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Measures of Central Tendency Copyright © 2009 Pearson Education, Inc. Slide 13 - 1 Definitions • An average is a number that is representative of a group of data. • The arithmetic mean, or simply the mean is symbolized by x , when it is a sample of a population or by the Greek letter mu, , when it is the entire population. Copyright © 2009 Pearson Education, Inc. Slide 13 - 2 Mean • The mean, is the sum of the data divided by the number of pieces of data. The formula for calculating the mean is Sx x n where Sx represents the sum of all the data and n represents the number of pieces of data. Copyright © 2009 Pearson Education, Inc. Slide 13 - 3 Example-find the mean • Find the mean amount of money parents spent on new school supplies and clothes if 5 parents randomly surveyed replied as follows: $327 $465 $672 $150 $230 Copyright © 2009 Pearson Education, Inc. Slide 13 - 4 Solution 327 465 672 150 230 1844 x 368.8 5 5 Copyright © 2009 Pearson Education, Inc. Slide 13 - 5 Example • Malcolm’s average on 5 exams is 81. Determine the sum of all his exam scores. Copyright © 2009 Pearson Education, Inc. Slide 13 - 6 Example An average of 60 on 7 exams is needed to pass a course. On her first 6 exams, Sheryl received grades of: 51, 72, 80, 62, 57, and 69. • What grade must she receive on her last exam to pass the course? Copyright © 2009 Pearson Education, Inc. Slide 13 - 7 Example - continued • An average of 70 is needed to get a C in the course. Is it possible for Sheryl to get a C? If so, what grade must she receive on the 7th exam to get a C in the course? Copyright © 2009 Pearson Education, Inc. Slide 13 - 8 Example - continued • If her lowest grade of the exams already taken is dropped: • What grade must she receive on her last exam to pass the course? • What grade must she receive on her last exam to get a C the course? Copyright © 2009 Pearson Education, Inc. Slide 13 - 9 Median • The median is the value in the middle of a set of ranked data. • Example: Determine the median of $327 $465 $672 $150 $230. Copyright © 2009 Pearson Education, Inc. Slide 13 - 10 Solution Rank the data from smallest to largest. $150 $230 $327 $465 $672 middle value (median) Copyright © 2009 Pearson Education, Inc. Slide 13 - 11 Example: Median (even data) • Determine the median of the following set of data: 8, 15, 9, 3, 4, 7, 11, 12, 6, 4. Copyright © 2009 Pearson Education, Inc. Slide 13 - 12 Solution Rank the data: 3 4 4 6 7 8 9 11 12 15 There are 10 pieces of data so the median will lie halfway between the two middle pieces the 7 and 8. The median is (7 + 8)/2 = 7.5 3 4 4 6 7 8 9 11 12 15 (median) middle value Copyright © 2009 Pearson Education, Inc. Slide 13 - 13 Mode • The mode is the piece of data that occurs most frequently. • Example: Determine the mode of the data set: 3, 4, 4, 6, 7, 8, 9, 11, 12, 15. Copyright © 2009 Pearson Education, Inc. Slide 13 - 14 Solution • The mode is 4 since it occurs twice and the other values only occur once. 3, 4, 4, 6, 7, 8, 9, 11, 12, 15. Copyright © 2009 Pearson Education, Inc. Slide 13 - 15 Midrange • The midrange is the value halfway between the lowest (L) and highest (H) values in a set of data. lowest value + highest value Midrange 2 Copyright © 2009 Pearson Education, Inc. Slide 13 - 16 Example • Find the midrange of the data set $327, $465, $672, $150, $230. Copyright © 2009 Pearson Education, Inc. Slide 13 - 17 Example • Find the midrange of the data set $327, $465, $672, $150, $230. 150 + 672 822 Midrange 411 2 2 Copyright © 2009 Pearson Education, Inc. Slide 13 - 18 Example • The weights of eight Labrador retrievers rounded to the nearest pound are 85, 92, 88, 75, 94, 88, 84, and 101. Determine the a) b) c) d) mean median mode midrange Copyright © 2009 Pearson Education, Inc. Slide 13 - 19 Example--dog weights 85, 92, 88, 75, 94, 88, 84, 101 a. Mean 85 92 88 75 94 88 84 101 707 x 88.375 8 8 b. Median-rank the data 75, 84, 85, 88, 88, 92, 94, 101 The median is 88. Copyright © 2009 Pearson Education, Inc. Slide 13 - 20 Example--dog weights 85, 92, 88, 75, 94, 88, 84, 101 c. Mode-the number that occurs most frequently. The mode is 88. d. Midrange = (L + H)/2 = (75 + 101)/2 = 88 Copyright © 2009 Pearson Education, Inc. Slide 13 - 21 Measures of Position • Measures of position are often used to make comparisons. • Two measures of position are percentiles and quartiles. Copyright © 2009 Pearson Education, Inc. Slide 13 - 22 To Find the Quartiles of a Set of Data 1. Order the data from smallest to largest. 