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Understanding Outliers and Measures of Central Tendency in Data Analysis, Study notes of Statistics

An explanation of outliers and their impact on measures of central tendency such as mean, median, and mode. It includes examples and formulas for calculating these measures and discusses common mistakes made by students. The document also includes problems for students to solve.

What you will learn

  • What is an outlier and how does it impact data analysis?
  • What is the difference between mean, median, and mode?
  • How can students calculate measures of central tendency correctly?
  • How does an outlier affect the mean of a data set?

Typology: Study notes

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Electrical (46.0399) T-Chart
Originated June 2011 CC.2.4.HS.B.1 Reviewed June 2015 1
Find averages to determine usages
=
Summarize, represent and interpret data on a single count
or measurement variable
Program Task: Determine average kilowatt consumption for
an average household.
PA Core Standard: CC.2.4.HS.B.1
Description: Summarize, represent and interpret data on a
single count or measurement variable.
Program Associated Vocabulary:
MEAN, MAXIMUM, MINIMUM, AVERAGE, HIGH
Math Associated Vocabulary:
MEAN, MEDIAN, MODE, OUTLIER
Program Formulas and Procedures:
Some electric utilities companies allow homeowners to pay
their electric bills by setting up budget billing. This budget
billing figure is derived by the average electric bill over a
certain period, usually the prior 12 months.
The electric company, like PPL electric, will take twelve
months of bills (Jan-Dec) of the prior year, add the total, and
divide by 12.
For example, the usage for the prior 12 months is shown below:
January
$135.00
February
$145.00
March
$112.00
April
$101.00
May
$98.00
June
$87.00
July
$116.00
August
$121.00
September
$113.00
October
$107.00
November
$126.00
December
$131.00
What is the average of this homeowner’s electric bill for this
given year? Average=Mean
135+145+112+101+98+87+116+121+113+107+126+131
12
= 116
The average electric bill for this house is $116.
One could assume, if electrical consumption remained the same
for the following year, this household’s electrical budget
amount per month would be around $116.00.
What would happen if a heat wave hit in August and the
family’s electrical bill for the month increased to $449? By
how much would this affect their budgeted amount? The
charge for August would be an outlier, because it is so much
higher than the other values. This outlier would increase the
average for all 12 months.
135+145+112+101+98+87+116+449+113+107+126+131
12
= 143
With a heat wave the average electrical bill for this house will
increase to $143.
Formulas and Procedures:
Outlier
Mean
(Average)
Median
Mode
Measures of central tendency are mean, median and mode.
Outliers affect the mean value of the data but have little effect on
the median or mode of a given set of data.
Example: A student receives a zero on a quiz and subsequently
has the following scores:
0, 70, 70, 80, 85, 90, 90, 90, 95, 100
Outlier: 0
Mean:
77
10
10095909090858070700
Median: since the data set has 10 values, there are two middle
numbers, so one must find the mean of these two values, 85 and
90.
5.87
2
9085
Mode: The score 90 occurs more frequently than the other
values (three times), so 90 is the mode.
Receiving a zero on a quiz significantly affects a student’s mean,
or average. Notice that the outlier had a small effect on the
median and mode of the data.
It should be noted that because outliers affect the mean and have
little effect on the median, the median is often used to describe
“average” income. Often, one hears that the median income for a
group is a certain value. Mean is not typically used because
outliers, people who make significantly more or make no money
at all, affect this measure.
pf3
pf4

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Find averages to determine usages =

Summarize, represent and interpret data on a single count or measurement variable

Program Task: Determine average kilowatt consumption for

an average household.

PA Core Standard: CC.2.4.HS.B.

Description: Summarize, represent and interpret data on a single count or measurement variable.

Program Associated Vocabulary:

MEAN, MAXIMUM, MINIMUM, AVERAGE, HIGH

Math Associated Vocabulary: MEAN, MEDIAN, MODE, OUTLIER

Program Formulas and Procedures:

Some electric utilities companies allow homeowners to pay

their electric bills by setting up budget billing. This budget

billing figure is derived by the average electric bill over a

certain period, usually the prior 12 months.

The electric company, like PPL electric, will take twelve

months of bills (Jan-Dec) of the prior year, add the total, and

divide by 12.

For example, the usage for the prior 12 months is shown below:

January $135. February $145. March $112. April $101. May $98. June $87. July $116. August $121. September $113. October $107. November $126. December $131.

What is the average of this homeowner’s electric bill for this

given year? Average=Mean

The average electric bill for this house is $116.

One could assume, if electrical consumption remained the same

for the following year, this household’s electrical budget

amount per month would be around $116.00.

What would happen if a heat wave hit in August and the

family’s electrical bill for the month increased to $449? By

how much would this affect their budgeted amount? The

charge for August would be an outlier, because it is so much

higher than the other values. This outlier would increase the

average for all 12 months.

With a heat wave the average electrical bill for this house will

increase to $143.

Formulas and Procedures:

Outlier

An extreme value in a set of data which is much higher or lower than the other numbers.

