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    Chapter 3 - Descriptive Statistics (Grouped Data)

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    Chapter 3 - Descriptive Statistics (Grouped Data)

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    Chapter 3 - Descriptive statistics (Grouped Data)

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    Chapter 3 - Descriptive Statistics (Grouped Data)

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    maizon.darus

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    of 23

    Chapter 3

    (Part 2)

    Grouped Data
    Numerical Descriptive Measures of
    Data
    • When the amount of raw data is large, it is better
    presented in a table of frequency distribution.
    Computing measures of central tendency for
    grouped data is different from computing raw data.
    (a) Mean

    Mean = X =
     fx
    i

    f
    Where 𝑓 = 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛
    𝑥𝑖 = 𝑚𝑖𝑑𝑝𝑜𝑖𝑛𝑡 𝑜𝑓 𝑐𝑙𝑎𝑠𝑠 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙
    (b) Median
    n 
     2 −  f m −1 
    Median = Lm +  c
     fm 
     
    Where n = sample size
    Lm = lower limit of the median class
    ∑fm-1 = cumulative frequency before the median class
    fm = frequency of median class
    c = median class size
    class size = lower limit of 2nd class interval – lower limit of
    1st class interval
    (c) Mode
     f 0 − f1 
    Mode = L+ c
     ( f 0 − f1 ) + ( f 0 − f 2 ) 

    Where L = lower limit of the class containing mode,


    c = size of the class containing mode,
    f0 = frequency of the class containing mode,
    f1 = frequency of the class before the class
    containing mode, and
    f2 = frequency of the class after the class
    containing mode.
    d) Variance and Standard Deviation.

    1 σ 𝑓𝑥 2
    2
    Variance; s = 2
    ෍ 𝑓𝑥 −
    𝑛−1 𝑛

    𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝐷𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛; 𝑠 = 𝑉𝑎𝑟𝑖𝑎𝑛𝑐𝑒


    e) Quartiles

    First Quartile, n 
     4 − F1 
    Q1 = L1 +    c1
     f1 
     
    Where
    L1 = lower limit of the first quartile class,
    n = number of observations,
    F1 = cumulative frequency before the first quartile class,
    f1 = frequency of the first quartile class, and
    c1 = first quartile class size.
    Third Quartile,

     3n 
     4 − F3 
    Q3 = L3 +    c3
     f3 
     
    Where
    L3 = lower limit of the third quartile class,
    n = number of observations,
    F3 = cumulative frequency before the third quartile class,
    f3 = frequency of the third quartile class, and
    c3 = third quartile class size.
    Example
    • Table 4.3 shows the years of working experience for one-
    hundred-and-twenty employees of Jimmy’s company.

    Calculate the following statistics for the data:


    a) Mean, median and mode.
    b) Variance and standard deviation.
    c) First and third quartiles.
    Solution: (a) Mean
    First, we construct a column for the mid-point (xi) (for
    example column 3 in Table 4.4).
    Next, we construct a column for fixi (product of frequency
    where xi is the mid-point) and obtain the sum of fixi.
    Finally, we compute the arithmetic mean.
     fi xi
    X=
    n
    =
    1, 488
    120
    = 12.4

    This means, that on an average, the employees in


    Jimmy’s company have 12.4 years of working experience
    each.
    Solution: a) Median
    Step 1: Obtain the cumulative frequency
    Step 2: Identify the class that contains the
    median and obtain the median location.

    𝑛 120
    = = 60
    2 2

    Position 60 lies between 37-64. This means that


    the class interval 9-12 is the median class.
    Step 3: Apply the formula.
    n 
     2 −  f m −1 
    Median = Lm +  c
     f m 
     
    60 − 36
    𝑀𝑒𝑑𝑖𝑎𝑛 = 9 + × 4 = 12. 428 𝑦𝑒𝑎𝑟𝑠
    28

    ( c = lower limit of 2nd class interval – lower limit of 1st


    class interval = 5 – 1 = 4 )
    This means that 50% of employees have a working
    experience of less than 12.428 years and the other 50%
    have a working experience of more than 12.428 years.
    Solution: a) Mode
    The mode class is 9-12 since the frequency is the
    highest. Thus, 𝑓0 = 28, 𝑓1 = 20, 𝑓2 = 24, 𝑐 =
    12.5 − 8.5 = 4.0 𝑎𝑛𝑑 𝐿 = 9.

     f 0 − f1 
    Mode = L +  c
     ( f 0 − f1 ) + ( f 0 − f 2 ) 
     28 − 20 
    =9+   4.0 = 11.67
     (28 − 20) + (28 − 24) 
    Solution: b) Variance and Standard Deviation
    Create the column 𝑓𝑖 𝑥𝑖2 ∶
    Years of Number of Mid-point 𝒙𝒊 𝑓𝑖 𝑥𝑖 𝑓𝑖 𝑥𝑖2
    Experience Employees
    𝒇𝒊
    1-4 16 2.5 40 100
    5-8 20 6.5 130 845
    9-12 28 10.5 294 3087
    13-16 24 14.5 348 5046
    17-20 16 18.5 296 5476
    21-24 11 22.5 247.5 5568.75
    25-28 5 26.5 132.5 3511.25
    Total 120 ෍ 𝑓𝑖 𝑥𝑖 = 1,488 23,634
    Variance;
    1 σ 𝑓𝑥 2
    2
    s = 2
    ෍ 𝑓𝑥 −
    𝑛−1 𝑛
    2
    1 1488 5182.8
    = 23,634 − = = 43.5529
    120 − 1 120 119

    Standard Deviation;

    𝑠 = 𝑉𝑎𝑟𝑖𝑎𝑛𝑐𝑒 = 43.5529 = 6.5995


    Solution: c) Quartiles
    Step 1: Create the cumulative frequency
    Step 2: Identify the location or position of the first and third
    quartiles.
    Step 3: Determine the values of Q1 and Q3 using their formulae.
    Solution: c) Quartiles
    Step 1: Obtain the cumulative frequency
    Step 2: Identify the location or position of the first and third
    quartiles.

    𝑛 120
    Location of 𝑄1 = = = 30; (so, interval 5-8).
    4 4

    𝑛 120
    Location of 𝑄3 = 3 =3 = 90; (so, interval 17-20).
    4 4
    Step 3: Determine the values of Q1 and Q3 using their formulae.

    n   3n 
    − F  4 − F3
    4 1 Q3 = L3 + 
    Q1 = L1 +    c1   c3
     f   f3 
       
    = =
    End of Chapter 3

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