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Basic Concepts in Economics
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- Basic Concepts of Microeconomics > Want
- Basic Concepts of Microeconomics > Goods and Services
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- Basic Concepts of Microeconomics > Value
- Basic Concepts of Microeconomics > Wealth
- Microeconomics > Personal Income
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- Microeconomics > Economic Activity
- Types of Income
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Money
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The Economy of Maharashtra
- Formation and Economic Progress of Maharashtra
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- Economic Development of Maharashtra
- Agricultural Sector
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- Measures for Social Infrastructure: Education
- Measures for Social Infrastructure: Health Services
- Co – operative Movement in Maharashtra
- Symbols of Educational Schemes in India
- Tourism in Maharashtra
- Hospitality
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Rural Development in India
Population in India
- Concept of Population in India
- Trends in Population Growth
- Theories of Population Growth
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- Birth Rate
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- Legal Age of Marriage for Males and Females in Different Countries
- The Population as a Human Resource
- Role of Human Resources in Economic Development
Unemployment in India
- Concept of Unemployment
- Important Terms of Employment and Unemployment
- Types of Unemployment
- Rural Unemployment
- Urban Unemployment
- Extent of Unemployment in India
- State-Wise Unemployment Rates in India
- Causes of Unemployment
- General Measures to Reduce Unemployment
- Effects of Unemployment
- Government Measures for Employment Generation
Poverty in India
- Concept of Poverty in India
- Prof. Amartya Sen’s Views on Poverty
- Multi-dimensional Poverty
- Key Concepts of Poverty
- Countries with Highest Extreme Poverty Rates
- Poverty Line
- Informal Sector and Related Activities
- Income Pyramid
- Types of Poverty
- Extent of Poverty in India
- Estimates of Poverty
- Causes of Poverty
- Effects of Poverty
- Sustainable Development Goals
- Understanding Maharashtra’s Tri Colour Family Ration Cards
- Eradication of Poverty
- Poverty Alleviation Programmes and Their Target Sectors
- Tracking Anti-Poverty Efforts
Economic Policy of India since 1991
- Economic Transition of India
- Main Objectives of the Economic Policy of 1991
- Features of the Economic Policy of 1991
- Public Bank Vs Private Banks Vs Foreign Banks
- Components of New Economic Policy
- Liberalisation
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- Evaluation of the Economic Policy of 1991
- Corporate Social Responsibility
Economic Planning in India
- India’s Planning Commission
- Economic Planning in India
- Overview of the Bombay, People’s, and Gandhian Plans
- Features of Economic Planning
- Five Year Plans (FYP)
- 12th Five Year Plan (2012-2017)
- Levels of National Family Health Survey (NFHS)
- NITI Aayog (National Institution for Transforming India)
- Planning Commission VS NITI Aayog
- Example of Individual Data
- Example of Discrete Data
- Example of Continuous Data
Example of Individual Data
Example 1
1) Calculate \[\mathrm{D}_4\] and \[\mathrm{D}_8\] for the following data. 10, 15, 7, 8, 12, 13, 14, 11, 9
Solution: Arrange the data in ascending order. 7, 8, 9, 10, 11, 12, 13, 14, 15
\[\mathrm{D}_4=\mathrm{size~of}4\left(\frac{n+1}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_4=\mathrm{size~of}4\left(\frac{9+1}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_4=\mathrm{size~of}4\left(\frac{10}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_4=\mathrm{size~of}(4\times1)^{\text{th Observation}}\]
\[\mathrm{D}_4=\mathrm{size~of}4^{\text{th Observation}}\]
\[\therefore\mathbf{D}_{4}=10\]
Calculation of D8
\[\mathrm{D}_8=\mathrm{size~of}8\left(\frac{n+1}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_8=\mathrm{size~of}8\left(\frac{9+1}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_8=\mathrm{size~of}8\left(\frac{10}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_8=\mathrm{size~of}(8\times1)^{\text{th Observation}}\]
\[\mathrm{D}_8=\mathrm{size~of}8^{\text{th Observation}}\]
\[\therefore\mathbf{D}_{8}=14\]
\[\boxed{\quad\mathbf{Ans}:\mathbf{D}_4=\mathbf{10},\mathbf{D}_8=\mathbf{14}}\]
Example 2
2) Calculate \[\mathrm{D}_8\] from the given data: 14, 13, 12, 11, 15, 16, 18, 17, 19, 20
Solution: First arrange the data in ascending order.
11, 12, 13, 14, 15, 16, 17, 18, 19, 20
n = 10
\[\mathrm{D}_8=\mathrm{size~of}8\left(\frac{n+1}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_8=\mathrm{size~of}8\left(\frac{10+1}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_8=\mathrm{size~of}8\left(\frac{11}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_8=\mathrm{size~of}(8\times1.1)^{\text{th Observation}}\]
\[\mathrm{D}_8=\mathrm{size~of}(8.8)^{\text{th Observation}}\]
\[\mathrm{D_s=size~of~8^{th~observation}+0.8~(9^{th~observation}-8^{th~observation})}\]
\[\mathrm{D}_{_8}=18+0.8(19-18)\]
\[\mathrm{D}_8=18+(0.8\times1)\]
\[\mathrm{D}_8=18+0.8\]
\[\therefore\mathbf{D}_{8}=18.8\]
\[\boxed{\begin{array}{c}\mathbf{Ans:D_8=18.8}\end{array}}\]
