BUSINESS DATA

for Business Mathematics

Senior High School (ABM)
Quarter 2 / Week 6

1
 FOREWORD

This Self-Learning Kit for Business Mathematics is an

innovative tool designed exclusively for ABM students in the
Senior High School. It assists in understanding mathematical
concepts by providing you with real-life business applications
through a variety of realistic examples and exercises. It serves
as a guide in comparing the forms (textual, tabular and
graphical) of business data.
It is aligned with the BEC of the Department of
Education following the prescribed MELCs (Most Essential
Learning Competencies.
This Self-Learning Kit is divided into three parts.
I. What Happened
This section contains pre-activities that serve as
springboards and a pretest to determine if you are
sufficiently prepared to begin a new course of study.
II. What You Need to Know
This section contains how textual, tabular and graphical
forms of business data being compared and also how data
presented in the table is being analyzed, solved, and
interpreted using measures of central tendency, variability,
and test of significant differences. Real-life examples are
given that will help them appreciate the different forms of
business data presentation.
III. What Have I Learned
A summary of key concepts that measures your
understanding and the effectiveness application of good
data presentation to illustrate honest facts and not missing
vital information in the future.

2
 LESSON FORMS OF BUSINESS DATA
1

OBJECTIVES:
K. Define textual, tabular, and graphical forms of
business data presentation.
S. Differentiate textual, tabular and graphical
forms of business data.
A. Apply business data presentation accurately.

I. WHAT HAPPENED

PRE - ACTIVITY
Supply the missing letters to reveal the word. Write your answers in your
activity notebook
1.
t t

2. b
r

3. h
a

4.
e p

5. i a

3
PRE-TEST:
Multiple Choice. Choose the letter that corresponds the correct answer. Write
your answers in your activity notebook.

1. What presentation of data that is in a form of words, sentences, and

paragraphs?
A. Textual B. Tabular
C. Graphical D. None of these
2. What major part of a table in which caption is written as a vertical heading?
A. Title B. Column Captions
C. Row Captions D. Body Captions
3. The following are graphical presentation of business data EXCEPT for:
A. Pictograph B. Tabular
C. Line Graph D. Pie Graph
4. What kind of graph uses rectangles erected on the horizontal axis to
summarize a set of quantitative data?
A. Line Graph B. Pie Graph
C. Bar Graph D. All of these
5. What is your analysis of the given statements below?
Statement 1: A source note is written at the end of the table to
acknowledge where the information was taken.
Statement II: A pie graph is also called a circle graph
A. Both Statements are true B. Only Statement 1 is true D.
C. Only Statement II is true Both Statements are false

II. WHAT YOU NEED TO KNOW

KEY POINTS!
Three Main forms of Data Presentation

➢ Textual
➢ Tabular presentation
➢ Graphical
✓ Line Graph
✓ Bar Graph
✓ Pie graph
✓ Pictograph

4
DISCUSSION
Forms of Business Data
Presentation of business data is of total importance nowadays. Afterall
everything that’s pleasing to our eyes never fails to grab our attention.
Presentation of business data refers to an exhibition or putting up data in an
appealing and useful manner in such a way that it can be easily analyzed and
interpreted.

The three main forms of business data presentation are:

1. Textual

Textual presentation of data means presenting data in the form of

words, sentences, and paragraphs. It also incorporates figures in a paragraph
of text. The data would be easily interpreted, because there is a direct
explanation of how the data happened to be like that. It may appear
overwhelming and too long, but it provides detailed information of data.

Consider the following examples:

1. A teacher is asked to present the performance of a section in the
Business Mathematics test. The following are the test scores:

344220501793443

50 18 35 43 50 23 23 35

37 38 38 39 39 38 38 39

24 29 25 26 28 27 44 44

49 48 46 45 45 46 45 46

The data presented in textual form would be like this:

In the Business Mathematics class of 40 students, 3 obtained the perfect
score of 50. Sixteen students got a score of 40 and above, while only 3 got 19
and below. Generally, the students performed well in the test with 23 or 57%
getting a passing score of 38 and above.

5
2. Status of the workers of the factory on the basis of their Trade Union (TU)
membership for 1999 and 2000.

Member of TU Non-member Total

Year M F T M F T M F T

1999 3900 300 4200 300 500 800 4200 800 5000

2000 4200 840 5,040 500 450 950 4700 1290 5990

The data presented in textual form would be like this:

In 1999, out of a total of five thousand workers of a factory, four thousand

and two hundred were members of a Trade Union. The total number of female
workers was sixteen percent of the total workers.

In 2000, the number of workers belonging to the trade union was

increased by twenty per cent as compared to 1999 of which four thousand and
two hundred were male.

The number of workers not belonging to trade union was nine hundred
and fifty of which four hundred and fifty were females.

