UNIT III

• Statistics is called as science of averages- Prof.

A.L. Bowley
• “Statistics are classified fact representing the
conditions of the people in a state”- Webster
• “By statistics we mean quantitative data
affected to a marked extent by multiplicity of
causes” – Yule and Kendall
 Characteristics
• Statistics are Aggregates of Facts
• Statistics are affected to a marked extent by
Multiplicity of causes
• Statistics are Numerically expressed
• Collected in systematic manner
• Collected for a pre determined purpose
• Should be placed in relation to each other
 Five stages of Statistical Investigation
• Collection
• Organisation- Editing, classification, Tabulation
• Presentation- Diagrams & Graphs
• Analysis
• Interpretation
 Functions of Statistics
• It presents Facts in a definite form.
• It Simplifies mass of figures
• It facilitates comparison
• It helps in formulating and testing hypothesis
• It helps in prediction
• It helps in the formulation of suitable policies
 Limitations Of Statistics
• Does not deal with individual measurement
• Deals only with quantitative characteristics
• Results are true only on an average
• Statistics is only one of the methods of
studying a problem
• Statistics can be misused
 Collection of Data
• Depending on Source Statistical data are
classified under two categories:
• Primary Data
• Secondary Data
 Primary Data
• Original data
Methods of Collecting Primary Data:
• Direct Personal Interview
• Information from correspondents
• Mailed Questionnaire
• Schedules sent through enumerators
 Direct Personal Interview
• Merits:
• Response is more encouraging
• More accurate information
• Can collect supplementary information
• Sensitive questions can be carefully
sandwiched between other questions
• Language of communication can be adjusted.
• Limitations:
• Costly
• Personal prejudice
• Interviewers need to be thoroughly trained
• More time is required for collecting
information
 Indirect Oral Interviews
• Limitations:
• Correctness of data depends on type of
person whose evidence is being recorded.
• Ability of interviewers to draw out information
• Honesty of interviewers
 Information from the correspondents
• This method is generally adopted where the
information is to be obtained at regular
intervals from a wide area.
• Cheap and extensive
• Personal prejudice and bias of the
correspondents
 Mailed Questionnaire
• Merits
• Can collect more data in less time
• Relatively cheap
• Limitations:
• Can be adopted only where respondents are
literate
• Involves some uncertainty about the response
• Information send by the respondents may not be
correct.
 Schedules
• Merits:
• Can be adopted where respondents are illiterate
• Little non response
• Information received is more reliable
• Limitations:
• Success depends upon enumerator
• Experience and training required for
interviewing
 Drafting A Questionnaire
• Number of questions should be minimum
• Questions should be arranged logically
• Questions should be short and simple to
understand
• Ambiguous questions ought to be avoided
• Personal questions should be avoided
• Questions should be capable of objective
Answer
Shut questions
• Yes/No questions, Multiple choice Questions
Open questions- questions in which no alternatives
are suggested
• Questions requiring calculations should be avoided
• Leading questions should be avoided
Eg: which brand of mobile you use like, apple
samsung etc.
• Pre- testing the questionnaire
 Classification & Tabulation
• Presentation of Data is classified into :
• i. Tabular Presentation
• Ii. Diagrammatic or Graphic Presentation
 Classification
• Process of arranging data into groups or classes
according to resemblance & similarity is called
classification.
• Eg: No of Students registered in the university
• Functions of classification:
• Condenses the data
• Facilitate comparison
• Helps to study the relationship
• Facilitates statistical treatment of data
 Frequency Distribution table
• In a survey of 35 families in a village, the
number of children per family was recorded
and the following data obtained:
1 0 2 3 4 5 6
7 2 3 4 0 2 5
8 4 5 12 6 3 2
7 6 5 3 3 7 8
9 7 9 4 5 4 3
No of Children Tallies Frequency
0 II 2
1 I 1
2 IIII 4
3 IIII I 6
4 IIII 5
5 IIII 5
6 III 3
7 IIII 4
8 II 2
9 II 2
10 --- 0
11 ---- 0
12 I 1
Total 35
 Formation Of continuous Frequency
Distribution
• Class Limit- Lowest and highest value in the
class
• Eg. 20-40
• Class Interval – The difference between the
upper and lower limit of a class interval .
• Eg: 100-300
• Class interval is 300-100 = 200
• Class Frequency- No of observations
corresponding to a class
• Class Mid point- Value lying half-way between
the lower and upper class limits of a class-
intreval.
• Mid point = Upper limit of the class + lower
limit of the class /2
• Exclusive Classes:
Income No. of persons
1000- 1100 50
1100-1200 100
1200- 1300 200
1300- 1400 150
• Inclusive Method
Income No of Person
1000-1099 50
1100- 1199 100
1200-1299 200
 Considerations while creating classes
• Number of classes should be preferably
between 5 and 2
• As far as possible avoid values of class
intervals as 3,7,11,28 etc. preferably one
should have CI of either multiples of 5, 10,20
25, 100 etc.
• Starting point should be either 0 or 5or
multiple of 5.
 Conversion of Inclusive to Exclusive
• Weekly wages No of Workers
• 800- 899 5
• 900-999 10
• 1000-1099 15
900- 899 = 1
½ =0.5
Subtract 0.5 from all lower limits and add 0.5 to
all upper limits
57 44 80 75 00 18 45 14 04 64
72 51 69 34 22 83 70 20 57 28
96 56 50 47 10 34 61 66 80 46
22 10 84 50 47 73 42 33 48 65
10 34 66 53 75 90 58 46 39 69
 Measures of Central Tendencies
• A value which describes the characteristics of
the entire mass of data is called central value
or an average.
• Objectives of Averaging:
• To get single value
• To facilitate comparison
• Requisites of Good average:
• Easy to understand
• Simple to compute
• Based on all observations
• Not be unduly affected by extreme
observations
• Types of Averages:
• Arithmetic mean
• Median
• Mode
• GM
• HM
Following is monthly income of 10 employees in
an office:
4780
5760
6690
7750
4840
4920
6100
7810
7050
6950
• From the following data o the marks obtained
by 60 students of a class, calculate arithmetic
mean:
Marks No. Of students
20 8
30 12
40 20
50 10
60 6
70 4
Profits No. Of Companies
10-20 6
20-30 8
30-40 12
40-50 18
50-60 25
60-70 16
70-80 8
80-90 5
90-100 2
 Arithmetic Mean
• Most popular and widely used measure of
representing the entire data by one value.
• Its value is obtained by adding together all the
items and by dividing this total by the number
of items.
Arithmetic mean may either be:
• Simple Arithmetic Mean
• Weighted Arithmetic Mean
 Calculation of simple Arithmetic mean-
Individual Observations
• I.e. Where frequencies are not given
• Symbolically, the arithmetic mean,
also called simply mean is
X = X1 + X2 + X3 + X4+ …….+ Xn or X = ∑ X
N N
• Where X = Arithmetic mean
• ∑ X = Sum of all values of variable X
• N = Number of observations
Steps(direct Method):
• Add together all the values of the variable X
and obtain the total i.e., ∑ X
• Divide this total by the number of observations
i.e. N
• Suppose we have the following observations:
10, 15,30, 7, 42, 79 and 83
• These are seven observations.
X = 10+15+30+7+42+79+83
7
266

