By Michael Barrow
The fifth version of information for Economics, Accounting and enterprise stories keeps to offer a effortless and concise advent to numerous statistical instruments and strategies.
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Extra resources for Statistics for economics, accounting and business studies, Fifth ed.
The three measures of location give different messages because of the skewness of the distribution: if it were symmetric they would all give approximately the same answer. Here we have a rather extreme case of skewness, but it does serve to illustrate how the different measures of location compare. When the distribution is skewed to the right, as here, they will be in the order mode, median, mean; if skewed to the left the ordering is reversed. If the distribution has more than one peak then this rule for orderings may not apply.
3 shows an alternative method of presentation: the stacked bar chart. In this case the bars are stacked one on top of another instead of being placed side by side. 2 Educational qualiﬁcations by employment category Note: The bars for the unemployed and inactive categories are constructed in the same way as for those in work: the height of the bar is determined by the frequency. 1. and the different overall sizes of the categories is clearly brought out. However, we are still having to make tricky visual judgements about proportions.
For this we must turn to numerical measures such as the average. There are a number of different ways in which we may describe a distribution such as that for wealth. qxd 26/02/2009 09:04 Page 25 Summarising data using numerical techniques ● ● ● A measure of location giving an idea of whether people own a lot of wealth or a little. An example is the average, which gives some idea of where the distribution is located along the x-axis. In fact, we will encounter three different measures of the ‘average’: ❍ the mean; ❍ the median; ❍ the mode.
Statistics for economics, accounting and business studies, Fifth ed. by Michael Barrow