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Section 13.4 Measures of Central Tendency Copyright 2013, 2010, 2007, Pearson, Education, Inc. What You Will Learn Averages Mean Median Mode Midrange Quartiles 13.4-2 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Measures of Central Tendency An average is a number that is representative of a group of data. There are at least four different averages: the mean, the median, the mode, and the midrange. Each is calculated differently and may yield different results for the same set of data. 13.4-3 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Measures of Central Tendency Each will result in a number near the center of the data; for this reason, averages are commonly referred to as measures of central tendency. 13.4-4 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Mean (or Arithmetic Mean) The mean, x , is the sum of the data divided by the number of pieces of data. The formula for calculating the mean is x x n where Σx represents the sum of all the data and n represents the number of pieces of data. 13.4-5 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 1: Determine the Mean Determine the mean age of a group of patients at a doctor’s office if the ages of the individuals are 28, 19, 49, 35, and 49. Solution x 28 19 49 35 49 x n 5 180 36 5 13.4-6 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Median The median is the value in the middle of a set of ranked data. 13.4-7 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 2: Determine the Median Determine the median age of a group of patients at a doctor’s office if the ages of the individuals are 28, 19, 49, 35, and 49. Solution Rank the data from smallest to largest. 19 28 35 49 49 35 is in the middle, 35 is the median. 13.4-8 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 3: Determine the Median of an Even Number of Pieces of Data Determine the median of the following sets of data. a) 9, 14, 16, 17, 11, 16, 11, 12 b) 7, 8, 8, 8, 9, 10 13.4-9 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 3: Determine the Median of an Even Number of Pieces of Data Solution 9, 11, 11, 12, 14, 16, 16, 17 8 pieces of data Median is half way between middle two data points 12 and 14 (12 + 14)÷2 = 26 ÷ 2 = 13 13.4-10 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 3: Determine the Median of an Even Number of Pieces of Data Solution 7, 8, 8, 8, 9, 10 6 pieces of data Median is half way between middle two data points 8 and 8 (8 + 8)÷2 = 16 ÷ 2 = 8 13.4-11 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Mode The mode is the piece of data that occurs most frequently. 13.4-12 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 4: Determine the Mode Determine the mean age of a group of patients at a doctor’s office if the ages of the individuals are 28, 19, 49, 35, and 49. Solution The age 49 is the mode because it occurs twice and the other values occur only once. 13.4-13 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Midrange The midrange is the value halfway between the lowest (L) and highest (H) values in a set of data. lowest value + highest value Midrange = 2 13.4-14 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 5: Determine the Midrange Determine the midrange age of a group of patients at a doctor’s office if the ages of the individuals are 28, 19, 49, 35, and 49. Solution 68 19 49 34 Midrange 2 2 13.4-15 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Measures of Position Measures of position are often used to make comparisons. Two measures of position are percentiles and quartiles. 13.4-16 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Percentiles There are 99 percentiles dividing a set of data into 100 equal parts. 13.4-17 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Percentiles A score in the nth percentile means that you out-performed about n% of the population who took the test and that (100 – n)% of the people taking the test performed better than you did. 13.4-18 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Quartiles Quartiles divide data into four equal parts: The first quartile is the value that is higher than about 1/4, or 25%, of the population. It is the same as the 25th percentile. 13.4-19 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Quartiles The second quartile is the value that is higher than about 1/2 the population and is the same as the 50th percentile, or the median. The third quartile is the value that is higher than about 3/4 of the population and is the same as the 75th percentile. 13.4-20 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Quartiles 13.4-21 Copyright 2013, 2010, 2007, Pearson, Education, Inc. To Determine the Quartiles of a Set of Data 1. Order the data from smallest to largest. 