Statistics

and
Probabilities
1st year C.S
Prepared by
Dr/ Maisaa Mohamed
 ‫رؤيـة ورســالة األكاديمية الحديثة‬
‫• الرؤيــة ‪:‬‬

‫تتطلع األكاديمية الحديثه لعلوم الكمبيوتر وتكنولوجيا اإلدارة إلى أن تكون متميزة‬
‫فى مجاالت تخصصاتها لمسايرة المستجدات المحلية واإلقليمية والعالمية فى سوق‬
‫األعمال‪.‬‬

‫• الرسالة ‪:‬‬

‫تلتزم األكاديمية الحديثه لعلوم الكمبيوتر وتكنولوجيا اإلدارة بإعداد كوادر متخصصة فى‬

‫مجاالت علوم الحاسب اآللى وإدارة األعمال والمحاسبة والمراجعة واقتصاديات التجارة‬

‫الدولية ونظم معلومات األعمال وذلك إلمداد المجتمع المحلى والعربى بالكوادر البشرية‬

‫المؤهلة والمزودة باألسس النظرية والتطبيقية الالزمة لسوق العمل فى التخصصات‬

‫المذكورة‪ ،‬ومن خالل االستفادة من جميع الموارد المتاحة تواكب األكاديمية التطورات‬

‫العلمية والتكنولوجية بأنشطتها البحثية كما تساهم فى خدمة المجتمع وتنمية البيئة فى‬

‫محيطها‪ ،‬ويتم ذلك فى إطار من اإللتزام بالقيم األخالقية والعلمية المتعارف عليها‪.‬‬
Vision:
Achieving excellence in its fields of specializations to be in line with the local,
regional, and international updates in the labor market.

Mission
Modern academy is committed to preparing professional graduates specialized
in the fields of Computer Science, Business Administration, Accounting and
Auditing, Economics of International Trade and Business Information Systems
to provide the regional and Arab community with qualified cadres equipped with
theoretical and professional foundations required in the labor market in the
aforementioned fields. By utilizing all the available resources, the academy
keeps up with the scientific and technological advancements through research
activities in addition to participating in serving the society and developing the
surrounding environment, all this within a frame of commitment to the
recognized moral and scientific values.
 ‫رؤية برنامج علوم الحاسب‬
‫ في ضوء المعايير المعتمدة لجودة‬،‫تحقيق التميز في مجال علوم الحاسب محليا و إقليميا و دوليا‬
.‫التعليم‬
▪ Computer Science Program Vision
Achieving excellence in the field of Computer Science locally, regionally and
internationally, in view of the approved standards of the quality of education.

‫رسالة برنامج علوم الحاسب‬

‫يلتزم برنامج علوم الحاسب باألكاديمية الحديثة لعلوم الكمبيوتر و تكنولوجيا اإلدارة بتقديم خدمات‬
‫تعليمية مطورة تواكب معايير جودة التعليم بما يسهم في إعداد خريج متميز له القدرة على المنافسة في‬
‫ و لديه القدرة على إجراء أبحاث علمية متقدمة و تقديم خدمات فعالة‬,‫تخص ص علوم الحاسب‬
. ‫للمجتمع و البيئة المحيطة‬
▪ Computer Science Program Mission
The Computer Science program in the Academy is committed to providing
updated educational services that match the standards of the quality of
education, in order to prepare a distinguished graduate having the ability to
compete in the field of computer science, conduct advanced scientific
researches and provide effective services to the society and surrounding
environment.
 Modern Academy for Computer Science
And Management Technology in Maadi
Department: Basic Sciences

Course Specifications

1- 1- Basic Information
Academic year / Level:1 st Year/2nd term Specialization: Computer Science
Title: Statistics & Probabilities Code: - BS110
Lecture: 2 Tutorial: 2 Practical: ---- Total: 3 (Hour/week)
2 – Overall Aims On completion of this course the successful student will be able to:
of Course: Enable graduates to exhibit a high level of practical and theoretical skills in Mathematics with knowledge
of currently available techniques and technologies.
Explore the principles that support developments in Mathematics. Teach students basic mechanisms for
following and learning the continuous progress in Mathematics.
3 – Intended Learning Outcomes of Course (ILOs):
A-Knowledge On completion of this course student will have knowledge and understanding of:
and a1.Recognizes the concepts of Probability.[A13]
Understanding a2 - Explain mechanisms and method Probability.[A1]
: a3 - Demonstrate statistical methods to computer science applications.[A2]
On completion of this course the successful student will be able to:
B-Intellectual b1 – Realize various type of data in statistics and using the appropriate method of Solving the
Skills: related statistical model.[B3]

C-Professional On completion of this course the successful student will be able to:
and Practical c1- solve different exercises of Probability.[C4]
c2 – Explain how to treat a computer model as a statistical model.[C6]
Skills:
On completion of this course the successful student will be able to:
D-General and
d1. Search for other Methodologies in specific topics related to Probability.[D1]
Transferable d2 – Learn how to transform the solution of Statistical model to the solution of desired computer
Skills: model.[D7]

Week No Contents
4-Contents: 1 An Introduction to Statistics,( Types of Statistics , Types of Variables, Levels of Measurements,)
Organizing and Graphing Data,( Frequency Distributions, Relative Frequency and Percentage
2 Distributions, Stem and Leaf Plots, Graphing for Quantitative Data, Graphing for Qualitative
Data,
Measures of Central Tendency (for mean, median, mode , Relationships Among the Mean,
3 Median,)
Measures of Dispersion, (The Range, Variance and Standard Deviation, Measures of Position,
4 Measures of Skewness,
Sample space, probability axioms, combinatorial techniques, conditional probability
5 independence and Bays" Random variables;
Probability Distribution (The Concept of a Random Variable, Discrete Random Variable and
Distribution Function, Mean and Variance for Discrete Random Variable, Continuous Random
6 Variable and Distribution Function, Mean and Variance for Continuous Random Variable,
Important continuous Probability Distribution,
Estimation,( Point and interval Estimation, Estimation of population mean 𝝈 is known, Estimation
7 of population 𝝈 is unknown, Estimation of population proportion larges samples,
Hypothesis Testes, (Concepts of Hypothesis Testing, Hypothesis Testes about mean 𝝈 Known,
8 Hypothesis Testes about mean 𝝈 unknown, one -way analysis of variance,
 Lectures: ( √ ) - Exercises: (√ ( Practical training: ( X )
5–Teaching and -Open Discussion: ( √ ) - Projects: (X ) Presentation: ( √ )
-Web-Site searches: ( √ ) - Self Studies: (√ ) E. Learning: ( √ )
Learning - Chat Room ( √ ) Virtual class ( X ) Case Study: ( X )
Methods: - Voice Lectures ( √ ) Movie Lectures ( √ ) Virtual lab ( X )
- Others (list): ( X ) Simulation lab ( X )

6-Student Assessment Methods:

A-Student - Assignments. ( √ ) - Quizzes ( √ ) - Reports ( X )

Assessment - Researches ( X ) - Projects ( X ) - Discussions ( √ )
Methods: -Presentations ) X ) - Participation ( √ ) - Midterm Exam ( √ )
- Practical Exam. ( X ) - Open Book Exam ( X ) - Oral Exam ( X )
- Final Exam. ( √ ) Others (list)

Assessment method Week no.

B-Assessment 1. Assignments Every week from 2 to 14
Schedule: 2-Quizzes Weeks 4 and 11
3- Discussions During semester
4- Participations During semester
5- Midterm written exam Week 7
6- Final exam Week 16
Assessment Method Marks Percentage (%)
C-Weighting of 1- Assignments
Assessments: 2-Quiz
20 20%
1-Year work 3- Discussions
4- Participations
6-Midterm Exam 20 20
2-Final Exam 60 60%
Total 100 100%

7-List of References:
A-lecture notes. Lecture Notes, “Probability”, staff members, Modern Academy for Computer Science and
Management Technology.
B- Essential books [1]Probability and statistics for Engineers and Scientists, Anthony Hayter -4th edition,2006.
(text books) [1] Howard Anton, Elementary linear algebra, John Wiley & Sons, Inc., 2013.
[2] David C. Lay, Linear algebra and its application (3rd Edition) Addison Wesley, 2002.
[3]Probability and statistics for Engineers and Scientists,Anthony Hayter –Nelson Education,2012.
[4]Ross, Sheldon. “Probability and statistics foe engineers and scientist”. Vol.16, no. m2. Elsevier, New
Delhi, 2009.
C- Recommended
………………………………………………………………………………………
Books
D- Periodicals, Web-
Sites, etc…. …………………………………………………………………………………..

9- Facilities and 1- White Board √ 2-PC / Laptop √

teaching Lecture√..Class√ Lab Lecture√.. Class….. Lab
materials: 3- Printers 4- Data Show √
Lecture…..Class….. Lab… Lecture√ .Class Lab
5- White Board for Presentation √ 6- Laser Pointer ...
7- Laboratories(List): - 8- Software Packages (list): --
Computer labs
 Virtual lab Simulation lab
9- Library ... 10- E. Library √
(i,e. Ebsco, IEEE, Egyptian
knowledge Bank, etc)
11-Webinars: √ 12-Chat Room: √
Moodle √ Zoom √ YouTube What’sUp √
WebEx MS’Teams √ FaceBook Messenger √
Others(list): Imo Viber line skype
Telegram Others(list)
13- Social Media Networks: √ 14- Website/ Mobile Application
Facebook √ LinkedIn
Others(list):
15- Internet connection √ 16- Recording movie System √
(Cable or Wireless) ( Camera, mic, speaker, etc)
17- Supplies and raw materials 18- Others(list):
(list)
- Course Coordinator: Dr. Maisaa Mohamed Signature:…………
- Head of Department: Associated Prof, . Hala Meqdad Signature:…………
Date: / /
 Course Intended Learning Outcomes
Year: 2022-2023 Academic term : 2nd term
Title: Statistics & Probabilities Code: BS110
Academic year /level: 1st year Specialization: CS

d.General Skills
Understanding

c.Professional
a. Knowledge

b.Intellectual
Skills

Skills
and
Hours

Lec.

Tut.

b1

d1

d2
a1

a2

a3

c1

c2
Course Content
confidence interval estimates (for mean, 6 2
proportions. Differences, sums, variances, and √ √ √ √ √
variance ratios), maximum likelihood estimates.
Curve fitting, regression and correlation: Method 8 2 √
of least squares, multiple regression,( linear √ √ √ √ √ √
generalized and rank) correlation. Correlation
and dependence.
Sample space, probability axioms, combinatorial 8 4 √
techniques, conditional probability independence √ √ √ √
and Bays" Random variables;
distribution functions, moments and generating 6 4 √ √ √ √ √
function. Some probability distributions
Teaching and learning methods versus Intended Learning Outcomes
Year: 2022-2023 Academic term : 2nd term
Title: Statistics & Probabilities Code: BS110
Academic year /level: 1st year Specialization: CS
a.Knowledge b.Intellectual c.Professional
Teaching &Understanding Skills Skills d.General Skills
b1

d1

d2
a1

a2

a3

c1

c2
Activities
Lectures √ √ √ √ √
Exercises √ √ √ √ √ √ √ √
Open Discussion √ √ √ √ √ √
Self Studies √ √ √ √ √ √ √ √
Presentation √ √ √ √ √
Web-site search √ √ √
E.Learning √ √ √ √ √ √ √ √
Movie Lecture √ √ √ √ √ √
Voice Lecture √ √ √ √ √ √
Chat Room √ √ √ √ √ √ √ √
Course Assessment Methods versus Intended Learning Outcomes
Year: 2022-2023 Academic term : 2nd term
Title: Statistics & Probabilities Code: BS110
Academic year /level: 1 year st
Specialization: CS
a.Knowledge b.Intellectual c.Professional d.General
&Understanding Skills Skills Skills
b1
a1

a2

a3

c1

c2

d1

d2

Methods Of Evaluating ILO's

1 – Assignments √ √ √ √ √ √ √ √
2- Written Exam (Final+ midterm) √ √ √ √ √ √
3-Quizes √ √ √ √
4- Participations √ √ √ √ √ √ √ √
5-Discussions √ √ √ √ √ √ √ √
 Table of Contents
CHAPTER I ........................................................................................ 6
An Introduction to Statistics ............................................................... 6
1.1 What is Statistics…………………………………………………………………………….6
1.2 Types of Statistics…………………………………………………………………………..7
1.3 Types of Variables………………………………………………………………………….9
1.4 Levels of Measurements……………………………………………………………….12
Exercises (1) .................................................................................... 16
CHAPTER II ...................................................................................... 21
Organizing and Graphing Data ........................................................... 21
2.1 Frequency Distributions……………………………………………………………….21
2.2 Relative Frequency and Percentage Distributions………………………..29
2.3 Stem and Leaf Plots……………………………………………………………………..32
2.4 Graphing for Quantitative Data……………………………………………………38
2.5 Graph for Qualitative Data…………………………………………………………..45
Exercises (2) .................................................................................... 53
CHAPTER III ..................................................................................... 60
Measures of Central Tendency .......................................................... 60
3.1 The Mean……………………………………………………………………………………..60
3.2 The Median…………………………………………………………………………………..66
3.3 The Mode……………………………………………………………………………………..70
3.4 Relationships Among the Mean, Median, and Mode…………………….73
Exercises (3) .................................................................................... 78
CHAPTER IV ..................................................................................... 83
Measures of Dispersion .................................................................... 83
4.1 The Range…………………………………………………………………………………….83
4.2 Variance and Standard Deviation………………………………………………….86
4.3 Measures of Position…………………………………………………………………….97

1
 4.3.1 Inter Quartile Range (IQR)……………………………………………………98
4.3.2 Coefficient of Variation……………………………………………………….101
4.4 Measures of Skewness……………………………………………………………….102
Exercises (4) .................................................................................. 110
CHAPTER V.................................................................................... 114
Probability .................................................................................... 114
5.1 Experiment, Outcome, Sample spaces and events………………………114
5.2 Approaches of Probabilities…………………………………………………………117
5.2.1 Classical Probability………………………………………………………………117
5.2.2 Empirical Probability…………………………………………………………….119
5.2.3 Subjective Probability……………………………………………………………120
5.3 Probability Rules………………………………………………………………………….120
5.4 Conditional Probability and Independence………………………………….124
5.5 Bayes'Theorem……………………………………………………………………………127
5.6 Probability Reference List……………………………………………………………130
Exercises (5) ................................................................................. .134
CHAPTER VI .................................................................................. .139
Probability Distribution ................................................................. .139
6.1 The Concept of a Random Variable…………………………………………….139
6.1.1 Probability Distribution…………………………………………………….140
6.2 Discrete Random Variable and Distribution Function………………….141
6.3 Mean and Variance for Discrete Random Variable……………………..143
6.4 Important Discrete Probability Distribution………………………………..148
6.5 Continuous Random Variable and Distribution Function…………….156
6.6 Mean and Variance for Continuous Random Variable…………………161
6.7 Important continuous Probability Distribution……………………………163
Exercises (6) .................................................................................. 177
CHAPTER VII .................................................................................. 184
Estimation .................................................................................... 184
7.1 Point and interval Estimation……………………………………………………..184

2
 7.2 Estimation of population mean 𝝈 is known………………………………186
7.3 Estimation of population 𝝈 is unknown…………………………………….191
7.4 Estimation of population proportion larges samples…………………195
CHAPTER VIII ................................................................................. 204
Hypothesis Testes .......................................................................... 204
8.1 Concepts of Hypothesis Testing………………………………………………….204
8.2 Hypothesis Testes about mean 𝝈 Known……………………………………205
8.3 Hypothesis Testes about mean 𝝈 unknown………………………………..213
8.4 Testing for a Population Proportion……………………………………………216
8.5 one -way analysis of variance……………………………………………………..219
8.5.1 Calculating the Value of the Test Statistic…………………………….220
Exercises (8) .................................................................................. 223
Appendix ...................................................................................... 226
References .................................................................................... 229

3
4
GOALS of CHAPTER 1

1- Understand why we study statistics.

2- Explain what is meant by descriptive statistics

and inferential statistics.

3- Distinguish between a qualitative variable and a

quantitative variable.

4- Describe how a discrete variable is different from

a continuous variable.

5- Distinguish among the nominal, ordinal, interval,

and ratio levels of measurement.

5
 CHAPTER I

An Introduction to Statistics

1.1 What is Statistics

Statistics is the science of data. It involves
collecting, classifying, summarizing, organizing,
analyzing, and interpreting numerical information.

Statistical analysis used to summarize, and

investigate data, so that useful decision-making
information results.
Why study Statistics?

1. Data are everywhere

2. Statistical techniques are used to make many
decisions that affect in our life

6
 3. No matter what your career, you will make
professional decisions that involve data. An
understanding of statistical methods will help you
make these decisions efectively
Application Areas

Statistics: Two Processes

Describing sets of data and Drawing conclusions (making
estimates, decisions, predictions, etc. about sets of data
based on sampling).
1.2 Types of Statistics

7
(i) Descriptive Statistics

Descriptive statistics Methods of organizing,

summarizing, and presenting data in an informative way

(ii) Inferential Statistics

The methods used to determine something about a
population on the basis of a sample

8
 The field of inferential statistics enables you to
make educated guesses about the numerical
characteristics of large groups. The logic of sampling
gives you a way to test conclusions about such groups
using only a small portion of its members.

A Population The entire set of individuals or objects of

interest or the measurements obtained from all individuals
or objects of interest (consists of all items or individuals
about which you want to reach conclusions )

A Sample A portion, or part, of the population of

interest
1.3 Types of Variables
A variable is an item of interest that can take on
many different numerical values.

Statistical data are usually obtained by counting or

measuring items. Most data can be put into the following
categories:

Qualitative or Attribute variable the characteristic

being studied is nonnumeric.

9
 Examples, Gender, religious affiliation, type of
automobile owned, state of birth, eye color are examples.

Quantitative variable information is reported

numerically.

Examples, balance in your checking account,

minutes remaining in class, or number of children in a
family.

(i) Quantitative Variable – Classifications

Quantitative variables can be classified as either

discrete or continuous.
A. Discrete variables: can only assume certain values
and there are usually “gaps” between values.
Examples, the number of bedrooms in a house, or
the number of hammers sold at the local Home Depot
(1,2,3,…,etc).

B. Continuous variable can assume any value within a

specified range.

Examples: The pressure in a tire, the weight of a pork

chop, or the height of students in a class.

10
(ii) Qualitative Variable

Qualitative data are generally described by words or

letters. They are not as widely used as quantitative data

because many numerical techniques do not apply to the

qualitative data. For example, it does not make sense to

find an average hair color or blood type.

Qualitative data can be separated into two subgroups:

dichotomic (if it takes the form of a word with two

options (gender - male or female)

polynomic (if it takes the form of a word with more than

two options (education - primary school, secondary
school and university).

11
1.4 Levels of Measurements

Data can be classified according to levels of

measurements. The level of the data often dictates the
calculations that can be done to summarize and present
the data. It will also determine the statistical tests that
should be performed. There are actually four levels of
measurements: nominal, ordinal, interval and ratio level.
(1) Nominal level Data
Data that is classified into categories and cannot be
arranged in any particular order.
Examples, eye color, gender, religious affiliation

(2) Ordinal level Data

The second level of measurement is the ordinal
level of measurement. Involves data arranged in some
order, but the differences between data values cannot be
determined or are meaningless.
Examples, During a taste test of 4 soft drinks, Mellow
Yellow was ranked number 1, Sprite number 2, Seven-up
number 3, and Orange Crush number 4

12
(3) Interval level Data
The third level of measurement is the interval level
of measurement. Similar to the ordinal level, with the
additional property that meaningful amount of differences
between data values can be determined. There is no
natural zero point.
Examples, Temperature on the Fahrenheit scale
(4) Ratio level Data
The fourth level of measurement is the ratio level of
measurement. In this level of measurement, the
observations, in addition to having equal intervals, can
have a value of zero as well. The zero in the scale makes
this type of measurement unlike the other types of
measurement, although the properties are similar to that
of the interval level of measurement. In the ratio level of
measurement, the divisions between the points on the
scale have an equivalent distance between them.

