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Worked Examples · Example 3

Q.The daily wages (in Rs.'00) of 9 workers in a small firm are: 20, 22, 25, 25, 25, 28, 30, 35, 40. Calculate Karl Pearson's coefficient of skewness and comment on its sign.

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Data (in Rs.'00): 20, 22, 25, 25, 25, 28, 30, 35, 40 (N=9N=9).

Step 1 — Mean.

xˉ=20+22+25+25+25+28+30+35+409=2509=27.78\bar{x}=\dfrac{20+22+25+25+25+28+30+35+40}{9}=\dfrac{250}{9}=27.78

Step 2 — Mode. The value 25 occurs three times, more often than any other value, so:

Mode=25\text{Mode}=25

Step 3 — Standard deviation. Deviations from the mean (27.78) and their squares:

xx−xˉx-\bar{x}(x−xˉ)2(x-\bar{x})^2
20−7.7860.49
22−5.7833.38
25−2.787.72
25−2.787.72
25−2.787.72
280.220.05
302.224.94
357.2252.16
4012.22149.38

Σ(x−xˉ)2=323.56\Sigma(x-\bar{x})^2 = 323.56

σ=323.569=35.95=6.00\sigma=\sqrt{\dfrac{323.56}{9}}=\sqrt{35.95}=6.00

Independent check of the standard deviation using the direct formula σ=Σx2N−xˉ2\sigma=\sqrt{\frac{\Sigma x^2}{N}-\bar{x}^2}: Σx2=400+484+625+625+625+784+900+1225+1600=7268\Sigma x^2 = 400+484+625+625+625+784+900+1225+1600=7268, so 72689−(2509)2=807.56−771.60=35.95\frac{7268}{9}-\left(\frac{250}{9}\right)^2 = 807.56-771.60=35.95, giving σ=6.00\sigma=6.00 — matches Step 3 exactly. …

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