2. Find the median, or 2nd quartile (Q2), of the set of data. 3. The first quartile, Q1, is the median of the lower half of the data; that is, Q1, is the median of the data less than Q2. 4. The third quartile, Q3, is the median of the upper half of the data; that is, Q3 is the median of the data greater than Q2. Copyright © 2009 Pearson Education, Inc. Slide 13 - 23 Example: Quartiles • The weekly grocery bills for 23 families are as follows. Determine Q1, Q2, and Q3. 170 330 225 75 95 210 80 225 160 172 270 170 215 130 190 270 240 310 74 280 270 50 81 • Order the data: Copyright © 2009 Pearson Education, Inc. Slide 13 - 24 Example: Quartiles continued • Order the data: 50 75 74 80 81 95 130 160 170 170 172 190 210 215 225 225 240 270 270 270 280 310 330 Copyright © 2009 Pearson Education, Inc. Slide 13 - 25 Example: Quartiles continued Q2 is the median of the entire data set which is 190. Q1 is the median of the numbers from 50 to 172 which is 95. Q3 is the median of the numbers from 210 to 330 which is 270. Copyright © 2009 Pearson Education, Inc. Slide 13 - 26 Example – Interpreting Statistics The following statistics represent weekly salaries at the Midtown Construction Company: Mean Median Mode $550 $540 $530 1st quartile $510 3rd quartile $575 83rd percentile $615 • What is the most common salary? • What percent of employees’ salaries surpassed $540? • What percent of employees’ salaries surpassed $575? • What percent of employees’ salaries were less than $510? • What percent of employees’ salaries surpassed $615? • If the company has 100 employees, what is the total weekly salary of all employees? Copyright © 2009 Pearson Education, Inc. Slide 13 - 27 Measures of Dispersion Copyright © 2009 Pearson Education, Inc. Slide 13 - 28 Measures of Dispersion • Measures of dispersion are used to indicate the spread of the data. • The range is the difference between the highest and lowest values; it indicates the total spread of the data. Range = highest value – lowest value Copyright © 2009 Pearson Education, Inc. Slide 13 - 29 Example: Range • Nine different employees were selected and the amount of their salary was recorded. Find the range of the salaries. $24,000 $32,000 $26,500 $56,000 $48,000 $27,000 $28,500 $34,500 $56,750 Copyright © 2009 Pearson Education, Inc. Slide 13 - 30 Solution • Range = $56,750 $24,000 = $32,750 Copyright © 2009 Pearson Education, Inc. Slide 13 - 31 Standard Deviation • The standard deviation measures how much the data differ from the mean. It is symbolized with s when it is calculated for a sample, and with (Greek letter sigma) when it is calculated for a population. s Copyright © 2009 Pearson Education, Inc. S xx 2 n 1 Slide 13 - 32 To Find the Standard Deviation of a Set of Data 1. Find the mean of the set of data. 2. Make a chart having three columns: Data Data Mean (Data Mean)2 3. List the data vertically under the column marked Data. 4. Subtract the mean from each piece of data and place the difference in the Data Mean column. Copyright © 2009 Pearson Education, Inc. Slide 13 - 33 To Find the Standard Deviation of a Set of Data continued 5. Square the values obtained in the Data Mean column and record these values in the (Data Mean)2 column. 6. Determine the sum of the values in the (Data Mean)2 column. 7. Divide the sum obtained in step 6 by n 1, where n is the number of pieces of data. 8. Determine the square root of the number obtained in step 7. This number is the standard deviation of the set of data. Copyright © 2009 Pearson Education, Inc. Slide 13 - 34 Example • Find the standard deviation of the following prices of selected washing machines: $280, $217, $665, $684, $939, $299 Find the mean. Copyright © 2009 Pearson Education, Inc. Slide 13 - 35 Example • Find the standard deviation of the following prices of selected washing machines: $280, $217, $665, $684, $939, $299 Find the mean. 280 217 665 684 939 299 3084 x 514 6 6 Copyright © 2009 Pearson Education, Inc. Slide 13 - 36 Example continued, mean = 514 Data 217 280 299 665 684 939 Data Mean Copyright © 2009 Pearson Education, Inc. (Data Mean)2 Slide 13 - 37 Example continued, mean = 514 Data 217 280 299 665 684 939 Data Mean 297 234 215 151 170 425 0 Copyright © 2009 Pearson Education, Inc. (Data Mean)2 (297)2 = 88,209 54,756 46,225 22,801 28,900 180,625 421,516 Slide 13 - 38 Example continued, mean = 514 • Find the standard deviation: s S xx 2 n 1 Copyright © 2009 Pearson Education, Inc. Slide 13 - 39 Example continued, mean = 514 s S xx 2 n 1 421,516 84303.2 290.35 5 • The standard deviation is $290.35. Copyright © 2009 Pearson Education, Inc. Slide 13 - 40