Class Activity 4: Basic Business Statistics for Data Analysis

Topic: Measures of Dispersion, Skewness and Kurtosis

Q1. Calculate range, coefficient of range, variance, standard deviation and coefficient of variation.
Also calculate Karl Pearson’s, Bowley’s and Pearsonian coefficient of skewness and Pearsonian
coefficient of kurtosis for temperatures recorded in 1st week of month April in Pune city 35, 37, 36,
38, 36, 39, 40,33, 34, 41. Interpret the values of skewness and kurtosis and comment upon normality
of data.

x : Temp. (x- (x- (X-

x-AM
of Pune AM)^2 AM)^3 AM)^4
-
33 -3.9 15.21 231.3441
59.319
-
34 -2.9 8.41 70.7281
24.389
35 -1.9 3.61 -6.859 13.0321
36 -0.9 0.81 -0.729 0.6561
36 -0.9 0.81 -0.729 0.6561
37 0.1 0.01 0.001 0.0001
38 1.1 1.21 1.331 1.4641
39 2.1 4.41 9.261 19.4481
40 3.1 9.61 29.791 92.3521
41 4.1 16.81 68.921 282.5761
Total 60.9 17.28 712.257
gamma1 0.098259
gamma2 1.44136
Range 8
coefficient 0.11
of range
Average 36.9
Variance 6.77
SD 2.6
AM 36.9
Mode 36
median 36.5
coefficient
of 7.05
variation
sk 0.35
Q1 35.25
Q2 36.5
Q3 38.75
Sb 0.29

Conclusion-
Conclusion: Since absolute values of Pearsonian coefficient of skewness and kurtosis will are less than
2 and 7 respectively. Hence according to West et al. (1995), we conclude that Temperature data is
normally distributed.
Pearsonian coefficient of skewness = gamma1= 0.098259 >0 = 0.09<2
Pearsonian coefficient of kurtosis = gamma2= -1.44136 <0 = |-1.44|=1.44<7
Q2. Calculate range, coefficient of range, variance, standard deviation and coefficient of variation for
following frequency distribution of accidents in 200 days. Also calculate Karl Pearson’s, Pearsonian
coefficient of skewness and Pearsonian coefficient of kurtosis. Interpret the values of skewness and
kurtosis and comment upon normality of data

No. of
0 1 2 3 4 5 Total
Accidents (x)

No. of Days
46 76 38 25 10 5 ∑f=200
(frequency)

fx 0 76 76 75 40 25 292
fx ^2 0 76 152 225 160 125 738
AM 1.46
Mode 1
Median 36.5
Range 5
coefficient
01
of range
SD 1.25
CV 85.62
Mode 1
Sk 0.37

No. of No. of f(x- f(x- f(x- f(x-

Accidents(x) Days (f) fx x-AM AM) AM)^2 AM)^3 AM)^4
0 46 0 -1.46 -67.16 98.0536 -143.158 209.0111
1 76 76 -0.46 -34.96 16.0816 -7.39754 3.402867
2 38 76 0.54 20.52 11.0808 5.983632 3.231161
3 25 75 1.54 38.5 59.29 91.3066 140.6122
4 10 40 2.54 25.4 64.516 163.8706 416.2314
5 5 25 3.54 17.7 62.658 221.8093 785.205
Total 200 292 0 311.68 332.4144 1557.694
gamma1 0.85
gamma2 0.19

Conclusion-
Since absolute values of Pearsonian coefficient of skewness and kurtosis will are less than 2 and 7
respectively. Hence according to West et al. (1995), we conclude that Accident in 200 days data is
normally distributed.

Pearsonian coefficient of skewness =0.85>0 i.e. Positively skew data

Pearsonian coefficient of kurtosis =0.19>0, i.e. Leptokurtic data
Q3. Calculate range, coefficient of range, variance, standard deviation and coefficient of variation for
following frequency distribution of marks of 30 students. Also calculate Karl Pearson’s, Pearsonian
coefficient of skewness and Pearsonian coefficient of kurtosis. Interpret the values of skewness and
kurtosis and comment upon normality of data.

