Descriptive Data Statistics: Calculating the Probability Report

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The two selected variables from the collected data are age group (question 1) and the annual income (question 2). Descriptive statistics, namely, the mean, mode, median, variance, and standard deviation, were used to analyze data of each of the selected variable. Moreover, the probability of the occurrence of every event in each of the two variables was determined.

The Mean, Mode, and Median of the Age Group and the Level of Annual Income

The Level of Age Groups of Customers

Table 1.

Q1: Age groups
Age groupsLower limitUpper limitMid-Point (x)Frequencyfx
18-3017.530.52415360
30-4530.545.5388304
45-6045.560.5535265
60+60100802160
301089

Mean = ∑fx/∑f = 1089/30 (Carlberg, 2014).

Modal class = 18-30

Low boundary = 17.5

Frequency before modal class = 0

Frequency of modal class = 15

Frequency after modal class = 8

Width of the modal class = 13

Mode = 17.5 + (15-0)/[(15-0)+ (15-13)] * 13 = 17.5 + (15)/(15 + 2) * 13 = 17.5 + (15/17) * 13 = 17.5 +(0.882 * 13) = 17.5 + 11.466 = 28.966

Median

Lower class boundary = 17.5

n = 30

Cumulative f before = 0

Frequency of median group = 15

Width of the group = 13

Median = 17.5 + [(30/2 – 0)/15] * 13 = 17.5 + (15/15)*13 = 17.5 + 13

The Level of Annual Income

Table 2.

Q2: Levels of annual income.
Class intervalLower limitUpper limitMid-point (x)Frequency (f)fx
Very high4-54.55.55210
High3.53.54.54416
Average2-32.53.531648
Low1-21.52.52510
Very Low0-10.51.5133
3087

Mean = 87/30 = 2.9

Modal class = 2-3 (average)

Lower boundary = 2.5

Frequency before modal class = 5

Frequency of modal class= 16

Frequency after modal class = 4

Width of modal class = 1

Mode = 2.5 + (16-5)/[(16-5)+ (16-4)] * 1 = 2.5 + (11)/(11 + 12) * 1 = 2.5 + (11/23) * 1 = 2.5 +(0.478 * 1) = 2.5 + 0.47 = 2.978

Median

Lower class boundary = 2.5

N = 30

Cumulative frequency before = 8

Frequency of median group = 16

Width of the group 1

Median = 2.5 + [(30/2 – 8)/16] * 1 = 2.5 + (7/16)*1 = 2.5 + 0.438 = 2.938

The Determination of Variance of the Age Group and the Level of Annual Income

The Age Group of Customers

Table 3.

Q2: Age group.
Age groupMid-Point (x)Frequencyfx(x-mean)(x-mean)^2
18-302415360-12.3151.29
30-453883041.72.89
45-6053526516.7278.89
60+80216043.71909.69
3010892342.76

Variance = ∑(x-mean)^2/n) = 2342.76/30 = 78.092

Table 4.

Q2: The level of annual income.
Class intervalLower limitUpper limitMid-point (x)Frequency (f)fx(x-mean)(x-mean)^2
Very high4-54.55.552102.14.41
High3.53.54.544161.11.21
Average2-32.53.5316480.10.01
Low1-21.52.52510-0.90.81
Very Low0-10.51.5133-1.93.61
308710.05

Variance =∑(x-mean)^2/n) = 10.05/30 = 0.335

Standard Deviation of the Age Group and the Level of Annual Income

Standard deviation of age group = [∑(x-mean)^2/n)]^0.5 (Brase & Brase, 2017) = [2342.76/30] = 78.092^0.5 = 8.837

Standard deviation of the level of income = [∑(x-mean)^2/n)]^0.5 (Jani, 2014) = [10.05/30]^0.8 = 0.335^0.5 = 0.579

The Probability of Each Event in Age Group and the Annual Income Level

Table 5.

Probability of a customer occurring in each age group
Age groupFrequencyProbability
18-30150.50
30-4580.27
45-6050.17
60+20.07
301.00

Table 6.

The Probability of a customer occurring in each of the annual income level
Class intervalFrequency (f)Probability
Very high4-520.07
High3.540.13
Average2-3160.53
Low1-250.17
Very Low0-130.10
301.00

References

Brase, C. H., & Brase, C. P. (2017). Understandable statistics: Concepts and methods. New York, NY: Brooke/Cole.

Carlberg, C. G. (2014). Statistical analysis: Microsoft Excel 2013. Indianapolis, IN: Que.

Jani, P. N. (2014). Business statistics: Theory and applications. New York, NY: PHI Learning.

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