Consider the following set of sample data:
78 121 143 88 110 107 62 122 130 95 78 139 89 125 Calculate the lower and upper quartiles.
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Calculation of Lower (
) and Upper ( ) Quartiles: Step 1: Arrange the Data in Ascending Order
Given sample data (
): 78, 121, 143, 88, 110, 107, 62, 122, 130, 95, 78, 139, 89, 125Arranging in ascending order:
62, 78, 78, 88, 89, 95, 107, 110, 121, 122, 125, 130, 139, 143
Step 2: Calculate Lower Quartile (
) (Note: Under the alternative integer-rank formula
item, ).
Step 3: Calculate Upper Quartile (
) (Note: Under the alternative integer-rank formula
item, ). Final Answer:
- Lower Quartile (
): 85.5 - Upper Quartile (
): 126.25
- Lower Quartile (
If the coefficient of skewness is 0.5, first quartile is 8 and third quartile is 16, find the median of the distribution.
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Calculation of Median from Bowley’s Skewness:
Given Data:
- First Quartile (
) = - Third Quartile (
) = - Bowley’s Coefficient of Skewness (
) =
Formula:
Bowley’s coefficient of skewness based on quartiles is given by:
Step-by-Step Substitution:
Multiplying both sides by
: Final Answer: The median (
) of the distribution is 10. - First Quartile (
Compute the five number summaries from the following data and comment on the shape of the distribution:
7 11 25 23 19 34 29 31 9 15 30 View model answerHide model answer
Five-Number Summary and Distribution Shape:
Step 1: Arrange Data in Ascending Order
Given data (
): 7, 11, 25, 23, 19, 34, 29, 31, 9, 15, 30Ordered data:
7, 9, 11, 15, 19, 23, 25, 29, 30, 31, 34
Step 2: Compute the Five-Number Summary
- Minimum (
): 7 - First Quartile (
): - Median (
): - Third Quartile (
): - Maximum (
): 34
Summary Vector:
Step 3: Comment on the Shape of the Distribution
Compare quartile distances:
- Distance from
to Median: - Distance from Median to
: $
Conclusion on Shape: Since
( ) and Bowley’s skewness is negative ( ), the distribution has a longer tail to the left and is negatively skewed (skewed to the left). - Minimum (
Find the mean and standard deviation from the following data related to age distribution of a class.
Age (yrs) 15 16 17 18 19 20 No of students 5 7 12 15 7 4 View model answerHide model answer
Mean and Standard Deviation of Age Distribution:
Calculation Table:
Age ( ) Students ( ) 15 5 75 225 1,125 16 7 112 256 1,792 17 12 204 289 3,468 18 15 270 324 4,860 19 7 133 361 2,527 20 4 80 400 1,600 Total —
Step 1: Calculation of Mean (
)
Step 2: Calculation of Standard Deviation (
) Final Answer:
- Mean Age: 17.48 years
- Standard Deviation: 1.37 years
The following table shows the monthly expenditure of people living in village A and village B of a country.
Expenditure (000 Rs) 5 10 15 20 25 30 No. of families in village A 4 14 51 20 10 4 No. of families in village B 8 18 40 18 12 9 Which village people have uniform expenditure on the basis of coefficient of variation?
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Comparison of Expenditure Uniformity Between Village A and Village B Using CV:
Calculation Table:
Expenditure (Rs 000) 5 25 4 20 100 8 40 200 10 100 14 140 1,400 18 180 1,800 15 225 51 765 11,475 40 600 9,000 20 400 20 400 8,000 18 360 7,200 25 625 10 250 6,250 12 300 7,500 30 900 4 120 3,600 9 270 8,100 Total —
Step 1: Village A Statistics
Step 2: Village B Statistics
Conclusion:
Since
, Village A has a lower coefficient of variation, meaning the people of Village A have more uniform (consistent) monthly expenditure compared to Village B. If the values of upper quartile and lower quartile are 63 and 59 respectively, then calculate the coefficient of quartile deviation.
