Business statistics

Business statistics

• 1.
  Business Statistics ABM- 401 Presentedby: Hina Varshney B.Com (IV Sem) 12D012
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  Topic: Median (merits, demerits, calculation)
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  In statistics andprobability theory, the median is the numerical value separating the higher half of a data sample, a population, or a probability distribution, from the lower half. The median of a finite list of numbers can be found by arranging all the observations from lowest value to highest value and picking the middle one. (e.g., the median of {3, 3, 5, 9, 11} is 5) Median
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  (i) Simplicity: Itis very easy to calculate and is readily understood. (ii) Unaffected by Extreme Values: Median is not affected by the extreme values. It is independent of the range of series. (iii) Graphic Measurement: Median can be measured graphically. Merits
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  (iv) Qualitative Suitability:Median serves as the most appropriate average to deal with qualitative data. (v) Certainty: Median value is always certain and specific value in the series. (vi) Typical Observations: Median is often used to convey the typical observation. It is primarily affected by the number of observations rather than their size. Merits
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  (i) Lacks Representativeness: Median does not represent the measure of such series of which different values are wide apart from each other. (ii) Erratic: Median is erratic if the number of items is small. (iii) Incapable of Algebraic Treatment: Median is incapable of further algebraic treatment. Demerits
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  (iv) Effect ofFluctuations: Median is very much affected by the sampling fluctuations. (v)For computing median data needs to be arranged in ascending or descending order. (vi) It is not accurate when the data is not large. Demerits
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  Individual series  Makethe data series in ascending or descending format.  Find median item no. by the formula: Median item no. = N+1 th term 2  Find value of median considering relevant median item no. Calculation of Median
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  Discrete series  Calculatethe cf for the data series.  Find median item no. by the formula: median item no. = N+1 th term 2  Find the value of median considering relevant median item no. in cf. Calculation of Median
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  Continuous series Calculate cffor the data series. Find median item no. by the formula: median item no. = N 2 Find value of median by the formula: M= l1 + i (m-c) f Calculation of Median
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