Advantages and Disadvantages of Textual Presentation

Advantages of Textual Presentation Disadvantages of Textual Presentation

• It provides detailed information • It becomes difficult for the

of data. reader to draw conclusions in a
• It is appropriate for small sets of glance.
data. • It is Inappropriate for large sets
• It allows the presenter to explain of data.
the data in a contextual • It consumes time in reading and
manner. interpreting the text.

2. Tabular

Tabular Presentation of data is a method of presentation of data in which

data is arranged in rows and columns. This is one of the most popularly used
forms of presentation of data as data tables are simple to prepare and read. A
table is a display of numerical information in rows and columns.

6
Parts of a table:

THE TITLE

(Prefatory Notes)
COLUMN COLUMN COLUMN
CAPTION CAPTION CAPTION
ROW CAPTION BODY BODY

ROW CAPTION BODY BODY

Four Major Parts of a Table:

1. Title - It is the main heading written on top of the table. It adequately
describes the contents of the table. Make the title concise in at most two lines.
2. Column Captions - It is the caption written as a vertical heading.
3. Row Captions - it is the caption written as a horizontal heading. They are the
entries at the left of the table. It indicates the classifications of the data.

4. Body - It is the main part of the table which contains the numerical
information.

It has Four Minor Parts:

1. Prefatory Notes - It is a statement below the title enclosed in a parenthesis. It
usually describes the units of measurement used in the numerical information.
2. Footnotes - It is placed immediately below the main part of the table to
provide additional information.

3. Source Notes - It is written at the end of the table to acknowledge where the
information was taken. It is written below the footnote.

4. Table number - Tables are usually numbered. The table numbers are used for
easy citation in your report, documents, or research paper.

General Rules for Creating a Table

1. A table should be simple but catches the attention of the readers. Use
simple tables for easier comparisons, so never put too much information.

2. Arrange the numerical information in an orderly manner to facilitate valid

and convincing conclusions.

3. Proper labelling and clear headings for column and row captions are
necessary.
4. If there is a vast data, it is suggested to construct additional tables.

7
 Consider the following examples:
1. The table shows the Depreciation schedule of a certain company.

https://www.google.com/search?q=Depreciation+schedule+of+units+of+production&source

2. Factory output sustains signs of recovery – NEDA

8
 Advanatages and Disadvantages of Tabular Presentation

Advantages of Tabular Disadvantage of Tabular

Presentation Presentation
• It can be easily understood • It does not provide detailed
and interpreted. view of data.
• Large data can be presented
in compact ang organized
form.
• It saves time as well as space.

3. Graphical
Graphical representation refers to the use of intuitive charts to clearly
visualize and simplify data sets. Data is ingested into graphical representation of
data software and then represented by a variety of symbols, such as lines on a
line chart, bars on a bar chart, or slices on a pie chart, and pictures on a
pictograph from which users can gain greater insight than by numerical analysis
alone.

Kinds of graphs
1. Line graph uses line segments to connect data points. It is useful in showing
the trends or in determining relationships between two variables. It can also be
applied if the variable plotted along the X-axis (horizontal line) is related to time
(year, month, day, clock time). The basic parts of a line graph are title, labels,
scale, points and line.

http://www.intellspot.com/graphs-examples/

9
2. A bar graph uses rectangles erected on the horizontal axis to summarize a set
of quantitative data. Several bars can be created to compare different quantity
of data. Here, the height of the bar represents the measured value or frequency;
that is the higher or taller the bar, the greater the value. It has four basic parts
namely, title, labels, scales, and bars.

Below is an example of a bar graph showing ice cream sales in the

months of July and August.

https://www.ck12.org/book/ck-12-middle-school-math-concepts-grade-6/section/2.13

3. Pie graph is also called a circle graph. It is a circle with the wedges or sectors
to show how much of the whole each part makes up. Each slice of the pie is
written as a percentage.
The measure of the central angle of each sector is:
number of items X 100%

total
The basic parts of a pie graph are title, labels, circle, and its sectors.
The following is an example of a pie graph.

Company’s distribution of cost

https://www.google.com/search?q=pie+graph+promotion&tbm

10
4. A pictograph uses pictures or symbols to represent quantitative data. Each
symbol corresponds to a specific quantity. The basic parts of a pictograph are
title, pictures/symbols, labels and legend.

The pictograph below is showing population density of the continents.

Advantages and Disadvantages of Graphical Representation

Advantages of Graphical Disadvantages of Graphical

Presentation Presentation
• Creates a clear and complete • It requires more time to create
idea in the mind of the the graph
audience • There is a chance of errors
• Comparative analysis helps for and mistakes because of its
quick understanding and complexity
attention
• Problems to select a kind of
• Business executives can view
graph to use
the graphs at a glance and
can make a decision very
quickly.

11
III. WHAT HAVE I LEARNED

REMEMBER KEY IDEAS!