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Coefficient of Quartile Deviation:
Given:
- Upper Quartile (
) = - Lower Quartile (
) =
Formula:
Calculation:
Final Answer: The coefficient of quartile deviation is 0.0328.
- Upper Quartile (
In a moderately asymmetric distribution, the values of mean and mode are 20 and 23 respectively. Compute the value of median.
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Calculation of Median from Empirical Relationship:
Given:
Empirical Formula for Moderately Asymmetric Distributions:
Calculation:
Final Answer: The value of the median is 21.
Calculate coefficient of variation, when values of mean and standard deviation are 32 and 17 respectively.
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Calculation of Coefficient of Variation (CV):
Given:
Formula:
Calculation:
Final Answer: The Coefficient of Variation is 53.125%.
The following table shows the marks distribution of students in a subject:
Marks 0-10 10-20 20-30 30-40 40-50 50-60 Frequency 10 25 45 20 18 12 Find the lowest marks of the top 20% of the students.
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Lowest Marks of the Top 20% of Students (
): Concept:
The lowest marks obtained by the top 20% of students corresponds to the
Percentile ( ) of the distribution.
Cumulative Frequency Table:
Marks Frequency ( ) Cumulative Frequency ( ) 0 – 10 10 10 10 – 20 25 35 20 – 30 45 80 30 – 40 20 100 40 – 50 18 118 50 – 60 12 130 Total —
Step 1: Locate
Class Position The cumulative frequency just greater than 104 is 118, which corresponds to the class 40 – 50.
Step 2: Apply the Percentile Interpolation Formula
Where:
(Lower limit of class) (Cumulative frequency of the preceding class) (Frequency of class) (Class width)
Final Answer: The lowest marks scored by the top 20% of the students is 42.22 marks.
The following table represents the marks of 100 students.
Marks 0-20 20-40 40-60 60-80 80-100 Students 14 - 27 - 15 Find the missing frequencies when modal marks is 48.
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Calculation of Missing Frequencies Given Mode = 48:
Given Data:
- Total students (
) =
Let the missing frequency for class
be and for be . Marks Frequency ( ) 0 – 20 14 20 – 40 40 – 60 27 60 – 80 80 – 100 15 Total
Step 1: Formulate Total Frequency Equation
Step 2: Use Mode Formula
Since
, it lies in the modal class 40 – 60. - Lower limit (
) = - Frequency of modal class (
) = - Frequency of pre-modal class (
) = - Frequency of post-modal class (
) = - Class height (
) = $
Substitute
from Equation (1): Now find
from Equation (1): Final Answer: The missing frequencies are
(for 20–40) and (for 60–80). - Total students (
From the following income distribution of 500 workers in a locality, find the median value of the income distribution.
Income (000 Rs) No. of workers Below 20 50 20-40 90 40-60 150 60 - 80 100 80 - 100 60 100 & above 50 View model answerHide model answer
Calculation of Median Income of 500 Workers:
Cumulative Frequency Table:
Income (Rs '000) Workers ( ) Cumulative Frequency ( ) 0 – 20 50 50 20 – 40 90 140 40 – 60 150 290 60 – 80 100 390 80 – 100 60 450 100 and above 50 500 Total —
Step 1: Identify Median Class
The cumulative frequency just greater than 250 is 290, so the Median Class is 40 – 60.
Step 2: Apply Median Formula
Where:
$
Final Answer: The median income of the workers is Rs 54,667 (or 54.67 thousand Rs).
From the following income distribution, calculate the appropriate measures of dispersion.
Daily income (Rs) Number of workers Below 50 10 51-100 18 101-150 25 151-200 20 201-250 16 250 and above 11 View model answerHide model answer
Appropriate Measure of Dispersion for Open-Ended Distribution:
Justification:
The given distribution has open-ended classes (“Below 50” and “250 and above”). For open-ended distributions, neither the Range nor the Standard Deviation can be calculated without arbitrary class boundaries. Therefore, the Quartile Deviation (Semi-Interquartile Range) is the uniquely appropriate measure of dispersion.
