Business Statistics Assignment

witness the measures of central tendency and diversity within the context of this problem. Why should the gild producing the tea w wholeets be concerned about the central tendency and variation? Because getting an exact amount of tea in a bag is problematic because of variation in the density of the tea bag, and the extremely turbulent filling operation of the machine. D) Are the entropy skewed? If so, how? Left skewed. Because the guess is less than the median. What are the differences among the various measures of variation, such as the roll, intrauterine range, naval division, pattern deviation, and coefficient of variation, and what are the advantages and disadvantages of each? (a) run Range of a info commit is deference between the largest and the sm completelyest data value. It is the simplest measure of variability. It is very sensitive to the smallest and the largest data value. (b) Intrauterine Range intrauterine range of a data commemorate is the difference b etween the third quartile and the first quartile.It is range for the middle 50% of data. It overcomes the sensitivity to extreme data value. (c) Variance The variance measures the variability the utilizes all the data. It also measures the average of the squared difference between each data value and the mean. (d) Standard dispute Is a hackneyed of a data set is the positive square root of the variance. It is measured in the akin units as the data making it more easily interpreted than the variance. (e) Coefficient of variance the coefficient of variance indicates how range large the standard deviation is related to them.The advantages and disadvantages (a) Range Advantages 1) Easy to understand 2) Simple to calculate 3) It is a good measure for comparison as it span the whole distributions. Disadvantages 1) it uses only two of the observations and so can be distorted by extreme value 2) Does not indicates any concentrations of the observations Cannot be use in calculating of the observation. (b) Intrauterine range Advantages 1) The calculations are simple and quite to do 20 it can be illustrated graphically 3) It covers the central 50% of the observations and so is not distorted by extreme values.Disadvantages 1) Disregards all values except 1st and 3rd quartiles. Advantages 1) Considers all data 2) Not a terminal statistic Disadvantages 1) Not appropriate for titular or ordinal data 2) Sensitive to extreme outliers. (d) Standard Deviation (e) Coefficient of Variance Advantages The coefficient of variation is useful because the standard deviation of data essential always be understood in the context of the mean of the data. In contrast, the actual value of the C.V. is independent of the unit in which the measurement has en taken, so it is a dimensionless number.For comparison between data sets with different units or widely different means, one should use the coefficient of variation instead of the standard deviation. Disadvantages 1) When the mean value is close to zero, the coefficient of variation will approach infinity and is therefore sensitive to small changes in the mean. This is often the case if the values do not originate from a ratio scale 2) strange the standard deviation, it cannot be used directly to construct confidence intervals for the mean.