Human Resource Management  ·  Level 6
Business Mathematics And Statistics
Chapter 5: Carry Out Descriptive Statistics
📚 4 Topics
⚑ What you will be able to do

By the end of this chapter, you will be able to:

  • accurately determine measures of central tendency using the correct work procedures
  • correctly calculate measures of dispersion following the required steps
  • analyze measures of skewness with precision according to work procedures
  • evaluate kurtosis accurately based on the given methods

Mastering these skills will help you confidently interpret data, making you a valuable problem-solver in any business environment.

Compiled by: John Gitau

5.1 Measures of Central Tendency

Measures of central tendency describe the center point or typical value of a dataset. In HR, these measures help summarize employee-related data such as salaries, years of experience, or training hours. Each measure, mean, mode, and median, captures central tendency differently, making it crucial to select the appropriate one depending on data characteristics.

5.1.1 Mean

The mean or average is the sum of all data values divided by the number of values. It is widely used in HR to calculate average salaries, average employee age, or average training hours, providing a clear quantitative summary.

The formula for mean is:

$$ \bar{x} = \frac{\sum_{i=1}^{n} x_i}{n} $$

where \( \bar{x} \) is the mean, \( x_i \) are the individual data points, and \( n \) is the number of data points.

Worked Examples

Example 1: Calculate the mean monthly salary of 5 employees in a retail company with salaries Ksh 30,000, 25,000, 28,000, 32,000, and 35,000.

Given: Salaries = 30,000; 25,000; 28,000; 32,000; 35,000 Ksh$$ \bar{x} = \frac{30,000 + 25,000 + 28,000 + 32,000 + 35,000}{5} $$$$ \bar{x} = \frac{150,000}{5} $$$$ \bar{x} = 30,000 \text{ Ksh} $$ Answer: The mean monthly salary is 30,000 Ksh

Example 2: An HR manager records the number of training hours for 6 employees as 12, 15, 10, 18, 20, and 15 hours. Find the average training hours.

Given: Training hours = 12, 15, 10, 18, 20, 15$$ \bar{x} = \frac{12 + 15 + 10 + 18 + 20 + 15}{6} $$$$ \bar{x} = \frac{90}{6} $$$$ \bar{x} = 15 \text{ hours} $$ Answer: The mean training hours are 15 hours

Example 3: A cooperative records the years of service of 7 staff members: 5, 8, 12, 7, 9, 10, and 6 years. Calculate the mean years of service.

Given: Years of service = 5, 8, 12, 7, 9, 10, 6$$ \bar{x} = \frac{5 + 8 + 12 + 7 + 9 + 10 + 6}{7} $$$$ \bar{x} = \frac{57}{7} $$$$ \bar{x} \approx 8.14 \text{ years} $$ Answer: The mean years of service is approximately 8.14 years

Example 4: In a county government office, the monthly leave days taken by 8 employees are 2, 3, 4, 1, 5, 2, 3, and 4 days. Find the average leave days taken.

Given: Leave days = 2, 3, 4, 1, 5, 2, 3, 4$$ \bar{x} = \frac{2 + 3 + 4 + 1 + 5 + 2 + 3 + 4}{8} $$$$ \bar{x} = \frac{24}{8} $$$$ \bar{x} = 3 \text{ days} $$ Answer: The mean leave days taken are 3 days

Example 5: A bank records the number of new clients each HR officer recruited monthly: 15, 20, 18, 22, 17, 19, 21. Calculate the mean recruitment per officer.

Given: Recruits = 15, 20, 18, 22, 17, 19, 21$$ \bar{x} = \frac{15 + 20 + 18 + 22 + 17 + 19 + 21}{7} $$$$ \bar{x} = \frac{132}{7} $$$$ \bar{x} \approx 18.86 $$ Answer: The mean recruitment per officer is approximately 18.86 clients

5.1.2 Mode

The mode is the value that appears most frequently in a dataset. In HR, mode helps identify the most common employee age, preferred leave duration, or the most frequent salary bracket. It is especially useful for categorical or discrete data.

Worked Examples

Example 1: Find the mode of employee age in a school where the ages recorded are 25, 30, 25, 28, 30, 25, 27 years.