Mean (Average)

The average of set of data that is calculated by dividing the sum of the data by the number of items in the set.

Median

The middle value when data are arranged in numeric order or the average of the two middle numbers when the set has an even number of data.

Mode

The value that occurs most frequently in a set of data.

Measures of central tendency are mean, median and mode. Outliers affect the mean value of the data but have little effect on the median or mode of a given set of data.

Example : A student receives a zero on a quiz and subsequently has the following scores:

Outlier: 0

Mean:

Median: since the data set has 10 values, there are two middle numbers, so one must find the mean of these two values, 85 and

Mode: The score 90 occurs more frequently than the other values (three times), so 90 is the mode.

Receiving a zero on a quiz significantly affects a student’s mean, or average. Notice that the outlier had a small effect on the median and mode of the data.

It should be noted that because outliers affect the mean and have little effect on the median, the median is often used to describe “average” income. Often, one hears that the median income for a group is a certain value. Mean is not typically used because outliers, people who make significantly more or make no money at all, affect this measure.

Instructor’s Script – Comparing and Contrasting

Outliers are numbers in a data set that are vastly larger or smaller than the other values in the set. Mean, median and mode are

measures of central tendency. Mean is the only measure of central tendency that is always affected by an outlier. Mean, the average,

is the most popular measure of central tendency.

Common Mistakes Made By Students

Calculator error when finding the mean: Students often forget to use parenthesis when finding the mean of a data set. For

instance, to find the average of 40 and 50, parenthesis must be used for the sum before dividing by two. Students often enter 40 +

50/2, which yields an answer of 65 instead of entering (40 + 50)/2 which yields the correct answer of 45.

Changing the divisor: When determining how an outlier affects the mean of a data set, the student must find the mean with the

outlier, then find the mean again once the outlier is removed. Removing the outlier decreases the number of data by one and

therefore you must decrease the divisor. For instance, when you find the mean of 0, 10, 10, 12, 12, you must divide the sum by 5,

but when you remove the outlier of 0, you must then divide by 4.

When calculating the median, students must list the data need in numerical order.

Finding the median of an even set of data: Finding the median or middle number, of a set of data is simple when there is an odd

number of data. When there is an even number, there are two middle numbers, and these numbers must be averaged to obtain the

median. For instance, the median of 1, 1, 2, 3, 3 is 2 because 2 is the middle number. If the data set is 1, 2, 3, 3, then 2 and 3 are the

middle numbers and must be averaged to obtain the median of 2.5.

CTE Instructor’s Extended Discussion

Averaging is a skill utilized in many different applications. For example, teachers and students may utilize this type of problem

solving technique to determine a grade for a marking period.

Problems Career and Technical Math Concepts Solutions

  1. An electrician wants to find the average temperature in a

free standing garage over the three winter months. He needs to determine the proper size heater to be installed to keep the garage at a comfortable temperature. (Dec: 38 degrees, Jan: 25 degrees, Feb: 21 degrees). What is the average temperature for these months?

The average temperature for the three months is 28 degrees.

  1. A homeowner wants to find out how much electricity his central air conditioner used for the summer of 2008. His (non-AC) summer average for 2007 was: $ 2008 bills: June: $126, July: $132, August: $ What is the 2008 summer average, how much more does his central AC cost him?

His average summer electric bill for 2008 is $133. $133 - $105 = $

It cost $28 per month more to run his central AC, or $84 for the summer of 2008.

  1. An electrician made $1,236, $1,162, $1,329, and $1,512 each

week for 4 weeks. What was his average weekly salary for the above weeks?

His average weekly salary was: $1,309.

Problems Related, Generic Math Concepts Solutions

  1. Sally earned scores of 60, 65, 65, and 80 on 4 tests. How

would scoring 100 on a fifth test affect the mean? Initial Mean =

Mean with outlier =

  1. Tom recorded his daily caloric intake for 5 days. The results

were as follows: 2500, 2600, 2600, 2400, and 3900. How would removing the outlier affect the mean, median and mode of the data?

The mean would decrease from 2800 to 2525. The median would decrease from 2600 to 2550. The mode would remain constant at 2600.

  1. Angela recorded the number of hours she spent watching TV

for one week. The results were as follows: 6, 2, 2, 1.5, 3, 2.5, 2. How would removing the outlier affect the mean, median, and mode of the data?

The mean would decrease from 2. 71 to 2. The median would remain constant at 2. The mode would remain constant at 2.

Problems PA Core Math Look Solutions

  1. Which of the following measures of central tendency does

an outlier affect the most? a) Mean b) Median c) Mode

a) Mean

  1. Which measure of central tendency would best depict the

following data: 10, 200, 200, 300, 325, 350 and 400? a) Mean b) Median c) Mode

Median, because the outlier of 10 would make the average lower, and the mode of 200 would represent the lower data.

The median is 300.

  1. How would removing the outlier affect the mean of the

following data: 1200, 2400, 2400, 2500 and 9000?

The mean would decrease from 3500 to 2125.