13
Glossary of Chapter I

Data or data set Collection of observations or

measurements on a variable.
Descriptive statistics Collection of methods for
organizing, displaying, and describing data using tables,
graphs, and summary measures.
Discrete variable A (quantitative) variable whose values
are countable.
Element or member A specific subject or object included
in a sample or population.
Inferential statistics Collection of methods that help
make decisions about a population based on sample
results.
Population or target population The collection of all
elements whose characteristics are being studied.
Qualitative or categorical data Data generated by a
qualitative variable.
Qualitative or categorical variable A variable that cannot
assume numerical values but is classified into two or
more categories.

14
Quantitative data Data generated by a quantitative
variable.
Quantitative variable A variable that can be measured
numerically.
Random sample A sample drawn in such a way that each
element of the population has some chance of being
included in the sample.
Representative sample A sample that contains the same
characteristics as the corresponding population.
Sample A portion of the population of interest.
Statistics Group of methods used to collect, analyze,
present, and interpret data and to make decisions.
Variable A characteristic under study or investigation that
assumes different values for different elements.

15
 Exercises (1)
1. What is statistics?

2. In one year, television conducted a survey of

viewers' views on program development that year
for the previous year. The same was taken by the
viewers of television programs in Cairo in the age
group (20-40) size of 1000 viewers - each was
asked about the development of programs in that
year or not.
Required:
1. Identify the statistical population
2. Define the variable of the study
3. Describe the study sample
4. Describe statistical inference
3. If we consider the students of the third grade in the
Faculty of Commerce, Cairo University, who
conducted the exam of the principles of economics
in the academic year 2018-2019 and assuming that
the interest of the professor who teaches this article
with the average student

16
 Required
1. Describe the statistical population under study.
2. Define the variable under study.
3.If the degree of each student is registered, is this a
population survey or sample survey?

4. Regular maintenance is usually performed every 6

months for the upper bridges in one of the countries
where the examination is done through several
variables showing the efficiency of the bridge -
Here are some of these variables
1. Maximum width of the bridge (m)
2. Number of corridors for vehicles in the bridge
3. Average daily traffic density
4.The condition of the bridge floor (good - medium
- bad)
5. Length of side turns for entry or exit (m)
Required
Determine which of the preceding variables is
considered descriptive and which is considered a
qualitative variable and which is considered a
quantitative variable.

17
5. Explain the difference between quantitative data.
Give an example of quantitative and quantitative
data.

6. Explain the difference between a sample and

population.

7. List the four levels of measurement and give an

example of each level of measurement.

8. Explain the difference between a discrete and a

continuous variable. Give an example of each not
included in the text.

18
19
GOALS of the CHAPTER

1- Organize qualitative data into a frequency table.

2- Present a frequency table as a bar chart or a pie

chart.

3- Organize quantitative data into a frequency

distribution.

4- Present a frequency distribution for quantitative

data using histograms, frequency polygons, and

cumulative frequency polygons.

20
 CHAPTER II

Organizing and Graphing Data

The data that have been collected in original form

are called raw data. These raw data do not furnish any
useful information and thus, they need to be organized in
such a way that is easily comprehensible. An appropriate
way is to organize them by constructing a frequency
distribution.
When the raw data are measured on a quantitative
scale, either interval, categories or classes must be
designed for the data values before a frequency
distribution can be formulated.
2.1 Frequency Distributions
A frequency distribution records data grouped into
classes and the number of observations that fell into each
class.
A frequency distribution can be used for:
• categorical data
• numerical data that can be grouped into intervals
• numerical data with repeated observations

21
 • A percentage distribution records the percent of
the observations that fell into each class.
Class midpoint A point that divides a class into two
equal parts. This is the average of the upper- and lower-
class limits.
𝐿𝑜𝑤𝑒𝑟 𝑙𝑖𝑚𝑖𝑡 + 𝑢𝑝𝑝𝑒𝑟 𝐿𝑖𝑚𝑖𝑡
𝑚𝑖𝑑 𝑝𝑜𝑖𝑛𝑡(𝑥 ) =
2
Class frequency: The number of observations in each
class.
Class Width: Although it is not uncommon to have
classes of different sizes, most of the time it is preferable
to have the same width for all classes. To determine the
class width when all classes are the same size, first find
the difference between the largest and the smallest values
in the data. Then, the approximate width of a class is
obtained by dividing this difference by the number of
desired classes
Largest value - Smallest value
Approximate class width =
Number of classes

Constructing a Frequency Distribution

1- Determine the number of classes,usually the

number of classes for a frequency distribution table varies

22
from 5 to 20, depending mainly on the number of
observations in the data set. It is preferable to have more
classes as the size of a data set increases. The decision
about the number of classes is arbitrarily made by the data
organizer.
One rule to help decide on the number of classes is
Sturge’s formula:

c = 1 + 3.3log n
where c is the number of classes and n is the
number of observations in the data set. The value of log n
can be obtained by using a calculator.

2- Determine the class width class

Largest value - Smallest value
Approximate class width =
Number of classes

3- Determine the starting point for the first class, any

convenient number that is equal to or less than the
smallest value in the data set can be used as the
lower limit of the first class.

4- Tally the number of values that occur in each class

23
 5- Prepare a table of the distribution using actual
counts and/ or percentages (relative frequencies)
Example

The following data give the total number of iPods sold

by a mail order company on each of 30 days. Construct a
frequency distribution table.

8 25 11 15 29 22 10 5 17 21
22 13 26 16 18 12 9 26 20 16
23 14 19 23 20 16 27 16 21 14

Solution

In these data, the minimum value is 5, and the maximum

value is 29. Suppose we decide to group these data using
five classes of equal width. Then,

Largest value - Smallest value

Approximate class width=
Number of classes
29−5
Approximate width of each class = = 4.8
5

Now we round this approximate width to a convenient

number, say 5. The lower limit of the first class can be
taken as 5 or any number less than 5. Suppose we take 5

24
as the lower limit of the first class. Then our classes will
be
5–9, 10–14, 15–19, 20–24, and 25–29
We record these five classes in the first column of Table

Now we read each value from the given data and

mark a tally in the second column of Table next to the
corresponding class. The first value in our original data
set is 8, which belongs to the 5–9 class. To record it, we
mark a tally in the second column next to the 5–9 class.
We continue this process until all the data values have
been read and entered in the tally column. Note that tallies
are marked in blocks of five for counting convenience.
After the tally column is completed, we count the tally
marks for each class and write those numbers in the third
column. This gives the column of frequencies. These
frequencies represent the number of days on which iPods
indicated in classes are sold.

Class Tally Frequency

5-9 3
10-14 6
15-19 8

25
 20-24 8
25-29 5
Total 30

The number of observations in a sample is usually

denoted by n. Thus, for the sample data,  f is equal to
n. The number of observations in a population is denoted
by N. Consequently,  f is equal to N for population data.
Because the data set on the total iPods sold on 30 days in
Table is for only 30 days, it represents a sample.
Therefore, in Table we can denote the sum of frequencies
by n instead of f .

Example
Consider the following data
11 12 13 15 20 11 8 20 14 12
12 10 16 24 14 12 10 9 12 13
18 16 9 8 12 12 24 18 13 8
15 12 13 20 11 14 9 12 9 9
9 10 9 10 13 11 12 6 11 10

26
Construct of frequency distribution, using 5 classes and 6
as the lower limit of the first class.
Solution

Largest value - Smallest value

Approximate class width =
Number of classes

24−6
Approximate class width = = 3.6 ≃ 4
5

- number of class=5
- Tally and count the number of observations in each
class
Class Tally Frequency
6- 11
10- 25
14- 7
18- 5
22-26 2
Total 50

- The Frequency distribution table can be summarized as

the following

27
 Classes 6- 10- 14- 18- 22-26 Total
Frequency 11 25 7 5 2 50

Example
Consider the following observations of data set

57 39 41 63 51 59 55 37 70 23
53 64 63 54 48 49 60 46 45 65
55 78 82 52 38 41 65 43 64 75
42 25 65 48 61 24 58 34 32 31
55 88 45 46 53 55 52 43 50 20

Construct of frequency distribution, using 7 classes and

20 as the lower limit of the first class.
Solution

Largest value - Smallest value

Approximate class width =
Number of classes
88−20
= = 9.7 ≃ 10
7

- Tally and count the number of observations in each

class

28
 Class Tally Frequency
20- 4
30- 6
40- 12
50- 14
60- 9
70- 3
80-90 2
Total 50

- The Frequency distribution table can be summarized as

the following
Classes 10- 20- 30- 40- 50- 60- 70-80 total

Frequency 4 6 12 14 9 3 2 50

2.2 Relative Frequency and Percentage

Distributions
Frequency Distribution is the ratio of frequency of
the class over the total number of frequencies of the class.
The relative frequencies and percentages for a
quantitative data set are obtained as follows.

29
Calculating Relative Frequency and Percentage as the
Follow:

Frequency of that class f

Relative frequency of a class = =
Sum of all frequencies f
Percentage = (Relative frequency)  100

Example
Consider the following observations of data set
13 27 12 14 17 12
20 22 18 27 23 15
21 20 17 16 14 12
13 21 20 23 22 27
26 24 14 16 17 19

-Construct of frequency distribution, using 6 classes and

12 as the lower limit of the first class.
-Determine the relative frequency distribution and
percentage.
Solution

Largest value - Smallest value

Approximate class width =
Number of classes
27−12
= = 2.5 ≃ 3
6

30
 - Frequency distribution – Relative frequency
distribution
Class Frequency Relative Frequency Percentage

12- 8 8 27%
= 0.27
30

15- 4 4 13%
= 0.13
30

18- 7 7 23%
= 0.23
30

21- 6 6 20%
= 0.2
30

24- 2 2 7%
= 0.07
30

27- 3 3 10%
= 0.1
30

Total 30 1 100%

Example
If you have the following observations of data set
12 7 12 12 7 13 17 8 3 11
15 10 6 16 19 4 14 7 17 14
13 18 0 10 11 5 9 17 14 15
11 9 2 8 13 9 10 19 14 11
5 7 15 11 8 12 9 2 13 19

-Construct of frequency distribution, using 5 classes.

31
-Determine the relative frequency distribution.
Solution

Largest value - Smallest value

Approximate class width =
Number of classes
19 − 0
Approximate class width = = 3.8 ≃ 4
5
Frequency distribution – Relative frequency distribution
and percentage
Class Frequency Relative Frequency percentage
0- 4 0.08 8%
4- 8 0.16 16%
8- 14 0.28 28%
12- 16 0.32 32%
16-20 8 0.16 16%
Total 50 1 100%

2.3 Stem and Leaf Plots

Another technique that is used to present
quantitative data in condensed form is the stem-and leaf
display. An advantage of a stem-and-leaf display over a
frequency distribution is that by preparing a stem-and-leaf

32
display we do not lose information on individual
observations.

A stem-and-leaf display is constructed only for

quantitative data.

Stem-and-Leaf Display In a stem-and-leaf display of

quantitative data, each value is divided into two portions a
stem and a leaf. The leaves for each stem are shown
separately in a display.

Constructing stem and Leaf

- Divide the range of the data into equal units to be used
- The first few digits in each number will be the stem.
- List the stem values in order in a vertical column
- Draw a vertical line to the right of the stem values; the
leaves will be placed to the right of this line.
- Digits to the right of the stem from the leaves.
- Specifically use the digit to the right of the stem and
drop the rest of the digits.
- The leaves are ordered numerically on each branch.

Example
The National Bank is studying the number of times the
ATM located in City Stars Mall is used per day.
33
Following are the number of times the machine was used
over each of the last 30 days:
43 55 36 43 29 67 70 41 38 50
39 62 58 55 63 44 57 24 80 59
29 46 39 48 68 77 32 50 67 56

Construct a stem and leaf plot

Solution

Stem Leaf
2 9 4 9
3 6 8 9 9 2
4 3 3 1 4 6 8
5 5 0 8 5 7 9 0 6
6 7 2 3 8 7
7 0 7
8 0

Sort the leaf values from the smallest to largest

34
 Stem Leaf
2 4 9 9
3 2 6 8 9 9
4 1 3 3 4 6 8
5 0 0 5 5 6 7 8 9
6 2 3 7 7 8
7 0 7
8 0

Example
If you have the following data
13 19 65 58 17 67 23 66 46 17
16 44 48 38 29 28 25 47 20 29
37 80 51 52 59 60 69 35 34 33
52 17 41 50 57 38 48 23 46 77
32 27 70 64 61 19 45 49 47 19

Construct a stem and leaf plot

35
 Solution

Stem Leaf
1 3 9 7 7 6 7 9 9
2 3 9 8 5 0 9 3 7
3 8 7 5 4 3 8 2
4 6 4 8 7 1 8 6 5 9 7
5 8 1 2 9 2 0 7
6 5 7 6 0 9 4 1
7 7 0
8 0

Sort the leaf values from the smallest to largest

Stem Leaf
1 3 6 7 7 7 9 9 9
2 0 3 3 5 7 8 9 9
3 2 3 4 5 7 8 8
4 1 4 5 6 6 7 78 8 9
5 0 1 2 2 7 8 9
6 0 1 4 5 6 7 9
7 0 7
8 0

36
Example
Construct a stem and leaf plot for the following data
222 218 249 212 233 239 265 240 217 247
260 255 243 234 249 239 261 219 216 269
254 238 249 235 257 229 250 218 212 263
270 227 257 266 258 263 261 253 237 277
259 239 230 273 255 220 262 226 258 264

Solution

Stem Leaf
21 8 2 7 9 6 8 2
22 2 9 7 0 6
23 3 9 4 9 8 5 7 9 0
24 9 0 7 3 9 9
25 5 4 7 0 7 8 3 9 5 8
26 5 0 1 9 3 6 3 1 2 4
27 0 7 3

Sort the leaf values from the smallest to largest

37
 Stem Leaf
21 2 2 6 7 8 8 9
22 0 2 6 7 9
23 0 3 4 5 7 8 9 9 9
24 0 3 7 9 9 9
25 0 3 4 5 5 7 7 8 8 9
26 0 1 1 2 3 3 4 5 6 9
27 0 3 7

2.4 Graphing for Quantitative Data

Quantitative (grouped) data can be displayed in a
histogram or a polygon. This section describes how to
construct such graphs. We can also draw a pie chart to
display the percentage distribution for a quantitative data
set. The procedure to construct a pie chart is similar to the
one for qualitative data .
Histogram
A histogram can be drawn for a frequency distribution, a
relative frequency distribution, or a percentage
distribution. To draw a histogram, we first mark classes
on the horizontal axis and frequencies (or relative
frequencies or percentages) on the vertical axis. Next, we
38
draw a bar for each class so that its height represents the
frequency of that class. The bars in a histogram are drawn
adjacent to each other with no gap between them. A
histogram is called a frequency histogram, a relative
frequency histogram, or a percentage histogram
depending on whether frequencies, relative frequencies,
or percentages are marked on the vertical axis for data in
example , iPods sold

Example
If you have the following frequency distribution
Classes 10- 20- 30- 40- 50-60 Sum.
Frequency 1 2 4 8 4 20

-Portray the distribution in the form of a histogram.

39
 Solution

10-20 20-30 30-40 40-50 50-60

50 50

Polygon
A polygon is another device that can be used to present
quantitative data in graphic form. To draw a frequency
polygon, we first mark a dot above the midpoint of each
class at a height equal to the frequency of that class. This
is the same as marking the midpoint at the top of each bar
in a histogram. Next we mark two more classes, one at
each end, and mark their midpoints. Note that these two
classes have zero frequencies. In the last step, we join the
adjacent dots with straight lines. The resulting line graph
is called a frequency polygon or simply a polygon. A
polygon with relative frequencies marked on the vertical

40
axis is called a relative frequency polygon. Similarly, a
polygon with percentages marked on the vertical axis is
called a percentage polygon. The follow figure shows the
frequency polygon for the frequency distribution for
example, iPods sold

Example
If you have the following frequency distribution
Classes 8- 12- 16- 20- 24- 28-32 Sum
frequency 5 13 2 15 7 8 50

-Portray the distribution in the form of a polygon and

histogram.

41
 Solution

Dot Diagram
A dot diagram can be used to represent frequency
distribution especially for discrete data, we construct dot
diagram as follows

(a) Use the horizontal axis to represent the data values.

(b) Above each distance data value on horizontal axis,
we place the number of dots being equal to the
frequency of the data value.
Example
For the following data construct dot plot

42
 x 1 3 5 6 7 11
f 2 1 3 5 3 2

The Cumulative Percentage Curve or Ogive

A graph of a cumulative distribution is called an
Ogive. The data values are shown on horizontal axis and
the cumulative frequencies are shown on the vertical axis.

Example
The following frequency distribution of the salary of 50
workers

Classes 10- 20- 30- 40- 50-60 Sum.

frequency 6 12 13 9 10 50

43
Construct the cumulative frequency table (the Ogive)
Solution

Ascending Cumulative Descending Cumulative

frequency table frequency table
Upper Limit C.f Lower Limit C.f
Less than 10 0 10 or more 50
Less than 20 6 20 or more 44
Less than 30 18 30 or more 32
Less than 40 31 40 or more 19
Less than 50 40 50 or more 10
Less than 60 50 60 or more 0

60
OGIVE
50

40

30

20

10

0
10 20 30 40 50 60
‫الصاعد‬Ascending
‫التكرار المتجمع‬ ‫المتجمع الهابط‬Descending
‫التكرار‬

44
2.5 Graph for Qualitative Data
Graphic representations are, in a sense, pictures of
data and as some times make the data easier to
comprehend. We have different ways to represent data
graphically. The bar graph and the pie chart are two
types of graphs that are commonly used to display
qualitative data.
Bar Graph
To construct a bar graph (also called a bar chart), we
mark the various categories on the horizontal axis. Note
that all categories are represented by intervals of the same
width. We mark the frequencies on the vertical axis. Then
we draw one bar for each category such that the height of
the bar represents the frequency of the corresponding
category. We leave small gap between adjacent bars. The
bar graphs for relative frequency and percentage
distributions can be drawn simply by marking the relative
frequencies or percentages, instead of the frequencies, on
the vertical axis.
Sometimes a bar graph is constructed by marking
the categories on the vertical axis and the frequencies on
the horizontal axis

45
Example

The next table for Relative Frequency and Percentage

Distributions of Stress on Job

Stress on Percentag
Frequency Relative Frequency
Job e
Very 10 0.33 33.3

Somewhat 14 0.467 46.7

None 6 0.200 20

Sum=30 Sum=1 Sum=100

Fined the bar graph for the frequency distribution

46
Example
The following data represents the value of industrial
products in millions of units for accompany during the
last five years and the value of exports for this company
in millions of units during the same period. present these
data by double bar chart

Year Production Export

2012 70 60
2013 50 40
2014 60 20

2015 80 30

90

80

70

60

50
Production
40
Export
30

20

10

0
2012 2013 2014 2015

47
Pie Chart

A pie chart is more commonly used to display

percentages, although it can be used to display
frequencies or relative frequencies. The whole pie (or
circle) represents the total sample or population. Then we
divide the pie into different portions that represent the
different categories. As we know, a circle contains 360
degrees. To construct a pie chart, we multiply 360 by the
relative frequency of each category to obtain the degree
measure or size of the angle for the corresponding
category

Example
The next table for Relative Frequency Distributions of
Stress on Job

48
 Stress on Job Relative Frequency

Very 0.33

Somewhat 0.467

None 0.200

Sum=1

Present the data using pie chart

Solution

Stress on
Relative Frequency Angle size
Job
Very 0.33 360  0.333 = 119.88
Somewh
at
0.467 360  0.467 = 168.12
None 0.200 360  0.200 = 72
Sum=1 Sum= 360

49
 Pie Chart

72%
Very 119.88%
Somewhat
None
168.12%

50
Glossary of Chapter II
Bar graph A graph made of bars whose heights represent
the frequencies of respective categories.
Class An interval that includes all the values in a
(quantitative)data set that fall within two numbers, the
lower and upper limits of the class.
Class boundary The midpoint of the upper limit of one
class and the lower limit of the next class.
Class frequency The number of values in a data set that
belong to a certain class.
Class midpoint or mark the class midpoint or mark is
obtained by dividing the sum of the lower and upper
limits (or boundaries) of a class by 2.
Class width or size The difference between the two
boundaries of a class.
Cumulative frequency The frequency of a class that
includes all values in a data set that fall below the upper
boundary of that class.
Cumulative frequency distribution A table that lists the
total number of values that fall below the upper boundary
of each class.

