# Download Basic Business Statistics, 8th Edition

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Transcript
```Summary Measures
Summary Measures
Variation
Central Tendency
Mean
Mode
Median
Range
Coefficient of
Variation
Variance
Standard Deviation
Mean (Arithmetic Mean)
(continued)


The most common measure of central
tendency
Affected by extreme values (outliers)
0 1 2 3 4 5 6 7 8 9 10
Mean = 5
0 1 2 3 4 5 6 7 8 9 10 12 14
Mean = 6
Median


Robust measure of central tendency
Not affected by extreme values
0 1 2 3 4 5 6 7 8 9 10
Median = 5

0 1 2 3 4 5 6 7 8 9 10 12 14
Median = 5
In an ordered array, the median is the
“middle” number


If n or N is odd, the median is the middle number
If n or N is even, the median is the average of the
two middle numbers
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
Mode = 9
0 1 2 3 4 5 6
No Mode
Shape of a Distribution

Describes how data is distributed

Measures of shape

Symmetric or skewed
Left-Skewed
Mean < Median < Mode
Symmetric
Mean = Median =Mode
Right-Skewed
Mode < Median < Mean
Measures of Variation
Variation
Variance
Range
Population
Variance
Sample
Variance
Standard Deviation
Population
Standard
Deviation
Sample
Standard
Deviation
Coefficient
of Variation
Range


Measure of variation
Difference between the largest and the
smallest observations:
Range  X Largest  X Smallest

Ignores the way in which data are distributed
Range = 12 - 7 = 5
Range = 12 - 7 = 5
7
8
9
10
11
12
7
8
9
10
11
12
Comparing Standard Deviations
Data A
11 12 13 14 15 16 17 18 19 20 21
Mean = 15.5
s = 3.338
Data B
11 12 13 14 15 16 17 18 19 20 21
Mean = 15.5
s = .9258
Data C
11 12 13 14 15 16 17 18 19 20 21
Mean = 15.5
s = 4.57
Features of
Correlation Coefficient

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
Scatter Plots of Data with
Various Correlation Coefficients
Y
Y
Y
X
r = -1
X
r = -.6
Y
X
r=0
Y
r = .6
X
r=1
X
```