ECON 230 - Statistics and Data Analysis - Lecture 1

ECON 230 - Statistics and
Data Analysis
Lecture 1
Course Outline
Instructor: Amin Hussain
Contact:
Email: amin.hussain@lums.edu.pk
Room 254
Course Information:
Introduction to elementary probability and
statistics
Application and use of statistics in Economics
Evaluation and Interpretation of statistics
Preparation for Econometrics
Details: 4 credit hours (TuTh 8:00 9:50)
Course Outline - II
Books
Ross, Sheldon . A First Course in Probability
Moore, David S. and McCabe, George P.,
Introduction to the Practice of Statistics
Newbold, P., Carlson, W. and Thorne, B.
Statistics for Business and Economics
Grading
Quizzes - 20
Assignments - 20
Mid - 25
Final - 35
Topics
Introduction
Probability
Random Variables
Sampling
Estimation
Hypothesis Testing
Regression
Applications
Big Data
Quality Control
Operations Research
Medicine
Law
Etc.
"There are three kinds of lies: lies,

damned lies, and statistics."
Dealing with Uncertainty
The price of IBM stock is likely to be higher in

six months than it is now.
If the federal budget deficit is as high as
predicted, it is probable that interest rates will
remain high for the rest of the year.
Statistics for Business

and Economics, 6e
2007 Pearson Education,
Chap 1-7
Key Definitions
A population is the collection of all items of
interest or under investigation
N represents the population size
A sample is an observed subset of the
population
n represents the sample size
A parameter is a specific characteristic of a
population
forABusiness
statistic is a specific characteristic of a
Statistics
and Economics, 6e
Chap 1-8
sample
2007 Pearson
Education,
Population vs. Sample

Populatio
n
a b
Sample
cd
ef gh i jk l m n
gi
o p q rs t u v w
x y
n
r
Values calculated using

population data are
parameters
Statisticscalled
for Business
and Economics, 6e
Values computed from

sample data are called
statistics
Chap 1-9
Examples of Populations
Names of all registered voters in
Pakistan
Incomes of all families living in
Islamabad
Annual returns of all stocks traded on
the New York Stock Exchange
Grade point averages of all the students
Statisticsin
for Business
LUMS
and Economics, 6e
Chap 1-10
Random Sampling
Simple random sampling is a procedure in
which
each member of the population is chosen strictly by
chance,
each member of the population is equally likely to be
chosen,
and
every possible sample of n objects is equally likely to be
chosen
The resulting sample is called a random

sample
and Economics, 6e
Chap 1-11
Descriptive and Inferential

Statistics
Two branches of statistics:
Descriptive statistics
Collecting, summarizing, and processing
data to transform data into information
Inferential statistics
provide the bases for predictions,
forecasts, and estimates that are used to
transform information into knowledge
and Economics, 6e
Chap 1-12
Descriptive Statistics
Collect data
e.g., Survey
Present data
e.g., Tables and graphs
Summarize data
e.g., Sample mean
=X i
n

and Economics, 6e
Chap 1-13
Inferential Statistics
Estimation
e.g., Estimate the
population mean weight
using the sample mean
weight
Hypothesis testing
e.g., Test the claim that the
population mean weight is
120 pounds
Inference is the process of drawing conclusions or making
decisions about a population based on sample results
and Economics, 6e
Chap 1-14
Types of Data
Data
Categorical
Numerical
Examples:
Marital Status
Discrete
Continuous
Are you registered to
vote?
Examples:
Examples:
Eye Color
(Defined categories or
Number of Children
Weight
groups)
Defects per hour

Voltage
(Counted items)
(Measured characteristics)
Measurement Levels
Differences
between
measurements,
true zero exists
Ratio Data
Quantitative
Data
Differences
between
measurements but
no true zero
Interval Data
Ordered Categories
(rankings, order, or
scaling)
Ordinal Data
Qualitative Data
Categories (no
ordering or
direction)
Nominal Data
Graphical
Presentation of Data
Data in raw form are usually not
easy to use for decision making
Some type of organization is
needed
Table
Graph
The type of graph to use depends

on the variable being summarized
Graphical
Presentation of Data
Techniques reviewed in this
chapter:
Categorical
Variables
Frequency distribution
Bar chart
Pie chart
Pareto diagram
(continue
d)
Numerical
Variables
Line chart
Frequency distribution
Histogram and ogive
Stem-and-leaf display
Scatter plot
Tables and Graphs for