✓ Three Main forms of Data Presentation

• Textual presentation of data means presenting data in
the form of words, sentences and paragraphs.
• Tabular Presentation of data is a method of presentation
of data in which data is arranged in rows and columns.
• Graphical representation refers to the use of intuitive
charts to clearly visualize and simplify data sets.
✓ Kinds of Graph
• Line graph uses line segments to connect data points.
• Bar graph uses rectangles erected on the horizontal axis to
summarize a set of quantitative data.
• Pie graph is also called a circle graph. It is a circle with the
wedges or sectors to show how much of the whole each part
makes up.
• Pictograph uses pictures or symbols to represent
quantitative data.

12
EVALUATION:

Multiple Choice. Choose the letter that corresponds the correct answer. Write
your answers in your activity notebook.
1. What method of presentation of data in which data is arranged in rows and
columns?
A. Textual B. Tabular
C. Graphical D. None of these

2. The following are advantages of textual presentation of data EXCEPT for;

A. It provides detail information of data
B. Appropriate for small sets of data
C. Problems to select a kind of graph to use
D. It allows the presenter to explain the data in contextual manner
3. Which of the following is NOT a minor part of a table?
A. Prefatory Notes B. Source Notes
C. Body D. Table Number
4. What kind of graph uses pictures or symbols to represent quantitative data?
A. Line Graph B. Bar Graph
C. Pie Graph D. Pictograph
5. What is your analysis of the given statements below?
Statement 1: Graphical presentation of data does not require more
time to create.
Statement II: Graphical presentation creates a clear and complete
idea in the mind of the audience.
A. Both Statements are true B. Only Statement 1 is true
C. Only Statement II is true D. Both Statements are false

13
 REFERENCE

Book:
Lopez, Brian Roy C. et.al, Business Math (Quezon City, Vibal Group
Inc, 2016), 168-184.
Online Sources:
Alexis, John. Textual Presentation of Data
https://prezi.com/rirrca9ckuiz/textual-presentation-of-data/

Graphical Presentation
Retrieved October 20, 2020
https://www.omnisci.com/technical-glossary/graphical-
representation#:~:text=Graphical%20representation%20refers%20to%20
the,functions%2C%20and%20other%20qualitative%20structures

Leyco, Chino S. Factory output sustains signs of recovery – NEDA. Sept. 24,
2020
https://mb.com.ph/2020/09/04/factory-output-sustains-signs-
of-recovery-neda/

Presentation of Data
Retrieved October 30, 2020
https://www.zigya.com/study/book?class=11&board=hbse&subject=St
atistics&book=Statistics+for+Economics&chapter=Presentation+of+Dat
a&q_type=&q_topic=&q_category=&question_id=STEN11018734

Tabular Presentation of Data(onlinemath4all.com)

Retrieved October 5, 2020
https://www.onlinemath4all.com/tabular-presentation-of-data.html

Textual Presentation of Data (onlinemath4all.com)

Retrieved September 26, 2020
https://www.onlinemath4all.com/textual-presentation-of-data.html

Textual and Tabular presentation of Data

Retrieved September 25, 2020
https://www.toppr.com/guides/economics/presentation-of-data/textual-
and-tabular-presentation-of-data/

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 SYNOPSIS AND ABOUT THE AUTHOR
This SELF LEARNING KIT (SLK)
is about the forms of business
data. Here you will learn the
comparison of textual, tabular
and graphical presentation of
data.

You are expected to apply

a good data presentation by
illustrating honest facts and not
missing vital information in the
future.

Explore and enjoy!

AUTHOR
FLORAMAE TUBOG SIOCO is an Accountancy Business and
Management (ABM) teacher at Dauin National High School
Division of Negros Oriental. She currently teaches specialized,
applied, and core subjects for Senior High School students.
She graduated Bachelor of Science in Industrial Engineering from
the University of San Jose – Recoletos in Cebu City. She earned her
degree in Master of Business Administration at Foundation
University, Dumaguete City. She took her Continuing Program
Education at Negros Oriental State University (NORSU), which
made her qualified to teach in the Department of Education.
She was a faculty member of the School of Industrial Engineering,
Foundation University for 20 years.
Her experiences strengthened her in materializing this Self-
Learning Kit.

15
 LESSON MEASURES OF CENTRAL TENDENCY,
2 VARIABILITY AND TESTS OF SIGNIFICANT

OBJECTIVES:
K. Illustrate the key concepts of the different
measures of central tendency, variability and tests
of significant differences of a given data;
S. Solve different measures of central tendency,
variability, and tests of significant differences; and
A. Apply accurately different measures of central
tendency, variability, and tests of significant
differences in solving problems related to business.

I- WHAT HAPPENED
PRE-ACTIVITY
Let us begin with an exploratory activity that will introduce you to the basic concepts of
measures of central tendency and how these concepts are applied in real life. Consider it
below.
Linda just finished her first quarter, and her average grade was blotted by a pen. The report
card is shown below.

Source: DNHS SHS-Report Card

What was her average in the first quarter? Why?

16
PRE-TEST:
Multiple Choice. Read, analyze each statement below and choose the letter
that corresponds the correct answer. Write your answers in your activity
notebook.