51
Cumulative percentage The cumulative relative
frequency multiplied by 100.
Cumulative relative frequency The cumulative frequency
of a class divided by the total number of observations.
Frequency distribution A table that lists all the categories
or classes and the number of values that belong to each of
these categories or classes.
Grouped data A data set presented in the form of a
frequency distribution.
Histogram A graph in which classes are marked on the
horizontal axis and frequencies, relative frequencies, or
percentages are marked on the vertical axis. The
frequencies, relative frequencies, or percentages of
various classes are represented by bars that are drawn
adjacent to each other.
Ogive A curve drawn for a cumulative frequency
distribution.
Outliers or Extreme values Values that are very small or
very large relative to the majority of the values in a data
set.

52
 Exercises (2)

1. A sample of 30 employees from large companies was

selected, and these employees were asked how
stressful their jobs were. The responses of these
employees are recorded below, where very represents
very stressful, somewhat means somewhat stressful,
and none stands for not stressful at all.

somewhat none somewhat very very none

very somewhat somewhat very somewhat somewhat

very somewhat none very none somewhat

somewhat very somewhat somewhat very none

somewhat very very somewhat none somewhat

Construct a frequency distribution table for these data.

53
2. The following data give the results of a sample survey.
The letters A, B, and C represent the three categories.

A B B A C B C C C A
C B C A C C B C C A
A B C C B C B A C A

a. Prepare a frequency distribution table.

b. Calculate the relative frequencies and percentages for

all categories.

c. What percentage of the elements in this sample belongs

to category B?

d. What percentage of the elements in this sample belongs

to category A or C?

e. Draw a bar graph for the frequency distribution.

3. The following data show the method of payment by 16

customers in a supermarket checkout line. Here, C refers
to cash, CK to check, CC to credit card, and D to debit
card, and O stands for other.

54
 C CK CK C CC D O C
CK CC D CC C CK CK CC

a. Construct a frequency distribution table.

b. Calculate the relative frequencies and percentages for

all categories.

c. Draw a pie chart for the percentage distribution.

4. The administration in a large city wanted to know the

distribution of vehicles owned by households in that city.
A sample of 40 randomly selected households from this
city produced the following data on the number of
vehicles owned.

5 1 1 2 0 1 1 2 1 1
1 3 3 0 2 5 1 2 3 4
2 1 2 2 1 2 2 1 1 1
4 2 1 1 2 1 1 4 1 3

Construct a frequency distribution table for these data

using single-valued classes.

55
5-The following is the degree of fifty students in the final
exam of statistics in Modern Academy

41 65 33 30 85 79 63 77 98 48
80 54 67 62 47 50 78 53 91 69
57 69 74 30 61 72 87 77 65 84
45 50 61 41 55 82 52 67 58 73
62 95 77 74 62 73 68 51 60 56

a. Construct of frequency distribution, using 7 classes and

30 as the lower limit of the first class.
b. Find the relative frequencies for the pervious frequency
distribution.
c. Portray the histogram, and the polygon.

6. The National Bank is studying the number of times the

ATM located in famous Mall is used per day. Following
are the number of times the machine was used over each
of the last 30 days:
50 38 41 70 67 29 43 36 55 43
95 80 24 57 44 63 55 58 62 39
56 67 50 32 77 68 48 39 46 29

56
a. Construct a frequency distribution using six classes and
the lower limit for the first class =20.
b. Portray the histogram and polygon.
c. Convert the frequency distribution to a cumulative
frequency distribution.
d. Find the relative frequencies for the pervious frequency
distribution.

57
58
 GOALS of CHAPTER III

1. Summarizing data using measures of central tendency

such as, Mean, Median and Mode.

2. Learn how to calculated the mean for ungrouped and

grouped data.

3. Study the properties of mean, median and mode.

59
 CHAPTER III

Measures of Central Tendency

A measure of central tendency gives the center of a

histogram or a frequency distribution curve. This section
discusses three different measures of central tendency: the
mean, the median, and the mode; however, we will learn
how to calculate each of these measures for ungrouped
and grouped data.

There are three main measures of central tendency:

the mean, the median and the mode.

Measures of Central Tendency

The mean The median The mode

3.1 The Mean

The mean (arithmetic mean) the sample mean is the
sum of all the observations divided by the number of
observations.
60
The Mean for Raw Data (ungrouped data)

For the raw data, that is, data has not been grouped
in a frequency distribution; the mean is the sum of all
values divided by the number of values in the data set,

Sum of all values

Mean=
Number of values

The mean calculated for sample data is denoted by x

(read as “x bar”), and the mean calculated for population
data is denoted by  (Greek letter mu), that the number
of values in a data set is denoted by n for a sample and by
N for a population. The mean is given by the following
formula
The mean for population is,
∑𝑥
𝜇=
𝑁
The mean for sample is,
∑𝑥
𝑥̄ =
𝑛
Where

̅ : Stands for the sample mean (it is read X bar)

𝒙

61
∑ : Is the Greek capital sigma and indicates the
operation of adding.
N: is the total number of values (observation) in the
population

n : is the total number of values(observation) in the

sample.

Example
Compute the mean for the following data
1
2
2
4
5
10
Solution
∑ 𝑥 1 + 2 + 2 + 4 + 5 + 10
𝑥̄ = = =4
𝑛 6
Example
If you have the course grades for seven students in the
exam

62
90, 62, 92, 83, 78, 83, 81 , Compute the mean for the
course grade.
Solution

∑ 𝒙 𝟗𝟎 + 𝟔𝟐 + 𝟗𝟐 + 𝟖𝟑 + 𝟕𝟖 + 𝟖𝟑 + 𝟖𝟏
𝒙̄ = = = 𝟖𝟏. 𝟐𝟖𝟓
𝒏 𝟕

Example
Compute the mean for the following data
2, 7, 8, 14, 15

Solution

∑ 𝒙 𝟐 + 𝟕 + 𝟖 + 𝟏𝟒 + 𝟏𝟓
𝒙̄ = = = 𝟗. 𝟐
𝒏 𝟓
Example
Compute the mean for the following data
Solution

∑𝟓𝒊=𝟏 𝒙𝒊 𝟏 + 𝟏 + 𝟏 + 𝟏 + 𝟓𝟏
𝒙̄ = = = 𝟏𝟏
𝒏 𝟓

Note that the mean is affected by extreme values.

)ii)The mean for Grouped Data

The for the grouped data (frequency distribution) the
mean is given by the following formula

63
 ∑𝑛𝑖=1 𝑥𝑖 𝑓𝑖
𝑥̄ = 𝑛
∑𝑖=1 𝑓𝑖
Where
̅ : stands for the sample mean it is read (X bar).
𝒙
n


i =1
: is the Greek capital sigma and indicates the

operation of adding.
𝒙 : is the mid-point

Example
Determine the mean of the following frequency
distribution
Class 10- 20- 30- 40- 50-60 Sum.

Frequency 2 3 3 2 5 15
Solution
Class Frequency(f) 𝒙 𝒙𝒇
10- 2 15 30
20- 3 25 75
30- 3 35 105
40- 2 45 90
50-60 5 55 275

∑ 15 575

64
 ∑𝑛𝑖=1 𝑥𝑖 𝑓𝑖 575
𝑥̄ = 𝑛 = = 38.3
∑𝑖=1 𝑓𝑖 15
Example
Determine the mean of the following frequency
distribution
Class 8- 12- 16- 20- 24-28 Sum.
Frequency 3 5 8 12 8 36

Solution
Class Frequency 𝒙 𝒙𝒇
8- 3 10 30
12- 5 14 70
16- 8 18 144
20- 12 22 264
24-28 8 26 208

∑ 36 716

x i fi
716
x = i =1
n
= = 19.889
f
36
i
i =1

65
The Properties of the Mean
1- The sum of square of deviations from mean is
 ( x − x ) is least
2
minimum i.e.,
2- The sum of deviations of items from their mean is
equal to zero, i.e., (x − x ) = 0
3- A set of data has only one mean (the mean is unique).
4- The mean is a very useful measure for comparing two
or more populations.
5- The mean is affected by extremely values (outliers).
6- All the values are included in computing the mean.

3.2 The Median

The median is the middle of the data (after data is
arranged in ascending or descending order); half the
observations are less than the median and half are more
than the median. To get the median, we must first
rearrange the data into an ordered array. Generally, we
order the data from the lowest value to the highest value.
The median is the data value such that half of the
observations are larger than it and half are smaller. It is
also the 50th percentile (we will be learning about
percentiles).

66
If n is odd, the median is the middle observation of the
ordered array. If n is even, it is midway between the two
central observations.

(i) The Median for Raw Data

a- Arranging data in ascending order or descending order.
𝑛+1
b- The median position = .
2

c- The median value.

Example
Find the median for the following data
5, 6, 0, 100, 20, 99, 3
Solution
- The first, Arranging data in ascending order
0
2
3
5 ←
20
99
100
n=7
𝑛+1
- The second, since n is odd the median = order
2

observation, or the 4th observation

- Then the median = 5

67
Example
Find the median for the following data
30, 10, 20, 50, 40, 60
Solution
- The first, Arranging data in ascending order
10
20
30
40
50
60
n=6
- The second, since n is even the median will be number
of observations; the median is determined by averaging
the two observations in the middle.
- The median is the average of the third and fourth
observations (the middle two), which are 30 and 40,
30 + 40
respectively. Thus, the median is = 35 .
2

Example
Find the median for the following data
7
5
14
10
3
68
 Solution
- The first, Arranging data in ascending order
3
5
7
10
14
𝑛+1
- The second, since n = 5 is odd the median = order
2

observation, or the 3rd observation

- Then the median = 7
Example
Determine the median for the following data

51 , 20 , 12 , 15 , 40 , 18 , 45 , 42 , 6, 66 , 27 , 30, 31

Solution
- The first, Arranging data in ascending order
6, 12, 15, 18, 20, 27, 30, 31, 40, 42 , 45 , 51, 66
𝑛+1
- The second, since n = 13 is odd the median = order
2

observation, or the 7th observation

- Then the median = 3
The Properties of the Median
1. The advantage of using the median as a measure of
Central tendency is that it is not influenced by outliers.
Consequently, the median is preferred over the mean as a

69
measure of central tendency for data sets that contain
outliers.
2. Is used when one must find the center or middle
value of data set.
3. Is used when must determine whether the data
values fall into the upper half or lower half of the
distribution.
3.3 The Mode
The mode is the value that occurs with the highest
frequency in a data set.
(i) The Mode for Raw Data
The mode is the most frequency value.

Example
The following data give the speeds (in miles per hour) of
eight cars that were stopped on I-95 for speeding
violations.
77, 82, 74, 81, 79, 84, 74, 78 . Find the mode.

In this data set, 74 occur twice, and each of the remaining

values occurs only once. Because 74 occur with the
highest frequency, it is the mode. Therefore,

70
 Mode = 74 miles per hour

Example
Last year’s incomes of five randomly selected families
were $76,150, $95,750, $124,985, $87,490, and $53,740.
Find the mode.
Solution

Because each value in this data set occurs only once, this
data set contains no mode.

Example

The ages of 10 randomly selected students from a class

are 21, 19, 27, 22, 29, 19, 25, 21, 22, and 30 years,
respectively. Find the mode

Solution

This data set has three modes 19, 21, and 22. Each of
these three values occurs with a (highest) frequency of 2.

Example
Find the mode for the following data
5, 3, 2, 8, 3, 7, 1, 3
Solution
The mode=3

71
Example
Find the mode for the following data
11 , 15 , 13 , 15, 7 , 15 , 17 , 7 , 15 , 6 , 15 , 7
Solution
The mode = 15

Example

The status of five students who are members of the

student senate at a college are senior, sophomore, senior,
junior, and senior, respectively. Find the mode.

Solution

Because senior occurs more frequently than the other

categories, it is the mode for this data set. We cannot
calculate the mean and median for this data set.

To sum up, we cannot say for sure which of the

three measures of central tendency is a better measure
overall. Each of them may be better under different
situations. Probably the mean is the most-used measure of
central tendency, followed by the median. The mean has
the advantage that its calculation includes each value of
the data set. The median is a better measure when a data

72
set includes outliers. The mode is simple to locate, but it
is not of much use in practical applications.

The properties of the Mode

1-The mode not always unique. A data set can have more
than one, or the mode may not exist for a data set.
2-The mode can be determined for all levels of data,
nominal, ordinal and ratio.
3- The mode easiest average to compute.
4- The mode is not affected by extremely values (largest
values or small values).
3.4 Relationships Among the Mean, Median, and
Mode
As discussed in Chapter 2, two of the many shapes that a
histogram or a frequency distribution curve can assume
are symmetric and skewed. This section describes the
relationships among the mean, median, and mode for
three such histograms and frequency distribution curves.
Knowing the values of the mean, median, and mode can
give us some idea about the shape of a frequency
distribution curve.

73
1- For a symmetric histogram and frequency distribution
curve with one peak, the values of the mean, median, and
mode are identical, and they lie at the center of the
distribution.

Mean, Median, and Mode for a symmetric histogram and frequency

distribution curve

2-For a histogram and a frequency distribution curve

skewed to the right, the value of the mean is the largest,
that of the mode is the smallest, and the value of the
median lies between these two. (Notice that the mode
always occurs at the peak point.) The value of the mean is
the largest in this case because it is sensitive to outliers

74
that occur in the right tail. These outliers pull the mean to
the right.

Mean, median, and mode for a histogram and frequency distribution

curve skewed to the right.

3-If a histogram and a frequency distribution curve are

skewed to the left, the value of the mean is the smallest
and that of the mode is the largest, with the value of the
median lying between these two. In this case, the outliers
in the left tail pull the mean to the left.

4- The median and the mean apply only to quantitative

data, whereas the mode can be used with either
quantitative or qualitative data.

75
Mean, median, and mode for a histogram and frequency distribution
curve skewed to the left.

76
Glossary of Chapter III

Mean A measure of central tendency calculated by

dividing the sum of all values by the number of values in
the data set.
Measures of central tendency Measures that describe the
center of a distribution. The mean, median, and mode are
three of the measures of central tendency.
Measures of dispersion Measures that give the spread of
a distribution. The range, variance, and standard deviation
are three such measures.
Measures of position Measures that determine the
position of a single value in relation to other values in a
data set. Quartiles, percentiles, and percentile rank are
examples of measures of position.
Median The value of the middle term in a ranked data set.
The median divides a ranked data set into two equal parts.
Mode The value (or values) that occurs with highest
frequency ina data set.

77
 Exercises (3)
1- The following data give the prices (in thousands of
dollars) of seven houses selected from all houses sold last
month in a city.
312 257 421 289 526 374 497
Find the median.
2- The following data give the speeds (in miles per hour)
of eight cars that were stopped on I-95 for speeding
violations.
77 82 74 81 79 84 74 78
Find the mode
3- The following data set belongs to a population:
5 -7 2 0 - 9 16 10 7
Calculate the mean, median, and mode.
4- The following data set belongs to a sample:
14 18 - 1 08 8 - 16
Calculate the mean, median, and mode.
5- The following data give the revenues (in millions of
dollars) for the last available fiscal year for a sample of
six charitable organizations for serious diseases in (2012).
The values are, listed in order, for the Alzheimer’s
Association, the American Cancer Society, the American
Diabetes Association, the American Heart Association,
78
the American Lung Association, and the Cystic Fibrosis
Foundation.
952 1129 231 668 49 149
Compute the mean and median. Do these data have a
mode? Why or why not?

6- Nixon Corporation manufactures computer monitors.

The following data are the numbers of computer monitors
produced at the company for a sample of 10 days.

24 32 27 23 35 33 29 40 23
28
Calculate the mean, median, and mode for these data.

7- The mean 2009 income for five families was 699,520.

What was the total 2009 income of these five families?

8- The mean age of six persons is 46 years. The ages of

five of these six persons are 57, 39, 44, 51, and 37 years,
respectively. Find the age of the sixth person.

9- The following are the degree of eleven students at the

faculty of commerce
11 8 12 15 11 21 16 11 6 10 11

79
Calculate the mean, the median, the mode of these data.
3- The weight (in K.g.) of a sample of twelve boxes being
received by post are:
8 2 4 3 10 8 4 9 8 11 10 12

Calculate the mean, the median, the mode of these

data.

3- If you have the following frequency distribution

Classes 10- 20- 30- 40- 50-60 Sum.

Frequency 20 15 30 10 25 100

Find the mean,

4- If you have the following frequency distribution

Classes 12- 15- 18- 21- 24- 27-30

Frequency 18 24 35 48 65 10

Find the mean

80
81
GOALS of CHAPTER IV

1- Describe data using the measures of dispersion

such that, Range; Interquartile range; Variance;

Standard Deviation and Coefficient of Variation.

2- Identify the position of data value in data set using

quartiles.

3- Using Measures of Shape such that, Skewness.

82
 CHAPTER IV

Measures of Dispersion

The measures of central tendency, such as the mean,

median, and mode, do not reveal the whole picture of the
distribution of a data set. Two data sets with the same
mean may have completely different spreads. The
variation among the values of observations for one data
set may be much larger or smaller than for the other data
set. (Note that the words dispersion, spread, and variation
have the same meaning). The measures that help us learn
about the spread of a data set are called the measures of
dispersion. The measures of central tendency and
dispersion taken together give a better picture of a data set
than the measures of central tendency alone this section
discusses three measures of dispersion: range, variance,
and standard deviation.

4.1 The Range

The range is the simplest measure of dispersion to
calculate. It is obtained by taking the difference between
the largest and the smallest values in a data set.

83
(i)The Range for Ungrouped Data

Finding the range for ungrouped data

Range = Largest value – Smallest value

Note: The range, like the mean, has the disadvantage of
being influenced by outliers.
Example
Find the range for the following data
3, 9, 8, 20 , 15 , 10 , 12
Solution
Range = Largest value – Smallest value
= 20 – 3 = 17
Example
Find the range for the following data
201, 170, 220, 110, 213, 192, 137, 112, 131
Solution
Range = Largest value – Smallest value
= 220 - 110 =110

(ii) The Range for Grouped Data

The Rang= Upper limit of the last class – Lower limit for the
first class

84
Example
Find the range for the following distribution

Class 10- 12- 14- 16- 18-20 Sum.

Frequency 15 8 12 11 7 53

Solution
The Rang = Upper limit of the last class – Lower limit for
the first class
The Rang = 20 – 10 = 10

Example
Determine the range for the following distribution
Class 40- 50- 60- 70- 80-90 Sum.

Frequency 12 30 27 22 15 106

Solution
The Rang = Upper limit of the last class – Lower limit for
the first class
The Rang = 90 - 40 = 50

85
4.2 Variance and Standard Deviation
The standard deviation is the most-used measure
of dispersion. The value of the standard deviation tells
how closely the values of a data set are clustered around
the mean. In general, a lower value of the standard
deviation for a data set indicates that the values of that
data set are spread over a relatively smaller range around
the mean. In contrast, a larger value of the standard
deviation for a data set indicates that the values of that
data set are spread over a relatively larger range around
the mean.

The standard deviation is obtained by taking the

positive square root of the variance. The variance
calculated for population data is denoted by𝜎 2 (read as
sigma squared), and the variance calculated for sample
data is denoted by 𝑠 2 . Consequently, the standard
deviation calculated for population data is denoted by𝜎
and the standard deviation calculated for sample data is
denoted by 𝑠 .

