Chapter 3- Statistics for Business and Economics

Chapter 3- Statistics for Business and Economics -...

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Unformatted text preview: 3-1LEARNING OBJECTIVESLO1. Calculate the arithmetic mean, weighted mean, median, and mode.LO2. Explain the characteristics, uses, advantages, and disadvantages of each measure of location.LO3. Identify the position of the mean, median, and mode for both symmetricand skewed distributions.LO4. Compute and interpret the range, mean deviation, variance, and standard deviation. LO5. Understand the characteristics, uses, advantages, and disadvantages of each measure of dispersion.LO6. Understand Chebyshevs theorem and the Empirical Ruleas they relate to a set of observations.3-2Population MeanFor ungrouped data, the population meanis the sum of all the population values divided by the total number of population values:3-3EXAMPLE Population MeanThere are 12 high schools in the Corry County School District. Listed below is the number of students enrolled in each.Is this information a sample or a population? What is the arithmetic mean number of students per high school?Answer:This is a population because we are considering allthe high schools in the Corry County School District.3-4Sample MeanFor ungrouped data, the sample mean is the sum of all the sample values divided by the number of sample values:LO13-5EXAMPLE Sample MeanSunCom is studying the number of minutes used by clients in a particular cell phone rate plan. A randomsample of 12 clients showed the following number of minutes used last month.What is the arithmetic mean number of minutes used?LO13-6Example Sample MeanLoyola University wants to know the average age of its student body. We take a sample by asking everyone in this class their age.1921201828182022191919 + 20 +18 + 21+ 1960x_X =Would this be a good estimate of the average age at Loyola?3-7Weighted MeanThe weighted meanof a set of numbers X1, X2, ..., Xn, with corresponding weights w1, w2, ...,wn, is computed from the following formula: LO13-8EXAMPLE Weighted MeanThe Carter Construction Company pays its hourly employees $16.50, $19.00, or $25.00 per hour. There are 26 hourly employees, 14 of which are paid at the $16.50 rate, 10 at the $19.00 rate, and 2 at the $25.00 rate. What is the mean hourly rate paid the 26 employees?LO13-9EXAMPLES - MedianThe five-year annualized total returns of the ten top-performing diversified mutual funds for the period ending March 2009 are listed below.What is the median annualized return of these funds?LO13-10EXAMPLES - MedianThe number of mutual funds listed is an even number (10). These funds are already ordered from largest to smallest, so we can easily find the middle two returns. The middle two funds are the Oppenheimer Developing Markets C (8.65%) and Oppenheimer Developing Markets B (8.60%)....
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This note was uploaded on 04/14/2011 for the course ISOM 241 taught by Professor Jukic during the Spring '11 term at Loyola Chicago.

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Chapter 3- Statistics for Business and Economics -...

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