The distribution of the cost of production (in rupees) of a quintal of wheat in 50 farms in as follows:
Cost (in rupees) |
40–50 |
50–60 |
60–70 |
70–80 |
80–90 |
90–100 |
Total |
Number of farms |
3 |
6 |
12 |
18 |
9 |
2 |
50 |
(a) Calculate the variance
(i) by direct method, (ii) by step deviation method and compare your results with the mean deviation about the arithmetic mean.
(b) Calculate the coefficient of variation by using:
(i) The standard devitation of cost and (ii) the mean deviation of costs about the arithmetic mean, and compare the two. What is your conclusion about variation of cost?
(a) (i) Calculation of Variance by Direct Method
Class |
Frequency |
Mid-points (X) |
(xf) |
|
f|D| df |
fm |
d2 |
fd2 |
40 – 50 |
3 |
45 |
135 |
–26 |
78 |
135 |
676 |
2028 |
50 – 60 |
6 |
55 |
330 |
–16 |
96 |
330 |
256 |
1536 |
60 – 70 |
12 |
65 |
780 |
–6 |
72 |
780 |
36 |
432 |
70 – 80 |
18 |
75 |
1350 |
4 |
72 |
1350 |
16 |
288 |
80 – 90 |
9 |
85 |
765 |
14 |
126 |
765 |
196 |
1764 |
90 – 100 |
2 |
95 |
190 |
24 |
48 |
190 |
576 |
1152 |
50 |
Σnf = 3550 |
Σd = 90 |
Σ × P = 492 |
Σfd2 = 7200 |

(ii) By Step Deviation Method :
Class |
f |
m |
d(M–n) |
d'2 |
fd' |
fd'2 |
40 – 50 |
3 |
45 |
–3 |
9 |
–9 |
27 |
50 – 60 |
6 |
55 |
–2 |
4 |
–12 |
24 |
60 – 70 |
12 |
65 |
–1 |
1 |
–12 |
12 |
70 – 80 |
18 |
75 |
0 |
0 |
0 |
0 |
80 – 90 |
9 |
85 |
1 |
1 |
9 |
9 |
90 – 100 |
2 |
95 |
2 |
4 |
4 |
8 |
Σfd'=-20 |
Σfd'2= 80 |

(b) Calculation of Coefficient of Variation