Cumulative Frequency with True Class Boundaries:
(Correction factor
) Daily Income (Rs) Cumulative Frequency ( ) Below 50.5 10 10 50.5 – 100.5 18 28 100.5 – 150.5 25 53 150.5 – 200.5 20 73 200.5 – 250.5 16 89 250.5 & above 11 100 Total —
Step 1: Lower Quartile (
)
Step 2: Upper Quartile (
)
Step 3: Quartile Deviation (
) Final Answer:
- Quartile Deviation: Rs 57.29
- Coefficient of QD: 0.3833
The following information was obtained from two investment companies A and B:
Company A Company B Average return (000Rs) 28 37 Variance 25 36 No. of observations 100 100 Calculate combined standard deviation.
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Calculation of Combined Standard Deviation:
Given Data:
- Company A:
, , - Company B:
, ,
Step 1: Combined Mean (
)
Step 2: Deviations of Individual Means from Combined Mean
Step 3: Combined Variance (
)
Step 4: Combined Standard Deviation (
) Final Answer: The combined standard deviation is Rs 7,124 (or 7.12 thousand Rs).
- Company A:
From the following distribution, find the coefficient of skewness. Also comment the result.
Monthly income (Rs 000) Number of workers 0-100 15 100-200 50 200-300 75 300-400 40 400-500 30 500- 600 10 View model answerHide model answer
Calculation of Karl Pearson’s Coefficient of Skewness:
Calculation Table:
Monthly Income (Rs 000) Mid-point ( ) 0 – 100 50 15 -2 -30 60 100 – 200 150 50 -1 -50 50 200 – 300 250 75 0 0 0 300 – 400 350 40 1 40 40 400 – 500 450 30 2 60 120 500 – 600 550 10 3 30 90 Total — —
Step 1: Mean (
)
Step 2: Mode (
) Modal class is 200 – 300 (highest frequency
). , , , $
Step 3: Standard Deviation (
)
Step 4: Karl Pearson’s Coefficient of Skewness (
) Interpretation: The distribution exhibits a positive skewness (
), indicating that the distribution has a longer tail to the right and a concentration of lower to middle-income workers. From the following marks distribution of students of a campus, calculate the coefficient of kurtosis. Also, interpret the result.
Marks Below 10 10 - 20 20 - 30 30 - 40 40 - 50 50 & above No. of students 50 100 150 90 60 50 View model answerHide model answer
Calculation of Percentile Coefficient of Kurtosis (
): Concept:
The Percentile Coefficient of Kurtosis is given by:
Cumulative Frequency Table:
Marks Frequency ( ) Cumulative Frequency ( ) 0 – 10 50 50 10 – 20 100 150 20 – 30 150 300 30 – 40 90 390 40 – 50 60 450 50 – 60 50 500 Total —
Step 1: Calculate
and position: Class 10 – 20 position: Class 30 – 40 - Semi-Interquartile Range (
):
Step 2: Calculate
and position: Exactly the upper boundary of class 0–10: position: Exactly the upper boundary of class 40–50:
Step 3: Compute Kurtosis (
) Interpretation:
- For a normal (mesokurtic) distribution,
. - Since
, the distribution is slightly platykurtic (flatter-topped than normal).
Find the quartile deviation if first and third quartiles are 18 and 30 respectively.
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Quartile Deviation (
): Given:
- First Quartile (
) = - Third Quartile (
) =
Formula:
Calculation:
Final Answer: The Quartile Deviation is 6.
- First Quartile (
Calculate the combined mean from the following information.
Group A Group B Mean 65 60 Number of observations 40 60 View model answerHide model answer
Combined Mean Calculation:
Given:
- Group A:
, - Group B:
,
Formula:
Calculation:
Final Answer: The combined mean of the two groups is 62.
- Group A:
In a moderately asymmetrical distribution, the mode and mean are 32 and 35 respectively. Calculate the median.
