ABSTRACT
In statistics , a central tendency (or measure of central tendency) is a central or
typical value for a probability distribution. It may also be called a centre or location of the
distribution. Colloquially, measures of central tendency are often called averages. The
term central tendency dates from the late 1920s.
The most common measures of central tendency are the arithmetic mean, the
median and the mode. A central tendency can be calculated for either a finite set of values
or for a theoretical distribution, such as the normal distribution. Occasionally authors use
central tendency to denote “the tendency of quantitative data to cluster around some
central value.”
The central tendency of a distribution is typically contrasted with its dispersion or
variability, dispersion and central tendency are the often characterized properties of
distributions. Analysts may judge whether data has a strong or a weak central tendency
based on its dispersions.
CONTENTS
CONTENTS PAGE NUMBER
Arithmetic Mean- Meaning, Advantages 1
Arithmetic Mean – Disadvantages, Median-Meaning, 2
Advantages
Median – Disadvantages 3
Mode – Meaning, Advantages and Disadvantages 4
Problems 5-7
Conclusion and references 8
.
1
ARITHMETIC MEAN
“Statics is the science of average”
(Dr Bowly)
MEANING
Arithmetic mean is the most widely used and popular measure of central tendency,
which is based on all items of the central tendency, which is based on the all items of the
series.
Arithmetic mean is obtained by adding all items and dividing the total by total
number of items.
Therefore,
Arithmetic Mean(X) = The sum of all values
The number of values
ADVANTAGES OF MEAN
Arithmetic mean is simple to understand and easy to compute.
As every items is taken in calculations, it is effected by every item.
In the calculation of Arithmetic Mean every item of the series is taken into
account.
In calculation of Arithmetic Mean arrangement or grouping of data is not
necessary.
Arithmetic Mean provides a good basis of comparison.
The mean is a more stable measure of central tendency as it is least affected by
sampling fluctuations.
As it is rigidly defined, it is mostly used for comparing the various issues.
2
DISADVANTAGES OF MEAN
It cannot be located graphically.
A single item can bring change in the result.
In case of open end class interval we have to assume the limits of such intervals
and a little variation in (X) can take place. Such is not the case with median and
mode, and there is no use of open end intervals in its calculations.
(X) cannot be located by inspection as in case of mode and medians.
If the data are not symmetrically distributed, Arithmetic Mean does not represent
the data well.
MEDIAN (M)
“ Median is the value of the middle item in an array.”
(J.R. Stockton and Clark)
MEANING
Median is the value of the middle item of a series when the series is
arranged in the ascending or descending order of magnitude. Ascending order of
their size from the smallest to the largest and descending means arrange of value in
order of their size from the largest to smallest.
Thus, median is called “Average of position.”
ADVANTAGES OD MEDIAN
It is easy to calculate, simple to understand and rigidly defined.
It is useful in case of open end classes. It means if the extreme values are not
known but the number of items is known, median can be found.
It is not affected by the extreme items of a series.
3
It can be determined easily in open end series and unequal class intervals. It can be
calculated graphically.
It is useful when the data cannot be measured quantitatively such as honesty,
wealth, intelligence etc.
It can be located by inspection from the series.
DIADNANTAGES OF MEDIAN
It is not based on all the observation of the series, hence may not be representative
many causes.
It is not capable to future algebraic treatment like mean, geometric mean and
harmonic mean.
It is very much affected by fluctuations is sampling.
It cannot be determined if the data are not arranged in proper from either ascending
or descending order.
It is erratic if the number of items is small.
Median ignores the value of extreme items.
At time, it produce a value which is never found in series and gives functional and
impracticable result.
4
MODE (Z)
Mode is the value which has greatest frequency density in its immediate
neighborhood.”
(A.M Tuttle)
MEANING
Mode may be defined as the value that occurs most frequently in a statistical
distribution. In French language “Mode” means “Fashion” around this value. There is high
concentration of the values. It is neither the central value nor the average value of total
sum of series which makes any effect on it
ADVANTAGES OF MODE
Mode is the term that occurs must in the series . Hence, it is not an isolated value
like median.
