Statistics
Chapter 14
Statistics : statistics is the science which deals with the collection, analysis and
interpretation of numerical data.
Statistics dealt with collection of numerical facts i.e. Data. The collecting of data in the
beginning is essential to study statistics.
Use of statistics :
Statistics are used in business to detect market trends and sales results, in education to
determine teaching method effectiveness, in government to detect changes in population
demographics and effectiveness of public policy, and in sports to examine player and team
successes and capabilities.
Weather Forecasting : In particular, probability is used by weather forecasters to assess how
likely it is that there will be rain, snow, clouds etc on a given day in a certain area.
Forecasters will regularly say things like “There is a 90 % chance of rain today after 5 pm”
indicate that there is a high likelihood of rain during certain hours.
Sales Tracking : Retail companies often use descriptive statistics like the mean, median,
mode, standard deviation, and interquartile range to track the sales behavior of certain
products.
Health Insurance : Health insurance companies often use statistics and probability to
determine how likely it is that certain individuals will spend a certain amount on healthcare
each year.
For example, an actuary at a health insurance company might use factors like age, existing
medical conditions, current health status, etc. to determine that there’s a 80% probability that a
certain individual will spend $10,000 or more on healthcare in a given year.
Traffic : Traffic engineers regularly use statistics to monitor total traffic in different areas of a
city, which allows them to decide whether or not they should add or remove roads to optimize
traffic flow.
Variable : a quantity which can vary with respect to time or place.
Variables are of two types :
Continous Variable : A variable which can take any numerical value within a certain range is
called a continous variable for e.g.
Height of children, rainfall / temprature records of different cities on different days,.
Descrete (or discontinous) variable : A variable which is incapable of taking all possible
numerical values is called a descrete variable
or
A discrete variable is a variable that takes on distinct, countable values.. For e.g.
The number of steps you take in a day, the number of babbies born each day, A number of
workers in a factory.
Measures of central tendency : The central tendency measure is defined as the number used
to represent the center or middle of a set of data values.
A statistic that tells us how the data values are dispersed or spread out is called the measure of
dispersion. A simple measure of dispersion is the range.
it can be divided into two groups –
Mathematical Average :
1. Arithmatic mean
2. Geometric mean
3. Harmonic mean
Positional average :
4. Median
5. Mode or positional average
Arithmatic mean : A.M. Is just a average of a dataset.
Que : Find the arithmatic mean of height of 5
persons, height of individual person are given.
Mean Height = 150+160+170+180+180
5
Arithmatic mean of descrete frequency distribution : Let x1,x2,......xn be n obsevation and let f1,f2,.....fn be
their corresponding frequencies, then their mean = f1x1 + f2x2 +.....+ fnxn
f1 + f2 +.....+ fn
Other method : If the values of x or f are large the calculation of arithmatic mean by the previous
formula used, is quite tedious and time consuming. In such cases we take the deviation from an arbitrary
point A.
X = A + f id i
fi
Step deviation method :
Sometimes during the application of shortcut method of finding the mean, the deviation di are divisible
by a common number h (say). In such cases, the arithmetic is reduced to a great extent taken by
Ui = x i – A
h
