1. By Tatre Jantarakolica1 Fundamental Statistics and Economics for Evaluating Survey Data of Price Indices

2. By Tatre Jantarakolica2 Fundamental Economics Market Structure and Price Perfect Competitive Market - Prices are all equal. Competitive Market (Many Buyers & Sellers) - Prices are almost equal – less price- variation. Oligopoly (Less competitive—Product Differentiation) - Prices are different – more price- variation.

3. By Tatre Jantarakolica3 Fundamental Statistics Describing Data Two ways to describing data: Measures of central tendency Single value uses to represent a set of data. Data are clustered close to it. Measures of dispersion Variation in a set of data. Can be used to evaluate the reliability of two or more averages.

4. By Tatre Jantarakolica4 Measures of Central Tendency Arithmetic Mean Weighted Mean: Geometric Mean:

5. By Tatre Jantarakolica5 Median: The value in the middle set of the data. Half the values are above it, half below. Measures of Central Tendency Mode: The value that occurs most often in a set of data. A set of data can have more than one mode.

6. By Tatre Jantarakolica6 For a symmetric distribution, mean, median, and mode are equal. Measures of Central Tendency Mode Median Mean

7. By Tatre Jantarakolica7 Positively Skewed Distribution: Measures of Central Tendency MedianMeanMode MedianMeanMode Negatively Skewed Distribution:

8. By Tatre Jantarakolica8 Measures of Dispersion Dispersion is the variation in a set of data. Range: Difference between the largest and the smallest observation in a set of data. Range = Highest value - Lowest value = MAX - MIN

9. By Tatre Jantarakolica9 Sample Variance: Measures of Dispersion Sample Standard Deviation: Square root of the variance.

10. By Tatre Jantarakolica10 Coefficient of Variation: A measure of relative dispersion. Coefficient of Skewness: A measure of Symmetry of a distribution. Measures of Dispersion

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17. By Tatre Jantarakolica17 Calculation Example: Example in Excel

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