7
= 38
• Practice Question:
• Following table gives the monthly income of
10 employees in an office:
• Income (Rs) : 4780 , 5760, 6690, 7750 , 4840,
4920, 6100, 7810, 7050, 6950
• Calculate Arithmetic mean of income. Let
income be denoted by the symbol X.
Q. The Intelligence Quotients of 10 boys in a class
are given below:
• 70, 120, 110, 101, 88, 83, 95, 98, 107, 100
• Find the mean IQ
• Q. Following is the frequency distribution of the
number of telephone calls received in 245
successive one- minute intervals at an
exchange: Obtain the mean no
of calls per minute
No. 0 1 2 3 4 5 6 7
of
Calls
Freq 14 21 25 43 51 40 39 12
uenc
y
• Calculate mean for the following frequency
distribution

Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70

Number of 6 5 8 15 7 6 3
students
 MEDIAN
• Median refers to the value of the middle
observation in an array
• It is the value of that set in the items, arranged
in ascending or in descending order, above
and below which there are equal no. of items
• It is a positional average
 Calculation of median – Individual
Observations
• Steps:
• Arrange the data in ascending or descending order of
magnitude
• In a group composed of an odd No of values, add 1 to
the total number of values ( N + 1) and divide by 2.
You will get the position of value. Value corresponding
to that position is median
• In a group composed of even no of items (N + 1)/2
will give a fraction. In that case average value of two
middle observations will be the median.
• Median = (N + 1)/2 th item

• Practice questions
Computation of median- Discrete Series
• Steps
i. Arrange the data in ascending or in descending
order of magnitude
ii. Find out the cumulative frequencies
iii. Apply the formula: Median = Size of (N+ 1)/2
iv. Now look at the cumulative frequency coloumn
and find that total which is either equal to
( N+1)/2 or next higher to that and determine
the value of the variable corresponding to it.
• Practice problems
Computation of median –continuous series

Median = L + N/2 – cf x i
f
Where , L is lower limit of median class
N is total no of observations
cf is cumulative frequency above the median
class
i is class interval
• Practice Problems
• Merits:
• Useful in case of open ended classes
• Extreme values do not affect the median
• Appropriate in dealing with qualitative data
• Median can be determined graphically
• Limitations:
• Need to arrange data in ascending or
descending order.
• It’s value is not determined by each and every
observation
• It is erratic if no of items is small