Quantitative

Tools for
Managers
Iftikhar Ahmed
Course Objectives:
 Descriptive Statistics
 Descriptive Statistics
 Frequency Distribution
 Graphs & Charts
 Measure of Central Tendency
 Mean
 Median
 Mode
 Measure of Dispersion
 Range
 Variance
 Standard Deviation
 Quartiles, Deciles, Percentiles
Course Objectives:
 Correlation
and Regression Analysis
 Mathematical Methods
 Matrix Algebra
 Differentiationand Optimization
 Applications of Optimization
Introduction

 Statistics is the science of conducting studies to collect,

organize, summarize, analyze, and draw conclusions from
data.
 Descriptive statistics consists of the collection,
organization, summarization, and presentation of data
 Inferential statistics consists of generalizing from
samples to populations, performing estimations and
hypothesis tests, determining relationships among
variables, and making predictions.
Introduction

 A variable is a characteristic or attribute that can assume

different values.
 Data are the values (measurements or observations) that
the variables can assume.
 A collection of data values forms a data set. Each value
in the data set is called a data value or a datum.
 A population consists of all subjects (human or
otherwise) that are being studied.
 A sample is a group of subjects selected from a
population.
 Variables and Types of Data

Variables can be classified as qualitative or

quantitative. Qualitative variables are variables that
can be placed into distinct categories, according to
some characteristic or attribute. For example, if
subjects are classified according to gender (male or
female), then the variable gender is qualitative.
Other examples of qualitative variables are religious
preference and geographic locations.
Variables and Types of Data

Quantitative variables are numerical and can be

ordered or ranked. For example, the variable age is
numerical, and people can be ranked in order
according to the value of their ages. Other examples
of quantitative variables are heights, weights, and
body temperatures
Variables and Types of Data

Quantitative variables can be further classified into

two groups: discrete and continuous
Variables and Types of Data

Data

Qualitative Quantitative
Categorical Numerical,
Can be ranked

Discrete Continuous
Countable Can be decimals
5, 29, 8000, etc. 2.59, 312.1, etc.
Frequency Distributions

 Data collected in original form is called raw data.

 A frequency distribution is the organization of
raw data in table form, using classes and
frequencies.
Categorical Frequency Distribution
Twenty-five army indicates were given a blood test to
determine their blood type.
Raw Data: A, B, B, AB, O, O, O, B, AB, B, B, B, O,
A,
O, A, O, O, O, AB, AB, A, O, B, A
Construct a frequency distribution for the data.
Categorical Frequency Distribution
Twenty-five army indicates were given a blood test to
determine their blood type.
Raw Data: A,B,B,AB,O O,O,B,AB,B B,B,O,A,O
A,O,O,O,AB AB,A,O,B,A
Class Tally Frequency Percent
A IIII 5 20
B IIII II 7 35
O IIII IIII 9 45
AB IIII 4 16
Frequency Distribution for
Qualitative Data
 Data Set
A, A, B, C, D, A, C, A, B, C, D, A, B, C, D, D, A, C, A, B, C,
A, B, B, B, B, B, B, B, B, C, C, C, D, D, D, C, A, B, A, B
Construct A Frequency Table for the above obtained grades
in exam.
Frequency Distribution
 Itorganized the data into small number of classes
 Some Considerations

1. Number of Classes (Varies from 5 to 20)

2. Classes Must be Selected Conforming 2 Rules
1. Classes Must be Mutually Exclusive
2. Classes Must be Collectively Exhaustive
3. Equal Class Interval (Class Width) is preferable
1. Width = Range / Number of Classes (Rounded Up)
4. Avoid Open End Class Intervals
5. Class Boundary is constructed through Class Interval
Construct Frequency Distribution for Quantitative
Data
 Data Set
38, 25, 38, 40, 44, 43, 42, 40, 64, 46, 36, 49, 38, 44, 30, 42,
41, 51, 50, 37, 51, 48, 48, 37, 44, 49, 57, 54, 32,42, 47, 46,
55, 35, 47, 50, 47, 46, 47, 43, 56, 44, 37, 38, 32, 41, 43, 58,
38, 43
Answer These Questions
1. What is the range of Values?
2. Construct a Frequency table using 6, classes
3. Construct Class Boundaries as well
 Class Width = Range / Number of Classes
= (64 – 25) / 6 = 6.5 = 7
Average of the Red Oval = ( 31+ 32)/2 = 31.5

