Presentation on theme: "Essential Statistics Chapter 21 Describing Distributions with Numbers."— Presentation transcript:
Essential Statistics Chapter 21 Describing Distributions with Numbers
Essential Statistics Chapter 22 Numerical Summaries u Center of the data –mean –median u Variation –range –quartiles (interquartile range) –variance –standard deviation
Essential Statistics Chapter 23 Mean or Average u Traditional measure of center u Sum the values and divide by the number of values
Essential Statistics Chapter 24 Median (M) u A resistant measure of the data’s center u At least half of the ordered values are less than or equal to the median value u At least half of the ordered values are greater than or equal to the median value u If n is odd, the median is the middle ordered value u If n is even, the median is the average of the two middle ordered values
Essential Statistics Chapter 25 Median (M) Location of the median: L(M) = (n+1)/2, where n = sample size. Example: If 25 data values are recorded, the Median would be the (25+1)/2 = 13 th ordered value.
Essential Statistics Chapter 26 Median u Example 1 data: 2 4 6 Median (M) = 4 u Example 2 data: 2 4 6 8 Median = 5 (ave. of 4 and 6) u Example 3 data: 6 2 4 Median 2 (order the values: 2 4 6, so Median = 4)
Essential Statistics Chapter 27 Comparing the Mean & Median u The mean and median of data from a symmetric distribution should be close together. The actual (true) mean and median of a symmetric distribution are exactly the same. u In a skewed distribution, the mean is farther out in the long tail than is the median [the mean is ‘pulled’ in the direction of the possible outlier(s)].
Essential Statistics Chapter 28 Question A recent newspaper article in California said that the median price of single-family homes sold in the past year in the local area was $136,000 and the mean price was $149,160. Which do you think is more useful to someone considering the purchase of a home, the median or the mean?
Essential Statistics Chapter 29 Case Study Airline fares appeared in the New York Times on November 5, 1995 “...about 60% of airline passengers ‘pay less than the average fare’ for their specific flight.” u How can this be? 13% of passengers pay more than 1.5 times the average fare for their flight
Essential Statistics Chapter 210 Spread, or Variability u If all values are the same, then they all equal the mean. There is no variability. u Variability exists when some values are different from (above or below) the mean. u We will discuss the following measures of spread: range, quartiles, variance, and standard deviation
Essential Statistics Chapter 211 Range u One way to measure spread is to give the smallest (minimum) and largest (maximum) values in the data set; Range = max min u The range is strongly affected by outliers
Essential Statistics Chapter 212 Quartiles u Three numbers which divide the ordered data into four equal sized groups. u Q 1 has 25% of the data below it. u Q 2 has 50% of the data below it. (Median) u Q 3 has 75% of the data below it.
Essential Statistics Chapter 214 Obtaining the Quartiles u Order the data. u For Q 2, just find the median. u For Q 1, look at the lower half of the data values, those to the left of the median location; find the median of this lower half. u For Q 3, look at the upper half of the data values, those to the right of the median location; find the median of this upper half.
Essential Statistics Chapter 221 Example from Text: Boxplots
Essential Statistics Chapter 222 Variance and Standard Deviation u Recall that variability exists when some values are different from (above or below) the mean. u Each data value has an associated deviation from the mean:
Essential Statistics Chapter 223 Deviations u what is a typical deviation from the mean? (standard deviation) u small values of this typical deviation indicate small variability in the data u large values of this typical deviation indicate large variability in the data
Essential Statistics Chapter 224 Variance u Find the mean u Find the deviation of each value from the mean u Square the deviations u Sum the squared deviations u Divide the sum by n-1 (gives typical squared deviation from mean)
Essential Statistics Chapter 225 Variance Formula
Essential Statistics Chapter 226 Standard Deviation Formula typical deviation from the mean [ standard deviation = square root of the variance ]
Essential Statistics Chapter 227 Variance and Standard Deviation Example from Text Metabolic rates of 7 men (cal./24hr.) : 1792 1666 1362 1614 1460 1867 1439
Essential Statistics Chapter 229 Variance and Standard Deviation Example from Text
Essential Statistics Chapter 230 Choosing a Summary u Outliers affect the values of the mean and standard deviation. u The five-number summary should be used to describe center and spread for skewed distributions, or when outliers are present. u Use the mean and standard deviation for reasonably symmetric distributions that are free of outliers.
Essential Statistics Chapter 231 Number of Books Read for Pleasure: Sorted M L(M)=(52+1)/2=26.5
Essential Statistics Chapter 232 Five-Number Summary: Boxplot Median = 3 Q1 = 1.0 Q3 = 5.5 Min = 0 Max = 99 Mean = 7.06 s.d. = 14.43 0 10 20 30 40 50 60 70 80 90 100 Number of books