Categorical Variables
Categorical
Data
Tabulating Data
Frequency
Distribution
Table
Graphing Data
Bar
Chart
Pie Chart
Pareto
Diagram
The Frequency
Distribution Table
Summarize data by
category
Example: Hospital Patients
by
Unit
Hospital
Unit
Number of Patients
Cardiac Care
Emergency
Intensive Care
Maternity
Surgery
(Variables
are
categorical)
1,052
2,245
340
552
4,630
Bar and Pie

Charts
Bar charts and Pie charts are
often used for qualitative
(category) data
Height of bar or size of pie slice
shows the frequency or
percentage for each category
Bar Chart Example

Hospital
Number
Unit
Patients
of
Cardiac Care
1,052
Emergency 2,245
Intensive Care
340
Maternity
552
Surgery
4,630
Pie Chart Example

Hospital
% of
Unit
Patients
Total
Number
of
Cardiac Care
1,052
11.93
Emergency 2,245
Intensive Care
340
3.86
Maternity
552
Surgery
4,630
25.46
6.26
52.50
(Percentage
s are
rounded to
the nearest
percent)
Pareto Diagram
Used to portray categorical data
A bar chart, where categories are
shown in descending order of
frequency
A cumulative polygon is often shown
in the same graph
Used to separate the vital few from
the trivial many
Pareto Diagram Example

Example: 400 defective items are
examined
for
cause
of defect:
Source
of
Manufacturing Error
Number of defects
Bad Weld
34
Poor Alignment
223
Missing Part
25
Paint Flaw
78
Electrical Short
19
Cracked case
21
Total
400

(continue
d)
Sort by defect cause, in

descending order
Step
2: Determine
% in each category
Source
of
Step 1:
Manufacturing Error
Number of defects
% of Total Defects
Poor Alignment
223
55.75
Paint Flaw
78
19.50
Bad Weld
34
8.50
Missing Part
25
6.25
Cracked case
21
5.25
Electrical Short
19
4.75
Total
400
100%
cumulative % (line
graph)
% of defects in each
category (bar graph)
Step 3: Show results graphically
(continue
d)
Graphs for Time-Series Data

A line chart (time-series plot) is used
to show the values of a variable over
time
Time is measured on the horizontal
axis
The variable of interest is measured
on the vertical axis
Line Chart Example
Graphs to Describe
Numerical Variables
Numerical
Data
Frequency Distributions
and
Cumulative Distributions
Histogram
Ogive
Stem-and-Leaf
Display
Frequency Distributions
What is a Frequency Distribution?
A frequency distribution is a list or a
table
containing class groupings
(categories or ranges within which
the data fall) ...
and the corresponding frequencies
with which data fall within each
Why Use Frequency

Distributions?
A frequency distribution is a way
to summarize data
The distribution condenses the
raw data into a more useful
form...
and allows for a quick visual
interpretation of the data
Class Intervals
and Class Boundaries
Each class grouping has the same
width
largest
number
smallest
number
wDetermine
the
width
of
each
interval
interval width
number of desired intervals
by
Use at least 5 but no more than 15-20

intervals
Intervals never overlap
Round up the interval width to get
desirable interval endpoints
Frequency Distribution
Example
Example: A manufacturer of insulation
randomly selects 20 winter days and
records the daily high temperature
24, 35, 17, 21, 24, 37, 26,
46, 58, 30,
32, 13, 12, 38, 41, 43, 44,
27, 53, 27
Frequency Distribution Example

Sort raw data in ascending order:
(continued
)
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46,
53, 58
Find range: 58 - 12 = 46
Select number of classes:
5 (usually between 5 and
15)
Compute interval width: 10 (46/5 then round up)

Determine interval boundaries: 10 but less than 20,
20 but less than 30, . . . , 60 but less than 70
Count observations & assign to classes
Frequency Distribution
Example
Data in ordered array:
(continued
)
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41,
43, 44, 46, 53, 58
Interval
Relative
Frequency
Frequenc
y
10 but less than 20

