1. © 2010 Pearson. All rights reserved. 1 Chapter 3 Numerically Summarizing Data Insert photo of cover

2. © 2010 Pearson. All rights reserved. 2 Section 3.1 Measures of Central Tendency Objectives 1.Determine the arithmetic mean of a variable from raw data 2.Determine the median of a variable from raw data 3.Explain what it means for a statistics to be resistant 4.Determine the mode of a variable from raw data

3. © 2010 Pearson. All rights reserved. 3 Objective 1 Determine the arithmetic mean of a variable from raw data

4. © 2010 Pearson. All rights reserved. 4 The arithmetic mean of a variable is computed by determining the sum of all the values of the variable in the data set divided by the number of observations.

5. © 2010 Pearson. All rights reserved. 5 The population arithmetic mean, is computed using all the individuals in a population. The population mean is a parameter. The population arithmetic mean is denoted by.

6. © 2010 Pearson. All rights reserved. 6 The sample arithmetic mean, is computed using sample data. The sample mean is a statistic. The sample arithmetic mean is denoted by.

7. © 2010 Pearson. All rights reserved. 7 If x 1, x 2, …, x N are the N observations of a variable from a population, then the population mean, µ, is

8. © 2010 Pearson. All rights reserved. 8 If x 1, x 2, …, x n are the n observations of a variable from a sample, then the sample mean,, is

9. © 2010 Pearson. All rights reserved. 9 EXAMPLEComputing a Population Mean and a Sample Mean The following data represent the travel times (in minutes) to work for all seven employees of a start-up web development company. 23, 36, 23, 18, 5, 26, 43 (a)Compute the population mean of this data. (b)Then take a simple random sample of n = 3 employees. Compute the sample mean. Obtain a second simple random sample of n = 3 employees. Again compute the sample mean.

10. © 2010 Pearson. All rights reserved. 10 EXAMPLEComputing a Population Mean and a Sample Mean (a)

11. © 2010 Pearson. All rights reserved. 11 EXAMPLEComputing a Population Mean and a Sample Mean (b) Obtain a simple random sample of size n = 3 from the population of seven employees. Use this simple random sample to determine a sample mean. Find a second simple random sample and determine the sample mean. 1 2 3 4 5 6 7 23, 36, 23, 18, 5, 26, 43

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13. © 2010 Pearson. All rights reserved. 13 Objective 2 Determine the median of a variable from raw data

14. © 2010 Pearson. All rights reserved. 14 The median of a variable is the value that lies in the middle of the data when arranged in ascending order. We use M to represent the median.

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16. © 2010 Pearson. All rights reserved. 16 EXAMPLEComputing a Median of a Data Set with an Odd Number of Observations The following data represent the travel times (in minutes) to work for all seven employees of a start-up web development company. 23, 36, 23, 18, 5, 26, 43 Determine the median of this data. Step 1: 5, 18, 23, 23, 26, 36, 43 Step 2: There are n = 7 observations. Step 3: M = 23 5, 18, 23, 23, 26, 36, 43

17. © 2010 Pearson. All rights reserved. 17 EXAMPLEComputing a Median of a Data Set with an Even Number of Observations Suppose the start-up company hires a new employee. The travel time of the new employee is 70 minutes. Determine the median of the “new” data set. 23, 36, 27, 23, 18, 5, 26, 43, 70 Step 1: 5, 18, 23, 23, 26, 36, 43, 70 Step 2: There are n = 8 observations. Step 3: 5, 18, 23, 23, 26, 36, 43, 70

18. © 2010 Pearson. All rights reserved. 18 Objective 3 Explain what it means for a statistic to be resistant

19. © 2010 Pearson. All rights reserved. 19 EXAMPLEComputing a Median of a Data Set with an Even Number of Observations The following data represent the travel times (in minutes) to work for all seven employees of a start-up web development company. 23, 36, 23, 18, 5, 26, 43 Suppose a new employee is hired who has a 130 minute commute. How does this impact the value of the mean and median? Mean before new hire: 24.9 minutes Median before new hire: 23 minutes Mean after new hire: 38 minutes Median after new hire: 24.5 minutes

20. © 2010 Pearson. All rights reserved. 20 A numerical summary of data is said to be resistant if extreme values (very large or small) relative to the data do not affect its value substantially.

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22. © 2010 Pearson. All rights reserved. 22 EXAMPLE Describing the Shape of the Distribution The following data represent the asking price of homes for sale in Lincoln, NE. Source: http://www.homeseekers.com 79,995128,950149,900189,900 99,899130,950151,350203,950 105,200131,800154,900217,500 111,000132,300159,900260,000 120,000134,950163,300284,900 121,700135,500165,000299,900 125,950138,500174,850309,900 126,900147,500180,000349,900

23. © 2010 Pearson. All rights reserved. 23 Find the mean and median. Use the mean and median to identify the shape of the distribution. Verify your result by drawing a histogram of the data.

24. © 2010 Pearson. All rights reserved. 24 Find the mean and median. Use the mean and median to identify the shape of the distribution. Verify your result by drawing a histogram of the data. The mean asking price is $168,320 and the median asking price is $148,700. Therefore, we would conjecture that the distribution is skewed right.

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26. © 2010 Pearson. All rights reserved. 26 True or False: The mean is resistant.

27. © 2010 Pearson. All rights reserved. 27 True or False: The median is resistant.

28. © 2010 Pearson. All rights reserved. 28 The following data represent the selling price of a random sample of 10 homes in Joliet, IL. Find the mean and the median. Which measure of central tendency better describes the “typical” selling price? (a) Mean (b) Median (c) Not sure

29. © 2010 Pearson. All rights reserved. 29 Objective 4 Determine the mode of a variable from raw data

30. © 2010 Pearson. All rights reserved. 30 The mode of a variable is the most frequent observation of the variable that occurs in the data set. If there is no observation that occurs with the most frequency, we say the data has no mode.

31. © 2010 Pearson. All rights reserved. 31 EXAMPLE Finding the Mode of a Data Set The data on the next slide represent the Vice Presidents of the United States and their state of birth. Find the mode.

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34. © 2010 Pearson. All rights reserved. 34 The mode is New York.

35. © 2010 Pearson. All rights reserved. 35 Tally data to determine most frequent observation