Following are what we will call the basic formulas

that are used to calculate the variance

86
 𝟐
∑(𝒙 − 𝝁)𝟐 𝟐
∑(𝒙 − 𝒙̄ )𝟐
𝝈 = 𝒂𝒏𝒅 𝒔 =
𝑵 𝒏−𝟏
Where 𝜎 2 is the population variance and 𝑠 2 is the
sample variance.

The quantity (𝑥 − 𝜇) or (𝑥 − 𝑥̄ ) in the above formulas is

called the deviation of the x value from the mean. The
sum of the deviations of the x values from the mean is
always zero; that is,

∑(𝑥 − 𝜇) = 0 𝑎𝑛𝑑 ∑(𝑥 − 𝑥̄ ) = 0

Example
Suppose the midterm scores of a sample of four
students are 82, 95, 67, and 92, respectively. Find the
mean score for these four students, the deviations of the x
value from the mean, the variance and stander deviations.
Solution

∑𝑥
Step 1: Calculate 𝑥̄ = then find (𝑥 − 𝑥̄ ) by
𝑛

subtraction each value for x from 𝑥̄ , the deviations of the

four scores from the mean are calculated is in the follow
table

87
Step2: find (𝒙 − 𝒙̄ )𝟐

The value of (𝒙 − 𝒙̄ )𝟐 is obtained by squaring each value

of 𝑥 − 𝑥̄ and then adding values to get ∑(𝒙 − 𝒙̄ )𝟐

Step3: Determine the variance.

- Let see the following table

𝒙 𝒙 − 𝒙̄ (𝒙 − 𝒙̄ )𝟐

82 82 - 84 = - 2 4

95 95 - 84 = 11 121

67 67 - 84 = -17 289

92 92 – 84 = 8 64
∑𝒙
𝒙̄ = = 𝟖𝟒 ∑(𝒙 − 𝒙̄ ) = 𝟎 ∑(𝒙 − 𝒙̄ )𝟐 = 478
𝒏

From above table we calculate the variance and standard

deviation as follows

𝟐
∑(𝒙 − 𝒙̄ )𝟐 𝟒𝟕𝟔
𝒔 = = = 𝟏𝟓𝟗. 𝟑𝟑
𝒏−𝟏 𝟑

𝒔 = √𝒔𝟐 = √𝟏𝟓𝟖, 𝟔𝟔 = 𝟏𝟐. 𝟔𝟐𝟐

88
Example

The following table gives the 2008 market values

(rounded to billions of dollars) of five international
companies.

Market Value
Company
(billions of dollars)

Pepsi Co 75

Google 107

Petro China 271

Johnson & Johnson 138

Intel 71

Solution

Let x denote the 2008 market value (in billions of dollars)

of a company.

∑𝑥
Step 1: Calculate 𝑥̄ = then find (𝑥 − 𝑥̄ ) by
𝑛

subtraction each value for x from 𝑥̄

89
Step2: find (𝒙 − 𝒙̄ )𝟐
The value of (𝒙 − 𝒙̄ )𝟐 is obtained by squaring each value
of 𝑥 − 𝑥̄ and then adding values to get ∑(𝒙 − 𝒙̄ )𝟐
Step3: Determine the variance.
Because the given data are on the market values of only
five companies, we use the formula for the sample.

Let see the following table

𝒙 𝒙 − 𝒙̄ (𝒙 − 𝒙̄ )𝟐

75 75 – 132.4 = -57.4 3294.76

107 107 - 132.4 = -25.4 645.16

271 271 - 132.4 = 138.6 19209.96

138 138 – 132.4 = 5.6 31.36

71 71 - 132.4 = -61.4 3769.96

∑𝒙
𝒙̄ = =
𝒏 ∑(𝒙 − 𝒙̄ ) = 𝟎 ∑(𝒙 − 𝒙̄ )𝟐 =26951.2
𝟏𝟑𝟐. 𝟒

90
 𝟐
∑(𝒙 − 𝒙̄ )𝟐 𝟐𝟔𝟗𝟓𝟏. 𝟐
𝒔 = = = 𝟔𝟕𝟑𝟕. 𝟖
𝒏−𝟏 𝟒

The standard deviation is obtained by taking the (positive)

square root of the variance:

𝑠 = √𝑠 2 = √6737.8 = 82.084

Example

Following are the 2009 earnings (in thousands of dollars)

before taxes for all six employees of a small company.

88.50, 108.40, 65.50, 52.50, 79.80, 54.60.

Calculate the variance and standard deviation for these

data.
Solution

Let x denote the 2009 earnings before taxes of an

employee of this company.
∑𝑥
Step 1: Calculate 𝑥̄ = then find (𝑥 − 𝑥̄ ) by
𝑛

subtraction each value for x from 𝑥̄

Step2: find (𝒙 − 𝒙̄ )𝟐

The value of (𝒙 − 𝒙̄ )𝟐 is obtained by squaring each value

of 𝑥 − 𝑥̄ and then adding values

91
Step3: Determine the variance.

Because the data in this example are on earnings of all

employees of this company, we use the population
formula to compute the variance.

𝒙 𝒙 − 𝒙̄ (𝒙 − 𝒙̄ )𝟐

88.50 88.50 – 74.883 = 13.667 186.786

108.40 108.40 - 74.883 = 33.517 1123.389

65.50 65.50 - 74.883 = -9.383 88.040

52.50 52.50 – 74.883 = -22.383 500.998

79.80 79.80 - 74.883 = 4.917 24.176

54.60 54.60- 74.883 = - 20.283 411.400

∑𝒙
𝝁= = ∑(𝒙 − 𝝁)𝟐
𝒏 ∑(𝒙 − 𝝁) = 𝟎
𝟕𝟒. 𝟖𝟖𝟑 = 𝟐𝟑𝟑𝟒. 𝟕𝟖𝟗

2
∑(𝑥 − 𝜇)2 2334.789
𝜎 = = = 389.131
𝑁 6

92
The standard deviation is obtained by taking the (positive)
square root of the variance:

𝜎 = √𝜎 2 = √389.131 = 19.726

Population Parameters and Sample Statistics

A numerical measure such as the mean, median,

mode, range, variance, or standard deviation calculated
for a population data set is called a population
parameter, or simply a parameter. A summary measure
calculated for a sample data set is called a sample
statistic, or simply statistics, thus 𝜇 and𝜎 are
population parameters, 𝑥̄ and 𝑠 are sample statistics

Variance and Standard Deviation for Grouped Data

Following are what we will call the basic formulas used

to calculate the population and sample variances for
grouped data:

2
∑ 𝑓(𝑥 − 𝜇)2 2
∑ 𝑓(𝑥 − 𝑥̄ )2
𝜎 = 𝑎𝑛𝑑 𝑠 =
𝑁 𝑛−1

where 𝜎 2 is the population variance, 𝑠 2 is the sample

variance, and x is the midpoint of a class. In either case,

93
the standard deviation is obtained by taking the positive
square root of the variance.

Short-Cut Formulas for the Variance and Standard

Deviation for Grouped Data

𝟐(∑ 𝒙𝒇)𝟐 𝟐 (∑ 𝒙𝒇)𝟐

∑𝒙 𝒇 − ∑ 𝒙 𝒇−
𝝈𝟐 = 𝑵 and𝒔𝟐 = 𝒏
𝑵 𝒏−𝟏

where 𝜎 2 is the population variance, 𝑠 2 is the sample

variance, and x is the midpoint of a class. The standard
deviation is obtained by taking the positive square root of
the variance.

- Population standard deviation: 𝜎 = √𝜎 2

- Sample standard deviation: 𝑠 = √𝑠 2

Example

The following data, give the frequency distribution of the

daily commuting times (in minutes) from home to work
for all 25 employees of a company.

94
 Daily Commuting Time
Number of Employees
(minutes)

0 to less than 10 4
10 to less than 20 9
20 to less than 30 6
30 to less than 40 4
40 to less than 50 2
25

Calculate the variance and standard deviation.

Solution

Step 1: Calculate the value of ∑ 𝑥𝑓 , calculate the value

of ∑ 𝑥𝑓 first find the midpoint x of each class and then
multiply the corresponding class midpoints and class
frequencies, (see the fourth column). The value of is
obtained by adding these products.

Step 2: Find the value of ∑ 𝒙𝟐 𝒇to find the value of square

each x value and multiply this squared value of x by the
corresponding frequency (see the fifth column in Table).

95
The sum of these products (that is, the sum of the fifth
column) gives ∑ 𝒙𝟐 𝒇

Step 3: Calculate the variance. Because the data set

includes all 25 employees of the company, it represents
the population. Therefore, we use the formula for the
population variance.

Step 4. Calculate the standard deviation. To obtain the

standard deviation, take the (positive) square root of the
variance.

Daily
Commuting f x x f 𝒙𝟐 𝒇
Time
0 to less than 10 4 5 20 100

10 to less than 20 9 15 135 2025

20 to less than 30 6 25 150 3750

30 to less than 40 4 35 140 4900

40 to less than 50 2 45 90 4050

∑𝑓 ∑ 𝑥𝑓 ∑ 𝑥 2𝑓

= 25 = 535 = 14825
96
 (∑ 𝑥𝑓 )2 (535)2
∑ 𝑥 2𝑓 − 14825 −
𝜎2 = 𝑁 = 25 = 3376
𝑁 25 25
= 135.04

𝜎 = √𝜎 2 = √135.04 = 11.620

4.3 Measures of Position

A measure of position determines the position of a
single value in relation to other values in a sample or a
population data set. There are many measures of position;
however, only quartiles, percentiles, and percentile rank
are discussed in this section.

Quartiles and Interquartile Range

Quartiles are the summary measures that divide a

ranked data set into four equal parts. Three measures will
divide any data set into four equal parts. These three
measures are the first quartile (denoted by Q1), the
second quartile (denoted by Q2), and the third quartile
(denoted by Q3). The data should be ranked in increasing
order before the quartiles are determined

97
 Figure: Quartiles

Approximately 25% of the values in a ranked data

set are less than Q1 and about 75% are greater than Q1.

The second quartile, Q2, divides a ranked data set

into two equal parts; hence, the second quartile and the
median are the same.

Approximately 75% of the data values are less than

Q3 and about 25% are greater than Q3. The difference
between the third quartile and the first quartile for a data
set is called the interquartile range (IQR).

4.3.1 Inter Quartile Range (IQR)

Calculating Interquartile Range, the difference between

the third and the first quartiles gives the interquartile
range; that is, IQR = Interquartile range = Q3 - Q1

98
Example

The following are the ages (in years) of nine employees of

an insurance company:

47 28 39 51 33 37 59 24 33
(a) Find the values of the three quartiles. Where does the
age of 28 years fall in relation to the ages of these
employees?
(b) Find the interquartile range.

Solution

(a) First we rank the given data in increasing order. Then

we calculate the three quartiles as follows:

Note: Finding quartiles for an odd number of data

values.

99
Thus the values of the three quartiles are

Q1 = 30.5 years, Q2 = 37 years, and Q3 = 49 years

The age of 28 falls in the lowest 25% of the ages.

(b) The interquartile range is

IQR = Interquartile range = Q3 - Q1 = 49 - 30.5 = 18.5

years

Remember
 Position of the first quartile (𝑸𝟏 )
Position 𝑄1 =(𝑛 + 1) × 0.25
 Position of the third quartile (𝐐𝟑 )
Position 𝑄3 =(𝑛 + 1) × 0.75
Example

Determine the inter quartile range for the following data

15 , 8 , 29 , 33 , 26 , 17 , 18 , 11 , 21 , 41 , 12
Solution

- First we rank the given data in increasing order. Then

we calculate the three quartiles as follows:

8, 11 ,12 , 15 , 17 , 18 , 21 , 26 , 29 , 33 , 41

100
 =(11 + 1) × 0.25 = 3rd
- 𝑄1 = 12
- Position 𝑄3 =(𝑛 + 1) × 0.75
=(11 + 1) × 0.75 =9th
-𝑄3 =29
𝐼𝑄𝑅 = (𝑄3 − 𝑄1 ) = 29 − 12 = 17
4.3.2 Coefficient of Variation

The problem with 𝑠 2 and s is that they are in the

“original” units. This makes it difficult to compare the
variability of two data sets, if they are in different units or
if the magnitude of the numbers is very different.

Suppose you wish to compare two stocks and one

is in dollars and the other is in yen; if you want to know
which one is more volatile, you should use the coefficient
of variation. It is also not appropriate to compare two
stocks of vastly different prices even if both are in the
same units. The standard deviation for a stock that sells
for around $300 is going to be very different than one
where the price is around $0.25. The coefficient of
variation will be a better measure of dispersion when
comparing the two stocks than the standard deviation.

101
 𝜎 𝑠
𝐶. 𝑉 = × 100 = × 100
𝑥̄ 𝑥̄
Example
Xi Yi
1 0
2 0
3 0
4 5
5 10
𝑥̄ =3 𝑦̄ =3

s=1.58 s=4.47

Solution

𝜎 𝑠 1.58
C .V x = × 100 = × 100 = = = 52.7
𝑥̄ 𝑥̄ 3
𝜎 𝑠 4.47
𝐶. 𝑉𝑦 = = × 100 = × 100 = = 149
𝑥̄ 𝑥̄ 3

These two datasets aren’t really that different. Here, s

pretty much does the job.
4.4 Measures of Skewness
Skewness is a measure of the asymmetry of the
probability distribution of a real-valued random variable

102
about its mean. Shape can be described by degree of
asymmetry (i.e., skewness).

mean > median positive or right-skewness

mean = median symmetry or zero-skewness

mean < median negative or left-skewness

𝑚𝑒𝑎𝑛 − 𝑚𝑜𝑑𝑒
𝑆𝐾 =
𝜎
or
3(𝑚𝑒𝑎𝑛 − 𝑚𝑒𝑑𝑖𝑎𝑛)
𝑆𝐾 =
𝜎

Example

Determine the coefficient of skewness for the following

distribution

Class 20- 30- 40- 50- 60-70 Sum.

Frequency 36 43 26 16 7 128
Solution
Class F 𝒙 𝒙𝒇 𝒙𝟐 𝒇
20- 36 25 900 22500
30- 43 35 1505 52675
40- 26 45 1170 52650
50- 16 55 880 48400
103
 60-70 7 65 455 29575
∑𝑓 128 4910 205800

∑ 𝑥𝑓 4910
𝑥̅ = = = 38.36
∑𝑓 128
𝑓3
The mode = 𝐿. 𝐿. + ( × 𝑖)
𝑓1 +𝑓3

Where
L.L : is the lower limit for the chosen class.
i : is the interval for the chosen class.
𝑓1 : is the frequency before the largest frequency.
𝑓3 : is the frequency next the largest frequency.
26
=30 + ( × 10)
26+36
26
= 30+ × 10
62

= 30+4.19
The mode =34.19
2
∑ 𝑥 2𝑓 ∑ 𝑥𝑓
𝜎= √ −( )
∑𝑓 ∑𝑓

205800 4910 2
=√ −( ) = √136.37
128 128
𝜎 = 11.68
The median

104
 Ascending
Class Frequency Upper Cumulative
Limits frequency
20- 36 Less than 20 0
30- 43 Less than 30 36
40- 26 Less than 40 79
50- 16 Less than 50 105
60-70 7 Less than 60 121

128 Less than 70 128

∑𝑓
The median position = .
2
𝑃𝑜𝑠𝑖𝑡𝑖𝑜𝑛−𝐶.𝐹.𝑃
-The median = 𝐿. 𝐿. + ( × 𝑖)
𝐹
Where
L.L : is the lower limit for the chosen class.
C.F.P. : is the prior cumulative frequency.
F : frequency of median class.
i : is the interval for the chosen class
∑𝑓 128
-The median position= = = 64
2 2
64−36
The median= 30 + ( × 10) = 36.51
43

The coefficient of skewness

𝑚𝑒𝑎𝑛 − 𝑚𝑜𝑑𝑒
𝑆𝐾 =
𝜎

105
 38.36−34.19
=
11.68

𝑆𝐾 = +0.357

by another way:
3(𝑚𝑒𝑎𝑛 − 𝑚𝑒𝑑𝑖𝑎𝑛)
𝑆𝐾 =
𝜎
3(38.36−36.51)
=
11.68
3×1.85
=
11.68

𝑆𝐾 = +0.475

Example

Determine the quartile coefficient of skewness for the

following distribution
Class 10- 20- 30- 40- 50-60 Sum.
Frequency 8 12 16 14 10 60

Solution
Ascending
Class Frequency Upper Cumulative
Limits frequency
10- 8 Less than 10 0

106
 20- 12 Less than 20 8
30- 16 Less than 30 20
40- 14 Less than 40 36
50-60 10 Less than 50 50

60 Less than 60 60

∑𝑓 60
- Position 𝑄1 = = = 15
4 4
Position 𝑄1 −𝐶.𝐹.𝑃
- 𝑄1 = 𝐿. 𝐿. + ( × 𝑖)
𝐹
15− 8
𝑄1 = 20 + ( × 10) = 25.8
12
2∑𝑓 2×60
- Position 𝑄2 = = = 30
4 4
Position 𝑄2 −𝐶.𝐹.𝑃
- 𝑄2 = 𝐿. 𝐿. + ( × 𝑖)
𝐹
30− 20
𝑄2 = 30 + ( × 10) = 36.25
16
3∑𝑓 3×60
-Position 𝑄3 = = = 45
4 4
Position 𝑄3 −𝐶.𝐹.𝑃
- 𝑄3 = 𝐿. 𝐿. + ( × 𝑖)
𝐹
45−36
𝑄3 = 40 + ( × 10) = 46.4
14

𝑄1 + 𝑄3 − 2𝑄2
𝑆𝐾 =
𝑄3 − 𝑄1
25.8 + 46.4 − 2 × 36.25
𝑆𝐾 =
46.4 − 25.8
107
 −0.3
𝑆𝐾 =
20.6
𝑆𝐾 = −0.015
the quartile coefficient of skewness is −0.015

108
Glossary of Chapter IV

Quartiles Three summary measures that divide a ranked

data set into four equal parts.
Range A measure of spread obtained by taking the
difference between the largest and the smallest values in a
data set.
Second quartile Middle or second of the three quartiles
that divide a ranked data set into four equal parts. About
50% of the values in the data set are smaller and about
50% are larger than the second quartile. The second
quartile is the same as the median.
Standard deviation A measure of spread that is given by
the positive square root of the variance.
Statistic A summary measure calculated for sample data.
Third quartile Third of the three quartiles that divide a
ranked data set into four equal parts. About 75% of the
values in a data set. Are smaller than the value of the third
quartile and about 25% are larger. It is the median of the
values that are greater than the median of the whole data
set

109
 Exercises (4)

1- The following data is the degree for seven students

in statistics

5 8 7 4 10 6 9

Calculate the range, the inter quartile range, the

standard deviation and the coefficient of variation.
2- For the following data

8 2 4 3 12 7 5 9 11 10 6

Calculate the range, the inter quartile range, the

mean deviation, the standard deviation, the
coefficient of variation and the coefficient of
skewness.
3- If you have the following values
86 79 92 84 69 88 91 83 96 78 82 85
Calculate the range, the inter quartile range, the
standard deviation, the coefficient of variation and
the coefficient of skewness.
4- The following frequency distribution shows the
ages of 50 students

110
 Age 16- 18- 20- 22- 24-26 total
Number of 7 10 18 12 3 50
students

Calculate the range, the inter quartile range, the

mean deviation, the standard deviation, the
coefficient of variation and the coefficient of
skewness.
5- For the following frequency distribution

Classes 15- 25- 35- 45- 65- 75- 85-95

frequency 1 2 5 10 15 4 3

Calculate the range, the inter quartile range, the

standard deviation, the coefficient of variation and
the coefficient of skewness

111
Probability

112
 GOALS of CHAPTER V

1- Define probability.
2- Explain the terms experiment, event, outcome.
3- Identify and apply the appropriate approach to
assigning probabilities.
4- Calculate probabilities using the rules of addition.
5- Define the term joint probability and calculate
probabilities using the rules of multiplication.
6- conditional probability, and what you can and can’t
do with conditional expressions.
7- Bayes’ Theorem.