20 but less than 30
30 but less than 40
40 but less than 50

50 but less than 60
100
Total
.15
6
5
.30
.25
.20
20
Percentag
e15
30
25
20
.10
1.00
10
Histogram
A graph of the data in a frequency
distribution is called a histogram
The interval endpoints are shown on
the horizontal axis
the vertical axis is either frequency,
relative frequency, or percentage
Bars of the appropriate heights are used
to represent the number of observations
within each class
Histogram Example
Interval
10
3
20
6
30
5
40
4
50
2
Frequency
but less than 20

but less than 30
but less than 40
but less than 50
but less than 60
(No gaps
between
bars)
10
20
30
40
70 Temperature in
Degrees
50
60
Questions for Grouping

Data
into Intervals
1. How wide should each interval
be?
(How many classes should be used?)
2. How should the endpoints of the

intervals be determined?
Often answered by trial and error, subject
to user judgment
The goal is to create a distribution that is
neither too "jagged" nor too "blocky
Goal is to appropriately show the pattern
of variation in the data
How Many Class

Intervals?
Many (Narrow class intervals)
may yield a very jagged
distribution with gaps from empty
classes
Can give a poor indication of how
frequency varies across classes
Few (Wide class intervals)
may compress variation too much
and yield a blocky distribution
can obscure important patterns of
variation.
(X axis labels are upper class
endpoints)
The Cumulative
Frequency Distribuiton
Data in ordered array:
12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41,
43, 44, 46, 53, 58
Cumulativ Cumulati
Frequenc Percenta
e
ve
y
ge
Frequency Percenta
but less than 20
3
15
3ge
15
but less than 30
6
30
9
45
but less than 40
5
25
14
70
but less than 50
4
20
18
90
Class
10
20
30
40
The Ogive
Graphing Cumulative Frequencies

Interval
Less than 10
0
10 but less than
15
20 but less than
45
30 but less than
70
40 but less than
90
50 but less than
100
Upper
interval Cumulative
endpoi Percentage
nt
10
20
20
30
30
40
40
50
50
60
60
Interval endpoints
Distribution Shape
The shape of the distribution is said
to be symmetric if the
observations are balanced, or
evenly distributed, about the
center.
Frequency
Symmetric Distribution
10
9
8
7
6
5
4
3
2
1
0
Distribution Shape
(continued
)
be
The shape of the distribution is said to

skewed if the observations are not
symmetrically distributed around the center.
Positively Skewed Distribution
12
10
Frequency
A positively skewed distribution

(skewed to the right) has a tail
that extends to the right in the
direction of positive values.
8
6
4
2
0
1
Negatively Skewed Distribution

12
10
Frequency
A negatively skewed distribution

(skewed to the left) has a tail
that extends to the left in the
direction of negative values.
8
6
4
2
0
1
Relationships Between
Variables
Graphs illustrated so far have involved only
a single variable
When two variables exist other techniques
are used:
Categorical
(Qualitative)
Variables
Numerical
(Quantitative)
Variables
Cross tables
Scatter plots
Scatter Diagrams
Scatter Diagrams are used for
paired observations taken from
two numerical variables
The Scatter Diagram:
one variable is measured on the
vertical axis and the other variable
is measured on the horizontal axis
Scatter Diagram Example

Volume
per day
Cost per
day
23
125
26
140
29
146
33
160
38
167
42
170
50
188
55
195
60
200
Graphing
Multivariate Categorical Data
(continued
)
Side by side bar charts

C o m p a rin g In v e s to rs
S avings
CD
B onds
S toc k s
0
10
Inves tor A
20
30
Inves tor B
40
50
Inves tor C
60
Side-by-Side Chart Example

Sales by quarter for three sales territories:
Data Presentation Errors

Goals for effective data presentation:
Present data to display essential
information
Communicate complex ideas clearly
and accurately
Avoid distortion that might convey
the wrong message
Data Presentation Errors

(continued
)
Unequal histogram interval

widths
Compressing or distorting the
vertical axis
Providing no zero point on the
vertical axis
Failing to provide a relative
basis in comparing data
between groups
Statistics for
Business and Economics
6th Edition
Chapter 3
Describing Data: Numerical
Statistics for Business and
Economics, 6e 2007 Pearson
Education, Inc.
Chap 3-52
Chapter Topics
Measures of central tendency,
variation, and shape
Mean, median, mode, geometric mean
Quartiles
Range, interquartile range, variance and
standard deviation, coefficient of
variation
Symmetric and skewed distributions
Population summary measures

