(i) Mean

Lengths of m.p No. of Employees

fX
Service (X) frequency (f)

7.5-7.9 7.7 6 46.2

8.0-8.4 8.2 22 180.4

8.5-8.9 8.7 36 313.2

9.0-9.4 9.2 18 165.6

9.5-9.9 9.7 14 135.8

10.0-10.4 10.2 4 40.8

100 882

882
X 
100
 88.2
(ii) Standard deviation

Lengths of m.p
fX fX2
Service (X) frequency (f)

7.5-7.9 7.7 6 46.2 2134.44

8.0-8.4 8.2 22 180.4 32544.16

8.5-8.9 8.7 36 313.2 98094.24

9.0-9.4 9.2 18 165.6 27423.36

9.5-9.9 9.7 14 135.8 18441.61

10.0-10.4 10.2 4 40.8 1664.64

53.7 n=100 882 180302.45

Formula
 fx 2  fx  
∑ ∑
2

S=  −   
 n  n  
 
  180302.45  882  2 
S   
 100  100  
S  1725.2321
S  
(iii) Co-efficient of Variation
S
C.V. = × 100
X
415359
C.V .  100
88.2
C.V .      
(iv) Mean Deviation (from median)

Lengths of
Service
m.p Employees
X − X = d | di |
(X) frequency (f)

7.5-7.9 7.7 6 7.7-16.7= -9 9

8.0-8.4 8.2 22 8.2-16.7= -8.5 8.5

8.5-8.9 8.7 36 8.7-16.7= -8 8

9.0-9.4 9.2 18 9.2-16.7= -7.5 7.5

9.5-9.9 9.7 14 9.7-16.7= -7 7

10.0-10.4 10.2 4 10.2-16.7= -6.5 6.5

46.5

M.D. =
∑ | di | 46.5

n 6
 7.75.
(v) Range
R = Xm – X0
= 10.2 – 7.7
= 2.5
 a) The cost of output at a factory is thought to depend on the number
of units produced. Data have been collected for the number of units
produced each month in the last six months, and the associated
costs, as follows;

Output Cost
(‘000s of units) X ($’000) Y
2 9
3 11
1 7
4 13
3 11
5 15

.Calculate the correlation coefficient and comment on your result.

Solution:

X Y XY X2 Y2
2 9 18 4 81
3 11 33 9 121
1 7 7 1 49
4 13 52 16 169
3 11 33 9 121
5 15 75 25 225
∑X = 18 ∑Y = 66 ∑XY= 218 ∑X2 = 64 ∑Y2 = 766
While n=6
Formula for correlation coefficient:

r
 XY    X    Y  n
    X  n    Y    Y  n 
 
2 2 2 2
X
  
 218   18   66  6
r
 64   18  2 6   766   66  2 6 
   
218  198
r
 64  54   766  726
20
r
400
20
r
20
r 1
Comment:
a perfect positive correlation between the volume of output at the factory
and costs.