Given: Ages = 25, 30, 25, 28, 30, 25, 27

  • Frequency of 25 = 3
  • Frequency of 30 = 2
  • Frequency of 28 = 1
  • Frequency of 27 = 1

Answer: The mode is 25 years (most frequent age)

Example 2: An HR department records the number of dependents for 10 employees as 2, 3, 2, 4, 2, 3, 1, 3, 3, 2. Determine the mode.

Given: Dependents = 2, 3, 2, 4, 2, 3, 1, 3, 3, 2

  • Frequency of 2 = 4
  • Frequency of 3 = 4
  • Frequency of 4 = 1
  • Frequency of 1 = 1

Answer: The data is bimodal with modes 2 and 3 dependents

Example 3: In a SACCO, the preferred loan repayment periods (in months) recorded are 12, 24, 12, 36, 24, 12, 24, 24. Find the mode.

Given: Repayment periods = 12, 24, 12, 36, 24, 12, 24, 24

  • Frequency of 12 = 3
  • Frequency of 24 = 4
  • Frequency of 36 = 1

Answer: The mode is 24 months

Example 4: The number of training sessions attended by employees in a hotel over a quarter are: 3, 4, 4, 3, 3, 5, 4, 4. Identify the mode.

Given: Sessions = 3, 4, 4, 3, 3, 5, 4, 4

  • Frequency of 3 = 3
  • Frequency of 4 = 4
  • Frequency of 5 = 1

Answer: The mode is 4 sessions

Example 5: The count of sick days taken by employees in a month at a retail business: 1, 2, 2, 3, 2, 1, 4, 2, 3. What is the mode?

Given: Sick days = 1, 2, 2, 3, 2, 1, 4, 2, 3

  • Frequency of 1 = 2
  • Frequency of 2 = 4
  • Frequency of 3 = 2
  • Frequency of 4 = 1

Answer: The mode is 2 sick days

5.1.3 Median

The median is the middle value in an ordered dataset. It is useful in HR for representing typical salaries or experience levels when data is skewed, as it is not affected by extreme values.

To find the median:

  • Arrange data in ascending order
  • If \( n \) is odd, the median is the middle value at position \( \frac{n+1}{2} \)
  • If \( n \) is even, the median is the average of values at positions \( \frac{n}{2} \) and \( \frac{n}{2} + 1 \)

Worked Examples

Example 1: Find the median salary of 7 employees with salaries (Ksh): 20,000; 25,000; 22,000; 30,000; 28,000; 24,000; 26,000.

Given: Salaries unordered = 20,000; 25,000; 22,000; 30,000; 28,000; 24,000; 26,000
Ordered: 20,000; 22,000; 24,000; 25,000; 26,000; 28,000; 30,000
Number of data points \( n=7 \) (odd)
Position of median = \( \frac{7+1}{2} = 4 \)

Answer: Median salary is 25,000 Ksh (4th value)

Example 2: The years of experience of 6 HR officers are 5, 7, 3, 10, 8, 6. Calculate the median years of experience.

Given: Experience = 5, 7, 3, 10, 8, 6
Ordered: 3, 5, 6, 7, 8, 10
Number of data points \( n=6 \) (even)
Positions for median = 3rd and 4th values = 6 and 7$$ \text{Median} = \frac{6 + 7}{2} = \frac{13}{2} = 6.5 \text{ years} $$ Answer: Median experience is 6.5 years

Example 3: In a university HR department, the number of leave days taken by 9 staff members are: 2, 5, 3, 4, 6, 3, 2, 5, 7. Find the median leave days.

Given: Leave days unordered = 2, 5, 3, 4, 6, 3, 2, 5, 7
Ordered: 2, 2, 3, 3, 4, 5, 5, 6, 7
Number of data points \( n=9 \) (odd)
Position of median = \( \frac{9+1}{2} = 5 \)

Answer: Median leave days is 4 days (5th value)

Example 4: The number of training sessions attended by 8 employees in a bank are: 1, 3, 2, 4, 3, 2, 5, 4. Calculate the median sessions attended.

