Find The Standard Deviation And Other Statistical Measures
Find The Standard Deviation and Other Statistical Measures
Calculate the standard deviation of the given data set: $60, $58, $62, $67, $48, $51, $72, $70. Additionally, find the mean, median, and mode for the salary data, and the standard deviation for employee medical leave days. Lastly, compute the future value and compare simple and compound interest for a loan, and determine which investment yields more interest based on compound interest calculations.
Paper For Above instruction
Introduction
Statistical measures such as mean, median, mode, and standard deviation are fundamental tools in data analysis, providing insights into the distribution, variability, and central tendency of datasets. This paper covers diverse applications of these statistical tools, including calculating the standard deviation for product costs, analyzing salary data, employee leave days, and exploring future value and interest calculations for business decisions. These analyses not only offer quantitative insights but also support informed decision-making in business contexts.
Calculating Standard Deviation of Product Costs
Given data: \$60, \$58, \$62, \$67, \$48, \$51, \$72, \$70.
Step 1: Calculate the mean (average).
Mean = (Sum of all data points) / (Number of data points) = ($60 + $58 + $62 + $67 + $48 + $51 + $72 + $70) / 8
Sum = 60 + 58 + 62 + 67 + 48 + 51 + 72 + 70 = 488
Mean = 488 / 8 = \$61
Calculating (Data - Mean) and (Data - Mean)²
| Data | Data - Mean | (Data - Mean)² |
|---|---|---|
| $60 | -1 | 1 |
| $58 | -3 | 9 |
| $62 | 1 | 1 |
| $67 | 6 | 36 |
| $48 | -13 | 169 |
| $51 | -10 | 100 |
| $72 | 11 | 121 |
| $70 | 9 | 81 |
Sum of squared deviations = 1 + 9 + 1 + 36 + 169 + 100 + 121 + 81 = 518
Variance = Sum of squared deviations / (Number of data points - 1) = 518 / 7 ≈ 73.86
Standard deviation = √Variance ≈ √73.86 ≈ 8.59
Analysis of Salary Data: Mean, Median, and Mode
Salaries: \$48,345; \$27,957; \$42,591; \$19,539; \$32,450; \$37,574.
Calculating the Mean
Sum of salaries = 48,345 + 27,957 + 42,591 + 19,539 + 32,450 + 37,574 = 208,986
Number of salaries = 6
Mean = 208,986 / 6 ≈ \$34,831
Calculating the Median
Sorted salaries: \$19,539; \$27,957; \$32,450; \$37,574; \$42,591; \$48,345
Since there are 6 data points, median = (3rd + 4th) / 2 = (\$32,450 + \$37,574) / 2 ≈ \$35,012
Mode
Each salary appears only once; hence, there is no mode in this dataset.
Standard Deviation of Employee Medical Leave Days
Data: 11, 2, 19, 3, 20, 11
Step 1: Calculate the mean.
Mean = (11 + 2 + 19 + 3 + 20 + 11) / 6 = 66 / 6 = 11
Step 2: Calculate squared deviations.
| Data | Data - Mean | (Data - Mean)² |
|---|---|---|
| 11 | 0 | 0 |
| 2 | -9 | 81 |
| 19 | 8 | 64 |
| 3 | -8 | 64 |
| 20 | 9 | 81 |
| 11 | 0 | 0 |
Sum of squared deviations = 0 + 81 + 64 + 64 + 81 + 0 = 290
Variance = 290 / (6 - 1) = 290 / 5 = 58
Standard deviation = √58 ≈ 7.62
Future Value and Interest Comparison
Loan amount: \$12,000; interest rate: 11% annually; period: 3 years.
Future Value with Compound Interest
FV = P × (1 + r)^t = 12,000 × (1 + 0.11)^3 = 12,000 × 1.11^3
Calculate 1.11^3 ≈ 1.11 × 1.11 × 1.11 ≈ 1.367
FV ≈ 12,000 × 1.367 ≈ \$16,404
Interest Paid (Compound)
Interest = FV - Principal = 16,404 - 12,000 = \$4,404
Simple Interest Calculation
Interest = P × r × t = 12,000 × 0.11 × 3 = \$3,960
Comparison: The compound interest (\$4,404) is higher than the simple interest (\$3,960), emphasizing the benefit of compounding.
Comparison of Investment Growth
Investment amount: \$1,000; duration: 1 year.
4% Compounded Quarterly
Interest rate per quarter = 4% / 4 = 1%
Number of quarters = 4
FV = P × (1 + r/n)^(nt) = 1,000 × (1 + 0.01)^4 ≈ 1,000 × 1.0406 ≈ \$1,040.60
4% Compounded Annually
FV = 1,000 × (1 + 0.04)^1 = 1,000 × 1.04 = \$1,040
Conclusion: The quarterly compounding yields slightly more interest (\$40.60 vs. \$40), demonstrating the effect of more frequent compounding periods.
Conclusion
The calculations demonstrated show how various statistical and financial formulas are applied in real-world business and economic scenarios. Understanding these measures allows businesses to assess variability, make informed salary and leave policies, analyze investments, and optimize financial decisions. Accurate computation of standard deviation helps in understanding data distribution, and financial calculations such as future value and interest comparisons support strategic financial planning.
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