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Business Statistics-Probability Statistics Formula

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Business Statistics-Maths Probability Statistics Formula Explanations

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Probability and statistics
Representation of data
A continuous variable is one for which, within the limits the variable ranges, any value is possible

A discrete variable is one that cannot take on all values within the limits of the variable

Raw data is a term for data collected on source which has not been subjected to processing or
any other manipulation, it is also known as primary data .
44 46 47 49 63 64 66 68 68 72 72 75 76 81 84 88 106

A stemplot (or stem-and-leaf plot), in statistics, is a device for presenting quantitative data in a
graphical format, similar to a histogram, to assist in visualizing the shape of a distribution

4|4679
5|
6|34688
7|2256
8|148
9|
10| 6
key: 6|3=63
leaf unit: 1.0
stem unit: 10.0
Box-And-Whisker Plots
A box-and-whisker plot is a way to provide a simple summary of a data set using only five points.
The five-number summary consists of the median, Q1, Q3, the low and high in the distribution.
Immediate visuals of a box-and-whisker plot are the center, the spread, and the overall range of
distribution.




A histogram is a graphical representation, showing a visual impression of the distribution of
data. It is an estimate of the probability distribution of a continuous variable


Area of each bar is proportional to the frequency


frequency
height 
width class

height frequency density

, The mean , x , of a data set of n values is given by
x1  x 2 ....  xn  xi
x 
n n




Area=frequency
Easier calculation of mean

x
 x-a  a
n
Area=frequency
Example : 80.1 80.3 80.7 80.8 =frequency density x width
0.1  0.3  0.7  0.8 1.9
x  80   80 80.47
4 4
width
To find the median of a data set of n values
• Arrange the values in order of increasing size
1
• If n is odd the median is the n  1th value
2
1
• If n is even the median is halfway between the n th value and the following value
2
The mean , x , of a data set in which the variable takes the value x1 with frequency f1 ,
x 2 with frequency f 2 and so on is given by
x1 f 1 x 2 f 2  ....  xn f n  xi f i
x 
f 1 f 2  ....  f n  fi
Mode value of variable corresponding to highest frequency
- no mode if all values have same frequency
- more than one mode if two or more values have the same maximum frequency
Modal class is the class with the highest frequency density

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