Add 7 to 31.5 and then go on

Class Cumulative
Class Interval Boundary Frequency Percent Percent
25---31 24.5---- 31.5 2 4 4
32---38 31.5---- 38.5 12 24 28
39---45 38.5---- 45.5 15 30 58
46---52 45.5---- 52.5 14 28 86
53---59 53.5---- 59.5 5 10 96
60---66 59.5---- 66.5 2 4 100
Total 50 100
Constructing a Grouped Frequency Distribution
The following data represent the record high temperatures for
each of the 50 states. Construct a grouped frequency
distribution for the data using 7 classes.

112 100 127 120 134 118 105 110 109 112
110 118 117 116 118 122 114 114 105 109
107 112 114 115 118 117 118 122 106 110
116 108 110 121 113 120 119 111 104 111
120 113 120 117 105 110 118 112 114 114
Constructing a Grouped Frequency Distribution
STEP 1 Determine the classes.
Find the class width by dividing the range by the number of
classes 7.
Range = High – Low
= 134 – 100 = 34

Width = Range/7 = 34/7 = 5

Rounding Rule: Always round up if a remainder.
Constructing a Grouped Frequency Distribution
For convenience sake, we will choose the lowest data
value, 100, for the first lower class limit.
The subsequent lower class limits are found by adding
the width to the previous lower class limits.
Class Limits The
100 - 104
first upper class limit is one
105 - 109 less than the next lower class limit.
110 - 114 The subsequent upper class limits
115 - 119
120 - 124
are found by adding the width to the
125 - 129 previous upper class limits.
130 - 134
Constructing a Grouped Frequency Distribution
The class boundary is midway between an upper class
limit and a subsequent lower class limit. 104,104.5,105

Class Class Cumulative

Frequency
Limits Boundaries Frequency
100 - 104 99.5 - 104.5
105 - 109 104.5 - 109.5
110 - 114 109.5 - 114.5
115 - 119 114.5 - 119.5
120 - 124
119.5 - 124.5
125 - 129
130 - 134 124.5 - 129.5
129.5 - 134.5
Constructing a Grouped Frequency Distribution
STEP 2 Tally the data.
STEP 3 Find the frequencies.

Class Class Cumulative

Frequency
Limits Boundaries Frequency
100 - 104 99.5 - 104.5 2
105 - 109 104.5 - 109.5 8
110 - 114 109.5 - 114.5 18
115 - 119 114.5 - 119.5 13
120 - 124
119.5 - 124.5 7
125 - 129
130 - 134 124.5 - 129.5 1
129.5 - 134.5 1
Constructing a Grouped Frequency
Distribution
STEP 4 Find the cumulative frequencies by keeping a running
total of the frequencies.

Class Class Cumulative

Frequency
Limits Boundaries Frequency
100 - 104 99.5 - 104.5 2 2
105 - 109 104.5 - 109.5 8 10
110 - 114 109.5 - 114.5 18 28
115 - 119 114.5 - 119.5 13 41
120 - 124
119.5 - 124.5 7 48
125 - 129
130 - 134 124.5 - 129.5 1 49
129.5 - 134.5 1 50
Constructing a Grouped Frequency Distribution
Text & Reference Books
 Elementary Statistics A Step by Step Approach,
Allan G. Bluman, 8th Edition, McGraw Hill.
 Tools of Statistical Analysis, Professor S M Ahsan
Hussain, 17th Edition, Kifayat Academy,2015.
 Applied Mathematics for Business, Economics
and the Social Sciences, Frank S. Budnick, 4th
Edition, McGraw Hill,2019.