Assignment

Of
Business Statistics
Based on the Questions and requirement from google class Room

Assignment Submitted by

Name: Id:

1. Md. Atiqur Rahman 162-11-5150

2. Md. Ariful Islam 162-11-5136

3.Md. Hridoy Islam Ronel 162-11-5142

4. Abdur Rakib Ador 162-11-5154

5. Papon Saha 162-11-5144

Assignment Submitted To
Shanjida Chowdhury

Business Statistics

Section: A

Fall: 2016

Submitted Date: 08-12-2016

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 Solution of Problem Number: 1
Here we are calculating Coefficient of Variation

Marks No. of students

1-3 40

3-5 30

5-7 20

7-9 10

Solution:
Marks No. of X fx x- X́ (x− X́ ¿ ¿2 f(x− X́ ¿ ¿2
students (f)
1-3 40 2 80 -2 4 160

3-5 30 4 120 0 0 0

5-7 20 6 120 2 4 80
7-9 10 8 80 4 16 160

N = 100 ∑fx = 400 ∑ f(x

− X́ ¿ ¿2
=400

Here,

Mean: X́ =
∑ fx = 400 = 4
N 100

We Know,

400
Standard deviation, 6 = √ ∑f ¿ ¿ ¿ =
√ 100
= √4 = 2

6
We know, CV = × 100
X́

2
= × 100
4

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 200
=
4
= 50 (Answer)

To Calculation of Average deviation we need to find out mean ( X́ )

Marks No. of students

1-3 40

3-5 30

5-7 20

7-9 10

Solution:
Marks No. of X fx x- X́ │x− X́ │ f│x− X́ │
students (f)
1-3 40 2 80 -2 2 80

3-5 30 4 120 0 0 0

5-7 20 6 120 2 2 40
7-9 10 8 80 4 4 40

N = 100 ∑fx = 400 ∑ f│x− X́

│
=160

Here,

Mean: X́ =
∑ fx = 400 = 4
N 100

∑ f │ x− X́ │
We know, AD =
N

160
=
100

= 1.6 (Answer)

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 N
– pcf
To Calculate Skewness first we need to find Mean ( X́ ), Then median (L+ 2 i)
×
f

Mean:
Marks No. of students (f) X fx

1-3 40 2 80
3-5 30 4 120
5-7 20 6 120

7-9 10 8 80

N = 100 ∑fx = 400

Here,

Mean: X́ =
∑ fx = 400 = 4
N 100

Median:
Marks No. of students (f) cf
1-3 40 40
3-5 30 70

5-7 20 90

7-9 10 100

N=100

N
Median = size of th observation.
2

100
= size of th observation
2

= size of 50th observation th observation

Hence median lies in the class 3-5

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 N
− pcf
We know, Median = L + 2 .
×i
f

50−40
= 3+ ×2
30

= 3+ 0.67

= 3.67

Standard deviation, S = 2. [from coefficient of variation]

3(Mean−Median)
Sk =
S

3(4−3.67)
=
2

3× 0.33
=
2

0.99
=
2

= 0.49 (Answer)

Histogram:
Marks No. of students
1-3 40

3-5 30

5-7 20

7-9 10

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 Histogram
45
40
35
No. of Students

30
25
20
15
10
5
0
Skewness
Marks

Solution of problem number: 2

Stem-and-leaf

73, 42, 67, 78, 99, 84, 91, 82, 86, 94

Here,

Highest value: 99

Lowest value: 42

First we are listing the numbers in a serial which is lowest to highest

42, 67, 73, 78, 82, 84, 86, 91. 94, 99

Stem Leaf
4 2
5
6 7
7 38
8 246
9 149

Solution of problem no.3

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There are three most common measures of central tendency. Mean, Median and Mode. When to
use which (or whether to use any at all) is complex. There are also other measures of central
tendency that are useful -e.g. the trimmed mean, geometric mean, harmonic mean.

 Mean

Generally, when we speak about averages, we are referring to the mean. If you were to take ten
numbers, add them all up, and then divide by ten, you would have calculated the mean. It’s how
we talk about the average height or weight of a group of people, the average number of books
people have, or the average number of spiders you eat while you’re asleep.

But, sometimes using the mean is misleading as when we talk about mean annual income. For
example, 90% of households in the USA earn less than $149 999 while 0.1% earn a million
dollars or more. Even though a tiny number of people earn vastly higher incomes, their income is
so much higher that they ‘pull’ the mean income higher with them. It makes it look like the
‘average’ household earns a lot more than they really do. In the case of income, it usually makes
more sense to use the median.

Advantages:

 Most popular measure in the fields such as business, engineering and computer science.
 It is unique - there is only one answer.
 Useful when comparing sets of data.

Disadvantages:

 Affected by extreme values (outliers)

Median

The median is used much less often even though it is a very descriptive and meaningful term.
This measure tells you the point at which half the numbers are larger and half the numbers are
smaller. The median is a very useful number to use when the distribution of data is skewed – for
instance, most of the numbers are small and a few are extremely large. Things like number of
children (most families have a couple of kids but a small percentage of families have 15 or more
kids) or number of credit cards (most people have a couple but a small percentage have 20 or
more cards) might be better suited to use the median.

When we talk about income, this is the number where half of people earn more and half of
people earn less. Thus, using (slightly old 2004) US census data, the mean household income
was $60 528 whereas the median income was $43 318. So, half of households earned less than
$43 318 and half of households earned more than that.

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Advantages:

 Extreme values (outliers) do not affect the median as strongly as they do the mean.
 Useful when comparing sets of data.
 It is unique - there is only one answer.

Disadvantages:

 Not as popular as mean.

Mode

Even less often used is the measure called mode. We might want this measure to be about putting
ice cream on top of our pie, but rather it refers to the most common number in a set.

Let’s say 30 students took a really easy test and everyone got 100% except for poor me who got
60% (I was away sick for a week!). You could talk about the mean score of 99% but that kind of
suggests that a lot of people did not get perfect scores. You could talk about the median score of
100% but that kind of suggests that half of people got less than 100%. In this case, the most
meaningful ‘average’ score is the mode – 100%. The most common grade on this test was 100%.

Advantages:

 Extreme values (outliers) do not affect the mode.

Disadvantages:

 Not as popular as mean and median.

 Not necessarily unique - may be more than one answer
 When no values repeat in the data set, the mode is every value and is useless.
 When there is more than one mode, it is difficult to interpret and/or compare.

Uses of mean median and mode in our daily life:

1. We use mean median and mode for making important decision when we are confused.
2. We use mean median and mode for selecting appropriate price of product.
3. We use mean median and mode for interpreting and comparing.
4. We use mean median and mode for taking decisions when there is more solution than
need.
5. We use mean median and mode for comparing sets of data.

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6. We use mean median and mode for making average.
7. We use mean median and mode for making decision by a sample population.
8. We use mean median and mode for deciding the average value, price, salary,
temperature, central tendency etc.
9. We use mean median and mode for selecting one product, answer, decision, number,
price, value from many options.
10. We use mean for making average from thousands of data.
11. We use median for selecting a data, value, number and other important thing.

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