Mean, variance, and standard deviation

and Economics, 6e
Chap 3-53
Chapter Topics
(continued
)
Five number summary and box-andwhisker plots

Covariance and coefficient of
correlation
Pitfalls in numerical descriptive
measures and ethical considerations

and Economics, 6e
Chap 3-54
Describing Data Numerically

Describing Data
Numerically
Central
Tendency
Arithmetic
Mean
Median
Variation
Range
Interquartile
Range
Variance
Mode

and Economics, 6e
Standard
Deviation
Coefficient of
Variation
Chap 3-55
Measures of Central Tendency

Overview
Central Tendency
Mean
Median
Mode
x
i1
Arithmetic
average
and Economics, 6e
Midpoint of
ranked
values
Chap 3-56
Most
frequently
observed
value
Arithmetic Mean
The arithmetic mean (mean) is the
most common measure of central
tendency
N
For a population
of N values:
xi
x1 x 2 x N
N
N
i1
Population
values
Population
size
xi
For a sample
of
x1 size
x 2 n:
xn
i1
and Economics, 6e
n
Chap 3-57
Observed
values
Sample size
Arithmetic Mean
(continue
d)
The most common measure of central tendency

Mean = sum of values divided by the number of
values
Affected by extreme values (outliers)
0 1 2 3 4 5 6 7 8 9
10
0 1 2 3 4 5 6 7 8 9
10
Mean = 3
Mean = 4
1 2 3 4 5 15
3
5
5
and Economics, 6e
1 2 3 4 10 20
4
5
5
Chap 3-58
Median
In an ordered list, the median is the
middle number (50% above, 50%
below)
0 1 2 3 4 5 6 7 8 9
10
0 1 2 3 4 5 6 7 8 9
10
Median = 3
Median = 3
Not affected by extreme values

and Economics, 6e
Chap 3-59
Finding the Median

The location of the median:
n 1
Median position
position in the ordered data
2
If the number of values is odd, the median is the middle

number
If the number of values is even, the median is the
average of the two middle numbers
Note
n 1
that2
is not the value of the median,
only the position of the median in the ranked data

and Economics, 6e
Chap 3-60
Mode
A measure of central tendency

Value that occurs most often
Not affected by extreme values
Used for either numerical or
categorical data
There may may be no mode
There may be several modes
0 1 2 3 4 5 6 7 8 9 10 11 12 13
14
and Economics, 6e
Mode = 9
Chap 3-61
0 1 2 3 4 5 6
No Mode
Review Example
Five houses on a hill by the beach
$2,000 K
House Prices:
$2,000,000
500,000
300,000
100,000
100,000
$500 K
$300 K
$100 K
$100 K
and Economics, 6e
Chap 3-62
Review Example:
Summary Statistics
House Prices:
$2,000,000
500,000
300,000
100,000
100,000
Sum
3,000,000
and Economics, 6e
Mean: ($3,000,000/5)
= $600,000
Median: middle value of ranked
data
= $300,000
Mode: most frequent value
= $100,000
Chap 3-63
Which measure of location

is the best?
Mean is generally used, unless
extreme values (outliers) exist
Then median is often used,
since the median is not
sensitive to extreme values.
Example: Median home prices
may be reported for a region
less sensitive to outliers
and Economics, 6e
Chap 3-64
Shape of a Distribution
Describes how data are distributed
Measures of shape
Symmetric or skewed
Left-Skewed
Symmetric
Right-Skewed
Mean < Median
Mean = Median
Median < Mean

and Economics, 6e
Chap 3-65
Measures of Variability
Variation
Range
Interquartil
e
Range
Variance
Standard
Deviation
Measures of variation give

information on the spread or
variability of the data values.

