Data Analysis

The Final Inspection

Data Analysis is the final inspection where you interpret all the various components to ensure everything fits together accurately. This section covers approximately 30% of Quantitative Reasoning questions—the largest portion!

  • Descriptive statistics (mean, median, mode, range, standard deviation)
  • Data interpretation (graphs, tables, charts)
  • Probability and counting methods
  • Distributions and data patterns
  • Percentiles and quartiles

Measures of Central Tendency

Mean (Average)

Sum of all values divided by the number of values.

Mean = (Sum of all values) / (Number of values)

Median

The middle value when data is arranged in order. If there's an even number of values, it's the average of the two middle values.

Example: For 1, 3, 5, 7, 9 → median is 5. For 2, 4, 6, 8 → median is (4+6)/2 = 5

Mode

The value that appears most frequently. A dataset can have no mode, one mode, or multiple modes.

Range

The difference between the maximum and minimum values.

Range = Maximum - Minimum

Standard Deviation

What is Standard Deviation?

Standard deviation measures how much data values differ from the mean. A larger standard deviation indicates more spread out data; a smaller one indicates data clustered close to the mean.

Example:

Calculate the standard deviation for the data: 0, 7, 8, 10, 10

Solution:

  1. Find the mean: (0 + 7 + 8 + 10 + 10) / 5 = 35 / 5 = 7
  2. Find squared differences from mean:
    • (0-7)2 = 49
    • (7-7)2 = 0
    • (8-7)2 = 1
    • (10-7)2 = 9
    • (10-7)2 = 9
  3. Average of squared differences: (49 + 0 + 1 + 9 + 9) / 5 = 68 / 5 = 13.6
  4. Standard deviation = √13.6 ≈ 3.69
  5. Answer: ≈ 3.7

Key Property:

If all values in a dataset are increased by the same amount, the standard deviation stays the same (it measures spread, not position).

Counting Methods

Combinations: Order Does NOT Matter

Use combinations when selecting items where the order does not matter.

C(n,k) = n! / (k!(n-k)!)

"n choose k" = number of ways to choose k items from n items

Example:

To select a 3-person committee from 9 students, how many ways are there?

Solution:

  • C(9,3) = 9! / (3!(6!))
  • = (9 × 8 × 7) / (3 × 2 × 1)
  • = 504 / 6
  • Answer: 84 ways

Permutations: Order DOES Matter

Use permutations when selecting items where the order matters.

P(n,k) = n! / (n-k)!

Example: First, second, and third place in a race of 8 runners = P(8,3) = 8×7×6 = 336

Probability

Basic Probability Formula

P(Event) = (Number of favorable outcomes) / (Total number of outcomes)

Probability always ranges from 0 to 1 (or 0% to 100%)

Independent Events

If two events E and F are independent (one doesn't affect the other), the probability of both occurring is:

P(E and F) = P(E) × P(F)

Example:

If a fair die is rolled twice, what's the probability of rolling a 3 both times?

Solution:

  • P(rolling a 3 on first roll) = 1/6
  • P(rolling a 3 on second roll) = 1/6
  • P(both rolls are 3) = 1/6 × 1/6
  • Answer: 1/36

Mutually Exclusive Events

If events cannot happen at the same time (mutually exclusive), the probability of either occurring is:

P(E or F) = P(E) + P(F)

Example: P(rolling a 2 or a 5) = 1/6 + 1/6 = 2/6 = 1/3

Normal Distribution

The Bell Curve

In a perfectly symmetric normal distribution (bell curve), the mean, median, and mode are all equal and located at the center.

The 68-95-99.7 Rule

  • About 68% of data falls within 1 standard deviation of the mean
  • About 95% of data falls within 2 standard deviations of the mean
  • About 99.7% of data falls within 3 standard deviations of the mean

Key Fact to Remember:

About two-thirds (68%) of the data in a normal distribution falls within 1 standard deviation of the mean.

Percentiles and Quartiles

Percentiles

The nth percentile is the value below which n% of the data falls. For example, the 75th percentile means 75% of values are below this point.

Quartiles

  • Q1 (First Quartile): 25th percentile
  • Q2 (Second Quartile): 50th percentile = Median
  • Q3 (Third Quartile): 75th percentile

Interquartile Range (IQR)

The IQR measures the spread of the middle 50% of data:

IQR = Q3 - Q1

Data Interpretation Tips

  • Read labels carefully: Check axis labels, units, legends, and titles on all graphs and tables.
  • Watch for scale: Graphs can be misleading if axes don't start at zero or use irregular intervals.
  • Calculate carefully: Use the on-screen calculator for complex calculations, but double-check your work.
  • Estimate when possible: Sometimes you can eliminate wrong answers through estimation without precise calculation.

Ready to Practice Data Analysis?

Master these critical data interpretation and statistical reasoning skills.