MEASURES OF CENTRAL TENDENCY
It is difficult for the human mind to remember huge set of numerical data, to
understand their complications and to compare them easily. Statistical
methods help us to make the data simple, precise and understandable. In this
context, 'statistical averages' occupy an important place. These averages
describe the tendency of items around the middle in a frequency distribution.
Hence, they are also called as 'measures of central tendency'.
MEANING OF MEASURES OF CENTRAL TENDENCY OR AVERAGES
1. "An average is a single value within the range of the data that is used to
represent all the values in the series." —Croxton and Cowden
2. "An average is a single value selected from a group of values to represent
them in some way." - A.E. Waugh
OBJECTIVES AND FUNCTIONS OF STATISTICAL AVERAGES
1. To present a mass of complex data in a simple and precise form: The main
objective of averages is to present a mass of data in a simple and precise form
so that data may be understood quickly and conveniently. For example, in the
context of per capita income in India, income of each and every person cannot
be remembered, but it can be easily understood and grasped on the basis of
average income.
2. To facilitate comparison: Since measures of central tendency or averages
reduce the mass of statistical data to a single figure, they are very helpful in
making comparative studies. Such comparison can be made either at a point of
time or over a period of time. For example, we can compare per capita income
of different countries in one particular year or per capita income of one
particular country in different years.
3. To represent the entire group: With the help of the averages, conclusion
can be drawn about the universe on the basis of study of samples, since the
averages of samples represent the universe.
4. To provide base for statistical analysis: Averages work as base in further
statistical analysis. In fact, different types of averages are widely used in
statistical methods like dispersion, skewness, regression, index number, etc.
5. To provide base for further plans: Averages provide necessary guidelines for
defining future plans, policies and activities. For example, average age of life
can be a basis for various health programmes.
6. To present mathematical relationship: An important objective of averages
is to confirm a conclusion on the basis of mathematical relationship. For
example, if it is said that A's performance in the examination is better than that
of B, it can easily be confirmed by average percentage of marks.
ESSENTIALS/ PROPERTIES/ REQUISITES OF AN IDEAL STATISTICAL AVERAGE
1. Easy to understand: An average should be such that can be understood
easily and for this purpose specific mathematical knowledge should not be
required.
2. Easy to compute: The calculation process of an average should be simple.
However, accuracy should not be sacrificed in the name of simplicity.
3. Based on all items: Since average represents a set of data, it should be
based on all values of the statistical series, so that change in any one or more
values is reflected in average also.
4. Should not be affected much by extreme observations: The extreme
observations mean very small or very large values. The average should be such
that is not affected unduly by change in one or two very small or large values.
5. Rigidly defined: An average should be defined clearly and rigidly so that
conclusion remains. From this view, it is appropriate that averages should be
explained by an algebraic formula.
6. Capable of further algebraic treatment: In order to enhance the utility of an
average it is necessary that the average should lend itself for further
mathematical treatment.
7. Least effect of fluctuations of sampling: If different samples are drawn
properly from one universe, there should not be significant difference in
averages of these samples.
8. Representative value: An average should be such that it represents
maximum features of a statistical series and should be as near as possible to
different items of that series.
9. Absolute value: An average should be in terms of absolute value, i.e., it
should not be expressed in terms of percentage or any other relative
measurement.
Measures of Central
Tendency
Mathematical Positional
Averages Averages
Arithmetical Harmonic Geometric Quadratic
Median Mode
Mean Mean Mean Mean
ARITHMETIC AVERAGE OR MEAN
Arithmetic Average or Mean is the most popular and widely used measure of
central tendency. Whenever we use the word 'average' or 'mean' in general
sense it always refers to arithmetic mean.
According to Secrist, "Arithmetic average is the quantity obtained by dividing
the sum of the values of the items in a series by their numbers.'
According to Croxton and Cowden, "The arithmetic mean of a series of items is
obtained by adding the values of the items and dividing it by the number of
itmes."
Merits of Arithmetic Mean
1. Rigid and definite: Arithmetic mean is rigidly defined. It means that its value
will remain same in one series irrespective of use of any method or formula.
2. Simple to calculate and to understand: The calculation of arithmetic mean
is simple and a person even of common intelligence can easily understand it.
3. Based on all items: In the calculation of arithmetic mean every item in the
series is included. Hence, it is the most representative value of the series.
4. Suitable for algebraic treatment: It is suitable for further algebraic
treatment and due to this capability, it is widely used in advanced statistical
analysis.
5. Stability: Arithmetic mean is the most stable average. If some samples are
drawn properly from a universe, their arithmetic mean will almost be similar.
6. No need of arranging: The computation of arithmetic mean does not
require arranging like median or grouping like mode.
7. Typical value: It is typical in the sense that it is the centre of gravity,
balancing the values on either side.
Demerits or Limitations of Arithmetic Mean
1. Effect of extreme items: An important demerit of arithmetic mean is that it
is highly influenced by extreme values and due to it the arithmetic mean
may not represent the series in true sense.
For example, per day income of A, B, C and D is Rs. 8, 12, 15 and 25
respectively. The mean income is 60/4 = Rs. 15. Now, a person E is added,
whose per day income is Rs. 240. Then mean will be Rs. 60, while the income
of four persons out of five is less than Rs. 60.
2. No use of graphical method: Arithmetic mean cannot be calculated or
presented by graphical method.
3. Difficulty in case of unknown values : The fact that the arithmetic mean
cannot be calculated without all the items of a series can also be said to be a
limitation.
4. Fallacious conclusions: Sometimes fallacious conclusions may be drawn on
the basis of airthmetic mean. For example, the net profits of two businesses
for the last three years are given as below :
Year ‘A’ Business ‘B’ Business
2008 4,000 6,000
2009 5,000 5,000
2010 6,000 4,000
The arithmetic mean in each case is Rs. 5,000. On this basis it be concluded
that the position of both firms is the same. is l However, A's business is
progressive, while B's business is moving towards declining trend.
5. Not suitable in qualitative facts: Arithmetic mean cannot be used in
qualitative facts such as intelligence, honesty, beauty, etc. In such cases
median is used.
6. May not exist in data: It is not necessary that mean should exist in actual
values of the series and in such a case it may not be a true representative of
the series. Suppose there are four items-10, 16, 14, 8. The arithmetic mean is
12, but 12 is not found as a value in the series.
Methods for Calculating
Arithmetical Mean
Step
Direct Short cut
Deviation
Method Method
Method
INDIVIDUAL SERIES
Q1. Calculate Arithmetic Mean (Direct, short cut and step deviation Method) of
following marks in Statistics obtained by 10 students in a monthly test:
Roll No: 1 2 3 4 5 6 7 8 9 10
Marks: 20 18 22 2 8 10 16 6 16 4
DISCRETE SERIES
Q2. Calculate Arithmetic Mean (Direct, short cut Method) from the following
data:
Income: 2 3 4 5 6
Frequencies: 5 8 10 10 7
CONTINUOUS SERIES
Q3. Calculate Arithmetic Mean (Direct, short cut and step deviation Method)
from the following series:
Wages (Rs.) 0-10 10-20 20-30 30-40 40-50
No. of Workers: 6 14 20 7 3