and Economics, 6e
Chap 3-66
Same center,
different
variation
Coefficient
of Variation
Range
Simplest measure of variation
Difference between the largest and
the smallest observations:
Range = Xlargest Xsmallest
Example:
0 1 2 3 4 5 6 7 8 9 10 11 12
Range = 14 - 1 = 13
and Economics, 6e
Chap 3-67
13 14
Disadvantages of the
Range
Ignores the way in which data are
distributed
7
8
9
10 11
12
Range = 12 - 7 = 5
7
8
9 10
11
12Range = 12 - 7 = 5
1,1,1,1,1,1,1,1,1,1,1,2,2,2,2,2,2,2,2,3,3,3,3,4,5
Sensitive to outliers
Range = 5 - 1 = 4
1,1,1,1,1,1,1,1,1,1,1,2,2,2,2,2,2,2,2,3,3,3,3,4,120
and Economics, 6e
Range = 120 - 1 =
119
Chap 3-68
Interquartile Range
Can eliminate some outlier problems by
using the interquartile range
Eliminate high- and low-valued
observations and calculate the range of
the middle 50% of the data
Interquartile range = 3rd quartile 1st
quartile
IQR = Q3 Q1

and Economics, 6e
Chap 3-69
Interquartile Range
Example:
X
minimum
Q1
25%
12
Median
(Q2)
25%
30
Q3
25%
45
Interquartile range
= 57 30 = 27

and Economics, 6e
Chap 3-70
maximum
25%
57
70
Quartiles
Quartiles split the ranked data into 4
segments with an equal number of values
per segment
25%
Q1
25%
25%
Q2
25%
Q3
The first quartile, Q1, is the value for which 25% of

the observations are smaller and 75% are larger
Q2 is the same as the median (50% are smaller,
50% are larger)
Only 25% of the observations are greater than the
third quartile

and Economics, 6e
Chap 3-71
Quartile Formulas
Find a quartile by determining the value in
the appropriate position in the ranked data,
where
First quartile position:
Q1 = 0.25(n+1)
Second quartile position: Q2 = 0.50(n+1)

(the median position)
Third quartile position:
Q3 = 0.75(n+1)
where n is the number of observed values

and Economics, 6e
Chap 3-72
Quartiles
Example: Find the first

quartile
Sample Ranked Data: 11 12 13 16 16 17 18 21 22

(n = 9)
Q1 = is in the
0.25(9+1) = 2.5 position of the ranked data
so use the value half way between the 2nd and 3rd values,
so

and Economics, 6e
Q1 = 12.5
Chap 3-73
Population Variance
Average of squared deviations of
values from the mean
N
Population variance:
Where
(x )
i
i1
N -1
= population mean
N = population size

and Economics, 6e
xi = ith value of the variable x

Chap 3-74
Sample Variance
Average (approximately) of squared
deviations of values from the mean
n
Sample variance:
s
2
Where
(x x)
i1
n -1
X = arithmetic mean
n = sample size

and Economics, 6e
Xi = ith value of the variable X

Chap 3-75
Population Standard
Deviation
Most commonly used measure of
variation
Shows variation about the mean
Has the same units as the original
data
N
2
(x
i
Population standard
deviation:
i1
N -1
and Economics, 6e
Chap 3-76
Sample Standard Deviation

Most commonly used measure of
variation
Shows variation about the mean
Has the same units as the original
n
data
(x x)2
Sample standard deviation:

and Economics, 6e
Chap 3-77
i 1
n -1
Calculation Example:
Sample Standard
Deviation
Sample
Data (xi) :
10
12
14
n=8
15
17
18
18
24
Mean = x = 16
(10 X)2 (12 x)2 (14 x)2 (24 x)2

n 1
(10 16)2 (12 16)2 (14 16)2 (24 16)2
8 1
126

76e
and Economics,
4.2426
A measure of the average

scatter around the mean
Chap 3-78
Measuring variation
Small standard deviation
Large standard deviation

and Economics, 6e
Chap 3-79
Comparing Standard
Deviations
Data A
11 12
20 21
13
14
15
16
17
18
Mean = 15.5
s = 3.338
19
Data B
Mean = 15.5
11 12
20 21
13
14
15
16
17
18
s=
19
0.926
Data C
Mean = 15.5
11 12
21
13

and Economics, 6e
14
15
16
17
Chap 3-80
18
19
20
s=
4.570
Advantages of Variance and

Standard Deviation
Each value in the data set is used
in the calculation
Values far from the mean are
given extra weight
(because deviations from the mean are
squared)
and Economics, 6e
Chap 3-81
The Empirical Rule

