Salary Stats
1. **State the problem:** We have monthly take-home salaries data and need to construct a frequency distribution using Sturge's rule, then find the mean, median, mode, mean absolute deviation (MAD), variance, and standard deviation.
2. **List the data:**
$$526, 675, 552, 636, 580, 643, 600, 523, 727, 502, 686, 547, 481, 601, 573, 558, 586, 597, 545, 547, 630, 532, 659, 544, 507, 641, 585, 620, 613, 710, 509, 480, 487, 688, 604$$
3. **Count the number of data points:**
There are $n=35$ salaries.
4. **Find the range:**
Minimum salary $=480$
Maximum salary $=727$
Range $=727 - 480 = 247$
5. **Determine number of classes using Sturge's rule:**
$$k = 1 + 3.322 \log_{10}(n) = 1 + 3.322 \log_{10}(35) \approx 1 + 3.322 \times 1.544 = 6.13 \approx 6$$
6. **Calculate class width:**
$$\text{class width} = \frac{\text{range}}{k} = \frac{247}{6} \approx 41.17 \approx 42$$
7. **Construct frequency distribution classes:**
Classes (start at 480):
- 480–521
- 522–563
- 564–605
- 606–647
- 648–689
- 690–731
8. **Tally frequencies:**
- 480–521: 480, 481, 487, 502, 507, 509, 523 (7 values)
- 522–563: 523, 526, 532, 544, 545, 547, 547, 552, 558 (9 values)
- 564–605: 573, 580, 585, 586, 597, 600, 601, 604 (8 values)
- 606–647: 613, 620, 630, 636, 641, 643 (6 values)
- 648–689: 659, 675, 686, 688 (4 values)
- 690–731: 710, 727 (2 values)
9. **Calculate midpoints for each class:**
- 480–521: $\frac{480+521}{2} = 500.5$
- 522–563: $\frac{522+563}{2} = 542.5$
- 564–605: $\frac{564+605}{2} = 584.5$
- 606–647: $\frac{606+647}{2} = 626.5$
- 648–689: $\frac{648+689}{2} = 668.5$
- 690–731: $\frac{690+731}{2} = 710.5$
10. **Calculate mean:**
$$\bar{x} = \frac{\sum f_i x_i}{n}$$
Where $f_i$ is frequency and $x_i$ is midpoint.
$$\bar{x} = \frac{7\times500.5 + 9\times542.5 + 8\times584.5 + 6\times626.5 + 4\times668.5 + 2\times710.5}{35}$$
$$= \frac{3503.5 + 4882.5 + 4676 + 3759 + 2674 + 1421}{35} = \frac{20916}{35} = 597.6$$
11. **Calculate median:**
Median class is the class where cumulative frequency reaches $\frac{n}{2} = 17.5$.
Cumulative frequencies:
- 7
- 16
- 24 (median class: 564–605)
Median formula:
$$\text{Median} = L + \left(\frac{\frac{n}{2} - F}{f_m}\right) \times w$$
Where:
- $L=563.5$ (lower boundary of median class)
- $F=16$ (cumulative frequency before median class)
- $f_m=8$ (frequency of median class)
- $w=42$ (class width)
$$\text{Median} = 563.5 + \left(\frac{17.5 - 16}{8}\right) \times 42 = 563.5 + 0.1875 \times 42 = 563.5 + 7.875 = 571.375$$
12. **Calculate mode:**
Mode class is the class with highest frequency: 522–563 (9 values).
Mode formula:
$$\text{Mode} = L + \frac{(f_1 - f_0)}{(2f_1 - f_0 - f_2)} \times w$$
Where:
- $L=521.5$ (lower boundary of modal class)
- $f_1=9$ (frequency of modal class)
- $f_0=7$ (frequency before modal class)
- $f_2=8$ (frequency after modal class)
- $w=42$
$$\text{Mode} = 521.5 + \frac{9 - 7}{2\times9 - 7 - 8} \times 42 = 521.5 + \frac{2}{18 - 15} \times 42 = 521.5 + \frac{2}{3} \times 42 = 521.5 + 28 = 549.5$$
13. **Calculate Mean Absolute Deviation (MAD):**
$$\text{MAD} = \frac{\sum f_i |x_i - \bar{x}|}{n}$$
Calculate $|x_i - \bar{x}|$ for each midpoint and multiply by frequency:
- $|500.5 - 597.6| = 97.1 \times 7 = 679.7$
- $|542.5 - 597.6| = 55.1 \times 9 = 495.9$
- $|584.5 - 597.6| = 13.1 \times 8 = 104.8$
- $|626.5 - 597.6| = 28.9 \times 6 = 173.4$
- $|668.5 - 597.6| = 70.9 \times 4 = 283.6$
- $|710.5 - 597.6| = 112.9 \times 2 = 225.8$
Sum = 1963.2
$$\text{MAD} = \frac{1963.2}{35} = 56.1$$
14. **Calculate variance:**
$$\text{Variance} = \frac{\sum f_i (x_i - \bar{x})^2}{n}$$
Calculate $(x_i - \bar{x})^2 \times f_i$:
- $(97.1)^2 \times 7 = 9409.4 \times 7 = 65865.8$
- $(55.1)^2 \times 9 = 3036.0 \times 9 = 27324.0$
- $(13.1)^2 \times 8 = 171.6 \times 8 = 1372.8$
- $(28.9)^2 \times 6 = 835.2 \times 6 = 5011.2$
- $(70.9)^2 \times 4 = 5026.8 \times 4 = 20107.2$
- $(112.9)^2 \times 2 = 12748.4 \times 2 = 25496.8$
Sum = 145177.8
$$\text{Variance} = \frac{145177.8}{35} = 4147.9$$
15. **Calculate standard deviation:**
$$\text{SD} = \sqrt{\text{Variance}} = \sqrt{4147.9} = 64.4$$
**Final answers:**
- Mean $= 597.6$
- Median $= 571.4$
- Mode $= 549.5$
- MAD $= 56.1$
- Variance $= 4147.9$
- Standard deviation $= 64.4$