Business Statistics: A First Course, 5e © 2009 Prentice-Hall, Inc.
Chap 3-1
Chapter 3
Numerical Descriptive Measures
Business Statistics:
A First CourseFifth Edition
Choice is yours, part 2
Business Statistics: A First Course, 5e © 2009 Prentice-Hall, Inc.
Chap 3-3
In this chapter, you learn:
To describe the properties of central tendency, variation, and shape in numerical data
To calculate descriptive summary measures for a population
To construct and interpret a boxplot
To calculate the covariance and the coefficient of correlation
Learning Objectives
Business Statistics: A First Course, 5e © 2009 Prentice-Hall, Inc.
Chap 3-4
Summary Definitions
The central tendency is the extent to which all the data values group around a typical or central value.
The variation is the amount of dispersion, or scattering, of values
The shape is the pattern of the distribution of values from the lowest value to the highest value.
Business Statistics: A First Course, 5e © 2009 Prentice-Hall, Inc.
Chap 3-5
Measures of Central Tendency:The Mean
The arithmetic mean (often just called “mean”) is the mon measure of central tendency
For a sample of size n:
Sample size
Observed values
The ith value
Pronounced x-bar
Measures of Central Tendency:The Mean
Example volume of Coke
Listed below are the volumes (in ounces) of the Coke in five different cans. Find the mean for this sample.
Business Statistics: A First Course, 5e © 2009 Prentice-Hall, Inc.
Chap 3-9
Measures of Central Tendency:Locating the Median
If the number of values is even, the median is the average of the two middle numbers
Note that is not the value of the median, only the position of the median in the ranked data
Business Statistics: A First Course, 5e © 2009 Prentice-Hall, Inc.
Chap 3-10
Measures of Central Tendency:The Median
In an ordered array, the median is the “middle” number (50% above, 50% below)
Not affected by extreme values
0 1 2 3 4 5 6
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