Given: Sessions = 1, 3, 2, 4, 3, 2, 5, 4
Ordered: 1, 2, 2, 3, 3, 4, 4, 5
Number of data points \( n=8 \) (even)
Positions for median = 4th and 5th values = 3 and 3$$ \text{Median} = \frac{3 + 3}{2} = 3 $$ Answer: Median training sessions attended is 3

Example 5: A SACCO records monthly loan amounts (in Ksh) of 10 members: 50,000; 60,000; 55,000; 70,000; 65,000; 60,000; 75,000; 55,000; 50,000; 65,000. Find the median loan amount.

Given: Loans = 50,000; 60,000; 55,000; 70,000; 65,000; 60,000; 75,000; 55,000; 50,000; 65,000
Ordered: 50,000; 50,000; 55,000; 55,000; 60,000; 60,000; 65,000; 65,000; 70,000; 75,000
Number of data points \( n=10 \) (even)
Positions for median = 5th and 6th values = 60,000 and 60,000$$ \text{Median} = \frac{60,000 + 60,000}{2} = 60,000 $$ Answer: Median loan amount is 60,000 Ksh

Practice Questions

  1. Calculate the mean monthly salary of 6 employees with salaries: 40,000; 35,000; 45,000; 38,000; 42,000; 44,000 Ksh. (5 marks)
  2. Find the mode of the number of dependents for 12 employees: 3, 2, 3, 4, 2, 3, 3, 2, 4, 3, 2, 3. (5 marks)
  3. Determine the median years of experience for 9 HR officers with years: 4, 7, 5, 6, 8, 9, 3, 5, 7. (5 marks)
  4. In a retail company, monthly leave days for 7 employees are: 2, 3, 4, 3, 5, 2, 3. Find the mean leave days. (5 marks)
  5. Find the median loan amount for 8 members with loans (Ksh): 25,000; 30,000; 28,000; 27,000; 35,000; 30,000; 29,000; 26,000. (5 marks)
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🔒5.2 Measures of dispersion

In Human Resource management, understanding variability in data such as employee salaries, performance scores, or training hours is crucial. Measures of dispersion quantify how data points spread around the central tendency, helping HR professionals make infor…

🔒5.3 Measures of skewness

In HR data analysis, skewness measures the asymmetry in data distribution, such as salary distributions or performance ratings. Positive skew indicates a longer right tail (few high values), negative skew indicates a longer left tail (few low values), affectin…

🔒5.4 Measures of kurtosis

Measures of kurtosis describe the shape of a distribution’s tails relative to a normal distribution. In Human Resource analytics within Kenyan organizations, kurtosis helps understand the extremes of employee performance ratings, absenteeism, or salary distrib…

Chapter Summary

This chapter covered the fundamental concepts of descriptive statistics essential for business mathematics. It began with measures of central tendency, explaining how the mean, mode, and median provide different ways to identify the central point of a data set. The discussion then moved to measures of dispersion, focusing on variance and standard deviation, which describe the spread or variability of data around the mean. Next, the chapter introduced measures of skewness, which assess the asymmetry of data distribution, indicating whether data are skewed to the left or right. Finally, measures of kurtosis were examined to understand the peakedness or flatness of the data distribution compared to a normal curve. Together, these statistical tools enable effective summarization and interpretation of data in a business context. Mastery of these concepts supports informed decision-making based on data analysis.

Self-Assessment

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Written Assessment

  1. The monthly salaries (in Ksh thousands) of 5 HR officers are: 40, 45, 50, 55, and 60. Calculate the mean salary. (2 marks)

  2. In a sample of employee ages: 22, 25, 25, 28, 30, 30, 30, 32, 35, find the mode of the ages. (2 marks)

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Chapter Examination Questions

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SECTION A (40 Marks) - Answer ALL Questions

  1. A human resource manager at Kenya Commercial Bank (KCB) collected the monthly salaries (in Ksh) of 7 employees as follows: 45,000; 50,000; 47,000; 52,000; 50,000; 48,000; 50,000. Calculate the mode of the salaries. (4 marks)
  2. Using the same salary data in question 1, find the median salary. (4 marks)
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Am I competent?

At the start of this chapter we promised you would be able to:

  • accurately determine measures of central tendency using the correct work procedures
  • correctly calculate measures of dispersion following the required steps
  • analyze measures of skewness with precision according to work procedures
  • evaluate kurtosis accurately based on the given methods

Tick each one you can genuinely do.

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