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Chapter 4 pt.3

This document discusses measures of relative standing and location in descriptive statistics, including percentiles, quartiles, and the five-number summary. Percentiles indicate the percentage of values that are lower in the data set. Quartiles divide the data into four equal parts, with the first quartile Q1 at the 25th percentile, the median (second quartile Q2) at the 50th percentile, and the third quartile Q3 at the 75th percentile. The five-number summary describes a data set using the minimum, Q1, Q2, Q3, and maximum. The interquartile range is calculated as Q3 - Q1 and measures the spread of the middle 50% of values.

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Joseph Raafat Keddis Tawfik Yessa
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75 views

Chapter 4 pt.3

This document discusses measures of relative standing and location in descriptive statistics, including percentiles, quartiles, and the five-number summary. Percentiles indicate the percentage of values that are lower in the data set. Quartiles divide the data into four equal parts, with the first quartile Q1 at the 25th percentile, the median (second quartile Q2) at the 50th percentile, and the third quartile Q3 at the 75th percentile. The five-number summary describes a data set using the minimum, Q1, Q2, Q3, and maximum. The interquartile range is calculated as Q3 - Q1 and measures the spread of the middle 50% of values.

Uploaded by

Joseph Raafat Keddis Tawfik Yessa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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4.

Chapter 4: Numerical Descriptive Techniques

Outline of Chapter 4:
1. Measures of Location: ✅
Mean, Median, Mode
2. Measures of Variability: ✅
Range, Standard Deviation, Variance,
Coefficient of Variation
3. Measures of Relative Standing:
Percentiles, Quartiles
4. Box Plot/Dot Plot and the Identification of
Outliers
MACT 2222: Statistics for Business 4.1
4.2

Measures of Relative Standing


Measures of relative standing are designed to
provide information about the position of
particular values relative to the entire data set.

Percentile: the Pth percentile is the value for which


P percent are less than that value and (100-P)%
are greater than that value.
Suppose you scored in the 60th percentile on the
GMAT, that means 60% of the other scores were
below yours, while 40% of scores were above
yours.
MACT 2222: Statistics for Business 4.2
4.3

Measures of Relative Standing (Cont’D)

Note:
If your exam mark places you in the 80th
percentile, that doesn’t mean you scored 80% on
the exam – it means that 80% of your peers scored
lower than you on the exam; It is about your
position relative to others.

MACT 2222: Statistics for Business 4.3


4.4

Location of Percentiles

The following formula allows us to approximate


the location of any percentile:

MACT 2222: Statistics for Business 4.4


4.5

Percentiles (Quantiles)
The pth percentile (quantile) is a number such
that p% of the observations are smaller and
(100 - p)% are larger.

Example: P = 5% and 95%:

5% 90% 5%

5th Percentile 95th Percentile

5 2222: Statistics for Business


MACT 4.5
4.6

Quartiles
• We have special names for the 25th, 50th, and
75th percentiles, namely quartiles.
• The first or lower quartile is labeled Q1 = 25th
percentile.
• The second quartile, Q2 = 50th percentile (which
is the median).
• The third or upper quartile, Q3 = 75th percentile.
• We can also convert percentiles into quintiles
(fifths) and deciles (tenths).

MACT 2222: Statistics for Business 4.6


4.7
Percentiles (Quantiles)

Special Percentiles (Quantiles):

• First Quartiles: Q1 = 25th%tile


• Second Quartile (Median): Q2 = 50th%tile
• Third Quartiles: Q3 = 75th%tile
• Deciles: 10th%tile and 90th%tile

10 15 25 25 15 10
% % % % % %
x(1) Decile Q1 Q2 Q3 Decile x(n)
Smallest Largest
Median
7 2222: Statistics for Business
MACT 4.7
4.8

The Five-Number Summary

The following five numbers are a useful summary of a data set:


Minimum: x(1)
First Quartiles: Q1
Median: Q2
Third Quartiles: Q3
Maximum: x(n)

25 25 25 25
% % % %
x(1) Q1 Q2 Q3 x(n)
8 2222: Statistics for Business
MACT 4.8
4.9

Location of Percentiles
Example 1
Data: 0 0 5 7 8 9 12 14 22 33
Where is the location of the 25th percentile? That
is, at which point are 25% of the values lower and
75% of the values higher?

Solution:
• L25 = (10 + 1)(25/100) = 2.75
• The first quartile Q1 is (0 + 5)/2 = 2.5

MACT 2222: Statistics for Business 4.9


4.10

Location of Percentiles
Data: 0 0 5 7 8 9 12 14 22 33

What about the upper quartile Q3?

L75 = (10 + 1)(75/100) = 8.25


Q3 = (14 + 22)/2 = 18

Please remember:
Lp determines the position in the data set where
the percentile value lies, not the value of the
percentile itself.
MACT 2222: Statistics for Business 4.10
4.11

Location of Percentiles

Another Example
Calculate the 20th percentile and 63th percentiles
for the following data and comment on each.

5, 18, 7, 2, 20 13, 19, 7, 6


Solution
Arranged data: 2, 5, 6, 7, 7, 13, 18, 19, 20
L20=2, so 20th percentile is 5
L63=6.3, so 63th percentile is (13+18)/2=15.5

MACT 2222: Statistics for Business 4.11


4.12

Interquartile Range
• The quartiles can be used to create another
measure of variability, the interquartile range,
which is defined as follows:
Interquartile Range = Q3 – Q1
• The interquartile range measures the spread of
the middle 50% of the observations.
• Large values of this statistic mean that the 1st
and 3rd quartiles are far apart indicating a high
level of variability.

MACT 2222: Statistics for Business 4.12

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