Business Statistics Assignment No.

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Submitted to-Mrs.Poonam Malhotra Submitted by-Aastha Roll No.- 1 MBA (GEN-A)

Question 1.) Given : No. of students - 2000 ,Mean - 30, Standard Deviation 6.25 To find : Probability of Students getting marks between 20 and 40 Solution : To solve this problem we would convert the range values into Z score Z score corresponding the values 20 using formula ( z = (x-)/ ) => (20 30)/6.25 comes out to be -1.6 and using value 40 comes out to be 1.6. To calculate the probability we would check the area under the graph(normal distribution) for the abovementioned values of Z score . The area corresponding Z score 1.6 =0 .4452 Since it is a normal distribution and the Z score is equidistant therefore area = 2 x0 .4452 = 0.8904 Therefore 89.04% of the students are expected to get marks between 20 and 40. Total number of students getting marks between the mentioned range = 1780 Question 2) a.) Why averages are called as measures of central tendency? Average depicts characteristics of the whole group . Since the average represents the entire data , its value lies somewhere in between the 2 extremes i.e., the largest and the smallest values. For this reason average is frequently referred to as measures of central tendency. b.)Under what circumstances would it be appropriate to use mean, median, mode? Mode Mode value can be determined in open-end distributions without ascertaining the class limits. It can be used to describe qualitative phenomenon. So it is used for nominal, ordinal, interval ratio data, binomial distributions. Median- Median value can be used for open end classes since only the position and not the values of items must be known. It is used for ordinal, internal, skewed distributions. Mean It is used for Internal or ratio data, near normal distributions. c.)Write the formula to show relationship between mean,median and mode

For symmetrical data , Mean=Median=Mode For asymmetrical data, Median=Mode+(2*[Mean-Mode])/3 3*Median = 2 *Mean + Mode d.) Mention some special uses of Geometric Mean. i.)G.M. is used to find the average percent increase in the sales, production, population or other business or economic series. ii.)It is considered to be the best average in the construction of index numbers.It satisfies the time reversal test and gives equal weight to equal ratio of change. iii.)Suitable when large weights are to be given to small items and vice-a-versa. e.)What do you understand by Dispersion? What is the need of studying Dispersion? Dispersion is the measure of the variation of the item i.e. the degree to which numerical data tend to spread about an average value. We need to study Dispersion: i.)To determine the reliability of the average. ii.)To serve as a basis for the control of the variability. iii.)To compare two or more series with regard to their variability. iv.)To facilitate the use of other statistical measures.

f.) What is the coefficient of variation? What purpose does it serve?

The coefficient of variation (CV) is a normalized measure of dispersion of a probability distribution. It is also known as unitized risk or the variation coefficient. The coefficient of variation (CV) is defined as the ratio of the standard deviation to the mean

The coefficient of variation is useful because the standard deviation of data must always be understood in the context of the mean of the data. The coefficient of variation is a dimensionless number. So for comparison between data sets with different units or widely different means, one should use the coefficient of variation instead of the standard deviation. g.)Indicate the area of normal distribution covered by X+- 1, X+- 2, X+- 3

Area under X+- 1=68.2 % Area under X+- 2=95.4 % Area under X+- 3=99.6%