chapter 3 Business Statistics: Communicating with Numbers, 5e - Summary Measures

A set of flashcards covering key vocabulary related to summary measures in business statistics.

Measures of Central Location

Statistical measures that characterize the center or typical value of a data set, including mean, median, and mode.

Mean

The arithmetic average of a set of values, calculated by summing all observations and dividing by the number of observations.

Median

The middle value of a data set when arranged in ascending order, dividing the data into two equal halves.

Mode

The value that appears most frequently in a data set.

Interquartile Range (IQR)

The difference between the third quartile (Q3) and the first quartile (Q1), representing the middle 50% of the data.

Standard Deviation

A measure of the dispersion of a set of values, indicating how much individual data points differ from the mean.

Variance

The average of the squared differences from the mean, representing the degree of spread in the data.

Skewness

A measure of the asymmetry of the distribution of values in a dataset, indicating whether data points are skewed to the left or right.

Sharpe Ratio

A measure that indicates how well the return of an investment compensates for the risk taken, calculated as the excess return per unit of risk.

Chebyshev's Theorem

A statistical rule that provides bounds for the proportion of observations that fall within a certain number of standard deviations from the mean, applicable to all distributions.

Empirical Rule

A statistical rule stating that for a normal distribution, approximately 68% of observations fall within one standard deviation, 95% within two, and 99.7% within three standard deviations.

Percentile

A measure that indicates the relative standing of a value within a dataset, where a certain percentage of the data falls below that value.