x=Marks of students x 0 1 2 3 4 5 6 7 8 9 10 Total

f=No. of Students f 1 2 2 4 4 6 3 2 4 1 1 ∑f=30

No. Of
Marks of
Studen f(x- f(x- f(x-
Students
ts f(x) x-AM AM)^2 AM)^3 AM)^4
-
0 1
0 -4.9 24.01 117.649 576.4801
-
1 2
2 -3.9 30.42 118.638 462.6882
2 2 4 -2.9 16.82 -48.778 141.4562
3 4 12 -1.9 14.44 -27.436 52.1284
4 4 16 -0.9 3.24 -2.916 2.6244
5 6 30 0.1 0.06 0.006 0.0006
6 3 18 1.1 3.63 3.993 4.3923
7 2 14 2.1 8.82 18.522 38.8962
8 4 32 3.1 38.44 119.164 369.4084
9 1 9 4.1 16.81 68.921 282.5761
10 1 10 5.1 26.01 132.651 676.5201
Total 30 147 182.7 27.84 2607.171
AM 4.9
SD 2.47
CV 50.41
Range 10
coefficient
1
of range
gamma 1 0.06
gamma 2 -0.67

Conclusion-
Since absolute values of Pearsonian coefficient of skewness and kurtosis will are less than 2
and 7 respectively. Hence according to West et al.(1995) since |skewness|<2, |kurtosis|<7,
the distribution of marks of 30 students is Normal.

Pearsonian coefficient of skewness= gamma1= 0.06

Pearsonian coefficient of kurtosis= gamma2= -0.67

Q4. Calculate range, coefficient of range, quartile deviation, coefficient of quartile deviation,
variance, standard deviation and coefficient of variation for following frequency distribution of
marks. Also calculate Karl Pearson’s, Pearsonian coefficient of skewness and Pearsonian coefficient
of kurtosis. Interpret the values of skewness and kurtosis and comment upon normality of data.

Marks of
0-2 2--4 4--6 6--8 8--10 Total
students
f=No. of
2 8 25 10 5 ∑f=50
Students

Mid point 1 3 5 7 9
fx 2 24 125 70 45 266
(x-AM) -4.32 -2.32 -0.32 1.68 3.68
f(x-AM) -8.64 -18.56 -8 16.8 18.4 0
f(x-AM)^2 37.32 43.06 2.56 28.22 67.71 178.9
f(x-AM)^3 -161.24 -99.9 -0.82 47.42 249.18 34.64
f(x-AM)^4 696.57 231.76 0.26 79.66 916.98 1925.24
gamma1= 0.10
gamma2= 0.02
AM 5.2
SD 1.89
Range 10
CV 35.53
Mode 5
Coefficient
of Range 1
Q1 5
Q2 8
Q3 10
Quartile
Deviation 2.5
Coefficient
of Quartile
Deviation 0.33
Variance 1.37

Conclusion-
Conclusion: Since absolute values of Pearsonian coefficient of skewness and kurtosis are less than 2
and 7 respectively. Hence according to West et al. (1995), the distribution of marks is normal.

Pearsonian coefficient of skewness =0.10>0 i.e. Positively skew data.

Pearsonian coefficient of kurtosis =0.02>0, i.e. Leptokurtic data.
Q5. Following is a frequency distribution for profits. Calculate range, coefficient of range, variance,
standard deviation and coefficient of variation. Also calculate Karl Pearson’s, Pearsonian coefficient
of skewness and Pearsonian coefficient of kurtosis. Interpret the values of skewness and kurtosis
and comment upon normality of data.

Profit (‘000 Rs) 0-5 5-10 10-15 15-20 20-25 Total

f=No. of Students 2 2 8 4 4 ∑f=20

Profit (‘000 f=No. x fx x-AM f(x- f(x-AM)^2 f(x-AM)^3 f(x-AM)^4

Rs) of AM)
Studen
ts
0-5 2 2.5 5 -11.5 -57.5 661.25 -7604.38 87450.31
5--10 2 7.5 15 -6.5 -97.5 633.75 -4119.38 26775.94
10--15 8 12.5 100 -1.5 -150 225 -337.5 506.25
15-20 4 17.5 70 3.5 245 857.5 3001.25 10504.38
20-25 4 22.5 90 8.5 765 6502.5 55271.25 469805.6
Total 20 280 -7.5 705 8880 46211.25 595042.5
gamma1 0.25
gamma2 -2.85
Range 25
Mode 12.5
SD 21.07
AM 14
Mode 12.5
Coefficient 1
of Range
CV 150.5

Conclusion-
Since absolute values of Pearsonian coefficient of skewness and kurtosis will are less than 2 and 7
respectively. Hence according to West et al.(1995) since |skewness|<2, |kurtosis|<7, the distribution
of profits is Normal.