1. Which measures of central tendency that is also known as arithmetic

average?

A. Mean B. Median C. Mode D. Range

2. What measures of variation that is the average of the squared deviation of

every score from the mean.
A. Range B. Variance
C. Standard Deviation D. None of these

For items 3-4

The table shows the monthly sales of a Computer Shop in thousands of pesos.

Branch A 21 18 19 19 17
Branch B 20 22 23 18 20

3. What is the range of Branch A?

A. 4 B. 6
C. 8 D. 10
4. What is the standard deviation of Branch B?
A. 1.64 B. 1.74 C. 1.85 D. 1.95 5. It is used when the sample sizes
are less than 30.
A. Z test B. T test C. Normal Curve D. All of these

17
II. WHAT YOU NEED TO KNOW
DISCUSSION:

KEY IDEAS

Measures of Central Tendency

• Mean
• Median
• Mode
Measures of Variation
• Range
• Variance
• Standard deviation
Tests of Significant Differences
• Testing the Difference Between Two Means: Using Z test
• Testing the Difference Between Two Means of Independent
Samples: Using t test

A. Measures of Central Tendency

A measure of central tendency is a single value that attempts to describe

a set of data by identifying the central position within that set of data.

The three most common measures of central tendency are the:

Mean
median,
and mode.

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The Mean
The mean, also known as the arithmetic average, is found by adding
the values of the data and dividing by the total number of values.

Formula:
x1 + x 2 + … + x n
x̅ =

n
∑

n
=1

x̅ =

Where
=
x̅ = mean

n = represents the total number of values in a set of data

Example 1 Commissions Earned

The data shows the commission earned by 8 salespeople employed at

several branches of a large Appliance Center. Find the mean.
800 700 250 500
750 350 450 650

Solution
∑

=1

n
x̅ =

Mean = 800 + 700 + 250 + 500 + 750 + 350

Mean = ₱ 556.25
+ 450 + 650 8
The mean amount of commission earned by 8 salespeople is ₱ 556.25.

19
 Example 2 Prices of Oil

Find the mean of the prices of crude oil per liter (in pesos) for the past 12
months are given as follows:

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Price 40.13 48.02 44.05 44.05 43.10 44.23 43.45 40.21 39.85 38.60 40.25 41.15
(Php)

Solution
Mean = 40.13+48.02+44.05+44.05+43.10+44.23+43.45+40.21+39.85+38.60+40.25+41.15 12
Mean = ₱ 42.26
The average prices of crude oil per liter for the past 12 months is ₱ 42.26.

The Median
The median is the middle value or the mean of the two middle values of
a set data arranged in increasing or descending order. When the data set is
ordered, it is called a data array.

Steps in computing the median of a data

Step 1: Arrange the data in ascending or descending order
Step 2: Select the middle point
If n is odd, the median is the middle number.
If n is even, the median is the average of the two middle
numbers.
n+1 th
MD=( 2)

Where:
MD = median
n = represents the total number of values in a set of data

20
 Example 1 The Number of Calls Received

Find median of the number of calls received by customer service

representative from different subscribers in an hour for 7 consecutive hours are
recorded as 10, 9, 11, 9, 8, 7, and 10.

Solution
Step 1 Arrange the data in order.
7 8 9 9 10 10 11

Step 2 Select the middle point

7 8 9 9 10 10 11

Median
Hence, the median is 9 calls.

Example 2 Sales for the Month

The following values represent the sales for 10 months (in thousands) of
a Sari-sari store. What is the median?

14 12 13 16 10
17 18 15 14 21
Solution
Step 1 Arrange the data in order.
10 12 13 14 14 15 16 17 18 21

Step 2 Select the middle point, since n is even, the median is the
average of the two middle numbers.

10 12 13 14 14 15 16 17 18 21

Median

MD= 14 + 15
2
MD = 14.5

Hence, the median is 14,500.00.

21
The Mode
The mode of a set of values is the value which appears most often.

Unimodal - A data set that has only one value that occurs with the
greatest frequency.
Bimodal - If a data set has two values that occur with the same
greatest frequency, both values are considered to be the mode.
Multimodal - If a data set has more than two values that occur with
the same greatest frequency, each value is used as the mode.
No Mode - When no data value occurs more than once.

Example 1 Branches of Large Banks

Find the mode for the number of branches that six banks have.
401, 344, 209, 201, 227, 253
Source: SNL Financial
Solution
Since each value occurs only once, there is no mode.
Note: Do not say that the mode is zero. That would be incorrect, because in
some data, such as temperature, zero can be an actual value.

Example 2 Water Consumption

The water consumption (in cubic meters) of certain household

each month is shown below. Find the mode.
Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Price 27 22 40 22 30 22 28 40 29 26 38 40
(Php)

Solution
Since the values 22 and 40 both occur 3 times, the modes are 22 and
40. The data set is said to be bimodal.