113
 CHAPTER V

Probability

Nearly all processes involve uncertainty. This is

obvious in the case of simple games of chance played
with cards and dice, and more complex games such as
horse-racing and team sports. But uncertainty is also
present in business processes, manufacturing processes
and scientific measurement processes. We cannot be
certain about the future behavior of a customer, or the
exact dimensions of the next unit of product, or even the
result that would arise if we repeated a measurement a
second time.
Probability is a value between zero and one,
inclusive, describing the relative possibility (chance or
likelihood) an event will occur.

5.1 Experiment, Outcome, Sample spaces and

events
An experiment, is a chance process that leads to the
occurrence of one and only one of several possible
outcomes.

114
An outcome, is the result of a single trial of an
experiment.
A sample space, Ω, is a set of possible outcomes of a
random experiment.

Example
If Toss a coin 3 times the sample space (ie, the total
number of results from this experiment) = it will be as
follows
Total number of results denoted by S
Number of results in one trail = N
Number of trails =m
∴ 𝑆 = 𝑁𝑚
Then in this Example
∴ 𝑆 = 𝑁 𝑚 = 23 = 8
S={(HHH),(HHT),(HTH),(THH),(HTT),(THT),(TTH),(TTT)}

An event A, is a subset of the sample space. In another

meaning is the collection of one or more outcomes of an
experiment. This means that event A is simply a
collection of outcomes.
Types of event
1. Simple events: It is a one-element event- such as
{1} in the dice experiment

115
 2. Compound event: An event consisting of more than
one item such as {2, 4, 6} has an even number in
the dice experiment
3. The impossible event: An event that does not
contain any element as the event of the emergence
of the number 7 in the experiment of throwing dice
4. The certain event is: For an event that includes all
the space elements as an event, fewer than 7 occur
in the dice experiment
5. Mutually Exclusive Events: The two events that do
not share any element and intersect the empty group
𝐴 ∩ 𝐵 = 𝜑 , two outcomes can’t occur at the same
time
— Male & Female in same person
6. independent Events: Events are if the occurrence of
one event does not affect the occurrence of another.
Example

Pick a person in this class at random. Determined

(Random experiment, sample space, event choose male).

116
 Solution

Random experiment: Pick a person in this class at

random.
Sample space: Ω = {all people in class}
Event A: A = {all males in class}.
Definition: Event A occurs if the outcome of the random
experiment is a member of the set A.
In the example above, event A occurs if the person we
pick is male.

5.2 Approaches of Probabilities

The three conceptual approaches to probability are (1)
classical probability, (2) the relative frequency concept of
probability, (3) Subjective Probability.

5.2.1 Classical Probability

Classical probability uses sample spaces to determine the

numerical probability that an event will happen. It
assumes that all outcomes in the sample space are equally
likely to occur (events have the same probability of
occurring).
• The probability of an event E can be defined as

117
 Probability of an event P(E): “Chance” that an event will
occur
• Must lie between 0 and 1
• “0” implies that the event will not occur
• “1” implies that the event will occur
∑ 𝑝(𝐸𝑖 ) = 𝑝(𝐸1 ) + 𝑝(𝐸2 ) + 𝑝(𝐸3 ) + ⋯ = 1

𝑛(𝐸) Number of outcomes in E

𝑝(𝐸) = =
𝑛(𝑆) number of outcomes in the sample space

Example

Consider an experiment of rolling a six-sided die. What is

the probability of the event “odd number of spots appear
face up”? The possible outcomes are:

Solution

There are three “favorable” outcomes (One, three, and

five) in the collection of six equally likely possible
outcomes.

118
5.2.2 Empirical Probability

The probability of an event happening is the

fraction of the time similar events happened in the past.
Empirical probability relies on actual experience to
determine the likelihood of outcomes.

The empirical approach to probability is based on

what is called the law of large numbers. The key to
establishing probabilities empirically is that more
observations will provide a more accurate estimate of the
probability.

Example
On February 2, 2005, the Space Shuttle Columbia
exploded. This was the third disaster in 113 space
missions for NASA. On the basis of this information,
what is the probability that a future mission is
successfully completed?
Solution
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑆𝑢𝑐𝑐𝑒𝑠𝑠𝑓𝑢𝑙 𝑓𝑙𝑖𝑔ℎ𝑡𝑠
𝑃𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑎 𝑠𝑢𝑐𝑐𝑒𝑠𝑠𝑓𝑢𝑙 𝑓𝑙𝑖𝑔ℎ𝑡 = 𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑓𝑙𝑖𝑔ℎ𝑡𝑠
110
= = 0.973
113.

119
5.2.3 Subjective Probability

we face experiments that neither have equally likely

outcomes nor can be repeated to generate data. In such
cases, we cannot compute the probabilities of events
using the classical probability rule or the relative
frequency concept.
Subjective probability is the probability assigned to
an event based on subjective judgment, experience,
information, and belief.

Summary of Types of Probability

5.3 Probability Rules

Complement of an event If A is an event, then the
complement of A, denoted by 𝐴̄ , represents the event

120
composed of all basic outcomes in S that do not belong to
A.
The complement rule is used to determine the
probability of an event occurring by subtracting the
probability of the event not occurring from 1.
𝑃(𝐴) + 𝑝( A ) = 1 or 𝑝(𝐴) = 1 − 𝑝(𝐴̄ )

Example
If the probability of getting a “working” computer is
(0.7). What is the probability of getting a defective
computer?
Solution

Let p(A) the probability of getting a “working” computer

and 𝑃(𝐴̄) the probability of getting a “unworking” then
𝑃(𝐴̄) = 1 − 𝑃(𝐴)
𝑃(𝐴̄) = 1 − 0.7 = 0.3
Addition law – intersection and union
The addition rule enables us to calculate the probability of
the union of two events.

121
Let A and B be two events in a sample space S. The
probability of the union of A and B is
P( A  B) = P( A) + P( B) − P( A  B).

Example
At State U, all first-year students must take chemistry and
math. Suppose 16% fail chemistry, 11% fail math, and
5% fail both. Suppose a first-year student is selected at
random. What is the probability that student selected
failed at least one of the courses?
Solution

𝑃(𝐴 ∪ 𝐵) = 𝑃(𝐴) + 𝑃(𝐵) − 𝑃(𝐴 ∩ 𝐵).

= 0.16 + 0.11 − 0.05 = 0.22
Addition Rule for Mutually Exclusive Events

The two events that do not share any element and

intersect the empty group 𝐴 ∩ 𝐵 = 𝜑 , two outcomes
cannot occur at the same time for example, Male &
Female in same person

122
Let A and B be two events in a sample space S. The
probability of the union of two mutually exclusive events
A and B is
P( A  B) = P( A) + P( B).

A B

Multiplication Rule and Independent Events

Let A and B be two independent events, then
𝑃(𝐴 ∩ 𝐵) = 𝑃(𝐴)𝑃(𝐵).
Example
A survey by the American Automobile association (AAA)
revealed 60 percent of its members made airline
reservations last year. Two members are selected at
random. What is the probability both made airline
reservations last year, R1 and R2 are independent?

Solution

The probability the first member made an airline

reservation last year is 0.60, written as P(R1) = 0.60

123
The probability that the second member selected made a
reservation is also 0.60, so P(R2) = 0.60.
Since the number of AAA members is very large,
(R1andR2)= P(R1 ∩ R2)= P(R1)P(R2) = (0.60)(0.60) =0.36

5.4 Conditional Probability and Independence

A box contains n white balls and m red balls. All the balls
are of the same size. Without looking, a person takes a
ball from the box. Without replacing the ball in the box,
he then takes a second ball. Let B denote the event “the
first ball drawn is white” and A the event “the second ball
drawn is red”. For the first draw, any of the (m + n) balls
in the box is equally likely to be drawn, while n of these
are white. Therefore,
𝑛
𝑝 (𝐵 ) =
𝑛+𝑚
If the first ball drawn was white, then the probability that
𝑚
the second ball drawn is red is , since only m of
𝑚+𝑛−1

the remaining (𝑚 + 𝑛 − 1) balls are red.

We introduce a new notation to describe this probability.
We call it the conditional probability of event A given B.
We denote it by P (A|B). This is usually read as “the
probability of A, given B”. Thus, in the above example,

124
 𝑚
𝑝 (𝐴 | 𝐵 ) =
𝑚+𝑛−1
We now give a formal definition of conditional
probability.

If A and B are any two events defined on the same sample

space S, the conditional probability of A given B, is
𝑝(𝐴∩𝐵)
defined by 𝑝(𝐴|𝐵) = , 𝑃 (𝐵 ) > 0
𝑝(𝐵)
And if P(B) = 0, then P(A | B) is undefined
Example
The following table shows 100 patients classified
according to blood group and sex.
group Blood group
gender A B O
Male 30 20 17
Female 15 10 8

If a patient is selected at random from this group, find the

probability that the patient selected:
(a) is a male and has blood group B,
(b) is a female and has blood group A.
(c) If a patient is chosen at random from the 100 patients,
find the probability that the patient chosen has blood
group A given that he is a male.

125
 Solution
There are 100 ways in which we can select a patient from
the 100 patients. Since the patient is selected at random,
all the 100 ways of selecting a patient are equally likely.
(a) There are 20 males with blood group B. Therefore, the
probability that the patient selected is a male and has
20
blood group B is = 0.2 .
100

(b) There are 15 females with blood group A. Therefore,

the probability that the patient selected is a female and has
15
blood group A is = 0.15 .
100

(c) Let M denote the event “the patient chosen is a male”

and A the event “the patient chosen has blood group A”.
We wish to find 𝑝(𝐴|𝑀).

𝑝(𝐴 ∩ 𝑀) 30⁄
𝑝 (𝐴 | 𝑀 ) = = 100 = 30
𝑝(𝑀) 67⁄ 67
100
Example
The probability that a regularly scheduled flight departs
on time is P ( D)= 0.83, the probability that it arrives on
time is P (A)= 0.82 ; and the probability that it departs and
arrives on time is P (D∩A )= 0.78. Find the probability
that a plane:

126
(a) arrives on time given that it departed on time,
(b) departed on time given that it has arrived on time,
Solution
(a) The probability that a plane arrives on time given that
it departed on time is
𝑝(𝐷 ∩ 𝐴) 0.78
𝑝 (𝐴 | 𝐷 ) = = = 0.94
𝑃(𝐷) 0.82
(b) The probability that a plane departed on time given
that it has arrived on time is
𝑝(𝐷 ∩ 𝐴) 0.78
𝑝(𝐷 |𝐴) = = = 0.95
𝑃(𝐴) 0.82
5.5 Bayes' Theorem
Bayes' theorem is a formula that describes how to update
the probabilities of hypotheses when given evidence. It
follows simply from the axioms of conditional
probability, but can be used to powerfully reason about a
wide range of problems involving belief updates.
Given a hypothesis H and evidence E, Bayes' theorem
states that the relationship between the probability of the
hypothesis before getting the evidence P(H) and the
probability of the hypothesis after getting the
evidence 𝑃(𝐻 |𝐸 ) is

127
 𝑃(𝐸 |𝐻 )
𝑃(𝐻 |𝐸 ) = 𝑃(𝐻)
𝑃(𝐸)

Example
If a single card is drawn from playing cards, the
probability that the card is a king is 4/52, since there are 4
kings in a standard deck of 52 cards.

If evidence is provided (for instance, someone looks at the

card) that the single card is a face card, then the posterior
probability P(King∣ Face) can be calculated using Bayes'
theorem: as follow
Solution

𝑃(𝐹𝑎𝑐𝑒 |𝐾𝑖𝑛𝑔)
𝑃(𝐾𝑖𝑛𝑔|𝐹𝑎𝑐𝑒) = 𝑃(𝐾𝑖𝑛𝑔).
𝑃(𝐹𝑎𝑐𝑒)

Since every King is also a face card, 𝑃(𝐹𝑎𝑐𝑒 |𝐾𝑖𝑛𝑔) = 1 .

Since there are 3 face cards in each suit (Jack, Queen,
3
King), the probability of a face card is 𝑃(𝐹𝑎𝑐𝑒) = .
13
1 13
Combining these gives a likelihood ratio of 3 = .
3
13
1
Using Bayes' theorem gives 𝑃(𝐾𝑖𝑛𝑔|𝐹𝑎𝑐𝑒) =
3

128
Example

• Dangerous fires are rare (1%)

• but smoke is fairly common (10%) due to
barbecues,
• and 90% of dangerous fires make smoke

using Bayes' theorem to find probability of dangerous Fire

when there is Smoke
Solution

𝑃(𝑆𝑚𝑜𝑘𝑒|𝐹𝑖𝑟𝑒 )
𝑃(𝐹𝑖𝑟𝑒 |𝑆𝑚𝑜𝑘𝑒) = 𝑃(𝐹𝑖𝑟𝑒)
𝑃(𝑆𝑚𝑜𝑘𝑒)
0.90×0.01
= = 0.09
0.10

Example

You are planning a picnic today, but the morning is

cloudy

• Oh no! 50% of all rainy days start off cloudy!

• But cloudy mornings are common (about 40% of
days start cloudy)
• And this is usually a dry month (only 3 of 30 days
tend to be rainy, or 10%)

129
- Find the probability of rain during the day?
- Find the probability of Rain given Cloud is written
𝑃(𝑅𝑎𝑖𝑛|𝐶𝑙𝑜𝑢𝑑 )
Solution

𝑃(𝐶𝑙𝑜𝑢𝑑 |𝑅𝑎𝑖𝑛)
𝑃(𝑅𝑎𝑖𝑛|𝐶𝑙𝑜𝑢𝑑 ) = 𝑃(𝑅𝑎𝑖𝑛)
𝑃(𝐶𝑙𝑜𝑢𝑑 )

• P(Rain) is Probability of Rain = 10%

• 𝑃(𝐶𝑙𝑜𝑢𝑑 |𝑅𝑎𝑖𝑛)is Probability of Cloud, given that
Rain happens = 50%
• 𝑃(𝐶𝑙𝑜𝑢𝑑 )is Probability of Cloud = 40%

0.1 × 0.5
𝑃(𝑅𝑎𝑖𝑛|𝐶𝑙𝑜𝑢𝑑 ) = = 0.125
0.4

5.6 Probability Reference List

The following properties hold for all events A, B.

• P(∅) = 0.
• 0 ≤ P(A) ≤ 1.
̅ )= 1 − P(A).
• Complement: 𝒑(𝐴
• Probability of a union: P (A ∪ B) = P(A) + P(B) − P(A∩B).
For three events A, B, C:
𝑃(𝐴 ∪ 𝐵 ∪ 𝐶) = 𝑃(𝐴) + 𝑃(𝐵) + 𝑃(𝐶) − 𝑃(𝐴 ∩ 𝐵) − 𝑃(𝐴 ∩ 𝐶) −
𝑃(𝐵 ∩ 𝐶) + 𝑃(𝐴 ∩ 𝐵 ∩ 𝐶).

130
If A and B are mutually exclusive, then
P (A ∪ B) = P(A) + P(B).
𝑃 (𝐴 ∩ 𝐵)
• Conditional probability: P(A|B) = 𝑃(𝐵)
.

• Multiplication rule: P (A ∩ B) = P(A|B) P(B) = P (B |A) P(A).

𝑃(𝐴|𝐵 )𝑃(𝐵)
• Bayes’ Theorem: 𝑃(𝐵|𝐴) = .
𝑃(𝐴)

More generally, if B1, B2, ..., Bm form a partition of Ω,

then
𝑝(𝐴|𝐵𝑗 )𝑝(𝐵𝑗 )
𝑃(𝐵𝑗 |𝐴) = for any j.
𝑗=1 𝑝(𝐴|𝐵𝑗 ) 𝑝(𝐵𝑗 )
∑𝑚

131
Glossary of Chapter V

Probability A numerical measure of the likelihood that a

specific event will occur.
Sample space The collection of all sample points or
outcomes of an experiment
Classical probability rule The method of assigning
probabilities to outcomes or events of an experiment with
equally likely outcomes.
Relative frequency as an approximation of probability
Probability assigned to an event based on the results of an
experiment or based on historical data.
Subjective probability The probability assigned to an
event based on the information and judgment of a person.
Complementary events Two events that taken together
include all the outcomes for an experiment but do not
contain any common outcome.
Law of Large Numbers If an experiment is repeated again
and again, the probability of an event obtained from the
relative frequency approaches the actual or theoretical
probability.
Impossible event An event that cannot occur.

132
Independent events Two events for which the occurrence
of one does not change the probability of the occurrence
of the other.
Intersection of events The intersection of events is given
by the outcomes that are common to two (or more)
events.
Mutually exclusive events Two or more events that do not
contain any common outcome and, hence, cannot occur
together.

133
 Exercises (5)
1- A car rental agency currently has 44 cars available,
28 of which have a GPS navigation system. One of
the 44 cars is selected at random. Find the
probability that this car
a. has a GPS navigation system.
b. does not have a GPS navigation system.
2- In a class of 35 students, 13 are seniors, 9 are juniors,
8 are sophomores, and 5 are freshmen. If one
student is selected at random from this class, what is
the probability that this student is
a. a junior?
b. a freshman?
3- Find P(A or B) for the following.
a. P(A)= 0.58, P(B) =0.66, and P(A and B)= 0.57.
b. P(A)= 0.72, P(B)= 0.42, and P(A and B)= 0.39.

4- Given that A and B are two mutually exclusive events,

find P(A or B) for the following.
a. P(A)= 0.47, P(B) =0.32.
b. P(A)= 0.16, P(B)= 0.59.

134
5- The following table shows the number of skilled and
unskilled workers in three divisions in a factory

Section
first second third sum
worker type
skilled 370 410 55 835
unskilled 30 90 45 165
Sum 400 500 100 1000

Find follow requires

1- The probability of selecting a factor from the first

section, the probability of selecting a factor from the
second section, the probability of selecting a factor from
the third section.
2 - The probability of selecting a factor from the first
section on condition that he is skilled.
3- The probability of choosing an unskilled worker on
condition that it is from the third section.

6- In one of the sports clubs near the university, 70

students from Helwan University were found, including
30 students from the Faculty of Business Administration,
35 students from the Faculty of Arts and the rest from

135
other colleges. A random number of students were
selected, with the following possibilities:
1 - Probability to be a student from the College of
Business Administration.
2 - The probability of the student from the Faculty of Arts
3 - The probability of being a student from the Faculty of
Business or from the Faculty of Arts.
4 - Probability to be a student from another college.

136
137
GOALS of CHAPTER VI

1- Distinguish between discrete and continuous

random variable.
2- Identify the characteristics of a probability
distribution.
3- Compute the mean, variance and standard deviation
of a probability distribution.
4- Describe and compute probabilities for a binomial
distribution.
5- Describe and compute probabilities for a Poisson
distribution.
6- Describe and compute probabilities for a Normal
distribution.
7- Describe and compute probabilities for a
exponential distribution.

138
 CHAPTER VI

Probability Distribution

6.1 The Concept of a Random Variable

A random variable is a function that assigns a real number
to each element in the sample space of a random
experiment.
Discrete Random Variable can assume only certain
clearly separated values. It is usually the result of
counting something. for Examples
❑ The number of students in a class.
❑ The number of children in a family.
❑ The number of cars entering a carwash in a hour.
❑ Number of loans at Misr Bank last week.
❑ Number of home mortgages approved by Misr Bank
last week
Continuous Random Variable can assume an
infinite number of values within a given range. It is
usually the result of some type of measurement. for
Examples,
❑ The distance students travel to class.
❑ The time it take to drive to work.
139
 ❑ The length of an afternoon nap.
❑ The length of time of a particular phone call.
❑ The length of each program on the radio.
❑ The weight of each student in this class.
6.1.1 Probability Distribution

Probability Distribution is a listing of all the outcomes

of an experiment and the probability associated with each
outcome.
Characteristics of Probability Distribution
1. The probability of a particular outcome is between 0
and 1 inclusive.
2. The outcomes are mutually exclusive events.
3. The list is exhaustive. So the sum of the probabilities of
the various events is equal to 1.
Example
Toss a coin three times. Observe the number of heads.
The possible results are: Zero heads, One head, Two
heads, and Three heads. What is the probability
distribution for the number of heads?

