Business Statistics

Business Statistics

1. Mean, Median, and Mode

   • Mean = Sum of all values / Number of values
     • Weighted Mean = Sum of products / Sum of frequencies
   • GPA = Total Points / Total Credits
   • Median is finding the true center of a set of numbers.
   • Mode is the number that occurs the most frequent in a set of numbers

2. Frequency Distributions and Graphs

   • Price Relative = (Current Price / Base year's price) * 100

3. Measures of Dispersion (Optional)

   • Range = Highest Value - Lowest Value
   • Finding the Standard Deviation = Step 1. Find the mean of the set of data. Step 2. Subtract the mean from each piece of data to find each deviation. Step 3. Square each deviation (multiply the deviation by itself). Step 4. Sum all squared deviations. Step 5. Divide the sum of the squared deviations by n-1, where n equals the number of pieces of data. Step 6. Find the square root of the number obtained in Step 5 (use a calculator). This is the standard deviation. (The square root is a number that when multiplied by itself equals the amount shown inside the square root symbol.)