B. Measures of Variation
It is a value that is used to describe the spread of a set of data. If a
measure of central tendency gets the typical value, the measures of variation
determine the discrepancy or difference between the data.

For the spread or variability of a data set, three measures are commonly used:
• range
• variance,
• and standard deviation.

22
The Range
The range is the difference between the extreme scores, it does not
measure the spread of the majority.

Formula:
The range, R, is the highest value minus the lowest value.

R = highest entry - lowest entry

• The larger the range, the more spread the data is.

Example 1 Cash Remittances

Listed below are the remittances of OFW’s in thousands of pesos for the
first two quarters of 2019. Find the range.

Month Jan Feb Mar Apr May Jun

REMITTANCE
(in thousands of 34 27 50 65 63 59
pesos)

Solution
R=65–27
R=₱38

The range is ₱ 38.

Example 2 Staff Salaries

The salaries for the staff of SCI Merchandising Company are

shown below. Find the range.
Staff Salary
Owner ₱ 100,000.00

Manager 40,000.00
Sales Supervisor 35,000.00
Sales Representative 25,000.00
Workers 15,000.00
Solution
R = 100,000.00 – 15,000.00
R = ₱ 85,000.00

The range is ₱ 85,000.00.

23
The Variance
The variance is the average of the squared deviation of every score from
the mean. Most business firms measure the variance. For instance, a budget
variance is a discrepancy between the predicted cost and revenue in a given
account. They need to keep the difference or discrepancy small.

Formula:
s2 = ∑ ( xi - x̅ )2

n-1

Where:
n = sample size
= sample mean
• The larger the variance the more variable or more dispersed
the data is.

Example 1 Seafarers’ Remittances

Ana keeps record of seafarers’ remittances. Below are the remittances

(in thousands of pesos for the first three quarters of 2018.
Compute for the variance.

Month Jan Feb Mar Apr May Jun Jul Aug Sep
Remittance 27 34 43 49 50 54 59 63 65

Solution
Step 1: Find the Mean
∑ x
x̅ = n
∑ x

x̅ = n

x̅ = 27 + 34 + 43 + 49 + 50 + 54 + 59 +63 +65

9
444

x̅ = 9
x̅ = 49.33

24
Step 2: Subtract the mean from each data.
27 – 49.33 = -22.33 34 – 49.33 = -15.33 43 – 49.33 = -6.33

And so on and so forth. Consider the table below for the rest of the
calculations.

xi xi - x̅

27 27 – 49.33 = -22.33
34 34 – 49.33 = -15.33
43 43 – 49.33 = -6.33
49 49 – 49.33 = -0.33
50 50 – 49.33 = 0.67
54 54 – 49.33 = 4.67
59 59 – 49.33 = 9.67
63 63 – 49.33 = 13.67
65 65 – 49.33 = 15.67

Step 3: Square each result.

(-22.33)2 = 498.63 (-15.33)2 = 235.01 (-6.33)2 = 40.07 And so on
and so forth. Consider the table below for the rest of the calculations.

xi xi - x̅ (xi - x̅)2

27 27 – 49.33 = -22.33 (-22.33)2 =498.63

34 34 – 49.33 = -15.33 (-15.33)2 =235.01

43 43 – 49.33 = -6.33 (-6.33)2 =40.07

49 49 – 49.33 = -0.33 (-0.33)2 =0.109

50 50 – 49.33 = 0.67 (0.67)2 =0.45

54 54 – 49.33 = 4.67 (4.67)2 =21.81

59 59 – 49.33 = 9.67 (9.67)2 =93.51

63 63 – 49.33 = 13.67 (13.67)2 =186.87

65 65 – 49.33 = 15.67 (15.67)2=245.55

∑ (xi - x̅)2=1322.009

Step 4: Find the sum of the squares.

= 498.63+235.01+ 40.07 + 0.109 + 0.45 + 21.81 + 93.51 + 186.87 + 245.55
= 1 322.009

25
Step 5: Find the variance.
∑( − )̅ 2
2=
−1

2 = 1,322.009
9−1
2 = 165.25

Example 2 Monthly Sales for Branch A and Branch B

A Flower Shop owner wants to find out the performance sales of her two
branch stores for the last five months. The table shows their monthly sales in
thousands of pesos.

Branch A 21 18 18 19 17
Branch B 19 16 25 17 18

Solution

Branch A:
Step 1: Find the Mean
∑

=1

x̅ =
n
x̅ = 21+18+18+19+17

5
93
x̅ =
5

x̅ = 18.6

Step 2: Subtract the mean from each data.