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Calculation of Median from Mode and Mean:
Given:
Empirical Formula:
Calculation:
Final Answer: The median of the distribution is 34.
Calculate the Pearson’s Coefficient of skewness when mean, mode and standard deviation are 25, 20 and 10 respectively.
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Pearson’s Coefficient of Skewness:
Given:
Formula:
Calculation:
Final Answer: Pearson’s coefficient of skewness is +0.5 (moderately positively skewed).
If first quartile and third quartile of a distribution are 28 and 52 and their 90th and 10th percentiles are 61 and 17 respectively then, find the value of kurtosis.
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Calculation of Percentile Coefficient of Kurtosis:
Given:
, ,
Formula:
Calculation:
Final Answer: The coefficient of kurtosis is 0.2727 (since
, it is leptokurtic). The following table represents the weekly expenditure of 100 families.
Expenditure 0-20 20-40 40-60 60-80 80-100 No. of Families 14 ? 27 ? 15 If the mean value is 48 find the missing frequencies.
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Finding Missing Frequencies When Mean = 48:
Given Data:
- Total families (
) = - Mean expenditure (
) =
Let the missing frequency of class 20–40 be
and class 60–80 be . Expenditure Mid-point ( ) Frequency ( ) 0 – 20 10 14 140 20 – 40 30 40 – 60 50 27 1,350 60 – 80 70 80 – 100 90 15 1,350 Total —
Step 1: Total Frequency Equation
Step 2: Mean Equation
Divide by 10:
Step 3: Solve Simultaneously
Multiply Equation (1) by 3:
Subtract Equation (3) from Equation (2):
Substitute
into Equation (1): Final Answer: The missing frequencies are
(for class 20–40) and (for class 60–80). - Total families (
Calculate coefficient of quartile deviation from the following distribution of expenditure of one thousand households of Pokhara city.
Expenditure (Rs.'00) No. of households 30-50 54 50-70 100 70-90 140 90-110 300 110-130 230 130-150 125 Above 150 51 View model answerHide model answer
Coefficient of Quartile Deviation of Household Expenditure:
Cumulative Frequency Table:
Expenditure (Rs '00) Households ( ) Cumulative Frequency ( ) 30 – 50 54 54 50 – 70 100 154 70 – 90 140 294 90 – 110 300 594 110 – 130 230 824 130 – 150 125 949 Above 150 51 1000 Total —
Step 1: Lower Quartile (
)
Step 2: Upper Quartile (
)
Step 3: Coefficient of Quartile Deviation
Final Answer: The coefficient of quartile deviation is 0.1923 (or 19.23%).
The mark distribution of 104 students are given below.
Marks 0 - 10 10 - 20 20 - 30 30 - 40 40 - 50 50 - 60 60 - 70 No. of Students 7 8 13 29 35 9 3 Find the lowest marks of the top 10% of the students.
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Lowest Marks of the Top 10% of Students (
): Concept:
The cutoff score separating the top 10% of students is the
Percentile ( ).
Cumulative Frequency Table:
Marks Frequency ( ) Cumulative Frequency ( ) 0 – 10 7 7 10 – 20 8 15 20 – 30 13 28 30 – 40 29 57 40 – 50 35 92 50 – 60 9 101 60 – 70 3 104 Total —
Step 1: Position of
$ The cumulative frequency just exceeding 93.6 is 101, corresponding to class 50 – 60.
Step 2: Percentile Interpolation Formula
Where
, , , : Final Answer: The lowest marks of the top 10% of students is 51.78 marks.
Calculate the percentile coefficient of kurtosis from the income distribution of sixty-two randomly selected employees of Nepal Bank Limited. Also interpret the result.
