# Shared Flashcard Set

## Details

Busn 210 Stat Ch.3 Terms
Statistical Techniques in Busn & Econ 14e
11
10/03/2009

Term
 Arithmetic mean
Definition
 The sum of the values divided by the number of values. The symbol for the mean of a sample is Xbar and the symbol for a population mean is µ.
Term
 Geometric mean
Definition
 The nth root of the product of all the values. It is especially useful for averaging rates of change and index numbers. It minimizes the importance of extreme values. A second use of the geometric mean is to find the mean annual percent change over a period of time. For example, if gross sales were \$245 million in 1985 and \$692 million in 2007, what is the average annual percent increase?
Term
 Mean deviation
Definition
 The mean of the deviations from the mean, disregarding signs. It is abbreviated as MD.
Term
 Measure of dispersion
Definition
 A value that shows the spread of a data set. The range, variance, and standard deviation are measures of dispersion.
Term
 Measure of location
Definition
 A single value that is typical of the data. It pinpoints the center of a distribution. The arithmetic mean, weighted mean, median, mode, and geometric mean are measures of central location.
Term
 Median
Definition
 The value of the middle observation after all the observation have been arranged from low to high. For example, if observations 6,9, 4 are rearranged to read 4, 6, 9, the median is 6, the middle value.
Term
 Mode
Definition
 The value that appears most frequently in a set of data. For grouped data, it is the midpoint of the class containing the largest number of values.
Term
 Range
Definition
 It is a measure of dispersion. The range is found by subtracting the minimum value from the maximum value.
Term
 Standard deviation
Definition
 The square root of the variance.
Term
 Variance
Definition
 A measure of dispersion based on the average squared difference from the arithmetic mean.
Term
 Weighted mean
Definition
 Each value is weighted according to it's relative importance. For example, if 5 shirts cost \$10 each and 20 shirts cost \$8 each, the weighted mean price is \$8.40: [(5X\$10)/(20X\$8)]/25 = \$8.40
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