Pearsonian coefficient of skewness =0.25>0 i.e. Positively skew data

Pearsonian coefficient of kurtosis = -2.58<0, i.e. Platykurtic data

Q6.The 2000 U.S. Census also asked for each person’s age. Suppose that a sample of 40
households taken from the census data showed the age of the first person recorded on the
census form to be as follows.
42 29 31 38 55 27 28
33 49 70 25 21 38 47
63 22 38 52 50 41 19
22 29 81 52 26 35 38
29 31 48 26 33 42 58
40 32 24 34 25
Calculate Karl Pearson’s, Bowley’s and Pearsonian coefficient of skewness and Pearsonian
coefficient of kurtosis and interpret the values for following frequency distribution of marks.
Also comment upon normality of data. Compute P10, P80, the interquartile range, and the
range for these data.

x x-AM (X-AM)^2 (X-AM)^3 (X-AM)^4

19 -19.08 363.86 -6940.55 132390.92

21 -17.08 291.56 -4978.31 85004.68

22 -16.08 258.41 -4153.87 66773.47

22 -16.08 258.41 -4153.87 66773.47

24 -14.08 198.11 -2788.34 39245.84

25 -13.08 170.96 -2235.24 29225.83

25 -13.08 170.96 -2235.24 29225.83

26 -12.08 145.81 -1760.60 21259.28

26 -12.08 145.81 -1760.60 21259.28

27 -11.08 122.66 -1358.41 15044.40

28 -10.08 101.51 -1022.67 10303.39

29 -9.08 82.36 -747.38 6782.45

29 -9.08 82.36 -747.38 6782.45

29 -9.08 82.36 -747.38 6782.45

31 -7.08 50.06 -354.14 2505.57

 31 -7.08 50.06 -354.14 2505.57

32 -6.08 36.91 -224.20 1362.03

33 -5.08 25.76 -130.71 663.35

33 -5.08 25.76 -130.71 663.35

34 -4.08 16.61 -67.67 275.75

35 -3.08 9.46 -29.08 89.41

38 -0.08 0.01 0.00 0.00

38 -0.08 0.01 0.00 0.00

38 -0.08 0.01 0.00 0.00

38 -0.08 0.01 0.00 0.00

40 1.93 3.71 7.13 13.73

41 2.93 8.56 25.03 73.20

42 3.93 15.41 60.47 237.33

42 3.93 15.41 60.47 237.33

47 8.93 79.66 710.93 6345.02

48 9.93 98.51 977.67 9703.36

49 10.93 119.36 1303.96 14245.77

50 11.93 142.21 1695.80 20222.44

52 13.93 193.91 2700.14 37599.39

52 13.93 193.91 2700.14 37599.39

55 16.93 286.46 4848.26 82056.83

58 19.93 397.01 7910.34 157613.47

63 24.93 621.26 15484.80 385958.55

70 31.93 1019.21 32538.14 1038780.11

81 42.93 1842.56 79091.70 3395011.23

Total 0.00 7726.78 113194.46 5730615.88

 Interval f x fx x-am f(x- f(x- f(x- f(x-AM)^4
AM) AM)^2 AM)^3
9.5-19.5 1 14.5 14.5 -23.5 -23.5 552.25 -12977.9 304980.1
19.5-29.5 13 24.5 318.5 -13.5 -175.5 2369.25 -31984.9 431795.8
29.5-39.5 11 34.5 379.5 -3.5 -38.5 134.75 -471.625 1650.688
39.5-49.5 7 44.5 311.5 6.5 45.5 295.75 1922.375 12495.44
49.5-59.5 5 54.5 272.5 16.5 82.5 1361.25 22460.63 370600.3
59.5-69.5 1 64.5 64.5 26.5 26.5 702.25 18609.63 493155.1
69.5-79.5 1 74.5 74.5 36.5 36.5 1332.25 48627.13 1774890
79.5-89.5 1 84.5 84.5 46.5 46.5 2162.25 100544.6 4675325
Total 40 1520 92 0 8910 146730 8064893
gamma 1 1.1
gamma 2 1.07
AM 38.08
Mode 38
SD 14.92
CV 7.05
Range 62
Coefficient 0.62
of range:
Q1 27.75
Q2 34.5
Q3 47.25
sk 0.31

Conclusion-
Conclusion: Since absolute values of Pearsonian coefficient of skewness and kurtosis are less than 2
and 7 respectively. Hence according to West et al. (1995), we conclude that age of people in 40
households is normally distributed.