140
6.2 Discrete Random Variable and Distribution
Function
Two Characteristics of a Probability Distribution The
probability distribution of a discrete random variable
possesses the following two characteristics.
1. The probability assigned to each value of a random
variable x lies in the range 0 to 1; that is,
0 ≤ P(x) ≤ 1 for each x

141
 2. The sum of the probabilities assigned to all possible
values of x is equal to 1. that is,
∑ P(x) = 1.
These two characteristics are also called the two
conditions that a probability distribution must satisfy.

Example
Each of the following tables lists certain values of x and
their probabilities. Determine whether or not each table
represents a valid probability distribution.

Solution

(a) Because each probability listed in this table is in the

range 0 to 1, it satisfies the first condition of a probability
distribution. However, the sum of all probabilities is not
equal to 1. because ∑ 𝑝(𝑥 ) = 0.08 + 0.11 + 0.39 +

142
0.27 = 0.85 . Therefore, the second condition is not
satisfied. Consequently, this table does not represent a
valid probability distribution.
(b) Each probability listed in this table is in the range 0 to
1. Also, ∑ 𝑝(𝑥 ) = 0.25 + 0.34 + 0.28 + 0.13 = 1.
Consequently, this table represents a valid probability
distribution.
(c) Although the sum of all probabilities listed in this

table is equal to 1, one of the probabilities is negative.

This violates the first condition of a probability

distribution. Therefore, this table does not represent a

valid probability distribution.

6.3 Mean and Variance for Discrete Random

Variable

The Mean of a Discrete Probability Distribution

• The mean is a typical value used to represent the

central location of a probability distribution.
• The mean of a probability distribution is also
referred to as its expected value.

143
 𝑀𝑒𝑎𝑛 = 𝐸(𝑋) = 𝜇 = ∑ 𝑥𝑃(𝑥)

Variance and Standard Deviation

Measures the amount of spread in a distribution
The computational steps are:
1. Subtract the mean from each value, and square this
difference.
2. Multiply each squared difference by its probability.
3. Sum the resulting products to arrive at the variance.

var( 𝑋) = 𝜎 2 = ∑(x − 𝜇)2 𝑃(𝑥)

The standard deviation is found by taking the

positive square root of the variance.

√var( 𝑋) = 𝜎 = √𝜎 2
Example
John sells new cars for Ford. John usually sells the
largest number of cars on Saturday. He has developed the
following probability distribution for the number of cars
he expects to sell on a particular Saturday. Find the mean
and the variance.

144
Variance.

Example

The following table gives the probability distribution of a

random variable X.
X 1 2 3 4
1 1 1
P(x) C
4 2 8

(a) Find the value of the constant c.

(b) Represent the probability distribution by
(i) a probability graph,
(ii) a probability histogram.

145
(c) Find
(i) P(x)>1 , (ii) P(0<x<2 ), (iii) P (x)>2.
Solution
1 1 1 1
(a) ∑3
𝑥=0 𝑝(𝑥 ) =1 ⇒ +𝐶+ + =1 ⇒𝐶 =
4 2 8 8
(b)

probability histogram required(ii)

Probability graph required (i)

(c ) (i) 𝑝(𝑥 > 1) = 1 − 𝑝(𝑥 ≤ 1) = 1 − 𝑝(𝑥 = 1)

1 3
=1− =
4 4

Alternatively,
1 1 1
𝑝(𝑥 > 1) = 𝑝(𝑥 = 2) + 𝑝(𝑥 = 3) + 𝑝(𝑥 = 4) = + +
8 2 8
3
=
4
1
(ii) 𝑝(0 < 𝑥 < 2) = 𝑝(𝑥 = 1) =
4

(iii) 𝑝(𝑥 ≥ 2) = 𝑝(𝑥 = 2) + 𝑝(𝑥 = 3) + 𝑝(𝑥 = 4)

1 1 1 3
= + + =
8 2 8 4
146
 Alternatively,
1 3
𝑝(𝑥 ≥ 2) = 1 − 𝑝(𝑥 < 2) = 1 − 𝑝(𝑥 = 1) = 1 − =
4 4

Example

The following table explain the probability distribution

for (x )
x 0 1 2 3 sum
P(x) 0.1 0.3 0.5 0.1 1

Find the mean and variance for the probability

distribution
Solution

MEAN of PROBABILITY DISTRIBUTION = 𝐸(𝑋) = 𝜇

= ∑ 𝑥𝑃(𝑥)

= 0 ∗ 0.1 + 1 ∗ 0.3 + 2 ∗ 0.5 + 3 ∗ 0.1 = 1.6

var( 𝑋) = 𝜎 2 = ∑(x − 𝜇)2 𝑃(𝑥 )

= [(0 − 1.6)2 0.1 + (1 − 1.6)2 ∗ 0.3

+ (2 − 1.6)2 ∗ 0.5 + (3 − 1.6)2 ∗ 0.1]
= 0.256 + 0.108 + 0.08 + 0.196 = 0.64

∴ √𝑣(𝑥) = 𝜎 = 0.8

147
6.4 Important Discrete Probability Distribution
Certain particular discrete distributions are so important
that we list them here.
Binomial Probability Distribution
A Widely occurring discrete probability distribution.
Characteristics of a Binomial Probability Distribution
• There are only two possible outcomes on a particular
trial of an experiment.
• The outcomes are mutually exclusive,
• The random variable is the result of counts.
• Each trial is independent of any other trial.
Binomial Probability Formula
𝑛!
𝑃(𝑥) = 𝐶𝑥𝑛 𝑝 𝑥 𝑞𝑛−𝑥 = 𝑝 𝑥 𝑞 𝑛−𝑥 , 𝑥 = 0,1,2, … , 𝑛
𝑥!(𝑛−𝑥)!

𝑐: denotes a combination
𝑛: is the number of trails
𝑥:is random variable defined as number of successes
𝑝: is the probability of a success on each trail and q
is (1-p)
Mean and Variance
• Mean: μ = 𝑛𝑝
• Variance:σ2 = 𝑛𝑝𝑞
• Stander deviation: σ = √𝑛𝑝𝑞
148
Example
There are five flights daily from Cairo via Miser Airways
into the Alex, Luxor Airport. Suppose the probability that
any flight arrives late is 0.20.
- What is the probability that none of the flights are
late today?
Solution
𝑛!
𝑃(𝑥 = 0) = 𝐶𝑥𝑛 𝑝 𝑥 𝑞𝑛−𝑥 = 𝑝 𝑥 𝑞𝑛−𝑥 ,
𝑥! (𝑛 − 𝑥 )!
N=5 p=0.20 q=1-p=0.80
𝑃(𝑥 = 0) = 𝐶05 (0.20)0 (0.80)5−0
5!
= (0.20)0 (0.80)5−0 = 0.3277
0! (5 − 0)!
Example
For the example regarding the number of late flights,
recall that p=0.20 and n=5
-What is the average number of late flights?
-What is the variance of the number of late flights?
Solution

• 𝜇 = 𝑛𝑝 = 5 × 0.20 = 1
• 𝜎 2 = 𝑛𝑝𝑞 = 5 × 0.20 × 0.80 = 0.8

149
Example
The probability that a certain kind of component will
survive a shock test is 3/4. Find the probability that
exactly 2 of the next 4 components tested survive.
Solution

Assuming that the tests are independent and p = 3/4 for

each of the 4 tests, we obtain
P=3/4 n=4 x=2 q=1-p=1/4
𝑛!
𝑃(𝑥 ) = 𝐶𝑥𝑛 𝑝 𝑥 𝑞𝑛−𝑥 = 𝑝 𝑥 𝑞𝑛−𝑥 , 𝑥 = 0,1,2, … , 𝑛
𝑥!(𝑛−𝑥)!

4 3 2 1 2 4! 9 1
𝑝(𝑥 = 2) = ( ) ( ) ( ) = ( )( )
2 4 4 2! ⋅ 2! 16 16
9 27
= 6( )= = 0.21
266 128
Example
A large chain retailer purchases a certain kind of
electronic device from a manufacturer. The manufacturer
indicates that the defective rate of the device is 3%. The
inspector randomly picks 20 items from a shipment. What
is the probability that there will be at least one defective
item among these 20?

150
 Solution

Denote by X the number of defective devices among the

20. Then X follows Binomial distribution. Hence,
n=20 p = 0.03 q =1-p =0.97
(𝑋 ≥ 1) = 1 − 𝑃(𝑋 = 0)
20
= 1 − ( ) (0.03)0 (1 − 0.03)20−0
0
= 1 − (0.97)20 = 0.4562
The Bernoulli process must possess the following
properties:
• Each trial results in an outcome that may be
classified as a success or a failure.
• The probability of success, denoted by p, remains
constant from trial to trial.
• The repeated trials are independent.
The Bernoulli Distribution
Bernoulli distributions arise anytime we have a
response variable that takes only two possible values, and
we label one of these outcomes as 1 and the other as 0
The number X of successes in Binomial where n=1
is called Bernoulli random variable. The probability

151
distribution of this discrete random variable is called the
Bernoulli distribution.
Bernoulli Probability Formula
𝑝(x) = 𝑝 𝑥 (1 − p)1−𝑥 , 𝑥 = 0,1
Mean and Variance
• Mean: μ = 𝑝
• Variance:σ2 = 𝑝𝑞
• Stander deviation: σ = √𝑝𝑞

Poisson Process

• Experiments yielding numerical values of a random

variable X, the number of outcomes occurring during a
given time interval or in a specified region, are called
Poisson experiments.
• The given time interval may be of any length, such as a
minute, a day, a week, a month, or even a year.
• A Poisson experiment can generate observations for the
random variable X representing the number of telephone
calls received per hour by an office, the number of days
school is closed due to snow during the winter, or the
number of games postponed due to rain during a baseball
season.

152
• The specified region could be a line segment, an area, a
volume, or perhaps a piece of material. In such instances,
X might represent the number of field mice per acre, the
number of bacteria in a given culture, or the number of
typing errors per page.

Poisson Probability Distribution

The Poisson probability distribution describes the number

of times some event occurs during a specified interval.
The interval may be time, distance, area, or volume.

Assumptions of the Poisson Distribution

(1) The probability is proportional to the length of the
interval.
(2) The intervals are independent.
• The Poisson probability distribution is always
positively skewed and the random variable has no
specific upper limit.
• As µ becomes larger, the Poisson distribution
becomes more symmetrical.

153
Poisson Distribution formula
The probability distribution of the Poisson random
variable X, representing the number of outcomes
occurring in a given time interval or specified region
denoted by t, is
𝑒 −𝜆 𝜆𝑥
𝑃 (𝑥 ) = , 𝑥 = 0,1,2, …
𝑥!
𝜆 : is the mean number of occurrences (successes) in a
particular interval.
𝑒 : is the constant 2.718 (base Napierian logarithmic
system)
X: is the number of occurrences (successes).
P(x): is the probability for a specified value of x.

Mean and variance

Mean = 𝜆 = 𝑛𝑝
Variance = Mean = 𝜆

Example
During a laboratory experiment, the average number of
radioactive particles passing through a counter in 1
millisecond is 4. What is the probability that 6 particles
enter the counter in a given millisecond?

154
 Solution
Using the Poisson distribution with x = 6 and λ = 4, we
have
𝑒 −4 46
𝑝(𝑥 = 6) = = 0.1042
6!
Example
Ten is the average number of oil tankers arriving each day
at a certain port. What is the probability that on a given
day the port can handle at most 15 tankers per day?

Solution

Let X be the number of tankers arriving each day,

λ = 10
15 15
𝑒 −10 (10)𝑥
𝑃(𝑋 ≤ 15) = ∑ 𝑝(𝑥) = ∑ = 0.9513
𝑥!
𝑥=0 𝑥=0

Theorem

Example
In a manufacturing process where glass products are
made, defects or bubbles occur, occasionally rendering

155
the piece undesirable for marketing. It is known that, on
average, 1 in every 1000 of these items produced has one
or more bubbles. What is the probability that a random
sample of 8000 will yield fewer than 7 items possessing
bubbles?
Solution

This is a binomial experiment with n = 8000 and p =

0.001. Since p is very close to 0 and n is quite large, we
shall approximate with the Poisson distribution using
λ = (8000)(0.001) = 8.
Hence, if X represents the number of bubbles, we have
6 6
P( X  7 ) =  b( x;800,0.001)   p ( x;8) = 0.3134
x =0 x =0

6.5 Continuous Random Variable and Distribution

Function

A continuous random variable is one that can assume an

uncountable number of values. Because this type of
random variable is so different from a discrete variable,
we need to treat it completely differently First, we cannot
list the possible values because there is an infinite number
of them. Second, because there is an infinite number of
156
values, the probability of each individual value is virtually
0. Consequently, we can determine the probability of only
a range of values.
Corresponding to every continuous random variable
X, there is a function f, called the probability density
function (p.d.f.) of X such that
(i) 𝑓(𝑥) ≥ 0
∞
(ii)∫−∞ 𝑓(𝑥 )𝑑𝑥 = 1
𝑏
(iii) 𝑝(𝑎 ≤ 𝑥 ≤ 𝑏) = ∫𝑎 𝑓 (𝑥 )𝑑𝑥
For complete characterization of a continuous random
variable, it is necessary and sufficient to know the p.d.f.
of the random variable.
Geometrically, relation (iii) means the following: the
probability that a continuous random variable X takes
values in the interval (a, b) is equal to the area of the
region defined by the p.d.f. of X,
the straight lines x = a and x = b, and the x-axis as
following

The probability as an area under the p.d.f

157
Example

(i)Show that
1 2
𝑓 (𝑥 ) = {9 𝑥 0<𝑥<3
0 𝑒𝑙𝑠𝑒𝑤ℎ𝑒𝑟𝑒

is the p.d.f. of a continuous random variable X.

(ii) Sketch the graph of f (x).
Solution

(i)We have to show that 𝑓 (𝑥 ) ≥ 0 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑥 and

∞
∫−∞ 𝑓 (𝑥 )𝑑𝑥 = 1 . it is clear that
𝑓(𝑥 ) ≥ 0 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑥 Moreover,
∞ 0 3
∫−∞ 𝑓(𝑥 )𝑑𝑥 = ∫−∞ 𝑓(𝑥 )𝑑𝑥 + ∫0 𝑓(𝑥 )𝑑𝑥 +
∞
∫3 𝑓(𝑥) 𝑑𝑥
0 3 1 ∞
= ∫−∞ 0 𝑑𝑥 + ∫0 𝑥 2 𝑑𝑥 + ∫3 0 𝑑𝑥
9

1 3
=0+[ 𝑥 3] + 0 = 1
27 0

Hence, f (x) is the p.d.f. of a continuous random variable.

(ii) a sketch of the graph of f (x ).

The p.d.f. of x

158
Example

Refer to above example find

(1) 𝑝(𝑥 ≤ 2)
(2) 𝑝(𝑥 > 1)
(3) 𝑝(2 ≤ 𝑥 ≤ 3)
Solution
(1)
2 0 2
𝑝(𝑥 ≤ 2) = ∫ 𝑓 (𝑥 )𝑑𝑥 = ∫ 𝑓 (𝑥 )𝑑𝑥 + ∫ 𝑓(𝑥 )𝑑𝑥
−∞ −∞ 0
0 21
= ∫−∞ 0 𝑑𝑥 + ∫0 𝑥 2 𝑑𝑥
9

1 2 8
3
=0+[ 𝑥 ] =
27 0 27

(2)
∞ 3 ∞
𝑝(𝑥 > 1) = ∫ 𝑓(𝑥 )𝑑𝑥 = ∫ 𝑓 (𝑥 )𝑑𝑥 + ∫ 𝑓(𝑥 )𝑑𝑥
1 1 3
31 ∞
= ∫1 𝑥 2 𝑑𝑥 + ∫3 0𝑑𝑥
9

1 3 26
= [ 𝑥 3] + 0 =
27 1 27

31 1 3
2 3
(3) 𝑝(2 ≤ 𝑥 ≤ 3) = ∫2 9 𝑥 𝑑𝑥 = [ 𝑥 ] =
27 2
1 19
(27 − 8) =
27 27

159
Example

A random variable X has the p.d.f. given by

𝑓(𝑥 ) = {𝑘 √𝑥 0<𝑥<1
0 𝑒𝑙𝑠𝑒𝑤ℎ𝑒𝑟𝑒

(a) Find the value of the constant k.

1
(b) Calculate 𝑝(𝑥 < ) .
4

Solution
(a) The value of k is given by the equation

∞ 0 1 ∞
1 = ∫ 𝑓(𝑥) = ∫ 𝑓(𝑥)𝑑𝑥 + ∫ 𝑓(𝑥)𝑑𝑥 + ∫ 𝑓(𝑥)𝑑𝑥
−∞ −∞ 0 1

0 1 ∞
= ∫ 0𝑑𝑥 + ∫ 𝑘√𝑥 𝑑𝑥 + ∫ 0𝑑𝑥
−∞ 0 1
3 1
𝑘 𝑥2 2
=0+[ ] +0= 𝑘
3 3
2 0
2 3
∴ 𝑘 =1⇒𝑘 =
3 2
Thus
3
𝑓 (𝑥 ) = {2 √𝑥 0<𝑥<1
0 𝑒𝑙𝑠𝑒𝑤ℎ𝑒𝑟𝑒
1
1 0
(b) 𝑝 (𝑥 < ) =
4
∫−∞ 𝑓(𝑥 )𝑑𝑥 + ∫0 𝑓 (𝑥 )𝑑𝑥
4

160
 1 1
0 43 3 4 1
= ∫ 0𝑑𝑥 + ∫ √𝑥 𝑑𝑥 = 0 + [𝑥 2 ] =
−∞ 0 2 0 8

6.6 Mean and Variance for Continuous Random

Variable
So far, we have looked at expected value, standard
deviation, and variance for discrete random variables.
These summary statistics have the same meaning for
continuous random variables:

• The expected value µ = E(X) is a measure of location or

central tendency.
• The standard deviation σ is a measure of the spread or
scale.
• The variance σ2 = Var(X) is the square of the standard
deviation.
To move from discrete to continuous, we will
simply replace the sums in the formulas by integrals. We
will do this carefully and go through many examples in
the following sections.

161
 Let X be a continuous random variable with range
[a, b] and probability density function f(x). The expected
value of X is defined by
𝑏
𝐸 (𝑥 ) = ∫ 𝑓(𝑥 )𝑑𝑥.
𝑎

Example
3
Let X have range [0, 2] and density 𝑥 2 . Find E(X).
8

Solution
2 2 2
3 3 3𝑥 4 3
𝐸(𝑥) = ∫ 𝑥 𝑓(𝑥)𝑑𝑥 = ∫ 𝑥 𝑑𝑥 = [ ] =
0 0 8 32 0 2

The properties of E(X) for continuous random

variables:
1. If X and Y are random variables on a sample space
Ω then
E(x + y) = E(x) + E(y).
2. If a and b are constants then
𝐸 (𝑎𝑥 + 𝑏) = 𝑎𝐸 (𝑥 ) + 𝑏.
Variance

Let X be a continuous random variable with mean

µ. The variance of X is

162
 𝑉 (𝑥 ) = 𝐸 ((𝑥 − 𝜇)2 ).
Properties of Variance

1- If 𝑥 and Y are independent then Var(𝑥 + Y ) = Var(𝑥)

+ Var(Y ).
2- For constants a and b, Var (a 𝑥 + b) =a2 Var(𝑥).
3- Var(𝑥) = E(𝑥 2 ) − E(𝑥)2 = E(𝑥 2 ) -𝜇2 .

6.7 Important continuous Probability Distribution

Uniform Distribution

uniform probability distribution also called the

rectangular probability distribution.

