GROUP 3 THE WEIGHTED MEAN AND WORKING WITH GROUPED DATA DEFINITION: The weighted mean is a type of mean that is calculated by multiplying the weight (or probability) associated with a particular event or outcome with its associated quantitative outcome and then summing all the products together. It is very useful when calculating a theoretically expected outcome where each outcome shows a different probability of occurring. The weighted mean is relatively easy to find. But in some cases, the weights might not add up to 1. In those cases, you will need to use the weighted mean formula. Formula: Weighted mean = This implies that Weighted Mean = Where; ∑ denotes the sum W is the weights X is the value In cases where the sum of weights is 1, Weighted mean = Calculation of Weighted Mean (Step by Step) Step 1: List the numbers and weights in tabular form. Step 2: Multiply each number and relevant weight assigned to that number (w1*x1, w2* x2 ,…) Step 3: Add the numbers obtained in Step 2 (∑x1w1) Step 4: Find the sum of the weights (∑w1) Step 5: Divide the total of the values obtained in Step 3 by the sum of the weights obtained in Step 4 (∑x1w1/∑w1) In the case where the result in Step 4 is 1, then the sum of the values obtained in Step 3 will be the weighted mean. Worked example; Numbers Weights 7 3 10 4 5 7 11 10 8 5 Calculate for the weighted mean. Solution; Weighted mean = = = = =8.48 Therefore, the weighted mean is 8.48 CALCULATING FOR WEIGHTED MEAN USING EXCEL Steps: 1. Draw a table with two columns with one column containing points and the other containing their weights. Activity Points Weight (%) Assignment 87 10% Project 92 20% Recitation 95 15% Quizzes 88 5% Major Tests 93 30% Final Exams 91 20% 2. Calculate for the SUM of weights in another cell. (=SUM(C3,C4,C5,C6,C7,C8) Activity Assignment Project Recitation Quizzes Major Tests Final Exams Points 87 92 95 88 93 91 Using SUM: Weight (%) 10% 20% 15% 5% 30% 20% 100% 3. Calculate the SUMPRODUCT (multiply each point by its weight and then calculate their sum in order to get the sum product.) (=SUMPRODUCT(B3:B8,C3:C8) Activity Assignment Project Recitation Quizzes Major Tests Final Exams Points 87 92 95 88 93 91 Weight (%) 10% 20% 15% 5% 30% 20% Using SUM: Using SUMPRODUCT: 100% 91.85 4. Now calculate for the weighted mean by dividing the SUMPRODUCT by the SUM of the weights and press ENTER to get the result. (=C12/C11) Activity Assignment Project Recitation Quizzes Major Tests Final Exams Points 87 92 95 88 93 91 Using SUM: Using SUMPRODUCT: WEIGHTED MEAN: Weight (%) 10% 20% 15% 5% 30% 20% 100% 91.85 91.85 Therefore, the weighted mean is 91.85 WORKING WITH GROUPED DATA Definition: Grouped data is a type of data which is classified into groups after collection. The raw data is classified into various groups and a table is created. The purpose of the table is to show the data points occurring in each group. For instance, when a quiz is conducted, the results are the data in this scenario and there are many ways to group this data. 1. The number of students that scored above 15marks in the quiz can be recorded and the number students who scored below 15marks can be recorded. 2. The results can be recording in grades. For example, 15-20 is A and 0-5 is E. Frequency table and histograms are best used to show and interpret grouped data. CALCULATING WEIGHTED MEAN USING GROUPED DATA The weighted mean computation can be used to obtain approximations of the mean, variance, and standard deviation for the grouped data. To compute the weighted mean, we treat the midpoint of each class as though it were the mean of all items in the class. We compute a weighted mean of the class midpoints using the class frequencies as weights. Similarly, in computing the variance and standard deviation, the class frequencies are used as weights. Example. In a study of diabetic patients in a village, the following observations were noted. Find the mean. Ages Number of patients 15 - 25 3 25 - 35 6 35 - 45 13 45 - 55 20 55 - 65 10 65- 75 5 Solution; Ages 15 - 25 25 - 35 35 - 45 45 - 55 55 - 65 65- 75 TOTAL Number of patients(f) Midpoint(x) fx 3 20 60 6 30 180 13 40 520 20 50 1000 10 60 600 5 70 350 57 2710 Mean = = =47.54385965 Therefore, the mean is 47.54385965 ̅ ̅ ̅ midpoint(x) ( 3 20 -27.5 756.25 2268.75 6 30 -17.5 306.25 1837.5 13 40 -7.5 56.25 731.25 20 50 2.5 6.25 125 10 60 12.5 156.25 1562.5 5 70 22.5 506.25 2531.25 Number of patients(f) TOTAL 57 Variance = = = = 161.72 ̅ 9056.25 REFERENCES: 1. Basic statistics for business and economics (9th edition) LIND MARCHAL WATHEN 2. Statistics for business and economics (8th edition) Paul Newbold, William L. Carlson, Betty M. Thorne