Abstract

The goal of this lesson is to introduce the concepts of mean, median and mode and
to develop understanding and familiarity with these ideas. The Mean and Median
Activity lets students explore mean and median in an efficient way; the Mean,
Median and Mode Discussion helps them to formalize their knowledge.

Apart from the mean, median and mode are the two commonly used measures of
central tendency. The median is sometimes referred to as a measure of location as it
tells us where the data are. This article describes about median, mode, and also the
guidelines for selecting the appropriate measure of central tendency.

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 INDEX

SL No Topic Page No

1 Meaning 03

2 Feature and Definition 04

3 Mean 05

4 Methods for Calculating Mean 06-09

5 Median 09-10

6 Mode 11

7 Problem & Solution 12-14

8 Conclusion 15

9 Reference 16

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 Measures of Central Tendency

Meaning:

Measures of central tendency are a combination of two words i.e. ‘Measure' and
central tendency’. Measure means methods and central tendency means average
value of any statistical series. Thus we can say that central tendency means the
methods of finding out the central value or average value of a statistical series of
quantitative information. So, it is said that central tendency means finding the
mid values, central values and average values.

Features of an average:

 It is a single figure that represents the whole group.

 It lies between the two extreme values of a series in the middle.

 It gives us a fairly good idea about the character of the series.

 Various statistical measures are applied to find this.

Definition of average:

 “Average is an attempt to find one single figure to describe the whole of

figures.” - Clark

 “An average is sometimes described as a number which is typical of the

whole group.” - Leabo

 “An average is a central value of a central value of a group of observation or

individuals." - J.P.Guiford

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Uses of central tendency:

 Average provides the overall picture of the series. We cannot remember

each and every facts relating to a field of enquiry.

 Average value provides a clear picture about the field under study for
guidance and necessary conclusion.

 It gives a concise description of the performance of the group as a whole

and it enables us to compare two or more groups in terms of typical
performance.

Types of central tendency:

Mathematically Positional Miscellanies

Average Average Average

Arithmetic Median Moving

Mean
Mode
Geometric
Mean Deciles

Quartile

Harmonic Mean Percentile Average Progressive

{N.B. Miscellanies average is not a part of our syllabus.}

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MEAN:

This is also known as Arithmetic mean (A.M).It defined as X. It is the average value
of a series. Average value is calculated by adding total number of variables and
divided by number of variables.

Types of methods for mean:

There are three methods followed for commutating arithmetic mean i.e.

1. Direct Method
2. Short-cut Method
3. Step-Deviation Method
Types of series for mean:

There are three series followed for computing arithmetic mean i.e.

1. Individual series
2. Discrete series
3. Continuous series
Uses of Arithmetic mean:

i. A student may calculate his average mark of half-yearly and annual examination
to his/her improvement.

ii. A manufacturer may calculate average cost of an article.

iii. A family can calculate its average expenditure per month.

iv. A company can calculate its average profit, sales etc. by taking the data of past
5 years or so.
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Different formulas used for calculate arithmetic mean in different
series:

Series Individual Discrete Series Continuous

Series Series

Method

1.Direct method

2.Shortcut
Method

3.deviation
method

Analyses about the methods of evaluate the arithmetic mean:

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1. Direct method:-
Under this method the mean is calculated directly by the application of the
following models:
Σx
Individual series:- N

Discrete series:- Σfx

N
Σfm
Continue series:- N
Σfx =Sum of the product of the values and their corresponding frequencies.
ΣFM=Sum of mid values and their frequencies.
N=sum of frequencies
2. Shortcut method:-
This method is otherwise known as deviation method, or assumption method.
Under this method a value preferably from the middle is first assumed to be the
value of the arithmetic average. Then from the assumed average, the deviations
of the different items of the series are found out. The averages of such deviations

are then added to the assumed average. The resultant figure comes out to be the
value of the arithmetic mean.
Σd
Individual series:-A+ N
Σfd
Discrete series:- A+ N
ΣFm
Continuous series:- A+ N
A=Assumed mean

d=deviation of an item from the assumed mean i.e. (X-A)

Σd=sum of the deviation from the assumed mean

ΣFd=sum of the products of deviation and their corresponding frequencies

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3. Step deviation method:-

This method is an extension of the shortcut method. When the figures of

deviation appear too big and divisible by a common factor, this method should be
applied to compute the mean at an ease. Under this method, the figures of
deviation are reduced by dividing them all by a common factor.

