CH-13: STATISTICAL REPRESENTATION OF DATA

Statistics is derived from:

 Latin word ‘status’

 Italian word ‘statista’
 German word ‘statistik’
 French word ‘statistique’

(*) Statistics:

 Plural sense: collecting and organizing data for some purpose

 Singular sense: science of collecting, organizing, analysing and interpretation

(*) Inferential statistics: Deals with the samples of data, not the whole data.

(*) Data is of two types: Qualitative and quantitative data

Application of Statistics in:

 Economics:
(a) Many branches of Economics like Time Series analysis, Index Number Analysis, Demand Analysis etc. are also brand
of statistics.
(b) Econometrics: Econometrics is the quantitative application of statistical and mathematical models using data to
develop theories or test existing hypothesis in economics.
(c) Socio-economic surveys: Conducting socio economic surveys for analyzing the data derived from it are made with
the help of different statistical method.
(d) Regression analysis: For future projection of sales, production, prices, etc. we need to check the statistics of
previous data.
 Business Management:
(a) How managers work today: Now, managers don’t work on instincts. They take a calculative measure by analyzing
the quantitative data with the combination of statistical method and operational research techniques.
(b) Sampling helps us to create criteria for making strategy: And when you are in complicated business environment
like ecommerce, statistics play a vital role in making strategies at each and every point.
(c) Statistical Decision Theory for counting merits and demerits: For analysis of complicated strategy to help
businesses take fruitful decision.
 Commerce and Industry:
(a) Getting and edge in competitive business environment: In every business today, there is cut throat competition and
businessman need to have tight grip of sales, production, profit, etc. and then analyzing it for different results and
strategies.
(b) To maximize profit: Data on previous sales, wages, raw materials, product of competitions are collected, compared
and analyzed to maximize the profit.
(c) Various tools used in commerce and industry of statistics: Measure of Central Tendency, Dispersion, Sampling,
Correlation and Regression, Index Numbers and time series analysis.

Limitations of Statistics:

(1) Study of quantitative data only: Statistics studies only such facts as can be expressed in numerical terms. It does not
study qualitative phenomena like honesty, friendship, wisdom, health, patriotism, justice, etc.
(2) Study of aggregates only: Statistics studies only the aggregates of quantitative facts. It does not study statistical facts
relating to any particular. Example: it may be a statistical fact that your teacher earns 50,000 per month. But if you want
to find statistics of average salary of different schools, you will study aggregates on salary of each school.
(3) Homogeneity of data, an essential requirement: To compare data, it is essential that statistics are uniform in quality.
Data of diverse qualities and kinds cannot be compared. For example, we cannot compare the statistics of banana and
air pressure in tires.
 (4) Results are true only on an average: Most statistical findings are true only as averages. They are not always valid under
all conditions. For instance, if it is said that per capita income in India is 50,000 per annum, it does not mean that the
income of each and every Indian is 50,000 per annum. Some may have more and some may have less.
(5) Results may prove to be wrong: In order to understand the conclusions precisely, it is necessary that the circumstances
and conditions under which these conditions have been drawn are also studied. Otherwise, they may prove to be
wrong.
(6) Can be used only by the experts: Statistics can be used only by those persons who have special knowledge of statistical
methods. Those who are ignorant about these methods cannot make sensible use of statistics. In the words of Yule and
Kendall, “Statistical methods are most dangerous tools in the hands of an inexpert.”

Collection of data:

On the nature of data, we can define data as:

a. Quantitative data: Numerical data

b. Qualitative data: If we need the statistics of qualitative information then it should be converted to quantitative
information by providing a numeric description to the given characteristic.

Types of variables:

a. Discrete variable: When variable taken is countable, then it is called as discrete variable.
b. Continuous variable: When the scale of measure is changed, the value is adjusted. When variable can obtain any value
from the given interval.

(*) For Qualitative data, the term which we use to define characteristic is attribute.

On the basis of source of data:

(1) Primary data: Data collected by the investigator for his own purpose, for the first time, from beginning to end, are
called primary data.
a. These are collected from the source of origin.
b. Data, originally collected in the process of investigation are known as primary data.
(2) Secondary data: Secondary data are those which are already in existence, and which have been collected, for some
other purpose. These data are, therefore, called second-hand data. Because data have already been collected by
somebody else, these are available in the form of published or unpublished reports.

Collection of primary data can be done by 4 ways:

 Interview method
 Direct interview or personal interview method
 Indirect interview method
 Telephonic interview method

(*) In first two methods data collected will be more accurate but if you have to collect data faster and at wider area
than you need to collect data by telephonic interview method.