Uniform distribution formula

The uniform distribution is described by the function

1
𝑓 (𝑥 ) = 𝑤ℎ𝑒𝑟𝑒 𝑎 ≤ 𝑥 ≤ 𝑏
𝑏−𝑎
To calculate the probability of any interval, simply find
the area under the curve. For example, to find the
probability that x falls between 𝑥1 and 𝑥2 determine the
area in the rectangle whose base is 𝑥2 − 𝑥1 and whose
1
height is .
𝑏−𝑎

163
 FIGURE 𝑝(𝑥1 ≤ 𝑥 ≤ 𝑥2 )

We can see, it is a rectangle and the area of a rectangle is

found by multiplying the base times the height.
1
𝑝(𝑥1 ≤ 𝑥 ≤ 𝑥2 ) = 𝐵𝑎𝑠𝑒 × 𝐻𝑒𝑖𝑔ℎ𝑡 = (𝑥2 − 𝑥1 ) ×
𝑏−𝑎
Example

The amount of gasoline sold daily at a service station is

uniformly distributed with a minimum of 2000 gallons
and a maximum of 5000 gallons.
a. Find the probability that daily sales will fall between
2500 and 3000 gallons.
b. What is the probability that the service station will sell
at least 4000 gallons?
c. What is the probability that the station will sell exactly
2500 gallons?

164
 Solution
The probability density function is
1
𝑓 (𝑥 ) = 𝑤ℎ𝑒𝑟𝑒 𝑎 ≤ 𝑥 ≤ 𝑏
𝑏−𝑎
1 1
𝑓(𝑥) = = 𝑤ℎ𝑒𝑟𝑒 2000 ≤ 𝑥 ≤ 5000
5000−2000 3000
1
a- 𝑝(2500 ≤ 𝑥 ≤ 3000) = (3000 − 2500) × =
3000

0.166

𝑝(2500 ≤ 𝑥 ≤ 3000)

1
b- 𝑝(𝑥 ≥ 4000) = (5000 − 4000) × = 0.333
3000

𝑝(4000 ≤ 𝑥 ≤ 5000)

165
c- 𝑝(𝑥 = 2500) = 0, Because there is an uncountable
infinite number of values of X, the probability of each
individual value is zero.

𝑝(𝑥 = 2500)

Normal Distribution

• The normal distribution is the most important of all

continuous probability distributions.

• It looks like this:

• Bell shaped,

• Symmetrical around the mean 𝜇

• Normal distributions range from minus infinity to

plus infinity.

166
 The Normal Distribution - Graphically

The density of the normal random variable X, with

mean μ and variance σ 2, is

1
1 − ( x −  )2
n ( x ; , ) = 2
, −   x  ,
2
e
2

where = 3.141592654 . . . and e = 2.718281828459 . . . .

▪ A normal distribution whose mean is zero and

standard deviation is one is called the standard

normal distribution.
167
 ▪ Any normal distribution can be converted to a

standard normal distribution with simple algebra.

▪ We can use the following function to convert any

normal random variable to a standard normal

random variable

You will sometimes need to know the following

• Given a normal distribution with a particular mean and

standard deviation, what is the boundary marking x of the
area under the curve. In other words, we only knew the
area (probability) that we want to have under the curve,
and want to know the bounds that mark that area

168
• Or, we need to know the area under the curve between
two specific boundaries.

Example

The time required to build a computer is normally

distributed with a mean of 50 minutes and a standard
deviation of 10 minutes.

• What is the probability that a computer is assembled in

a time between 45 and 60 minutes?
• Algebraically speaking, what is P(45 < X < 60) ?

Solution

P(–0.5 < Z < 1) = p (0 < z <

-0.5) + p (0< z <1)

169
0.1915+0.341=0.5328

How to use the standard normal Distribution Table?

First column = integer + first decimal

Top row = second decimal place

Example

What is P(Z > 1.6) ?

Solution

P(Z > 1.6) = 0.5 – P (0< z < 1.6)

= 0.5 – 0.4452
= .0548

170
Example

What is P(Z < -2.23)

Solution

P( Z < -2.23) = 0.5- P(0 < Z < 2.23)

= 0.5 - 0.4871= .0129

Example

What is P (Z < 1.52) ?

Solution

P(Z< 1.52)= 0.5 + P(0<Z< 1.52)= 0.5+0.4357= .9357

Exponential distribution.

There is Another important continuous distribution

171
Exponential distribution formula

A random variable X is exponentially distributed if its

probability density function is given by
𝑓 (𝑥 ) = 𝜆𝑒 −𝜆𝑥 𝑥≥0
where e= 2.71828 . . . and 𝜆 is the parameter of the
distribution.
Statisticians have shown that the mean and standard
deviation of an exponential random variable are equal to
each other:
1
𝜇=𝜎=
𝜆
Example

The lifetime of an alkaline battery (measured in hours) is

exponentially distributed with 0.05.
a.What is the mean and standard deviation of the battery’s
lifetime?
b. Find the probability that a battery will last between 10
and 15 hours.
c. What is the probability that a battery will last for more
than 20 hours?

172
 Solution
1
a. The mean and standard deviation are equal to .
𝜆
Thus,
1 1
𝜇=𝜎= = = 20 ℎ𝑜𝑢𝑟𝑠
𝜆 0.05

b. Let X denote the lifetime of a battery. The required

probability is
𝑝(10 < 𝑥 < 15) = 𝑒 −0.05(10) − 𝑒 −0.05(15)
= 𝑒−0.5 − 𝑒−0.75
= 0.0665 − 0.4724 = 0.1341
c. 𝑝(𝑥 > 20) = 𝑒 −0.05(20) = 𝑒 −1 = 0.3679

Example

A checkout counter at a supermarket completes the

process according to an exponential distribution with a
service rate of 6 per hour. A customer arrives at the
checkout counter.

Find the probability of the following events.

a. The service is completed in fewer than 5 minutes.
b. The customer leaves the checkout counter more than
10 minutes after arriving.

173
c. The service is completed in a time between 5 and 8
minutes.
Solution

we can solve by converting the probability statements so

that the time periods are measured in fractions of an
6
hour.) Let the service rate 𝜆 = = 0.1 /minute
60

a. 𝑝(𝑥 < 5) = 1 − 𝑒 −𝜆𝑥 = 1 − 𝑒 −0.1(5) = 0.3935

b. 𝑝(𝑥 > 10) = 𝑒 −𝜆𝑥 = 𝑒 −0.1(10) = 0.3679
c. 𝑝(5 < 𝑥 < 8) = 𝑒 −0.1(5) − 𝑒 −0.1(8) = 0.1572

174
Glossary of Chapter

Random variable A variable, denoted by x, whose value

is determined by the outcome of a random experiment.
Also called a chance variable.
Discrete random variable A random variable whose
values are countable.

Continuous random variable A random variable that can

assume any value in one or more intervals.

Binomial experiment An experiment that contains n

identical trials such that each of these n trials has only two
possible outcomes, the probabilities of these two
outcomes remain constant for each trial, and the trials are
independent.

Mean of a discrete random variable The mean of a

discrete random variable x is the value that is expected to
occur per repetition, on average, if an experiment is
performed a large number of times. The mean of a
discrete random variable is also called its expected value.

175
Probability distribution of a discrete random variable A
list of all the possible values that a discrete random
variable can assume and their corresponding probabilities.

Normal probability distribution The probability

distribution of a continuous random variable that, when
plotted, gives a specific bell-shaped curve. The
parameters of the normal distribution are the mean 𝜇 and
the standard deviation𝜎.

Standard normal distribution The normal distribution

with 𝜇 = 0 and 𝜎 = 1 . The units of the standard normal
distribution are denoted by z.

z value or z score The units of the standard normal

distribution that are denoted by z.

176
 Exercises (6)
1- Refer to the information regarding the weekly income
of shift foremen in the glass industry. The distribution of
weekly incomes follows the normal probability
distribution with a mean of 1000 and a standard deviation
of 100.
What is the probability of selecting a shift foreman in the
glass industry whose income is: Less than 790?
2- Refer to the information regarding the weekly income
of shift foremen in the glass industry. The distribution of
weekly incomes follows the normal probability
distribution with a mean of 1000 and a standard deviation
of 100.
What is the probability of selecting a shift foreman in the
glass industry whose income is: Between 840 and 1,200?

3-What is P (-1.6 < z < 2)

4-What is P (Z < - 0.5)

5-What is P( Z < 1)
6-What is P(Z < -2.23)

7-What is P(0<Z< 1.6)

177
8.Let X be an exponential random variable with 𝜆 = 0.50
. Find the following probabilities.
a. 𝑝(𝑥 > 1)
b. 𝑝(𝑥 > 0.4)
c. 𝑝(𝑥 < 0.5)
d. 𝑝(𝑥 < 2)
9.Let X is an exponential random variable with 𝜆 = 0.3 .
Find the following probabilities
a. 𝑝(𝑥 > 2)
b. 𝑝(𝑥 < 4)
c. 𝑝(1 < 𝑥 < 2)
d. 𝑝(𝑥 = 3)
10. Consider the experiment consisting of 10 tosses of a
coin. Determine whether or not it is a binomial
experiment.
11. At the Express House Delivery Service, providing
high-quality service to customers is the top priority of the
management. The company guarantees a refund of all
charges if a package it is delivering does not arrive at its
destination by the specified time. It is known from past
data that despite all efforts, 2% of the packages mailed
through this company do not arrive at their destinations

178
within the specified time. Suppose a corporation mails 10
packages through Express House Delivery Service on a
certain day.
(a) Find the probability that exactly one of these 10
packages will not arrive at its destination within the
specified time.
(b) Find the probability that at most one of these 10
packages will not arrive at its destination within the
specified time.
11. In a Robert Half International survey of senior
executives, 35% of the executives said that good
employees leave companies because they are unhappy
with the management (USA TODAY, February 10, 2009).
Assume that this result holds true for the current
population of senior executives. Let x denote the number
in a random sample of three senior executives who hold
this opinion. Write the probability distribution of x and
draw a bar graph for this probability
12. According to a Harris Interactive survey conducted
for World Vision and released in February 2009, 56% of
teens in the United States volunteer time for charitable
causes. Assume that this result is true for the current

179
population of U.S. teens. A sample of 60 teens is selected.
Let x be the number of teens in this sample who volunteer
time for charitable causes. Find the mean and standard
deviation of the probability distribution of x.
13. On average, a household receives 9.5 telemarketing
phone calls per week. Using the Poisson probability
distribution formula, find the probability that a randomly
selected household receives exactly 6 telemarketing
phone calls during a given week.

14. A washing machine in a laundromat breaks down an

average of three times per month. Using the Poisson
probability distribution formula, find the probability that
during the next month this machine will have
(a) exactly two breakdowns
(b) at most one breakdown.
15. Loraine Corporation is planning to market a new
makeup product. According to the analysis made by the
financial department of the company, it will earn an
annual profit of $4.5 million if this product has high sales,
it will earn an annual profit of $1.2 million if the sales are
mediocre, and it will lose $2.3 million a year if the sales

180
are low. The probabilities of these three scenarios are
0.32, 0.51, and 0.17, respectively.
(a) Let x be the profits (in millions of dollars) earned per
annum from this product by the company. Write the
probability distribution of x.
(b) Calculate the mean and standard deviation of x

181
182
GOALS of the CHAPTER
1- Define point and confidence interval estimates.
2- Define level of confidence.
3- Compute a confidence interval for the population
mean when the population standard deviation is
known.
4- Compute a confidence interval for a population
mean when the population standard deviation is
unknown.
5- Compute a confidence interval for a population
proportion.

183
 CHAPTER VII

Estimation

7.1 Point and interval Estimation

Estimation is a procedure by which a numerical value or

values are assigned to a population parameter based on
the information collected from a sample.
Definition Estimation The assignment of value(s) to a
population parameter based on a value of the
corresponding sample statistic is called estimation.
In inferential statistics, is called the true population
mean and p is called the true population proportion. There
are many other population parameters, such as the
median, mode, variance, and standard deviation.
Definition Estimate and Estimator The value(s)
assigned to a population parameter based on the value of a
sample statistic is called an estimate. The sample statistic
used to estimate a population parameter is called an
estimator.
The estimation procedure involves the following steps.
1. Select a sample.

184
2. Collect the required information from the members of
the sample.
3. Calculate the value of the sample statistic.
4. Assign value(s) to the corresponding population
parameter.
• Point Estimate A sample statistic used to estimate
the exact value of a population parameter
• Confidence interval (interval estimate) A range of
values defined by the confidence level within which
the population parameter is estimated to fall.
• Confidence Level The likelihood, expressed as a
percentage or a probability, that a specified interval
will contain the population parameter.
• 95% confidence level there is a 0.95 probability
that a specified interval does contain the population
mean. In other words, there are 5 chances out of
100 (or 1 chance out of 20) that the interval doesn’t
contain the population mean.
• 99% confidence level there is 1 chance out of 100
that the interval doesn’t contain the population
mean.

185
Constructing a Confidence Interval (CI)
• The sample mean is the point estimate of the
population mean.
• The sample standard deviation is the point
estimate of the population standard deviation.
• The standard error of the mean makes it possible
to state the probability that an interval around the
point estimate contains the actual population mean.

Factors Affecting Confidence Interval Estimates

The factors that determine the width of a confidence

interval are:
1.The sample size, n.
2.The variability in the population, usually σ estimated by
s.
3.The desired level of confidence

7.2 Estimation of population mean 𝝈 is known

This section explains how to construct a confidence
interval for the population mean when the population
standard deviation is known. Here, there are three
possible cases, as follows.

186
Case I. If the following three conditions are fulfilled
1. The population standard deviation is known
2. The sample size is small (i.e., n < 30)
3. The population from which the sample is selected is
normally distributed,
then we use the normal distribution to make the
confidence interval for 𝜇.
Case II. If the following two conditions are fulfilled

1. The population standard deviation is known.

2. The sample size is large (i.e., 𝑛 ≥ 30 then, again, we
use the normal distribution to make the confidence
interval for 𝜇 .
Case III. If the following three conditions are fulfilled

1. The population standard deviation is known

2. The sample size is small (i.e., n < 30)
3. The population from which the sample is selected is not
normally distributed (or its distribution is unknown), then
we use a nonparametric method to make the confidence
interval for Such procedures. This section will cover the
first two cases.

187
Confidence Interval for 𝜇 The (1 -𝛼 )100% confidence
interval for 𝜇 under Cases I and II is

𝝈
̅ ±𝒛
𝒙
√𝒏
̅ : is a sample mean.
𝒙
Z: value for a particular confidence level.
𝝈: the population standard deviation.
n: the number of observations in the sample.

1. The width of the interval is determined by the level of

confidence and the size of the standard error of the mean.
2. The standard error is affected by two values, standard
deviation - number of observations in the sample

188
 The value of z used here is obtained from the
standard normal distribution table for the given
confidence level.

Example

A sample of 81 observations is taken from a normal

population. The sample mean is 40, and sample
standard deviation is 5, determine the 95% confidence
interval for the population mean.

Solution

̅ = 𝟒𝟎, 𝝈 = 𝟓, 𝑪. 𝑰 = 𝟗𝟓% 𝒛 = 𝟏. 𝟗
𝒏 = 𝟖𝟏, 𝒙
𝝈
̅ ±𝒛
𝒙
√𝒏
+ 5
40 − (1.96) = 40+
− 1.089
√81

38.91≤ 𝜇 ≤ 41.08

189
Example

determine the 95% confidence interval for the population

mean
𝑛 = 100, 𝑥̅ = 30, 𝜎 = 4, 𝐶. 𝐼 = 95% 𝑧 = 1.96

Solution

𝑛 = 100, 𝑥̅ = 30, 𝜎 = 4, 𝐶. 𝐼 = 95% 𝑧 = 1.96

𝝈
̅ ±𝒛
𝒙
√𝒏
+ 4
30 − (1.96) =
√100

29.216≤ 𝜇 ≤ 30.784

Example

The England Management Association wishes to have

information on the mean income of middle managers in
the retail industry. A random sample of 256 managers
reveals a sample mean of $45420. The standard deviation
of this population is $2050. The association would like
answers to the following questions:
1. What is the population mean?
2. What is a reasonable range of values for the population
mean? (Use 95% confidence level)

190
 Solution

1- The sample mean of $45420 is a point estimate of

the unknown population mean.
2- 𝑥̅ = 45420 𝑛 = 256 𝜎 = 2050

𝝈
̅ ±𝒛
𝒙
√𝒏

2050
45420 ± 𝟏. 𝟗𝟔
√𝟐𝟓𝟔

The confidence limit are $45168.875 and $45671.125.

That’s mean if we select many samples of 256 managers,
and for each sample we compute the mean and then
construct a 95 percent confidence interval, we could
expect about 95 percent of these confidence intervals to
contain the population mean.

7.3 Estimation of population 𝝈 is unknown

This section explains how to construct a confidence
interval for the population mean when the population
standard deviation is unknown. Here, again, there are
three possible cases that are mentioned below.

191
If the following three conditions are fulfilled:
1. The population standard deviation 𝜎is unknown.
2. The sample size is small (i.e., n < 30) .
3. The population from which the sample is selected is
normally distributed, then we use the t distribution to
make the confidence interval for 𝜇.
𝑠
𝑥̅ ± 𝑡
√𝑛
𝑥̅ : is a sample mean.
t: value for a particular confidence level.
𝑠: The sample standard deviation.
n: the number of observations in the sample.

Characteristics of the t-distribution

1. It is, like the z distribution, a continuous distribution.
2. It is, like the z distribution, bell-shaped and
symmetrical.
3. There is not one t distribution, but rather a family of t
distributions. All t distributions have a mean of 0, but
their standard deviations differ according to the sample
size, n.
t distribution is more spread out and flatter at the
center than the standard normal distribution as the sample

192
size increases, however, the t distribution approaches the
standard normal distribution.
The units of a t distribution are denoted by t. The
shape of a particular t distribution curve depends on the
number of degrees of freedom (df), the number of degrees
of freedom for a t distribution is equal to the sample size
minus one, that is,
𝑑𝑓 = 𝑛 − 1
The t distribution has only one parameter, called the
degrees of freedom (df). The mean of the t distribution is
𝑑𝑓
equal to 0, and its standard deviation is √
(𝑑𝑓−2)

Example
shows the standard normal distribution and the t
distribution for 9 degrees of freedom.

Solution

The standard deviation of the standard normal distribution

is 1, and the standard deviation of the t distribution is

𝑑𝑓
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡 = √
(𝑑𝑓 − 2)

193
 9
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡 = √ = 1.134
(9 − 2)

Example
Find the value of t for 16 degrees of freedom and 0.05
area in the right tail of a t distribution curve.

Solution

we locate 16 in the column of degrees of freedom (labeled

df) and 0.05 in the row of Area in the right tail under the t
distribution curve at the top of the table. The entry at the
intersection of the row of 16 and the column of 0.05,
which is 1.746, gives the required value of t

The required value

194
If the Sample Size Is Too Large and 𝝈 is unknown

1. Use the t value from the last row (the row of ∞) in

Table in Appendix.
2. Use the normal distribution as an approximation to the t
distribution.

7.4 Estimation of population proportion larges

samples
A population proportion means the proportion of
units in a population that possess some attribute of
interest. a population could consist of customers, and the
attribute could be that the customer pays with cash, or a
population could consist of products, and the attribute
could be that the product is defective.

The confidence interval for a population proportion p is

estimated by:

195
 ̄
𝑝̄ (1 − 𝑝̄ ) 𝑝̄ 𝑞
𝑝̄ ± 𝑧𝛼/2 √ = 𝑝 ± 𝑧𝛼/2 √
𝑛 𝑛

𝑥
Where 𝑝̄ =
𝑛

𝑝̄ : proportion for sample

(1 − 𝑝̄ ) = 𝑞
If a random sample of n units includes x units that possess
𝑥
the attribute, then the sample proportion, 𝑝̄ =
𝑛

Example
Out of 50 students randomly selected from a college, 16
had been bitten by a dog at some time. Construct an
approximate 95% confidence interval for the population
proportion.
Solution
𝑥 16
𝑝̄ = = = 0.32
𝑛 50

𝑝̄ (1 − 𝑝̄ )
𝑝 = 𝑝̄ ± 𝑧 √
𝑛

0.32(1 − 0.32)
𝑝 = 0.32 ± 1.96√
50
𝑝 = 0.32 ± 0.13
𝟎. 𝟏𝟗 ≤ 𝒑 ≤ 𝟎. 𝟒𝟓

196
We estimate that between 19% and 45% of all students in
the college had been bitten by a dog at some time, with
approximately 95% confidence.