It is not affected by affected by extreme value. Hence is a good representative of
series.
It can be found graphically also.
For open end intervals it is not necessary to known the length of open intervals.
With only just a single glance on data we can find it’s value, it is simplest.
It can also used in case of quantitative phenomenon.
It is understood by a layman as it refers to a value containing maximum frequency.
DISADVANTAGES OF MODE
Mode cannot be determined if the series is bi modal or multi modal.
Mode is based only on concentrated value, other values are not taken in account.
If the number of term is too large, only then we can call it as vthe representative
value.
5
Mode is not so rigidly defined, solving the problem by different methods we would
not get the same results.
It is most affected by the fluctuation of sample.
It is most affected by the fluctuation of sample.
It is not capable of further algebraic treatment.
It cannot be determined from a series of unequal class interval unless they are
arranged on a proper manner.
PROBLEM
The following are the marks secured by students in their annual examination of
Gandhi College in the subject Business Mathematic and Statistics :-
19 28 94 99 97 92 98 80 88 89
38 68 78 78 37 76 74 85 27 17
59 94 82 88 89 84 77 78 65 81
32 61 55 49 91 79 63 76 57 74
15 37 84 89 79 65 79 91 87 78
90 93 49 89 62 65 65 67 79 91
46 45 80 81 74 63 65 67 68 68
CALCULATION OF MEAN, MEDIAN AND MODE
MARKS TALLY FREQUENCY
10-20 || 2
20-30 || 2
30-40 |||| 4
40-50 |||| 4
50-60 ||| 3
60-70 |||| |||| |||| 14
70-80 |||| |||| |||| 15
80-90 |||| |||| |||| 15
90-100 |||| |||| | 11
6
CALCULATION OF MEAN
X F M FM
10-20 2 15 30
20-30 2 25 50
30-40 4 35 140
40-50 4 45 180
50-60 3 55 155
60-70 14 65 910
70-80 15 75 1125
80-90 15 85 1275
90-100 11 95 1045
Total ∑70 ∑4915
AM (X) = ∑fm = 4915 = 70.21
∑f 70
CALCULATION OF MEDIAN
X F CF
10-20 2 2
20-30 2 4
30-40 4 8
40-50 4 12
50-60 3 15
60-70 14 29
70-80 15 44
80-90 15 59
90-100 11 70
TOTAL N=70
Median represents nth item
2
= 70 = 35th item
2
= 35th item represent 70–80
7
Median (M) = L + n/2-cf X i
f
= 70 + 70/2-29 X 10
15
= 70 + 35-29 X 10
15
= 70 + 6 X 10
15
= 70 + 4 = 74
CALCULATION OF MODE
GROUPING TABLE
X F 1+2 2+3 1+2+3 2+3+4 3+4+5
10-20 2
4
20-30 2 8
6 10
30-40 4
8 11
40-50 4
7 21
50-60 3
17 32
60-70 14
29
70-80 ⑮ 44
30 41
80-90 ⑮ 26
90-100 11
ANALYSIS TABLE
X 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100
F √ √
1+2 √ √
2+3 √ √
1+2+3 √ √ √
2+3+4 √ √ √
3+4+5 √ √ √
TOTAL 0 0 0 0 1 3 6 4 1
Therefore,
Modal Class = 70-80
Mode (Z) = L + Δ1 X i = 70 + 1 x 10 = 70+10 = 80
Δ1+Δ2 1+0
8
CONCLUSION
Statics may be called as the science of average. The average is also called central value.
Thus average are the value which lie between 2 definite value and it is the reason that the values
are known as measures of central tendency .
Mean, Median and Mode are three statistical measures commonly used to summarize data
sets. They are known by the common name average. In its broadest sense, the average is simply
any single value that is representative of many problems.
These averages are = Mean, Median and Mode
REFERANCE
Business Mathematics and Statistics-2 (Kalyani Publications)
Wikipidia
Business Papers on Mathematics