(*) The number of non-responses is maximum for telephonic interview method.

 Mailed questionnaire method

 Under this method, questionnaires are mailed to the informants.
 A letter is attached with the questionnaire giving the purpose of the enquiry.
 It is also assured that the information would be kept secret.
 The informant notes the answers against the questionnaires and returns the completed questionnaire to the
investigator.
 Although a wide area can be covered using the mailed questionnaire method, the number of non-responses is
likely to be maximum in this method.
 Observation method
 Direct information is collected by taking the observation by the observer. Although this is likely to be the best
method for data collection, it is time consuming, laborious and covers only a small area.
 Questionnaires filled and sent by enumerators.
 Under this method, a questionnaire is prepared according to purpose of enquiry. To cover the wider range the
enumerators are appointed. The enumerator himself approaches informant with the questionnaire. This
method is very best for wider range but costly in nature.

Sources of secondary data:

There are many sources of getting secondary data. Some important sources are listed below:

 International sources like WHO, ILO, IMF, World Bank, etc.

 Government sources like Statistical Abstract by CSO, Indian Agricultural Statistics by the Ministry of Food and
Agriculture and so on.
 Private and quasi-government sources like ISI, ICAR, NCERT, etc.
 Unpublished sources of various research institutes, researchers, etc.

Scrutiny of data: Checking the quality of data is known as scrutiny of data.

Presentation of data:

 Once the data are collected and verified for their homogeneity and consistency, we need to present them in a neat and
condensed form highlighting the essential features of the data.
 Any statistical analysis in dependent on a proper presentation of the data under consideration.
 An important method of organization of data is to distribute these into different classes on the basis of their
characteristics. This process is called classification of data.
 Presentation of data is done in three ways:
 Textual or descriptive presentation: In the textual presentation, data is described by paragraph of text. This
method is used in most of the official reports, where the activities, plans or programmers of a project are
described in words, inserting relevant facts and figures in between them. When the quantity of data is not too
large, this form of presentation is most suitable.
 Tabular presentation: Data is [resented in rows and columns. A statistical table is systematic presentation of
data in rows and columns. There are few things to take care while we do tabulation of data:
a. Designing of table
b. Comparable data
c. Beautiful presentation
d. Describing notes.
 Graphical presentation: Diagrammatic or graphical presentation of data is another useful method of presenting
the data in compact form. There are various kinds of diagrams in common use. But we will have discussion
regarding:
a. Line Diagram or histogram: Whenever data vary with time, we use line diagram which is also known as
histogram. In a simple line diagram, we plot each pair of values of (t, yt), yt representing the time series at
the time series at the time point t in the t-yt plane. And then the points are joined.
(*) Multiple line chart and multiple axis chart: If we have to represent multiple data (similar data in same
unit) varying with time, we can use multiple line chart. And if we have to represent multiple data (with
different unit) varying with time, we can use multiple axis chart.
(*) This is very convenient way to represent a frequency distribution. Comparison among class interval is
possible in this mode of diagrammatic representation.
b. Bar diagram:
i. Horizontal bar diagram: used for only attributes to present qualitative data
ii. Vertical bar diagram:
iii. Multiple or grouped bar diagram:
iv. Component or sub-divided bar diagram:
c. Pie chart

Classification of data:
  It involves conversion of raw data into groups in a manner such that some meaningful conclusions can be drawn out of
them.
 Basically, classification of data can be defined as the process of arranging data on the basis of characteristics into the
number of groups or classes according to the similarity of observations.
 Objectives of classification:
 Simplification and briefness
 Comparability
 Statistical analysis
 Makes data more understandable

Data may be classified as:

 Data chronological or temporal or time series

 Geographical or spatial series data
 Qualitative or ordinal data
 Quantitative or cardinal data

Frequency of data: The frequency of a particular data value is the number of times the data value occurs and data in which we
can count frequency is called as frequency data.

Non-frequency data: Data where the identity of the each of the individual values has to be kept in view are called non-
frequency type data.

Frequency Distribution:

1, 2, 3, 4, 6, 9, 9, 8, 5, 1, 1, 9, 9, 0, 6, 9.

The frequency of number 9 is: 5

 Frequency distribution can be defined as the tabular representation of data in which we distribute total frequency to
the number of classes.
 But we have to make sure that classes defined for frequency distribution table should be mutually exclusive and
exhaustive.

Ungrouped frequency distribution:

 When we draw a tabulation for the frequency of data where data is in the form of discrete variable.
 If we are taking individual values > ungrouped frequency distribution (only for discrete). If not, grouped frequency
distribution.