Income (Rs '000) 20-30 30-40 40-50 50-60 60-70 Total No. of employees 7 10 20 18 7 62 View model answerHide model answer
Percentile Coefficient of Kurtosis for Nepal Bank Limited Employees:
Cumulative Frequency Table:
Income (Rs '000) Employees ( ) Cumulative Frequency ( ) 20 – 30 7 7 30 – 40 10 17 40 – 50 20 37 50 – 60 18 55 60 – 70 7 62 Total —
Step 1: Calculate
and position: Class 30 – 40 position: Class 50 – 60 - Semi-Interquartile Range (
):
Step 2: Calculate
and position: Class 20 – 30 position: Class 60 – 70
Step 3: Compute Kurtosis (
) Interpretation:
- The standard normal (mesokurtic) value is
. - Since
, the distribution is slightly platykurtic, indicating a slightly flatter peak with thinner tails compared to a normal distribution.
The running capacity of two horses is given below, state which is more consistent and why?
Horse A 250 255 280 290 295 300 Horse B 280 282 290 295 298 295 View model answerHide model answer
Consistency Comparison of Two Horses Using Coefficient of Variation (CV):
Data (
observations each): - Horse A:
- Horse B:
Step 1: Horse A Calculations
Deviations squared
:
Step 2: Horse B Calculations
Deviations squared
:
Conclusion:
- A lower Coefficient of Variation signifies greater stability and consistency.
- Since
, Horse B is significantly more consistent in its running performance than Horse A.
- Horse A:
The values of lower and upper quartiles are 40 and 70 respectively, then calculate coefficient of quartile deviation.
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Coefficient of Quartile Deviation:
Given:
- Lower Quartile (
) = - Upper Quartile (
) =
Formula:
Calculation:
Final Answer: The coefficient of quartile deviation is 0.2727.
- Lower Quartile (
The mean and coefficient of variation of a certain data are 20 and 30% respectively. Calculate standard deviation.
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Calculation of Standard Deviation (
): Given:
Formula:
Calculation:
Final Answer: The standard deviation is 6.
Give that quartile deviation = 20, 10th percentile = 30 and 90th percentile = 90, find the coefficient of kurtosis.
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Calculation of Coefficient of Kurtosis (
): Given:
- Quartile Deviation (
) = Percentile ( ) = Percentile ( ) =
Formula:
Calculation:
Final Answer: The coefficient of kurtosis is 0.3333 (since
, the distribution is leptokurtic). - Quartile Deviation (
For a moderately asymmetrical distribution, if the values of mean and median are 30 and 28, find the value of mode.
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Calculation of Mode from Empirical Relationship:
Given:
Empirical Formula:
Calculation:
Final Answer: The value of the mode is 24.
The mean of a set of 100 observations were found to be 40. On checking it was found that two observations, which were wrongly taken as 30 and 72 instead of 3 and 27. Calculate the corrected mean.
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Calculation of Corrected Mean:
Given Data:
- Number of observations (
) = - Incorrect mean (
) = - Incorrect values included:
and - Correct values to include:
and
Step 1: Compute Incorrect Sum (
)
Step 2: Compute Corrected Sum
Step 3: Calculate Corrected Mean
Final Answer: The corrected mean of the observations is 39.28.
- Number of observations (
Sample of 50 mobile of two brands Samsung and Apple are taken and average running life (years) of each recorded as shown below.
Samsung Apple Average life in years 11 12 variance 25 36 Which of the two brands show greater uniformity in life?
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Comparison of Uniformity in Running Life: Samsung vs. Apple:
Given Data (
for both brands): - Samsung:
- Mean life (
) = - Variance (
) =
- Mean life (
- Apple:
- Mean life (
) = - Variance (
) =
- Mean life (
Step 1: Compute Coefficient of Variation (CV)
-
For Samsung:
-
For Apple:
Conclusion:
- A lower Coefficient of Variation indicates greater consistency, stability, and uniformity.
- Since
, Samsung shows greater uniformity in running life compared to Apple.
- Samsung:
Calculate an appropriate measure of central tendency from the following distribution and support for your choice of measure.
Monthly income (in Rs.) No. of Families Below 1000 50 1000-1999 500 2000-2999 555 3000-3999 100 4000-4999 30 5000 & above 15 View model answerHide model answer
Appropriate Measure of Central Tendency for Open-Ended Income:
Choice of Measure and Support:
- The given income distribution features open-ended terminal classes (“Below 1000” and “5000 & above”).