21 – 18.6 = 2.4 18 – 18.6 = -0.6 18 – 18.6 = -0.6

And so on and so forth. Consider the table below for the rest of the
calculations.
xi xi - x̅

21 21-18.6=2.4
18 18-18.6=-0.6
18 18-18.6=-0.6
19 19-18.6=0.4
17 17-18.6=-1.6

26
 Step 3: Square each result.
(2.4)2 = 57.6 (-0.6)2 = 0.36 (-0.6)2 = 0.36

And so on and so forth. Consider the table below for the rest of the
calculations.
xi xi - x̅ (xi - x̅)2

21 21-18.6=2.4 (2.4)2 =5.76

18 18-18.6=-0.6 (-0.6)2 =0.36

18 18-18.6=-0.6 (-0.6)2 =0.36

19 19-18.6=0.4 (0.4)2 =0.16

17 17-18.6=-1.6 (-1.6)2=2.56

∑ (xi - ̅x)2= 9.2

Step 4: Find the sum of the squares.

= 5.76+ 0.36 + 0.36 + 0.16 + 2.56
= 9.2

Step 5: Find the variance.

∑(xi-x̅)2
s2= n - 1

s2= 9.2
5-1

s2=2.3

Branch B:
Step 1: Find the Mean
∑

=1

x̅ =
n
19+16+25+17+18
x̅ =

5
95
x̅ =
5

x̅ = 19

Step 2: Subtract the mean from each data.

19–19=0 16–19=-3 25–19=6

27
 And so on and so forth. Consider the table below for the rest of
the calculations.
xi xi - x̅

19 19 - 19=0
16 16 - 19=-3
25 25 - 19=6
17 17 - 19=-2
18 18 - 19=-1

Step 3: Square each result.

(0)2 = 0 (-3)2 = 9 (6)2 = 36
And so on and so forth. Consider the table below for the rest of the
calculations.
xi xi - x̅ (xi - x̅ )2

19 19 - 19=0 (0)2 =0

16 16 - 19=-3 (-3)2 =9

25 25 - 19=6 (6)2 =36

17 17 - 19=-2 (-2)2 =4

18 18 - 19=-1 (-1)2=1

∑ (xi - x̅)2=50

Step 4: Find the sum of the squares.

= 0+9+36+4+1
= 50
Step 5: Find the variance.
∑ (xi - x̅)2
s2 =

n-1

s2 = 50
5-1

s2 = 12.5

The Standard Deviation

The standard deviation is the square root of the variance. It measures the
difference of every score from the mean. It is the most important measure of
spread. If the data points are further from the mean, there is a higher deviation
within the data set; thus, the higher the standard deviation the more spread
the data is.

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 Formula: ∑n (xi - x̅)2
s = √s2 =√ i=1

n-1
Where:
= individual value/score
n = sample size
= sample mean
• A high standard deviation shows that the data is widely spread
(less reliable) and a low standard deviation shows that the data
are clustered closely around the mean (more reliable).

Example 1 Seafarers’ Remittances

Solution
Since standard deviation is the square root of variance, we will use the
example above.
s =√s2
s =√165.25 s =12.85

Example 2 Monthly Sales for Branch A and Branch B

Solution
Branch A B

Std. Dev.
=√2 =√2

= √2.3 = √12.5

= 1.51 = 3.53

Since the standard deviation of Branch, A is 1.51 and the

standard deviation of Branch B is 3.53 therefore, Branch A is
more reliable than Branch B.

C. Tests of Significant Differences

Statistical significance is a determination that a relationship between
two or more variables is caused by something other than chance. Statistical
hypothesis testing is used to determine whether the result of a data set is
statistically significant.

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 For Test of Significant Differences:
➢ Testing the Difference Between Two Means: Using Z Test
➢ Testing the Difference Between Two Means of Independent Samples:
Using t Test

Procedure:
Step 1 State the hypothesis and identify the claim.

Step 2 Find the critical values from table E or just memorize the critical
values for usually level of significance.

Step 3 Compute the test value.

Step 4 Make the decision.

Step 5 Summarize the results.

Testing the Difference Between Two Means: Using z Test

A z-test is a statistical test used to determine whether two population
means are different when the variances are known, and the sample size is
large.

For our notation, μ1 and μ2 denote the population means, s1 and s2 are
the sample means and σ1 and σ2 are the population variances.

Assumptions for the z test to Determine the Difference Between Two Means
• Both samples are random samples
• The samples must be independent of each other. That is, there can be
no relationship between the subjects in each sample.
• The standard deviations of both populations must be known.
• Samples are greater than or equal to30 (n ≥ 30)
•
Formula:
z= (x̅1 - x̅2) - (μ1 - μ2)
√ σ12 + σ22

n1 n2
Where:
Observed difference
is zero

standard error

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 Example Hotel Room Cost

A survey found that the average hotel room rate in Makati City is
₱ 2,210.50 and the average room rate in Quezon City is ₱ 2,015.25. Assume that
the data were obtained from two samples of 50 hotels each and that the standard
deviations of the populations are ₱ 140.50 and 120, respectively. At α =0.05, can it
be concluded that there is a significant difference in the rates?

Solution

Step 1: State the null hypotheses and identify the claim.

0: 1 = 2 1: 1 ≠ 2 ( claim)

Step 2: Find the critical values. Since = 0.05, the critical values are +1.96 and -1.96.