Σd
Individual series:-A+ N
Σfd
Discrete series:- A+ N x i
ΣFm
Continuous series:- A+ N x i
i=common factor

d'=the deviation from the assumed mean divided by the common factor
X-A
i.e. C

Geometric mean:
Geometric mean is defined as the nth root of the product of n items.

Generally geometric mean (G.M.) = √n X 1+ X 2 X 3 … … … . Xn

Σlogx
Individual series:-AL N
ΣFlogx
Discrete series:- AL N
ΣFlogm
Continuous series:- AL N

Harmonic mean:

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Harmonic mean is defined as “the reciprocal of the arithmetic mean of the
reciprocal of individual observation.”

N
Individual series:- Σ1/x
N
Discrete series:- Σf/x
N
Continuous series:- Σf/m

[N.B. (G.M.)2=A.M.X H.M.]

MEDIAN:
Median is defined as the middle value of a set of series, which is arranged in
increasing or decreasing order. Median is termed as positional average.

50% 50%

n+1
Me= 2 th term (when n odd number)
N N

2 +(2 +2)
Me= 2 th term (when n odd number)

2 - c.f.
[N.B. Me for continuous series =[L+ f xi]

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Quartiles:-

When a data set is divided into four equal parts, each part or quartile is called a
quartile. And we have 3 types of quartiles such as: Q1, Q2 and Q3.

Q1 Q2 Me Q3

N+1
Q1= 4 th term

N+1
Q2=me 2 th term

3 (N+1)
Q3= 4 th term

Deciles:-

When the ordered data set is divided into 10 equal parts, cach part is called
deciles, and we have 9 deciles.

N+1
Deciles= 10 th term

Percentiles:-

When the ordered data set is divided into 100 equal parts, each part is called a
percentile, and we have 99 percentiles.

N+1
Percentile = 100 th term

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Mode:

Mode is that value in a series which occurs maximum number of times. In other
words, mode represents the value which most frequently occurs in a set of
observation. It is a type of positional average.

Individual series:

a. The term is arranged in any order. If term of the series is occurring once, then
there is no mode otherwise the value that occurs maximum times are known as
Mode. Mode is often denoted by 'Z'.

Method to calculate mode:

a. Arrange the terms in ascending or descending order.

b. Note the term occurring maximum times.
c. That maximum item applied is called mode.

Discrete series:

Hear the mode is known by inspection method only. Here that variable is the
mode where the frequency is highest. This method is applied if there is gradual
rise or fall in sequence of frequencies.

Otherwise mode is calculated by doing a grouping table.

Continuous series:

In case of a continuous series, after finding the modal class the next step to
calculate mod is F1-F0
Z =L+ 2F1-F0-F2 X i

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Graphic method:

This method of locating is suitable in case of a frequency distribution of

continuous nature. Under this method, a histogram is drawn with given class
intervals and their frequencies.

“Method of empirical relation method has been propounded by Prof. Karl

person as the last resort of determining the mode.”

Mode=3 Median – 2 Mean

EXAMPLE: 1

The Minister of Higher Secondary Education, Odisha wants to

review the result of the commerce Annual examination last
year of Binayak Acharya Higher Secondary School in respect of
the subject Business Mathematics and Statistics. The following
marks are supplied by the principal of this college.

Find out mean, median and mode from the following data

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Solution

MARKS BINAYAK ACHARYA H S SCHOOL

20-30 4

30-40 12

40-50 20

50-60 120

60-70 30

70-80 34

80.90 20

90-100 16

TOTAL 256

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Conclusion

Mean, median, and mode are the most important measures of central
tendency. The complete dataset may be represented by these values. It is
not necessary for mean, median, and mode to have the same values.
Mean is sensitive to extreme data values. It is not wise to take the mean
of skewed distribution as the true representative of the dataset. Median is
a better way to understand skewed distribution. Mean and median can
not be zero unless all data values are zero. However, it is possible that
there is no mode in the dataset.

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Reference

BOOKS
 Business Mathematics and Statistics (Year of publication-2017)
Author-K.K Das
P.K Mittal
(HIMALAYA PUBLISHING HOUSE) (PAGE NO-45-56)
 Business Mathematics and Statistics (Year of publication-2018)
Author-S.L Agarwal
Inder Kumar
S.L Bhardwaj
Bhagaban Das
(KALYANI PUBLICATIONS) (PAGE NO-99-110)
 Business Mathematics and Statistics (Year of publication-2015)
Author-Dr. Sushil Kumar Singh
Samresh Chauhan
(GOYAL BROTHERS PRAKASHAN) (PAGE NO-3.1-3.34)

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