Example
The union representing of America (BBA) is considering
a proposal to merge with the Teamsters Union. According
to BBA union by laws, at least three-fourths of the union
membership must approve any merger. A random sample
of 2000 current BBA members reveals 1600 plan to vote
for the merger proposal. What is the estimate of the
population proportion?
Develop a 95 percent confidence interval for the
population proportion. Basing your decision on this
sample information, can you conclude that the necessary
proportion of BBA members favor the merger? Why?
Solution

First, compute the sample proportion:

𝑥 1600
𝑝̅ = = = 0.80
𝑛 2000
Compute the 95% C.I.

197
 𝑝̄ (1 − 𝑝̄ )
C.I. = 𝑝̄ ± 𝑧𝛼 √
2 𝑛

0.80(1 − 0.80)
= 0.80 ± 1.96√
2000

= 0.80 ± 0.018 = (0.782,0.818)

Conclude: the merger proposal will likely pass because
the interval estimate includes values greater than 75
percent of union membership.

198
Glossary of Chapter

Confidence interval An interval constructed around the

value of a sample statistic to estimate the corresponding
population parameter.
Confidence level Confidence level, denoted by (1-𝛼
)100%, that states how much confidence we have that a
confidence interval contains the true population
parameter.
Degrees of freedom (df ) The number of observations that
can be chosen freely. For the estimation of using the t
distribution, the degrees of freedom are (n – 1).
Estimate The value of a sample statistic that is used to
find the corresponding population parameter.
Estimation A procedure by which a numerical value or
values are assigned to a population parameter based on
the information collected from a sample.
Estimator The sample statistic that is used to estimate a
population parameter.

199
 Exercises (7)

1- A random sample of 25 life insurance policyholders

showed that the average premium they pay on their
life insurance policies is $685 per year with a
standard deviation of $74. Assuming that the life
insurance policy premiums for all life insurance
policyholders have a normal distribution, make a
99% confidence interval for the population mean.

2- A survey of 500 randomly selected adult men

showed that the mean time they spend per week
watching sports on television is 9.75 hours with a
standard deviation of 2.2 hours. Construct a 90%
confidence interval for the population mean.

3- An insurance company selected a sample of 50 auto

claims filed with it and investigated those claims
carefully. The company found that 12% of those
claims were fraudulent.

a. What is the point estimate of the percentage of all auto

claims filed with this company that are fraudulent?

200
b. Make a 99% confidence interval for the percentage of
all auto claims filed with this company that are fraudulent.

201
202
GOALS of the CHAPTER
1. Define a hypothesis and hypothesis testing.
2. Explain the five-step hypothesis-testing procedure.
3. Describe Type I and Type II errors.
4. Distinguish between a one-tailed and two-tailed
hypothesis.
5. Describe the ANOVA approach for testing
difference in means.

203
 CHAPTER VIII

Hypothesis Testes

8.1 Concepts of Hypothesis Testing

Hypothesis A statement about the value of a population

parameter developed for the purpose of testing.
Hypothesis Testing A procedure based on sample
evidence and probability theory to determine whether the
hypothesis is a reasonable statement.
In a test of hypothesis, we test a certain given
theory or belief about a population parameter. We may
want to find out, using some sample information, whether
or not a given claim (or statement) about a population
parameter is true.

Two hypotheses
A null hypothesis is a claim (or statement) about a
population parameter that is assumed to be true until it is
declared false. It is represented by 𝐻0 .
An alternative hypothesis is a claim about a
population parameter that will be true if the null
hypothesis is false. It is represented by 𝐻1 .

204
 There are two possible errors. A Type I error occurs
when we reject a true null hypothesis. A Type II error is
defined as not rejecting a false null hypothesis. The
probability of a Type I error is denoted by 𝛼, which is
also called the significance level. The probability of a
Type II error is denoted by 𝛽

Table : Terminology of Hypothesis Testing

Five-Step Procedure for Testing a Hypothesis

1. State null hypothesis and alternative hypothesis.
2. Select level of significance
3. Identify test statistics
4. Formulate Decision rule
5. Take a sample arrive at decision
8.2 Hypothesis Testes about mean 𝝈 Known

A two-tail test is conducted whenever the alternative

hypothesis specifies that the mean is not equal to the

205
value stated in the null hypothesis that is, when the
hypotheses assume the following form:

𝐻0 : 𝜇 = 𝜇0
𝐻1 : 𝜇 ≠ 𝜇0

a one-tail test that focuses on the right tail of the sampling

distribution whenever we want to know whether there is
enough evidence to infer that the mean is greater than the
quantity specified by the null hypothesis—that is, when
the hypotheses are

𝐻0 : 𝜇 = 𝜇0
𝐻1 : 𝜇 > 𝜇0

The second one-tail test involves the left tail of the

sampling distribution. It is used when the statistics
practitioner wants to determine whether there is enough
evidence to infer that the mean is less than the value of
the mean stated in the null hypothesis. The resulting
hypotheses appear in this form:
𝐻0 : 𝜇 = 𝜇0
𝐻1 : 𝜇 < 𝜇0

206
Level of significance the probability of rejecting the null
hypothesis when it is true, designated α.

There are many test statistics. In this chapter we use

both z and t as the test statistic.
Test statistics A value, determined from sample
information, used to determine whether to reject the null
hypothesis
(𝑜𝑏𝑠𝑒𝑟𝑣𝑒𝑑 𝑣𝑎𝑙𝑢𝑒) − ( 𝑒𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑣𝑎𝑙𝑢𝑒)
𝑇𝑒𝑠𝑡 𝑣𝑎𝑙𝑢𝑒 =
𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑒𝑟𝑟𝑜𝑟

Where
𝜎
𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑒𝑟𝑟𝑜𝑟 =
√𝑛

A decision rule is a statement of the specific

conditions under which the null hypothesis is rejected and
the condition under which it is not rejected (Accept).
p-Value the probability of observing a sample value
as extreme as, or more extreme than, the value observed,
given that the null hypothesis is true.
Using the p-value approach, we reject the null hypothesis
if
𝑝 𝑣𝑎𝑙𝑢𝑒 < 𝛼 𝑜𝑟 𝛼 > 𝑝 𝑣𝑎𝑙𝑢𝑒
and we do not reject (Accept )the null hypothesis if

207
 𝑝 𝑣𝑎𝑙𝑢𝑒 ≥ 𝛼 𝑜𝑟 𝛼 ≤ 𝑝 𝑣𝑎𝑙𝑢𝑒

Hypothesis Setups for Testing a Mean ()

𝐻0 : 𝜇 = 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝜇 ≥ 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝜇 ≤ 𝑣𝑎𝑙𝑢𝑒

𝐻0 : 𝜇 ≠ 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝜇 < 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝜇 > 𝑣𝑎𝑙𝑢𝑒

Use Z-distribution If the population standard deviation

is known or the sample is greater than 30.

Calculating the z Value for 𝑥̅ When using the normal

distribution, the value of z for 𝑥̅ for a test of hypothesis
about 𝜇 is computed as follows:
𝑥̅ − 𝜇
𝑧= 𝜎
√𝑛
The value of z calculated for 𝑥̅ using this formula is also
called the observed value of z. Then we find the area
under the tail of the normal distribution curve beyond this
value of z.

Example
At Sweden Food Corporation, it used to take an average
of 90 minutes for new workers to learn a food processing

208
job. Recently the company installed a new food
processing machine. The supervisor at the company wants
to find if the mean time taken by new workers to learn the
food processing procedure on this new machine is
different from 90 minutes. A sample of 20 workers
showed that it took, on average, 85 minutes for them to
learn the food processing procedure on the new machine.
It is known that the learning times for all new workers are
normally distributed with a population standard deviation
of 7 minutes. Find the p-value for the test that the mean
learning time for the food processing procedure on the
new machine is different from 90 minutes. What will your
conclusion be if 𝛼 = 0.01?
Solution

Let 𝜇 be the mean time (in minutes) taken to learn the

food processing procedure on the new machine by all
workers, and let 𝑥̅ be the corresponding sample mean.
From the given information,
𝑛 = 20, 𝑥̅ = 85 𝑚𝑖𝑛𝑢𝑡𝑠, 𝜎 = 7 𝑚𝑖𝑛𝑢𝑡𝑠 𝑎𝑛𝑑 𝛼 = 0.01
Step 1. State the null and alternative hypotheses.
𝐻0 : 𝜇 = 90 𝑚𝑖𝑛𝑢𝑡𝑠
𝐻1 : 𝜇 ≠ 90 𝑚𝑖𝑛𝑢𝑡𝑠
209
Remark that the null hypothesis states that the mean time
for learning the food processing procedure on the new
machine is 90 minutes, and the alternative hypothesis
states that this time is different from 90 minutes.
Step 2. Select the level of significance.
α = 0.01 as stated in the problem therefore
CI=0.99
Step 3: Select the test statistic.
Here, the population standard deviation is known, the
sample size is small but the population distribution is
normal. Hence, the sampling distribution of is normal
with its mean equal to 𝜇 and the standard deviation equal
to 𝜎, we will use the normal distribution to make the test.
Use Z-distribution since σ is known
𝑥̅ − 𝜇
𝑧= 𝜎
√𝑛
85 − 90
𝑧 = = −3.19
7
√20
Step 4: Formulate the decision rule.

210
 Reject area
Reject area

(1-𝛼)

Acceptance area

-2.58 𝜇 2.58
-3.19

Make a decision and interpret the result. Because -3.19

fall in the rejection area , 𝐻0 is rejected. Therefore, we
conclude that the mean time for learning the food
processing procedure on the new machine is different
from 90 minutes.

Example
Vodafone Telephone Company provides long-distance
telephone service in an area. According to the company’s
records, the average length of all long-distance calls
placed through this company in 2009 was 12.44 minutes.
The company’s management wanted to check if the mean
length of the current long-distance calls is different from

211
12.44 minutes. A sample of 150 such calls placed through
this company produced a mean length of 13.71 minutes.
The standard deviation of all such calls is 2.65 minutes.
Using the 2% significance level, can you conclude that
the mean length of all current long-distance calls is
different from 12.44 minutes?
Solution

Let 𝜇 be the mean length of all current long-distance calls

placed through this company and 𝑥̅ be the corresponding
mean for the sample. From the given information,
𝑛 = 150, 𝑥̅ = 13.71 𝑚𝑖𝑛𝑢𝑡𝑒𝑠, 𝜎 = 2.65 𝑚𝑖𝑛𝑢𝑡𝑒𝑠
Step 1. State the null and alternative hypotheses.
𝐻0 : 𝜇 = 12.44 𝑚𝑖𝑛𝑢𝑡𝑠
𝐻1 : 𝜇 ≠ 12.44 𝑚𝑖𝑛𝑢𝑡𝑠
Step 2: Select the level of significance.
α = 0.01 as stated in the problem
Step 3: Select the test statistic.
Here, the population standard deviation is known, and the
sample size is large (n >30) then use z distribution

𝑥̅ − 𝜇 13.71 − 12.44
𝑧= 𝜎 = = 5.87
2.65
√𝑛 √150
212
Step 4: Formulate the decision rule.

Reject area Reject area

1-𝛼

Acceptance area
91-𝛼)

-2.58.58 2.58.58 5.87

𝜇

Step 5. Make a decision.

we make a decision based on the location of the value of
the test statistic z computed for in Step 4. This value of z
=5.87 is greater than the critical value of z= 2.58, and it
falls in the rejection region in the right tail in above
Figure Hence, we reject 𝐻0 and conclude that based on the
sample information, it appears that the mean length of all
such calls is not equal to 12.44 minutes.
8.3 Hypothesis Testes about mean 𝝈 unknown

𝐻0 : 𝜇 = 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝜇 ≥ 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝜇 ≤ 𝑣𝑎𝑙𝑢𝑒

𝐻0 : 𝜇 ≠ 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝜇 < 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝜇 > 𝑣𝑎𝑙𝑢𝑒

213
 If the population standard deviation is unknown
and the sample is less than 30 use t-distribution

𝑥̅ − 𝜇
𝑡= 𝑠
√𝑛
Example
A psychologist claims that the mean age at which children
start walking is 12.5 months. Carol wanted to check if
this claim is true. She took a random sample of 18
children and found that the mean age at which these
children started walking was 12.9 months with a standard
deviation of 0.80 month. It is known that the ages at
which all children start walking are approximately
normally distributed the test that the mean age at which
all children start walking is different from 12.5 months if
the significance level is 1%.
Solution

Let 𝜇 be the mean age at which all children start

walking, and let be the corresponding mean for the
sample. From the given information,
𝑛 = 18, 𝑥̅ = 12.9 𝑚𝑜𝑛𝑡ℎ𝑠 𝑠 = 0.80 𝑚𝑜𝑛𝑡ℎ

214
Step 1. State the null and alternative hypotheses.

𝐻0 : 𝜇 = 12.5
𝐻1 : 𝜇 ≠ 12.5
Step 2: Select the level of significance.
α = 0.01 as stated in the problem
Step 3: Select the test statistic.

we will use the t distribution

𝑥̅ − 𝜇 12.19 − 12.5
𝑡= 𝑠 = = 2.121
0.80
√𝑛 √18

Step 4: Formulate the decision rule

we go to Table Appendix (the t distribution table) and

find the row of df=17 and t=2.567 for CI=0.99

Reject Reject
area area

1−𝛼−𝛼

Acceptance area

-2.56 2.12 2.56

7

215
Step 5: Make a decision and interpret the result.

We not reject 𝐻0 and conclude that the mean age at which

all children start walking is not different from 12.5 month

8.4 Testing for a Population Proportion

𝐻0 : 𝑝 = 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝑝 ≥ 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝑝 ≤ 𝑣𝑎𝑙𝑢𝑒

𝐻0 : 𝑝 ≠ 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝑝 < 𝑣𝑎𝑙𝑢𝑒 𝐻0 : 𝑝 > 𝑣𝑎𝑙𝑢𝑒
Assumptions in Testing a Population Proportion using
the z-Distribution

• The population proportion is denoted by 𝑝

• The sample proportion is denoted by 𝑝̅ and is
found by x/n.
• It is assumed that the binomial assumptions
discussed
• The test we will conduct shortly is appropriate
when both np and n(1- p ) are at least 5.
• When the above conditions are met, the normal
distribution can be used as an approximation to the
binomial distribution
• The test statistic is computed as shown:

216
 𝑝̅ − 𝑝
𝑧=
√𝑝(1 − 𝑝)
𝑛

𝑝: Hypothesized population proportion.

𝑝̅ : Sample proportion.
𝑛: Sample size.
Example

Suppose prior elections in a certain state indicated it is

necessary for a candidate for governor to receive at least
80 percent of the vote in the northern section of the state
to be elected. The incumbent governor is interested in
assessing his chances of returning to office and plans to
conduct a survey of 2000 registered voters in the northern
section of the state. The sample revealed that 1550
planned to vote for the incumbent governor. Using the
hypothesis-testing procedure at 5% significance level,
assess the governor’s chances of reelection.

Solution
𝑥 1550
𝑝̅ = = = 0.775
𝑛 2000

217
Step 1: State the null hypothesis and the alternate
hypothesis.
𝐻0 : 𝑝 ≥ 0.80
𝐻1 : 𝑝 < 0.80

Step 2: Select the level of significance.

α = 0.05 as stated in the problem

Step 3: Select the test statistic.

Use z-distribution since the assumptions are achieved
and np and n(1-p) ≥ 5

𝑝̅ − 𝑝 0.775 − 0.80
𝑧= = = −2.79
√𝑝(1 − 𝑝) √0.80(1 − 0.80)
𝑛 2000

Step 4: Formulate the decision rule

Reject area Reject area

Acceptance area
(1 − 𝛼)

-2.79 -1.96 𝜇 1.96

218
Step 5: Make a decision and interpret the result.

The computed value of z (-2.79) is in the rejection region,

so the null hypothesis is rejected at the 0.05 level. The
evidence at this point does not support the claim that the
incumbent governor will return to the governor’s mansion
for another four years.

8.5 one -way analysis of variance

In this section show to test the null hypothesis that the
means of more than two populations are equal.

The F distribution
The shape of a particular F distribution curve
depends on the number of degrees of freedom. However,
the F distribution has two numbers of degrees of freedom,
degrees of freedom for the numerator and degrees of
freedom for the denominator. These two numbers are the
parameters of the F distribution.
To test if the three teaching methods produce
different means, we test the null hypothesis
𝐻0 : 𝜇1 = 𝜇2 = 𝜇3
𝐻1 : Not all three population means are equal.
219
The ANOVA, short for analysis of variance, provides
such a procedure. It is used to compare three or more
population means in a single test.

Assumptions of One-Way ANOVA

1. The populations from which the samples are drawn are
(approximately) normally distributed.
2. The populations from which the samples are drawn
have the same variance (or standard deviation).
3. The samples drawn from different populations are
random and independent.
8.5.1 Calculating the Value of the Test Statistic

220
221
Glossary of Chapter

Null hypothesis A claim about a population parameter

that is assumed to be true until proven otherwise.

Alternative hypothesis A claim about a population

parameter that will be true if the null hypothesis is false.

𝛂 The significance level of a test of hypothesis that

denotes the probability of rejecting a null hypothesis
when it actually is true. (The probability of committing a
Type I error.)

𝜷 The probability of not rejecting a null hypothesis when

it actually is false. (The probability of committing a Type
II error.)

Test statistic The value of z or t calculated for a sample

statistic such as the sample mean or the sample
proportion.

222
 Exercises (8)

1- Consider the following null and alternative hypotheses:

𝐻0 : 𝜇 = 120
𝐻1 : 𝜇 > 120
A random sample of 81 observations taken from this
population produced a sample mean of 123.5. The
population standard deviation is known to be 15. a. If this
test is made at the 5% significance level, would you reject
the null hypothesis?

2- Consider the following null and alternative hypotheses:

𝐻0 : 𝜇 = 40
𝐻1 : 𝜇 ≠ 40
A random sample of 64 observations taken from this
population produced a sample mean of 38.4. The
population standard deviation is known to be 6. a. If this
test is made at the 1% significance level, would you
reject the null hypothesis?
3- Consider the following null and alternative hypotheses:
𝐻0 : 𝑝 = 0.82
𝐻1 : 𝑝 ≠ 0.82

223
A random sample of 600 observations taken from this
population produced a sample proportion of 0.86. a. If this
test is made at the 2% significance level, would you reject
the null hypothesis?

4- Choose the true answer

1. A test of hypothesis is always about
a. a population parameter.
b. a sample statistic.
c. a test statistic.
2. A Type I error is committed when
a. a null hypothesis is not rejected when it is
actually false.
b. a null hypothesis is rejected when it is actually
true.
c. an alternative hypothesis is rejected when it is
actually true.

3. A Type II error is committed when

a. a null hypothesis is not rejected when it is
actually false.
b. a null hypothesis is rejected when it is actually
true.

224
 c. an alternative hypothesis is rejected when it is
actually true.
4. A critical value is the value
a. calculated from sample data.
b. determined from a table (e.g., the normal
distribution table or other such tables).
c. neither a nor b.

225
Appendix

226
Table (1) area under Normal curve

227
Table (2 )t distribution

228
 References

1- Chase, W. and Bown, F. (1986). General

Statistics, John Willey & Sons, Ins.

2- Douglas.A.Lind,William.G.Marchal,Samuel.A.W
athen, “Statistical Techniques in Business
&Economics”, 14th Ed., McGraw-Hill, Irwin,
2012.

3- KELLER, G.(2011). Statistics for Mangement and

Economics Abbreviated

4- Walpole, R.E. (1982). Introduction to Statistics,

Macmillan, Publishing Co, Inc,
New York.

5- Mood, A. M. Graybill, F. A. and Boes, D.

C.(1974).Introduction to the theory of
statistics..(3rd edition).McGraw-Hill.

229