Business Statistics chapter 22

Business Statistics chapter 22

1. Mean

   • The average used to indicate a single value that represents an entier group of numbers
     • Mean= Sum of all values/Numbers of values
       • Weighted mean= sum of products/ sum of frequencies

2. Median

   • A measurement that indicates the center of the dad (average)
     • Step one: Orderly arrange values from smallest to largest
       • Step two: Find the middle value
         • *Odd number values: Median is the middle value. Divide the total number of number by 2. The next- higher number is the median.
           • *Even number of values: Median is the average of the two middle values.

3. Mode

   • A measurement that records values; that value that occurs most often
     • Mode is the value that occurs most often.
       • If two or more numbers appear most often, you may have two or more modes
         • If all the values are different, there is no mode.

4. Measure of dispersion- A number that describes how the numbers of a set of data are spread out or dispered

   • Range- The difference between the how extreme values (highest and lowest) in a group of values or a set of data.
     • Range= Highest value- lowest value

5. Price relative= (Current price/ base year price)X 100

6. Standard Deviation

   • Step 1. Find the mean of the set of data
     • Step 2. Subtract the mean for 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. This is the standard deviation.