After studying this chapter you will be able to: define and calculate the mean, explain and calculate a weighted mean, define and calculate the median, define and identify the mode, prepare a frequency distribution, prepare bar, line, and circle graphs, calculate price relatives and cost comparisons, explain and calculate the range, define and calculate the standard deviation, estimate percentage of data by using standard deviations. | BUSINESS STATISTICS Chapter Twenty-Two Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 1 Define and calculate the mean. Explain and calculate a weighted mean. Define and calculate the median. Define and identify the mode. LU22-1: Mean, Median, and Mode Learning unit objectives LU 22-2: Frequency Distributions and Graphs Prepare a frequency distribution. Prepare bar, line, and circle graphs. Calculate price relatives and cost comparisons. Explain and calculate the range. Define and calculate the standard deviation. Estimate percentage of data by using standard deviations. LU 22-3: Measures of Dispersion (Optional) 2 22- Mean – The average used to indicate a single value that represents an entire group of numbers. Median - A measurement that indicates the center of the data (average). Terminology Mode - A measurement that records values; the value that occurs most often. 3 Mean Mean = The accountant of Bill’s Sport Shop told Bill, the owner, . | BUSINESS STATISTICS Chapter Twenty-Two Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 1 Define and calculate the mean. Explain and calculate a weighted mean. Define and calculate the median. Define and identify the mode. LU22-1: Mean, Median, and Mode Learning unit objectives LU 22-2: Frequency Distributions and Graphs Prepare a frequency distribution. Prepare bar, line, and circle graphs. Calculate price relatives and cost comparisons. Explain and calculate the range. Define and calculate the standard deviation. Estimate percentage of data by using standard deviations. LU 22-3: Measures of Dispersion (Optional) 2 22- Mean – The average used to indicate a single value that represents an entire group of numbers. Median - A measurement that indicates the center of the data (average). Terminology Mode - A measurement that records values; the value that occurs most often. 3 Mean Mean = The accountant of Bill’s Sport Shop told Bill, the owner, that the average daily sales for the week were $. The accountant stressed that $ was an average and did not represent specific daily sales. Bill wanted to know how the accountant arrived at $. Sun. Mon. Tues. Wed. Thur. Fri. Sat. $400 $100 $68 $115 $120 $68 $180 Mean = $400 + $100 + $68 + $115 + $120 +$68 + $180 = $ 7 Sum of all values Number of values Example: 4 Weighted Mean Weighted mean How Jill Rivers calculated her GPA to the nearest tenth: Credit Grade Points Courses Attempted Received (Credits x Grade) Intro to Comp. 4 A 16 (4 x 4) Psychology 3 B 9 (3 x 3) English Comp. 3 B 9 (3 x 3) Business Law 3 C 6 (2 x 3) Business Math 3 B 9 (3 x 3) 16 49 49 16 = = Sum of products Sum of frequencies Example: 5 Finding the Median of a Group of Values Look below at the following yearly salaries of the employees of Rusty’s Clothing Shop. Alice Knight $95,000 Jane Wang $67,000 Jane Hess $27,000 Bill Joy $40,000 Joel Floyd $32,000 Find the median value of all .