Example of Discrete Data
1. Find out \[\mathrm{D}_2\] and \[\mathrm{D}_4\] for the following data.
| Marks | 10 | 20 | 30 | 40 | 50 | 60 |
|---|---|---|---|---|---|---|
| No. of Students | 5 | 6 | 4 | 5 | 10 | 9 |
Solution:
| Marks | No. of Students (f) | Cumulative Frequency (cf) |
|---|---|---|
| 10 | 5 | 5 |
| 20 | 6 | 11 |
| 30 | 4 | 15 |
| 40 | 5 | 20 |
| 50 | 10 | 30 |
| 60 | 9 | 39 |
| n = 39 |
\[\mathrm{D}_2=\mathrm{size~of}2\left(\frac{n+1}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_2=\mathrm{size~of}2\left(\frac{39+1}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_2=\mathrm{size~of}2\left(\frac{40}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_2=\mathrm{size~of}(2\times4)^{\text{th Observation}}\]
\[\mathrm{D_2=size~of~(8)^{th~Observation}}\]
\[\mathrm{Size~of}8^{\text{th Observation}}\] lies in cf 11
Hence \[\mathrm{D}_2\] = 20 marks
\[\therefore\mathbf{D}_{2}=20\]
Calculation of \[\mathrm{D}_4\]
\[\mathrm{D}_4=\mathrm{size~of}4\left(\frac{n+1}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_4=\mathrm{size~of}4\left(\frac{39+1}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_4=\mathrm{size~of}4\left(\frac{40}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_4=\mathrm{size~of}(4\times4)^{\text{th Observation}}\]
\[\mathrm{D}_4=\mathrm{size~of}16^{\text{th Observation}}\]
\[\mathrm{Size~of}16^{\text{th Observation}}\] lies in cf 11
Hence \[\mathrm{D}_4\] = 40 marks
\[\therefore\mathbf{D}_{4}=40\]
\[\boxed{\quad\mathbf{Ans}:\mathbf{D}_{2}=20,\mathbf{D}_{4}=40}\]
Example of Continuous Data
Apply the steps as mentioned in Qualities of continuous data.
1) Find out \[\mathrm{D}_5\] and \[\mathrm{D}_7\] for the following data of marks of 100 students in a class test.
| Marks | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 |
|---|---|---|---|---|---|
| No. of Students | 10 | 10 | 40 | 20 | 20 |
Solution:
| Marks | No. of Students (f) | Cumulative Frequency (cf) |
|---|---|---|
| 0-10 | 10 | 10 |
| 10-20 | 10 | 20 |
| 20-30 | 40 | 60 |
| 30-40 | 20 | 80 |
| 40-50 | 20 | 100 |
| n = 100 |
Calculation of \[\mathrm{D}_5\]
Step I
\[\mathrm{D}_{s}=\mathrm{size~of}\left(\frac{5n}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_{s}=\mathrm{size~of}\left(\frac{5\times100}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_{s}=\mathrm{size~of}\left(\frac{500}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_8=\mathrm{size~of}50^{\text{th Observation}}\]
\[\mathrm{Size~of}50^{\text{th Observation}}\] lies in cf 60
Hence Decile class = 20-30
∴ l = 20 f = 40 cf = 20 n = 100 h = 10
Step II
\[\mathbf{D}_5=l+\left(\frac{\frac{5n}{10}-cf}{f}\right)\times h\]
\[\mathrm{D}_{5}=20+\left(\frac{\frac{5\times100}{10}-20}{40}\right)\times10\]
\[\mathrm{D}_{5}=20+\left(\frac{\frac{500}{10}-20}{40}\right)\times10\]
\[\mathbf{D}_{5}=20+\left(\frac{50-20}{40}\right)\times10\]
\[\mathrm{D}_{5}=20+\left(\frac{30}{40}\right)\times10\]
\[\mathrm{D}_{5}=20+\frac{300}{40}\]
\[\mathrm{D}_{5}=20+7.5\]
\[D_5=27.5 marks\]
\[\therefore\mathbf{D}_{5}=27.5\]
Calculation of \[\mathrm{D}_7\]
Step I
\[\mathrm{D}_7=\mathrm{size~of}\left(\frac{7n}{10}\right)^\text{th Observation}\]
\[\mathrm{D}_{\gamma}=\mathrm{size~of}\left(\frac{7\times100}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_{\gamma}=\mathrm{size~of}\left(\frac{700}{10}\right)^{\text{th Observation}}\]
\[\mathrm{D}_{\gamma}=\text{size of }70^{\text{th Observation}}\]
\[\mathrm{D}_{\gamma}=\text{size of }70^{\text{th Observation}}\] lies in cf 80
Hence Decile class = 30-40
∴ l = 30 f = 20 cf = 60 n = 100 h = 10
Step II
\[\mathbf{D}_{7}=l+\left(\frac{\frac{7n}{10}-cf}{f}\right)\times h\]
\[\mathbf{D}_7=30+\left(\frac{\frac{7\times100}{10}-60}{20}\right)\times10\]
\[\mathbf{D}_7=30+\left(\frac{\frac{700}{10}-60}{20}\right)\times10\]
\[\mathbf{D}_7=30+\left(\frac{70-60}{20}\right)\times10\]
\[\mathbf{D}_7=30+\left(\frac{10}{20}\right)\times10\]
\[\mathrm{D}_7=30+\left(\frac{100}{20}\right)\]
\[\mathrm{D}_{7}=30+5\]
\[\mathrm{D}_7\] = 35 marks
∴ \[\mathrm{D}_7\] = 35
\[\boxed{\quad\mathbf{Ans}:\mathbf{D}_{5}=27.5,\mathbf{D}_{7}=35}\]