Confidence Significance Critical Value

( )

90% 0.10 1.645

95% 0.05 1.960
98% 0.02 2.326
99% 0.01 2.576

Step 3: Compute the test value:

Given:
x̅ 1= 2,210.50 ; x̅2= 2,015.25

μ1-μ2=0
σ1 = 140.50 ; σ2= 120
n1 = 50 ; n2 = 50
z= (x̅1 - x̅2) - (μ1 - μ2)
√ σ12 + σ22

n1 n2
z = (2,210.50 - 2,015.25) - (0)
√(140.50)
2 + (120)2

50 50

z = 7.47

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Step 4: Make the decision. Reject the null hypothesis at =0.05, since 7.47 > 1.96.

Rejection Rejection
Region
Region

-1.96 +1.96 +7.47

https://ugess3.files.wordpress.com/2016/01/bluman-step-by-step-statistics-8th-edition.pdf

Step 5: Summarize the results, there is enough evidence to support the claim
that the means are not equal. Hence, there is a significant difference in the
rates.
Testing the Difference Between Two Means of Independent Samples: Using the
t Test
A t-test is a type of inferential statistic used to determine if there is a
significant difference between the means of two groups, which may be
related in certain features.

Formula:
Variances are assumed to be unequal.
t= (x̅1 - x̅2) - (μ1 - μ2)
√ s1 2 + s2 2

n1 n2
Where:
x̅1- x̅2 is the observed difference between sample means

μ1- μ2 is equal to zero when no difference between population

is the standard error of the difference between
two means.

The degrees of freedom are equal to the smaller of n1 - 1 or n2 - 1.

Dealing with problems with limited sample size (n<30)

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 Example Farm Sizes

The average size of a farm in Bacolod City is 193 acres. The average size of a farm
in Kabankalan City is 201 acres. Assume the data were obtained form two samples with
standard deviations of 40 and 14 acres, respectively, and sample sizes of 10 and 12,
respectively. Can it be concluded at = 0.05 that the average size of the farms in the two
cities is different? Assume the populations are normally distributed.

Solution
Step 1: State the hypotheses and identify the claim for the means.
0: 1 = 2 1: 1 ≠ 2 ( claim)

Step 2: Find the critical values. Since the test is two tailed, since = 0.05, and since the variances are unequal, the degrees of freedom are the smaller of

0.05

9 2.262

https://ugess3.files.wordpress.com/2016/01/bluman-step-by-step-statistics-8th-edition.pdf

n1- 1 or n2 - 1. In this case, the degrees of freedom are 10 -1 = 9. Hence from

Table F, the critical values are +2.262 and -2.262.

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Step 3: Compute the test value:

Given:
x̅ 1= 193 ; x̅2= 201

μ1-μ2=0
s1 = 40 ; s2= 14
n1 = 10 ; n2 = 12
t= (x̅1- x̅2)-(μ1- μ2)
√ s12 + s22

n1 n2
t= (193- 201)-(0)
√ (40)2 + (14)2

10 12
t= -0.602
Step 4: Make the decision. Do not reject the null hypothesis at = 0.05, since

– 0.602 > -2.262.

Rejection
Rejection
Region Region

-2.262 -0.602 +2.262

https://ugess3.files.wordpress.com/2016/01/bluman-step-by-step-statistics-8th-edition.pdf

Step 5: Summarize the results. There is not enough evidence to support the
claim that the average size of the farms is different.

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34
III. WHAT HAVE I LEARNED

A. Measures of Central Tendency:

Measure Definition Formula
Mean Sum of values, divided ∑x

by total number of x̅ = n
values
Median Middle point in data set
that has been ordered n+1 th

MD=( 2 )

Mode Most frequent data

value
B. Measures of Variation:
Measure Definition Formula
Range Distance between R = highest entry - lowest entry

s2= ∑(xi-x̅)2
highest value and lowest
value
Variance Average of the squares n-1
of the distance that
each value is from the s =√s2=√
∑(xi-x̅)2 n - 1

mean
Standard Square root of the
Deviation variance

B. Test of Significant Differences:

Measure Formula
Testing the Difference Between
Two Means: Using the z Test z=
(x̅1- x̅2)-(μ1- μ2)

σ 2 σ2
+
1 2

√ n n
1 2

Testing the Difference Between

(x̅1- x̅2)-(μ1- μ2)
Two Means of Independent t=
Samples: Using the t Test
s12 s22
√ n + n
1 2

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35
EVALUATION
PART I. Multiple Choice. Read, analyze each statement below and
choose the letter that corresponds the correct answer. Write your answers
in your activity notebook

1. A classification of mode in a data set that has more than two values
that occur with the same greatest frequency.
A. Unimodal B. Bimodal
C. Multimodal D. No mode

For items 2-3

The data show the number of magazines purchased by five customers:

No. of 5 3 7 4 3
Magazines

2. What is the range?

A. 3 B. 4
C. 5 D. 6
3. What is the variance?
A. 2.8 B. 3.8
C. 4.8 D. 5.8
4. What is the standard deviation?
A. 1.67 B. 1.95
C. 2.19 D. 2.41
5. It is used when the sample sizes are greater than 30.
A. Z test B. T test C. Normal Curve D. All of these

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PART II. Problem Solving. Solve the following problems as correctly as you
can. Write your answers in your activity notebook.

