Business Statistics I
Business Statistics I
Business Statistics I
Census – Procedure of systematically acquiring and recording information about the members of
a given population.
Primary data- Information collected for the first time by a researcher. It can be collected
through different methods, for instance observation, interviews and experimentation.
Secondary data – This is information collected already but it can be used to solve the problem
at hand. The information sources are journals, internet, textbooks and newspapers.
Discrete variables–These are variables which assume countable values in a given way.
Continuous variables – These are variables which have an infinite number of possible values.
Coefficient of variation – This is the absolute measure of variation for the purpose of
comparison. It is given by dividing the standard deviation with the arithmetic mean and its
expressed as a percentage.
b) Two merits and two demerits of arithmetic mean as a measure of Central Tendency.
Negative skewness indicates a distribution with an asymmetric tail extending toward more
negative values
The upper and lower quartiles are equidistant from the average.
It is symmetrical.
e) Relative measure of dispersion – These are pure numbers independent of the units of
measurement and used to compare two or more sets of data values.
12, 16, 19, 20, 22, 26, 28, 28, 28, 29, 31, 33, 37, 40, 56, 57, 59,59, 73, 74, 74, 76, 77, 81, 83
Frequency 3 7 3 1 4 0 5 2
C. F 3 10 13 14 18 18 23 25
Class X F FX X² FX²
= 19.5 + 7 – 3 ×10
2(7) – 3 - 3
=19.5 + 4 10
8
= 19.5 + (0.5)10
= 19.5 +5.0
= 24.5
Median = 25 = 12.5,
2
median class = 30 – 39, Lower limit = 29.5
N = 25
CFM= 10
FM = 3
I = 10
= 29.5 + 12.5 – 10 10
3
= 29.5 + 8.3
= 37.8
= 64296.25 - 1122.5
25 25
= 64296.25 + 1260006.25
25 625
S.D = 555.84
= 23.58
Variance = r² = 23.58²
= 555.84
iv ) Coefficient of skewness
= Mean – mode
Standard deviation
h)
Solution.
h) What is the probability that this kind of orange will mature in less than
4.15 years
Normal distribution =
Mean = 4.26 years
Variance = 0.0016 years
r² = 0.0016
Standarddeviation=r = 0.04
Therefore,Z = X – mean
S.D
= 4.15 - 4.26 = - 2.75
0.04
ii) Compute the probability that the maturity period will range between 4.20
years and 4.32 years.
Z = 4.20 – 4.26
0.04
= - 1.5
Z = 4.32 – 4.26
0.04
= 1.5
iii) What is the probability that this kind of orange will mature in more than
4.38 years.
Z = 4.38 – 4.26
0.04
= +3
iv) Differentiate between the normal curve and the standard normal curve
Normal curve is a distribution determined by two parameters, the mean and the
variance while standard normal curve is a distribution with zero mean and variance
one which is used to construct tables of normal distribution.
I)
Solution
Required:
i. Assist the student to construct a frequency distribution for this data (use a
class width of five(5))
Age 15-19 20-24 25-29 30-34 35-39 40-44 45-49
Frequency 5 3 4 5 3 3 1
Class X F CF FX X² FX ²
ii. Using the frequency distribution in (i) above, calculate the mean, median,
mode and the standard deviation of the data
Mean = Σfx =703
Σf 24
= 29.29
Median = 24.5 + 24 - 8 ×5
2
4
= 24.5 + (12 – 5) ×5
4
= 24.5 + (4)× 5
4
= 24.5 + (1×5)
= 24.5 + 5
= 29.5
29.5 + 5 – 4 × 5
2(5) – 4 – 3
= 29.5 + 1.65
= 31.15
= 22541– 703²
24 24
= 22541–494209
24 24
= 939.21 – 858.001
= 81. 209
r = 9.01
iii. Compute the coefficient of skewness for the data above and briefly
comment on the value obtained.
Coefficient of skewness = Mean – Mode
S.D
= 29.29 –31.15
9.01
= -0.2064
Comment: The coefficient of skewness is negatively skewed distribution.
iv. Calculate the percentile coefficient of Kurtosis and briefly comment on
the value obtained
C. K = ½(Q3-Q1)
P9o - P1o
Q1= 19.5 + 24 – 5 5
4
3
= 19.5 + (⅓)5
= 19.5 + 1.67
= 21.17
= 29.5 + (6) × 5
5
= 29.5 + 6 =
C. K = ½(Q3 - Q1)
= ½(35.5 –21.17)
= ½ (14.33)
C. K = 7.165
j) Solutuin
I. Compute the coefficient of variation for each supermarket.
= 7.47
=
42594–(4472)²
= 599 (599)²
r = 42594 – 19998784 = 71.11 – 55.74
599 358801
= 15.37 = 3.92
r = 3.92
= 3.92 × 100%
7.47
= 52.48%
Mean = 4958
613
= 8.09
r = (ΣfxB)² - (ΣfxB)²
Σf (Σf)²
r = 47708 - (4958)²
613 (613)²
= 77.83 – 65.42
= 12.41
r = 3.52
= 3.52 × 100%
8.09
= 43.51%