<< Chapter < Page Chapter >> Page >

Try it

Five credit scores are 680, 680, 700, 720, 720. The data set is bimodal because the scores 680 and 720 each occur twice. Consider the annual earnings of workers at a factory. The mode is $25,000 and occurs 150 times out of 301. The median is $50,000 and the mean is $47,500. What would be the best measure of the “center”?

Because $25,000 occurs nearly half the time, the mode would be the best measure of the center because the median and mean don’t represent what most people make at the factory.

Got questions? Get instant answers now!

The law of large numbers and the mean

The Law of Large Numbers says that if you take samples of larger and larger size from any population, then the mean x ¯ of the sample is very likely to get closer and closer to µ . This is discussed in more detail later in the text.

Sampling distributions and statistic of a sampling distribution

You can think of a sampling distribution as a relative frequency distribution with a great many samples. (See Sampling and Data for a review of relative frequency). Suppose thirty randomly selected students were asked the number of movies they watched the previous week. The results are in the relative frequency table shown below.

# of movies Relative Frequency
0 5 30
1 15 30
2 6 30
3 3 30
4 1 30

If you let the number of samples get very large (say, 300 million or more), the relative frequency table becomes a relative frequency distribution .

A statistic is a number calculated from a sample. Statistic examples include the mean, the median and the mode as well as others. The sample mean x ¯ is an example of a statistic which estimates the population mean μ .

Calculating the mean of grouped frequency tables

When only grouped data is available, you do not know the individual data values (we only know intervals and interval frequencies); therefore, you cannot compute an exact mean for the data set. What we must do is estimate the actual mean by calculating the mean of a frequency table. A frequency table is a data representation in which grouped data is displayed along with the corresponding frequencies. To calculate the mean from a grouped frequency table we can apply the basic definition of mean: mean = d a t a   s u m n u m b e r   o f   d a t a   v a l u e s We simply need to modify the definition to fit within the restrictions of a frequency table.

Since we do not know the individual data values we can instead find the midpoint of each interval. The midpoint is l o w e r   b o u n d a r y + u p p e r   b o u n d a r y 2 . We can now modify the mean definition to be M e a n   o f   F r e q u e n c y   T a b l e = f m f where f = the frequency of the interval and m = the midpoint of the interval.

A frequency table displaying professor Blount’s last statistic test is shown. Find the best estimate of the class mean.

Grade Interval Number of Students
50–56.5 1
56.5–62.5 0
62.5–68.5 4
68.5–74.5 4
74.5–80.5 2
80.5–86.5 3
86.5–92.5 4
92.5–98.5 1
  • Find the midpoints for all intervals
Grade Interval Midpoint
50–56.5 53.25
56.5–62.5 59.5
62.5–68.5 65.5
68.5–74.5 71.5
74.5–80.5 77.5
80.5–86.5 83.5
86.5–92.5 89.5
92.5–98.5 95.5
  • Calculate the sum of the product of each interval frequency and midpoint. f m
    53.25 ( 1 ) + 59.5 ( 0 ) + 65.5 ( 4 ) + 71.5 ( 4 ) + 77.5 ( 2 ) + 83.5 ( 3 ) + 89.5 ( 4 ) + 95.5 ( 1 ) = 1460.25
  • μ = f m f = 1460.25 19 = 76.86
Got questions? Get instant answers now!
Got questions? Get instant answers now!

Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
Got questions? Join the online conversation and get instant answers!
Jobilize.com Reply

Get Jobilize Job Search Mobile App in your pocket Now!

Get it on Google Play Download on the App Store Now




Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Introductory statistics' conversation and receive update notifications?

Ask