Calculation for continuous series or grouped data, Applied Statistics

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Calculation for Continuous Series or Grouped Data

1485_arithmetic mean.png

= 1522_discrete series2.png

where,

m

= mid-point of class
  1250_discrete series3.png

f

 frequency of each class

  N  = 1818_discrete series4.png =  total frequency

A security analyst studied a hundred companies and obtained the following distribution for the dividend declared by these companies during the year 2002. Calculate the average dividend.

 

Dividend declared (in percentage)

0-8

8-16

16-24

24-32

32-40

No. of companies (f)

12

20

25

28

15

 

Dividend declared

Mid-point
 (m)

No. of companies (f)

fm

0-8

4

12

48

8-16

12

20

240

16-24

20

25

500

24-32

28

28

784

32-40

36

15

540

Total

 

100

2112

1485_arithmetic mean.png

  = 359_continuous series.png = 2112/100 =  21.12%

Thus, the average dividend is 21.12 percent.


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