Statistics and Probability

LECTURE 1: Preliminary
q Measures of Central Tendency
q Measures of Location
q Measures of Variation
Measures of Central Tendency
A measure of central tendency is any single value that is used to
identify the “center” of the data or the typical value. It is often
referred to as the average. The three measures of central tendency are:
Ø Mean
Ø Median
Ø Mode
Example 1:
The following are the number of customers a restaurant served for lunch
on 60 days.

Determine the range, number of classes and class size.

FDT
The number of customers a restaurant served

Mean
• The most common used measure of central tendency.
• The sum of all the observations divided by the number of observations.
Compute for the Mean:

Median
• The positional middle array.
• In an array, one-half of the values precede the median and one-half
following it.

Compute for the Median:

Compute for the Mode:

• The most number of frequencies.
• It locates the point where the observation values occur with the
greatest density.
• It is not affected by extreme values.
• It can be used for qualitative data and quantitative data.
• It does not always exist and if does, it may be unique.
Compute for the Mode

Measures of Location
The values in which a specified fraction percentage of the observations
in a given set must fall.
Some measures of Location
Ø Quartiles (Q) – values that divide the data set into 4 equal parts.
Ø Deciles (D) – values that divide the data set into 10 equal parts.
Ø Percentiles (P) – values that divide the data set into 100 equal
parts.

Quartile 1
Quartile 2

Quartile 3

Decile

Percentile
 Measures of Dispersion
The measures of variability or dispersion are quantities that measure
the spread from or cluster about a central point of average.
Some measure of dispersion are:

Ø Range
Ø Quartile Deviation
Ø Average Deviation
Ø Standard Deviation
Ø Variation
Range
The difference between the highest and lowest value.

Properties of Range:
1. It can easily perceive and it is limited utility as a measure of
variability.
2. It is very unstable measure as it is sensitively dependent upon only
two extreme measurements, the lowest and the highest values.
3. The larger the value of the range, the more dispersed the
observations.
Compute for the Range

Quartile Deviation
• It is also known as semi-quartile range.
• It is the amount of dispersion present in the middle of the values.

Compute for QD
Average Deviation
• It measures the extent by which each individual value in a
distribution deviated from the mean of that distribution.
• It is considered more appropriate that quartile deviation because it
takes into account all the individual values of the distribution.
• It is also known as the mean absolute deviation.

Compute for MAD

Standard Deviation - The most important measure of variability.

Compute for SD
The square of the standard variation.

Coefficient of Variation – allows to compare the variation of two or

more different variables. The sample coefficient variation is defined
as the sample standard deviation divided by the sample mean of the data
set. Usually expressed as a percentage.

Compute for Variation