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Mathematical Properties
The sum of deviations of the items from the arithmetic mean (taking signs into account) is always zero, i.e. = 0.
The sum of the squared deviations of the items from arithmetic mean is less than the sum of the squared deviations of the items from any other value, i.e. is less than where A is any other point, different from .
Since, = , (N x ) = .
If we have the arithmetic mean and number of items of two or more than two groups, we can compute combined average of these groups, by applying the following formula:
where,
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WHAT YOU MEAN BY UTILITY OF MANAGERIALECONOMICS
The file Midterm Data.xls has a tab labeled "Income Data 2009". This data is collected income data from a sample of 400 people in 2009. Use a hypothesis test to see whether the av
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