- The arithmetic mean cannot be determined without arbitrary assumptions about class limits. The Median is the most appropriate measure because it is a positional average independent of extreme or undefined boundary values.
Cumulative Frequency Table:
(Using continuous class boundaries with correction factor
) Monthly Income (Rs) Families ( ) Cumulative Frequency ( ) Below 999.5 50 50 999.5 – 1999.5 500 550 1999.5 – 2999.5 555 1,105 2999.5 – 3999.5 100 1,205 3999.5 – 4999.5 30 1,235 4999.5 & above 15 1,250 Total —
Step 1: Locate Median Class
The cumulative frequency just greater than 625 is 1,105, which falls in class 1999.5 – 2999.5.
Step 2: Compute Median
Where
, , , : Final Answer: The appropriate measure is the Median, and its value is Rs 2,134.64.
Calculate the five number summary from the following data and comment on the shape of the distribution. 39, 26, 15, 8, 70, 11, 45, 60, 20, 32, 52
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Five-Number Summary and Distribution Shape:
Step 1: Arrange Data in Ascending Order
Given data (
): 39, 26, 15, 8, 70, 11, 45, 60, 20, 32, 52Sorted order:
8, 11, 15, 20, 26, 32, 39, 45, 52, 60, 70
Step 2: Calculate Five-Number Summary
- Minimum (
): 8 - First Quartile (
): - Median (
): - Third Quartile (
): - Maximum (
): 70
Five-Number Summary:
Step 3: Comment on the Shape of the Distribution
- Left quartile distance:
- Right quartile distance:
- Bowley’s Skewness:
Conclusion: Since
( ) and , the distribution exhibits a slight positive skewness (skewed to the right). - Minimum (
From the following income distribution:
Income (Rs '000) 0 - 4 5 - 9 10 - 14 15 - 19 20 - 24 No of persons 160 200 430 140 70 Compute lowest income of richest 10% of the people.
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Lowest Income of the Richest 10% of People (
): Concept:
The cutoff separating the lowest income of the richest 10% corresponds to the
Percentile ( ).
Cumulative Frequency Table:
(Converted to continuous class boundaries)
Income (Rs '000) True Boundaries Persons ( ) Cumulative Frequency ( ) 0 – 4 0.0 – 4.5 160 160 5 – 9 4.5 – 9.5 200 360 10 – 14 9.5 – 14.5 430 790 15 – 19 14.5 – 19.5 140 930 20 – 24 19.5 – 24.5 70 1000 Total — —
Step 1: Locate
Class The cumulative frequency exceeding 900 is 930, so the
Class is 14.5 – 19.5.
Step 2: Percentile Interpolation Formula
Where:
$
Final Answer: The lowest income of the richest 10% of the people is Rs 18,429 (or 18.43 thousand Rs).
Calculate Karl Pearson’s coefficient of skewness from the following income distribution of hundred families.
Income (Rs.'00) 0 - 20 20 - 40 40 - 60 60 - 80 80 - 100 No. of families 13 21 27 23 16 View model answerHide model answer
Karl Pearson’s Coefficient of Skewness for 100 Families:
Calculation Table:
Income (Rs '00) Mid-point ( ) Families ( ) 0 – 20 10 13 -2 -26 52 20 – 40 30 21 -1 -21 21 40 – 60 50 27 0 0 0 60 – 80 70 23 1 23 23 80 – 100 90 16 2 32 64 Total — —
Step 1: Mean (
)
Step 2: Mode (
) Modal class is 40 – 60 (
):
Step 3: Standard Deviation (
)
Step 4: Karl Pearson’s Skewness (
) Interpretation: The distribution has a very slight negative skewness (
), indicating it is nearly symmetrical.
STT 201
Business Statistics
TU BBM · Semester 3 · BBM curriculum effective from 2021
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