How to make a frequency distribution table for discrete variable:

I. Find the largest and smallest observations and obtain the difference between them.
II. Form a number of classes depending on the number of isolated values assumed by a discrete variable.
III. Present the class in a table known as frequency distribution table.
IV. Apply “tally mark” i.e., a stroke against the occurrence of a particular value in a class.
V. Count the tally marks and present these numbers in the next column, known as frequency column, and finally
check whether the total of all these class frequencies tally with the total number of observations.

How to make a frequency distribution table for continuous variable:

I. Find the largest and smallest observations and obtain the difference between them, known as range, in case of a
continuous variable.
II. Find the number of class intervals using the relation, no. of class interval * class length = range.
III. Present the class interval in a table.
IV. Apply the “tally mark” against the occurrence of a class interval.
V. Count the tally marks and present these numbers in the frequency column, and finally check whether the total of
all these class frequencies tally with the total number of observations.
Grouped frequency distribution:

 When we draw a tabulation for the frequency of data where data is in the form of continuous variable.

Some important terminologies:

 Class limit: Corresponding to a class interval, the class limits may be defined as the minimum value and the maximum
value the class interval may contain. The minimum value is known as lower class limit and the maximum value is known
as the upper class limit.
 Class boundary: (Upper class limit of a class + lower class limit of the next class)/2
Please note that for overlapping class interval – class boundaries and class limit are same.
In a class, minimum value will be called as Lower Class Boundary (LCB) and maximum value will be called as Upper Class
Boundary (UCB).
 Class Mid-point: The class mid-point (or class mark) is a specific point in the center of the class interval in a frequency
distribution table.
In any given class interval, Mid-point is (UCB+LCB)/2.
 Width or size of class interval: The class width is the difference between the UCB to the LCB of consecutive classes.

Cumulative frequency: Cumulative frequency is defined as a running total of frequencies.

 Frequency density of class interval = class frequency/class width

 Relative frequency or percentage frequency of class interval = frequency of class interval/total frequency.
In case of percentage, multiply the relative frequency by 100.

Frequency Polygon:

 Frequency polygon can be drawn only if the class interval is uniform.

 Then we take the value of xi as the mid-point of the class intervals. And fi being the frequencies of the classes
respectively we can draw frequency polygon by plotting the (xi, fi) and then joining it with the line.

Ogives or cumulative frequency graph:

 As cumulative frequency graph can be drawn as less than type and more than type. Therefore, Ogives has ‘less than’
and ‘more than’.

Frequency curve:

 Limiting form of frequency polygon or histogram.

 Total area of frequency curve is taken to be unity.
 It means the graph is between frequency density on vertical axis with class boundary on horizontal axis.

Bell shaped curve:

 Bell shaped curve starts with a low frequency value and then reaches to the maximum in the central part and then
decreases to the minimum at the extreme.
 The distribution of height, weight, mark, profit, etc.

U-shaped curve:

 When frequency is minimum near the central part and the frequency slowly but steadily reaches its maximum at the
two extremities.
 Traffic in metro city during office timings.

J-shaped curve:

 The J-shaped curve starts with a minimum frequency and then gradually reaches its maximum frequency at the other
extremity.
 Traffic on roads between 5 a.m. to 10 a.m. in Delhi.
CH-7: SET, RELATIONS AND FUNCTIONS, BASICS OF LIMITS AND CONTINUITY FUNCTIONS

Set: A set is a collection of well-defined objects.

Representation of set:

 Objects of sets can be called as elements or members of set.

 Sets are generally denoted by capital letters like A, B, C, S, etc.
 The elements of sets are generally denoted by small letters like, x, y, z, a, b, c, etc.
 There are two widely used methods for representations:
1. Roster method (Tabular form) or Bracket form: A method of representation in which we list all its elements,
separating these by commas and enclosing these in curly brackets.
(*) In roster form, the order does not matter. While writing the sets in roster form all the elements are generally
taken as distinct.
2. Set builder or algebraic form or rule method: A method of representation in which we figure out a common
property which is there in every element of set and not there with any elements outside set.
The method of writing is called as Property method.

Few important and widely used sets:

 N: the set of all natural numbers

 Z: the set of all integers
 Q: the set of all rational numbers
 R: the set of all real numbers
 Z+: the set of positive integers
 Q+: the set of positive rational numbers
 R+: the set of positive real numbers

(*) ∈ means ‘belongs to’ or ‘is an element of’ and ∉ mean ‘does not belong to’ or ‘is not an element of’

<REFER TO NOTEBOOK>