Chapter 3: Numerical Summary Measures http://anengineersaspect.blogspot.com/2013_05_01_archive.html 1 Numerical Summary Measures: Goals • Describe the center of a distribution by: – mean – Median – mode • Compare the mean and median • Describe the measure of spread: – range – Variance and standard deviation – Quartiles • Be able to determine which summary statistics are appropriate for a given situation • Empirical Rule and introduction to the normal distribution • Describe a distribution by a boxplot (five-number summary 2 and outliers) Definition Measures of central tendency indicate where the majority of the data is centered, bunched or clustered. 3 Notation • lower case letters, x, y, z indicate the variables. • x1, x2, x3,….., xn refers to a set of fixed observations of a variable. • n : This is the number of observations in a data set which is called the sample size. 4 Sample Mean 𝑠𝑢𝑚 𝑜𝑓 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛𝑠 1 𝑥= = 𝑛 𝑛 𝑥𝑖 μ = population mean Sample --> Latin letters Population --> Greek letters 5 Sample Mean: Example The following data give the time in months from hire to promotion to manager for a random sample of 20 software engineers from all software engineers employed by a large telecommunications firm. a) What is the mean time for this sample? 5 7 12 14 18 14 14 22 21 25 23 24 34 37 34 49 64 47 67 69 b) Suppose that instead of x20 = 69, we had chosen another engineer that took 483 months to be promoted. what is the mean time for this new sample? 6 Sample Median, x̃ Procedure 1. Sort n observations from smallest to largest 2. If n is odd, x̃ is the center If n is even, x̃ is the average of the two center observations 7 Sample Median: Example The following data give the time in months from hire to promotion to manager for a random sample of 20 software engineers from all software engineers employed by a large telecommunications firm. a) What is the median time for this sample? 5 7 12 14 14 14 18 21 22 23 24 25 34 34 37 47 49 64 67 69 b) Suppose that instead of x20 = 69, we had chosen another engineer that took 483 months to be promoted. what is the median time for this new sample? 8 Mean and Median Mean Median Left skew Mean Median Mean Median Right skew 9 Mode, M • The value with the greatest frequency. 10 Sample Mode: Example The following data give the time in months from hire to promotion to manager for a random sample of 20 software engineers from all software engineers employed by a large telecommunications firm. a) What is the mode for this sample? 5 7 12 14 14 14 18 21 22 23 24 25 34 34 37 47 49 64 67 69 11 Variability of Data 1 2 3 -20 Set 1 Set 2 Set 3 -10 -15 -15 -3 -10 -5 -2 0 -5 -1 -1 10 0 0 0 20 5 1 1 10 5 2 15 15 3 12 Measures of Variability • Sample range • Sample variance (sample standard deviation) • Interquartile Range (IQR) 13 Measures of Variability • Sample range • Sample variance (sample standard deviation) • Interquartile Range (IQR) 14 Measures of Variability • Sample range • Sample variance (sample standard deviation) • Interquartile Range (IQR) 15 Sample Variance 𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒 = 1 = 𝑛−1 𝑠𝑥2 1 = 𝑛−1 𝑥𝑖2 1 − 𝑛 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 = 𝑠𝑥 = (𝑥𝑖 − 𝑥)2 2 𝑥𝑖 1 𝑛−1 (𝑥𝑖 − 𝑥)2 2 = population variance 16 Comments for Standard Deviation • Variance is used to determine spread for comparisons. • s2 = 0 means that all of the observations are the same, normally s > 0 • n=1 • s is not resistant to outliers • s has the same units of measurement as the original observations 17 Sample Standard Deviation: Example The following data give the time in months from hire to promotion to manager for a random sample of 20 software engineers from all software engineers employed by a large telecommunications firm. a) What is the standard deviation for this sample? 5 7 12 14 14 14 18 21 22 23 24 25 34 34 37 47 49 64 67 69 b) Suppose that instead of x20 = 69, we had chosen another engineer that took 483 months to be promoted. what is the standard deviation for this new sample? 18 Measures of Variability • Sample range • Sample variance (sample standard deviation) • Interquartile Range (IQR) 19 Quartiles Q1 Q2 Q3 20 Quartiles - Procedure 1. Sort the values from lowest to highest and locate the median. 2. The first quartile, Q1 is the median of the lower half. a. Compute d1 = n/4 b. If d1 is an integer, then Q1 is the mean of the observations at d1 and d1 + 1 c. If d1 is not an integer, the Q1 is the observation at 𝑑1 . 3. The third quartile, Q3 is the median of the upper half. a. Computer d2 = 3n/4. b. Repeat steps 2b and 2c. 21 Quartiles: Example The following data give the time in months from hire to promotion to manager for a random sample of 19 software engineers from all software engineers employed by a large telecommunications firm. 24 7 12 14 14 14 18 21 22 23 25 34 34 37 47 49 64 100 150 a) Find the median and the quartiles. b) What is the Interquartile Range? c) Are there any outliers in this data set? 22 Outliers After finding the IQR, find the two inner fences (low and high) and the two outer fences (low and high) IFL= Q1 – 1.5(IQR) OFL= Q1 – 3(IQR) IFH = Q3 + 1.5 (IQR) OFH = Q3 + 3 (IQR) mild extreme 23 Quartiles: Example The following data give the time in months from hire to promotion to manager for a random sample of 19 software engineers from all software engineers employed by a large telecommunications firm. 24 7 12 14 14 14 18 21 22 23 25 34 34 37 47 49 64 100 150 a) Find the median and the quartiles. b) What is the Interquartile Range? c) Are there any outliers in this data set? 24 Boxplots Procedure 1. Find Q1, Q3, median and IQR 2. Calculate IFL, IFH, OFL, OFH 3. Draw a central box from Q1 to Q3. Draw a line for the median. 4. Extend lines (whiskers) from the box to the minimum and maximum values that are not outliers. 5. Put in closed circles for mild outliers and open circles for extreme outliers. 25 Boxplot: Example Boxplot of Promotion 160 140 Promotion 120 100 80 60 40 20 0 26 Distributions and Boxplots 27 Side-by-side Boxplot: Example 28 Choosing Measures of Center and Spread Choices 1. Mean and standard deviation 2. Median and IQR ALWAYS PLOT YOUR DATA! http://freshspectrum.com/wp-content/uploads/2012/09/ Hans-Rosling-Bubble-Plot-Cartoon.jpg 29 Empirical Rule 68-95-99.7 Rule 30 z-score • 𝑧𝑖 = 𝑥𝑖 −𝑥 𝑠 • z-score is a measure of relative standing • Given a set of n observations, the sum of the z-scores is 0. 31