13.4-22 Copyright 2013, 2010, 2007, Pearson, Education, Inc. To Determine the Quartiles of a Set of Data 2. Find the median, or 2nd quartile, of the set of data. If there are an odd number of pieces of data, the median is the middle value. If there are an even number of pieces of data, the median will be halfway between the two middle pieces of data. 13.4-23 Copyright 2013, 2010, 2007, Pearson, Education, Inc. To Determine the Quartiles of a Set of Data 3. The first quartile, Q1, is the median of the lower half of the data; that is, Q1, is the median of the data less than Q2. 13.4-24 Copyright 2013, 2010, 2007, Pearson, Education, Inc. To Determine the Quartiles of a Set of Data 4. The third quartile, Q3, is the median of the upper half of the data; that is, Q3 is the median of the data greater than Q2. 13.4-25 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 8: Finding Quartiles Electronics World is concerned about the high turnover of its sales staff. A survey was done to determine how long (in months) the sales staff had been in their current positions. The responses of 27 sales staff follow. Determine Q1, Q2, and Q3. 13.4-26 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 8: Finding Quartiles 25 3 7 15 31 36 17 21 2 11 42 16 23 16 21 9 20 5 8 12 27 14 39 24 18 6 10 Solution List data from 2 3 5 12 14 15 21 23 24 13.4-27 smallest to largest. 6 7 8 9 10 11 16 17 18 19 20 21 25 27 31 36 39 42 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 8: Finding Quartiles Solution 2 3 5 6 7 8 9 12 14 15 16 17 18 19 21 23 24 25 27 31 36 The median, or middle of the points is Q2 = 17. The median, or middle of the pieces of data is Q1 = 9. The median, or middle of the pieces of data is Q3 = 24. 13.4-28 Copyright 2013, 2010, 2007, Pearson, Education, Inc. 10 20 39 27 11 21 42 data lower 13 upper 13 Section 13.5 Measures of Dispersion Copyright 2013, 2010, 2007, Pearson, Education, Inc. What You Will Learn Range Standard Deviation 13.5-30 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Measures of Dispersion Measures of dispersion are used to indicate the spread of the data. 13.5-31 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Range The range is the difference between the highest and lowest values; it indicates the total spread of the data. Range = highest value – lowest value 13.5-32 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 1: Determine the Range The amount of caffeine, in milligrams, of 10 different soft drinks is given below. Determine the range of these data. 38, 43, 26, 80, 55, 34, 40, 30, 35, 43 13.5-33 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 1: Determine the Range Solution 38, 43, 26, 80, 55, 34, 40, 30, 35, 43 Range = highest value – lowest value = 80 – 26 = 54 The range of the amounts of caffeine is 54 milligrams. 13.5-34 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Standard Deviation The standard deviation measures how much the data differ from the mean. It is symbolized with s when it is calculated for a sample, and with (Greek letter sigma) when it is calculated for a population. x x 2 s 13.5-35 n 1 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Standard Deviation The standard deviation, s, of a set of data can be calculated using the following formula. x x 2 s 13.5-36 n 1 Copyright 2013, 2010, 2007, Pearson, Education, Inc. To Find the Standard Deviation of a Set of Data 1. Find the mean of the set of data. 2. Make a chart having three columns: Data Data – Mean (Data – Mean)2 3. List the data vertically under the column marked Data. 4. Subtract the mean from each piece of data and place the difference in the Data – Mean column. 13.5-37 Copyright 2013, 2010, 2007, Pearson, Education, Inc. To Find the Standard Deviation of a Set of Data 5. Square the values obtained in the Data – Mean column and record these values in the (Data – Mean)2 column. 6. Determine the sum of the values in the (Data – Mean)2 column. 13.5-38 Copyright 2013, 2010, 2007, Pearson, Education, Inc. To Find the Standard Deviation of a Set of Data 7. Divide the sum obtained in Step 6 by n – 1, where n is the number of pieces of data. 8. Determine the square root of the number obtained in Step 7. This number is the standard deviation of the set of data. 13.5-39 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 3: Determine the Standard Deviation of Stock Prices The following are the prices of nine stocks on the New York Stock Exchange. Determine the standard deviation of the prices. $17, $28, $32, $36, $50, $52, $66, $74, $104 13.5-40 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 3: Determine the Standard Deviation of Stock Prices Solution The mean x is x x n 17 28 32 36 50 52 66 74 104 9 459 13.5-41 9 51 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 3: Determine the Standard Deviation of Stock Prices 13.5-42 Copyright 2013, 2010, 2007, Pearson, Education, Inc. Example 3: Determine the Standard Deviation of Stock Prices Solution Use the formula x x 2 s n 1 5836 729.5 27.01 9 1 The standard deviation, to the nearest tenth, is $27.01. 13.5-43 Copyright 2013, 2010, 2007, Pearson, Education, Inc.