Chapter3(continued)-UniversityofSouthAlabama.pptVIP

Chapter 3 (continued) Nutan S. Mishra Exercises 3.11-3.15 Size of the data set = 12 for all the five problems In 3.11 variable x1 = monthly rent of an apartment ($) In 3.12 variable x2 = monthly phone bill ($) In 3.13 variable x3 = price of gasoline ($/gallon) In 3.14 variable x4 = amount paid to doctor ($/month) In 3.15 variable x5 = prices of beer in a city ($) More description of the variables is given on page 82 Since all these five variables describe the amount of money, they are all continuous variables. They may take values between 0 to infinity. Note Most of the statistical software including minitab prefer the raw (ungrouped) data as input and not the grouped data. Shapes of frequency distributions Bell-shapedA bell-shaped picture, shown here, usually represents a normal distribution  BimodalA bimodal shape, shown here, has two peaks. This shape may show that the data has come from two different systems. If this shape occurs, the two sources should be separated and analyzed separately. Shapes of frequency distributions Parameters and Statistics Values of different numerical measures for population are called population parameters. For example population mean μ and population standard deviation σ are population parameters Values of different numerical measures for sample are called sample statistics. For example sample mean and sample standard deviation s are sample statistics. When the population is very very large, (most often) the population parameters are unknown and then we use sample statistics instead. Interpreting the Standard Deviation Given two samples from a population, the sample with the larger standard deviation (SD) is the more variable Example : We are using the SD as a relative or comparative measure How does the SD provide a measure of variability for a single sample or, what does 29.6 really mean? Interpreting the Standard Deviation (continued) Consider the list of numbers: 10, 20, 30, 45, 50, 70, 85, 90 How many measurements ar