1. A testing lab wishes to test two experimental brands of outdoor paint to see
how long each will last before fading. The testing lab makes 6 gallons of each
paint to test. Since different chemical agents are added to each group and
only six cans are involved, these two groups constitute two small populations.
The results (in moths) are shown.

Brand A Brand B
10 35
60 45
50 30
30 35
40 40
20 25

Bluman, Allan. Elementary Statistics, A Step by Step Approach

Find the mean, median, mode, range, variance and standard deviation of
each group. Which data is more variable?

2. To compare customer satisfaction levels of two competing cable television

companies, 174 customers of Company 1 and 355 customers of Company 2
were randomly selected and were asked to rate their cable companies on a
five-point scale, with 1 being least satisfied and 5 most satisfied. Test at 99%
confidence or alpha equal to 0.01. The survey results are summarized in the
following table:

Company 1 Company 2
N1=174 N2 = 355
X1 = 3.51 X2 = 3.24
S1 = 0.51 S2 = 0.52
https://saylordotorg.github.io/text_introductory-statistics/s13-two-sample-problems.html

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 REFERENCES
Books:

Bluman, Allan. Elementary Statistics, A step by step Approach

(Wordpress.com, 2016, 8th ed.) Pp.105-111; 473 – 485.

Lopez, Brian Roy C. et.al, Business Math (Quezon City, Vibal Group
Inc, 2016), Pp.194-203.

Online Source:

Two Sample Problems.

Retrieved: November 15, 2020
https://saylordotorg.github.io/text_introductory-statistics/s13-two-
sample-problems.html

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 DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS ORIENTAL

SENEN PRISCILLO P. PAULIN, CESO V

Schools Division Superintendent

JOELYZA M. ARCILLA, EdD.

Assistant Schools Division Superintendent

MARCELO K. PALISPIS, EdD.

Assistant Schools Division Superintendent

NILITA L. RAGAY, Ed.D.

Assistant Schools Division Superintendent
CID Chief

ROSELA R. ABIERA
Education Program Supervisor – (LRMS)

ELISA L. BAGUIO, EdD

Division Education Program Supervisor – MATHEMATICS

MARICEL S. RASID
Librarian II (LRMDS)

ELMAR L. CABRERA
PDO II (LRMDS)

FLORAMAE T. SIOCO
Writer

RADHIYA A. ABABON
Lay-out Artist
_________________________________

ALPHA QA TEAM
RICKLEOBEN V. BAYKING
LITTIE BETH S. BERNADEZ
MERCYDITHA D. ENOLPE
RONALD TOLENTINO

BETA QA TEAM
RICKLEOBEN V. BAYKING
LITTIE BETH S. BERNADEZ
GIL S. DAEL
MARIA SOLEDAD M. DAYUPAY
MARIA ACENITH D PASTOR
JEE LIZA T. INGUITO
MERCYDITHA D. ENOLPE
RONALD G. TOLENTINO

ENHANCEMENT TEAM
GWEN A. GALVEZ
ANGELICA G. ZAMBRANO

DISCLAIMER

The information, activities and assessments used in this material are designed to provide accessible
learning modality to the teachers and learners of the Division of Negros Oriental. The contents of this module are
carefully researched, chosen, and evaluated to comply with the set learning competencies. The writers and
evaluator were clearly instructed to give credits to information and illustrations used to substantiate this material.
All content is subject to copyright and may not be reproduced in any form without expressed written consent from
the division.

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 SYNOPSIS AND ABOUT THE AUTHOR
This SELF LEARNING KIT (SLK) ANSWER KEYS
is about the analysis and
interpretation of the data
presented in the table using
measures of central tendency,
variability and tests of significant
differences.
You are expected to apply
the concepts you’ve learned, as
these will strongly influence the
kind of businessmen they will
become in the future.
Explore and enjoy!

AUTHOR
FLORAMAE TUBOG SIOCO is an Accountancy Business and
Management (ABM) teacher at Dauin National High School
Division of Negros Oriental. She currently teaches specialized,
applied, and core subjects for Senior High School students.
She graduated Bachelor of Science in Industrial Engineering from
the University of San Jose – Recoletos in Cebu City. She earned her
degree in Master of Business Administration at Foundation
University, Dumaguete City. She took her Continuing Program
Education at Negros Oriental State University (NORSU), which
made her qualified to teach in the Department of Education.
She was a faculty member of the School of Industrial Engineering,
Foundation University for 20 years.
Her experiences strengthened her in materializing this Self-
Learning Kit.

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