If the data distribution is bellshaped, then the interval:
1
contains about 68% of the
values in
the population or the
sample
68%

and Economics, 6e
1
Chap 3-82
The Empirical Rule

2
contains about 95% of the
values in
3
the population or the sample
contains about 99.7% of the

values
in the population or the
sample
95%
99.7%

and Economics, 6e
Chap 3-83
Approximations for Grouped

Data
Suppose a data set contains values m1, m2, . . .,
mk, occurring with frequencies f1, f2, . . . fK
For a population of N observations the mean is
K
fimi
where N fi
i1
i 1
For a sample of n observations, the mean is

K

and Economics, 6e
fm
i1
Chap 3-84
where n fi
i1
Approximations for Grouped

Data
Suppose a data set contains values m1, m2, . . .,
mk, occurring with frequencies f1, f2, . . . fK
For a population of N observations the
K
variance is
2
f
(m
i
i
2 i1
N
For a sample of nK observations, the variance is
and Economics, 6e
s2
2
f
(m
x
)
i i
i1
n 1
Chap 3-85
The Sample Covariance
The covariance measures the strength of the linear

relationship between two variables
The population covariance:

N
Cov (x , y) xy
(x
i
i1
)(y i y )
The sample covariance:

n
Cov (x , y) s xy
(x x)(y y)
i1
n 1
Only concerned with the strength of the relationship

No causal effect is implied
and Economics, 6e
Chap 3-86
Interpreting Covariance
Covariance between two variables:
Cov(x,y) > 0
direction
x and y tend to move in the same
Cov(x,y) < 0
directions
x and y tend to move in opposite
Cov(x,y) = 0
x and y are independent

and Economics, 6e
Chap 3-87
Coefficient of Correlation
Measures the relative strength of the linear
relationship between two variables
Population correlation coefficient:
Cov (x , y)
XY
Sample correlation coefficient:
Cov (x , y)
r
sX sY
and Economics, 6e
Chap 3-88
Features of
Correlation Coefficient, r
Unit free
Ranges between 1 and 1
The closer to 1, the stronger the negative linear
relationship
The closer to 1, the stronger the positive linear
relationship
The closer to 0, the weaker any positive linear
relationship
and Economics, 6e
Chap 3-89
Scatter Plots of Data with

Various Correlation Coefficients
Y
r = -1
r = -.6
r=0
Y

r = +1
and Economics, 6e
X
r = +.3
Chap 3-90
X
r=0

ECON 230 - Statistics and Data Analysis - Lecture 1

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

ECON 230 - Statistics and Data Analysis - Lecture 1

Diunggah oleh

Hak Cipta:

Format Tersedia

ECON 230 - Statistics and

Details: 4 credit hours (TuTh 8:00 9:50)

"There are three kinds of lies: lies,

Dealing with Uncertainty

The price of IBM stock is likely to be higher in

Statistics for Business

Population vs. Sample

Values calculated using

Values computed from

The resulting sample is called a random

Descriptive and Inferential

Statistics for Business

Defects per hour

The type of graph to use depends

Tables and Graphs for

Bar and Pie

Bar Chart Example

Pie Chart Example

Pareto Diagram Example

Pareto Diagram Example

Sort by defect cause, in

Pareto Diagram Example

Step 3: Show results graphically

Graphs for Time-Series Data

Line Chart Example

Why Use Frequency

Use at least 5 but no more than 15-20

Frequency Distribution Example

5 (usually between 5 and

Compute interval width: 10 (46/5 then round up)

Count observations & assign to classes

10 but less than 20

40 but less than 50

but less than 20

Questions for Grouping

2. How should the endpoints of the

How Many Class

Graphing Cumulative Frequencies

The shape of the distribution is said to

A positively skewed distribution

Negatively Skewed Distribution

A negatively skewed distribution

Scatter Diagram Example

Side by side bar charts

Side-by-Side Chart Example

Data Presentation Errors

Data Presentation Errors

Unequal histogram interval

Population summary measures

Statistics for Business

Five number summary and box-andwhisker plots

Statistics for Business

Describing Data Numerically

Statistics for Business

Measures of Central Tendency

The most common measure of central tendency

Not affected by extreme values

Statistics for Business

Finding the Median

If the number of values is odd, the median is the middle

is not the value of the median,

only the position of the median in the ranked data

Statistics for Business