The symbols Q1, Q2, Q3
and Q4 represent the quartiles. Statisticians use quartiles to organize data, and they
often use quartiles in many different equations.

Q12) Review the advantages and disadvantages of each of the measures of

variation.
A) Advantages Disadvantages Measuring Variability
The extent to which the observations in a sample or in a population vary about their
mean is known as dispersion. A quantity that measures dispersion in a sample or
population is known as a measure of dispersion, scatter or variability. There are certain
associated Advantages Disadvantages Measuring Variability which one should take care
of. There are two types of measure of dispersion that are absolute and relative
dispersion. An absolute measure of dispersion is one that measures the dispersion in
terms of the same units or square of the units, as the units of data. For example, if the
unit of the data are in rupees, meters, kilogram etc., the units of measure of dispersion
will also be in rupees, meters, kilogram etc. A relative measure of dispersion is one that
is expressed in the form of ratio, coefficient or percentage and is independent of the
measure of units. The main measure of dispersion are the range, the semi inter quartile
range, the mean deviation, the variance and standard deviation.

Q13) What is the concept of relative variation? What problem situations call for
the use of relative variation in their solution?

A) The coefficient of variation (CV) is a relative measure of variability that indicates the
size of a standard deviation in relation to its mean. It is a standardized unitless measure
that allows you to compare variability between disparate groups and characteristics. It
is also known as the relative standard deviation (RSD).

In this post, you will learn about the coefficient of variation, how to calculate it, know
when it is particularly useful, and when to avoid it.
How to Calculate the Coefficient of Variation

Calculating the coefficient of variation involves a simple ratio. Simply take the standard
deviation and divide it by the mean.

Higher values indicate that the standard deviation is relatively large compared to the
mean.

For example, a pizza restaurant measures its delivery time in minutes. The mean
delivery time is 20 minutes and the standard deviation is 5 minutes.

Interpreting the Coefficient of Variation

For the pizza delivery example, the coefficient of variation is 0.25. This value tells you
the relative size of the standard deviation compared to the mean. Analysts often report
the coefficient of variation as a percentage. In this example, the standard deviation is
25% the size of the mean.

If the value equals one or 100%, the standard deviation equals the mean. Values less
than one indicate that the standard deviation is smaller than the mean (typical), while
values greater than one occur when the S.D. is greater than the mean.

Q14) What is the major difference between probability and non-probability

sampling?

A) Definition of Probability Sampling

In statistics, probability sampling refers to the sampling method in which all the
members of the population has a pre-specified and an equal chance to be a part of the
sample. This technique is based on the randomization principle, wherein the procedure
is so designed, which guarantees that each and every individual of the population has an
equal selection opportunity. This helps to reduce the possibility of bias.

Statistical inferences can be made by the researchers using this technique, i.e. the result
obtained can be generalised from the surveyed sample to the target population. The
methods of probability sampling, are provided below:

 Simple Random Sampling

 Stratified Sampling
 Cluster Sampling
 Systematic Sampling

Definition of Non-Probability Sampling

When in a sampling method, all the individuals of the universe are not given an equal
opportunity of becoming a part of the sample, the method is said to be Non-probability
sampling. Under this technique as such, there is no probability attached to the unit of
the population and the selection relies on the subjective judgment of the researcher.
Therefore, the conclusions drawn by the sampler cannot be inferred from the sample to
the whole population. The methods of non-probability sampling are listed below:

 Convenience Sampling
 Quota Sampling
 Judgment or Purposive Sampling
 Snowball Sampling

Key Differences Between Probability and Non-Probability Sampling

The significant differences between probability and non-probability sampling

1. The sampling technique, in which the subjects of the population get an equal
opportunity to be selected as a representative sample, is known as probability
sampling. A sampling method in which it is not known that which individual
from the population will be chosen as a sample, is called nonprobability
sampling.
2. The basis of probability sampling is randomization or chance, so it is also known
as Random sampling. On the contrary, in non-probability sampling
randomization technique is not applied for selecting a sample. Hence it is
considered as Non-random sampling.
3. In probability sampling, the sampler chooses the representative to be part of the
sample randomly, whereas, in non-probability sampling, the subject is chosen
arbitrarily, to belong to the sample by the researcher.
4. The chances of selection in probability sampling, are fixed and known. As
opposed to non-probability sampling, the selection probability is zero, i.e. it is
neither specified not known.
5. Probability sampling is used when the research is conclusive in nature. On the
other hand, when the research is exploratory, nonprobability sampling should be
used.
6. The results generated by probability sampling, are free from bias while the
results of non-probability sampling are more or less biased.
7. As the subjects are selected randomly by the researcher in probability sampling,
so the extent to which it represents the whole population is higher as compared
to the nonprobability sampling. That is why extrapolation of results to the entire
population is possible in the probability sampling but not in non-probability
sampling.
8. Probability sampling test hypothesis but nonprobability sampling generates it.

Conclusion

While probability sampling is based on the principle of randomization where every

entity gets a fair chance to be a part of the sample, non-probability sampling relies on
the assumption that the characteristics are evenly distributed within the population,
which make the sampler believe that any sample so selected would represent the whole
population and the results drawn would be accurate.
Q15) What is the practical utility of the central limit theorem in applied statistics?

A) Central Limit Theorem Definition

The Central Limit Theorem (CLT) states that the distribution of a sample mean that
approximates the normal distribution, as the sample size becomes larger, assuming that
all the samples are similar, and no matter what the shape of the population distribution.

Central Limit Theorem Example

Let us take an example to understand the concept of Central Limit Theorem (CLT):
Suppose you have 10 teams in your school(Sports). Each team will have 100 students in
it. Now, we want to measure the average height of the students in the sports team. The
simplest way to do would be to find the average of their heights. The first step in this
would be to measure the weight of all the students individually and then add them.
Then, Divide the sum of their weights with the total number of students. This way we
will get the average height. But this method will not make sense for long calculations as
it would be tiresome and very long.

So, we will use CTL(Central Limit Theorem) to make the calculation easy. In this
method, we will randomly pick students from different teams and make a sample. Each
sample will include 20 students. Then, we will follow the following steps to solve it.

1. Take all these samples and find the mean for each individual sample.
2. Now, Find the mean of the sample means.
3. This way we will get the approximate mean height of the students in the sports
team.
4. We will get a bell curve shape if we will find the histogram of these sample mean
heights.

Note: The sample taken should be sufficient by size. When the sample size gets larger,
the sample means distribution will become normality as we calculate it using repeated
sampling.
Central Limit Theorem Formula
The central limit theorem is applicable for a sufficiently large sample size (n≥30). The
formula for central limit theorem can be stated as follows:

Where,
μ = Population mean
σ = Population standard deviation
μx = Sample mean
σx= Sample standard deviation
n = Sample size

Applications of Central Limit Theorem

Statistical Application of CLT Practical Significance of CLT

If the distribution is not known or not normal, we One of the most common applications of
consider the sample distribution to be normal CLT is in election polls. To calculate the
according to CTL. As this method assume that the percentage of persons supporting a
population given is normally distributed. This helps in candidate which are seen on news as
analyzing data in methods like constructing confidence confidence intervals.
intervals.

To estimate the population mean more accurately, we It is also used to measure the mean or
can increase the samples taken from the population average family income of a family in a
which will ultimately decrease the sample means particular region.
deviation.

To create a range of values which is likely to include

the population mean, we can use the sample mean.