Faculty Introduction
Name/Qualification/Experience: Tohid Kachwala, B.E.(Mechanical),
MAM, PhD (Management), Industry 1984 - 1997, Teaching – Part
Time: 1992 - 1997, Full Time: 1997 onwards (Teaching at NMIMS
since 1992)
Present Status: Professor of Operations & Data Sciences at SBM,
NMIMS University (8th Floor, SBM Faculty Area – Cabin Number:
E851)
Email: tkachwala@[Link]
Subjects: – Statistical Analysis (Trim I), Optimizing Models (Trim II),
Operations & Supply Chain Management (Trim III), Modeling for
Decision Making (Trim V)
Basic Statistics
Dr. T. T. Kachwala
What is Descriptive Statistics?
Most of the Statistical information that are published
in magazines, journals, research papers comprise of
data that are summarized and presented in a form
that is convenient for the user to understand. All
such tabular, graphical and numerical summary are
referred as Descriptive Statistics.
Difference between
Qualitative Data & Quantitative Data?
Qualitative Data is characterized in terms of names
of Labels
Quantitative Data are characterized in terms of
Numeric values.
Frequency Distribution
Relative Frequency Distribution
Frequency Distribution is a tabular representation of
the number of times an item occurs.
Relative Frequency Distribution is a tabular
representation of the proportion of times an item occurs.
Bar Chart, Paretho Chart
Bar Chart is a graphical representation of the number
of time an item occurs.
Paretho Chart is a Bar Chart with the Bars arranged in
the order of height.
Pie Chart, Histogram
Pie Chart is a graphical representation of the
proportion of time an item occurs.
Histogram is a graphical representation of frequency
distribution for Quantitative data. It pictorially presents
the distribution.
Central Tendency
Central Tendency signifies a number in the series that
locates the center of the distribution.
Arithmetic Mean: It is referred as “average” in our day
to day life. In Statistics we use the term Arithmetic
Mean. It is the most popular measure of central
tendency because it is based on all the observations
Objective of Studying Central Value
1. To get one single value that is representative of the
distribution
2. To facilitate comparison
There are two types of comparison –
i) Comparison of one sample at different points of time.
ii) Comparison of more than one sample at a point of time.
Median
Median is a positional measure. It signifies the
middle point of the distribution. Alternately, it
signifies a value in the distribution such that 50% of
the observations are less than or equal to this value
and 50% of the observations are greater than or equal
to this value.
Quartile
Like Median, Quartile is also a positional measure. There
are three Quartiles in a series. First Quartile, Second
Quartile and Third Quartile. They divide the distribution
in to four equal parts.
First Quartile signifies a value in the distribution such that
25% of the observations are less than or equal to this
value.
On Similar lines we define the terms Second Quartile
(Median) and Third Quartile.
Percentile
Like Median and Quartiles, Percentiles are also a
positional measure. There are 99 Percentiles (P1 to
P99) in a distribution. It divides the distribution in to
100 parts.
For example P80 signifies 80th Percentile. It signifies a
number in a distribution such that 80% of the
observations are less than or equal to this value.
Mode, Measure of Variance
Mode is a value in the distribution with the maximum
frequency. It signifies the most common observation in the
series.
Variance measures the dispersion, spread or variability in
the observation.
Range, Inter Quartile Range
Range is the mathematical difference between maximum and
minimum observation.
IQR is the mathematical difference between Quartile1 and Quartile3
It signifies the central 50% of the observation.
Standard Deviation, Variance
What is Standard Deviation?
Standard Deviation is an absolute measure of the deviation of the
observation from its Arithmetic Mean. It is also referred to as RMS
(Root Mean Square) Value. It is represented by Greek letter ‘σ’
(Sigma)
What is Variance?
Mathematically, variance = σ2
Alternatively, σ = variance
What is Coefficient of Variance?
Coefficient of Variance is a relative measure. It expresses
Standard Deviation as a percentage of Arithmetic Mean.
Mathematically it can be expressed as follows,
Coefficient of Variance (C.V .) 100
Simple Arithmetic Mean for Individual Observations
Slide 17
Slide 18
Arithmetic Mean for Discrete Series
f X fX
μ
N f
Where f = Frequency: X = The variable in question:
N = Total number of observations, i.e., f
Median for discrete Series
Slide 20
Arithmetic Mean for Continuous Series
fm fm
μ
N f
Where m = mid-point of various classes
f = the frequency of each class
N = the total frequency i.e., f
Slide 22
Slide 22
Population Standard Deviation for Ungrouped Data
Σx 2
σ
N
N is the number of observations
x x - μ
μ X N f
N
Sample Standard Deviation for Ungrouped Data
Slide 24
Variance and Coefficient of Variance
Variance σ 2
Coefficient of variation or C.V. = σ 100
μ
Standard Deviation
μ Arithmetic Mean
Standard Deviation for Discrete Series
Σf x2
σ
N
N is the number of observations
x x - μ
μ fX N f
N
Standard Deviation for Continuous Series
Σfx 2 N is the number of observations = f
σ x m - μ
Σf
fm
μ
f
' m' is the mid point of the class interval
