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1 © 2006 Thomson/South-Western © 2006 Thomson/South-Western Chapter 3 Chapter 3 Descriptive Statistics: Numerical Descriptive Statistics: Numerical Measures Measures Part A Part A Measures of Location Measures of Location Central Tendency Measures Central Tendency Measures Percentiles and Quartiles Percentiles and Quartiles

Chapter 3 Descriptive Statistics: Numerical Measures Part A

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Chapter 3 Descriptive Statistics: Numerical Measures Part A. Measures of Location Central Tendency Measures Percentiles and Quartiles. Mean. The mean of a data set is the average of all the data values. The sample mean is the point estimator of the population mean m. Sample Mean. - PowerPoint PPT Presentation

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Page 1: Chapter 3  Descriptive Statistics:  Numerical Measures Part A

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Chapter 3Chapter 3 Descriptive Statistics: Numerical Descriptive Statistics: Numerical

MeasuresMeasuresPart APart A

Measures of LocationMeasures of Location

•Central Tendency MeasuresCentral Tendency Measures

•Percentiles and QuartilesPercentiles and Quartiles

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MeanMean

The The meanmean of a data set is the of a data set is the averageaverage of of all the data values.all the data values.

The sample mean is the point The sample mean is the point estimator of the population mean estimator of the population mean . .

xx

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Sample Mean Sample Mean xx

Number ofNumber ofobservationsobservationsin the samplein the sample

Number ofNumber ofobservationsobservationsin the samplein the sample

Sum of the valuesSum of the valuesof the of the nn observations observations

Sum of the valuesSum of the valuesof the of the nn observations observations

ixx

n ix

xn

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Population Mean Population Mean

Number ofNumber ofobservations inobservations inthe populationthe population

Number ofNumber ofobservations inobservations inthe populationthe population

Sum of the valuesSum of the valuesof the of the NN observations observations

Sum of the valuesSum of the valuesof the of the NN observations observations

ix

N

ix

N

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Seventy efficiency apartmentsSeventy efficiency apartments

were randomly sampled inwere randomly sampled in

a small college town. Thea small college town. The

monthly rent prices formonthly rent prices for

these apartments are listedthese apartments are listedin ascending order on the next slide. in ascending order on the next slide.

Sample MeanSample Mean

Example: Apartment RentsExample: Apartment Rents

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Sample MeanSample Mean

34,356 490.80

70ix

xn

34,356 490.80

70ix

xn

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

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Considerations in Using the MeanConsiderations in Using the Mean

Requires interval/ratio levelRequires interval/ratio level Influenced by extreme scoresInfluenced by extreme scores Balancing point of the distribution (+ Balancing point of the distribution (+

and -deviations cancel out)and -deviations cancel out) Minimizes the “sum of squares” (sum of Minimizes the “sum of squares” (sum of

squared deviations around mean is squared deviations around mean is smaller than around any other number)smaller than around any other number)

•Mean is our “best guess” or estimate Mean is our “best guess” or estimate – minimizes errors in prediction– minimizes errors in prediction

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MedianMedian

1212 1414 1919 2626 27271818 2727

The The medianmedian is the is the middle score or midpoint middle score or midpoint of ofa set of scores when scores are arranged in order.a set of scores when scores are arranged in order.

For an For an odd numberodd number of observations: of observations:

in ascending orderin ascending order

2626 1818 2727 1212 1414 2727 1919 7 observations7 observations

Median = 19Median = 19

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1212 1414 1919 2626 27271818 2727

MedianMedian

For an For an even numbereven number of observations: of observations:

in ascending orderin ascending order

2626 1818 2727 1212 1414 2727 3030 8 observations8 observations

the median is the average of the middle two values.the median is the average of the middle two values.

Median = (19 + 26)/2 = 22.5Median = (19 + 26)/2 = 22.5

1919

3030

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MedianMedian

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

Averaging the 35th and 36th data values:Averaging the 35th and 36th data values:Median = (475 + 475)/2 = 475Median = (475 + 475)/2 = 475

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Considerations in using MedianConsiderations in using Median

Not sensitive to extreme scores – good for Not sensitive to extreme scores – good for skewed distributionsskewed distributions

Examples: annual income and property valuesExamples: annual income and property values

Requires ordinal level or higherRequires ordinal level or higher

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ModeMode

The The modemode of a data set is the value that occurs of a data set is the value that occurs with greatest frequency.with greatest frequency. The greatest frequency can occur at two or moreThe greatest frequency can occur at two or more different values.different values. If the data have exactly two modes, the data areIf the data have exactly two modes, the data are bimodalbimodal.. If the data have more than two modes, they areIf the data have more than two modes, they are multimodalmultimodal..

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ModeMode

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

450 occurred most frequently (7 times)450 occurred most frequently (7 times)

Mode = 450Mode = 450

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Considerations in Using ModeConsiderations in Using Mode

May be used at any level of May be used at any level of measurementmeasurement

May not imply “majority “ or “most”May not imply “majority “ or “most”

““Most common” score or value may not Most common” score or value may not be representative of most casesbe representative of most cases

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PercentilesPercentiles

Admission test scores for colleges and universitiesAdmission test scores for colleges and universities are frequently reported in terms of percentiles.are frequently reported in terms of percentiles.

The The ppth percentileth percentile of a data set is a value such of a data set is a value such that at least that at least pp percent of the items take on this percent of the items take on this value or less and at least (100 - value or less and at least (100 - pp) percent of ) percent of the items take on this value or more.the items take on this value or more.

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PercentilesPercentiles

Arrange the data in ascending order.Arrange the data in ascending order.

Compute index Compute index ii, the, the position position of the of the ppth percentile.th percentile.

ii = ( = (pp/100)/100)nn

If If ii is is not an integernot an integer, round , round upup. The . The pp th percentileth percentile is the is the value in the value in the ii th positionth position..

If If ii is an is an integerinteger, the , the pp th percentile is the th percentile is the averageaverage of the values in positionsof the values in positions i i and and ii +1.+1.

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9090thth Percentile Percentile

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

ii = ( = (pp/100)/100)nn = (90/100)70 = 63 = (90/100)70 = 63Averaging the 63rd and 64th data values:Averaging the 63rd and 64th data values:

90th Percentile = (580 + 590)/2 = 58590th Percentile = (580 + 590)/2 = 585

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9090thth Percentile Percentile

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

““At least 90%At least 90% of the itemsof the items

take on a valuetake on a value of 585 or less.”of 585 or less.”

““At least 10%At least 10% of the itemsof the items

take on a valuetake on a value of 585 or more.”of 585 or more.”

63/70 = .9 or 90%63/70 = .9 or 90% 7/70 = .1 or 10%7/70 = .1 or 10%

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QuartilesQuartiles

Quartiles are specific percentiles.Quartiles are specific percentiles.

First Quartile = 25th PercentileFirst Quartile = 25th Percentile

Second Quartile = 50th Percentile = MedianSecond Quartile = 50th Percentile = Median

Third Quartile = 75th PercentileThird Quartile = 75th Percentile

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Third QuartileThird Quartile

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

425 430 430 435 435 435 435 435 440 440440 440 440 445 445 445 445 445 450 450450 450 450 450 450 460 460 460 465 465465 470 470 472 475 475 475 480 480 480480 485 490 490 490 500 500 500 500 510510 515 525 525 525 535 549 550 570 570575 575 580 590 600 600 600 600 615 615

Third quartile = 75th percentileThird quartile = 75th percentile

i i = (= (pp/100)/100)nn = (75/100)70 = 52.5 = 53 = (75/100)70 = 52.5 = 53Third quartile = 525Third quartile = 525