Session 4

Measures of Central Tendency

A classified statistical data may sometimes be described as distributed around

some value called the central value or average is some sense. It gives the most
representative value of the entire data. Different methods give different central values
and are referred to as the measures of central tendency.
Thus, the most important objective of statistical analysis is to determine a
single value that represents the characteristics of the entire raw data. This single
value representing the entire data is called Central value or an average. This value
is the point around which all other values of data cluster. Therefore, it is known as
the measure of location and since this value is located at central point nearest to other
values of the data it is also called as measures of central tendency.
Different methods give different central values and are referred as measures of
central tendency. The common measures of central tendency are a) Mean b) Median
c) Mode.
These values are very useful not only in presenting overall picture of entire
data, but also for the purpose of making comparison among two or more sets of data.

Average
Definition
Average is a value which is typical or representative of a set of data.
- Murry R. Speigal
Average is an attempt to find one single figure to describe whole of figures.
- Clark & Sekkade
From above definitions it is clear that average is a typical value of the entire
data and is a measure of central tendency.

Functions of an average

To represents complex or large data.

It facilitates comparative study of two variables.

Helps to study population from sample data.

Helps in decision making.

Represents single value for a series of data.

To establish mathematical relationship.

Characteristics of a typical average

It should be rigidly defined and easily understandable.

It should be simple to compute and in the form of mathematical formula.

It should be based on all the items in the data.

It should not be unduly influenced by any single item.

It should be capable of further mathematical treatment.

It should have sampling stability.

Types of average
Average or measures of central tendency are of following types.
1. Mathematical average
a. Arithmetical mean
i. Simple mean
ii. Weighted mean
b. Geometric mean
c. Harmonic mean
2. Positional Averages
a. Median
b. Mode

Arithmetic mean
Arithmetic mean is also called arithmetic average. It is most commonly used
measures of central tendency. Arithmetic average of a series is the value obtained by
dividing the total value of various item by its number.
Arithmetic average are of two types
a. Simple arithmetic average
b. Weighted arithmetic average

Simple arithmetic average (Mean)

Arithmetic mean is simply sometimes referred as Mean. Ex: Mean income,
Mean expenses, Mean marks etc.
Unlike other averages, mean has to be computed by considering each and
every observations in the series. Hence, the mean cannot be found by either by
inspection or observation of items.
number

Simple arithmetic mean is equal to sum of the variable divided by their

of
observations
in
the
sample.

Let xi is the variable which takes values x1, x2, x3, xn over n items,
then arithmetic mean, simply the mean of x, denoted by bar over the variable x is
given by.
x

x 1 x 2 x 3 ............... x n
n

x
n

Where, is the Greek symbol sigma denotes the summation of all xi values.
Arithmetic mean can be computed by following two methods for direct
observation of individual items.
a. Direct method
b. Short cut method.
Direct method uses above equation and steps for short cut method is illustrated
in the subsequent topic.
Ex: (For Direct Method)
1. Calculate the mean for following data.
Marks obtained by 65 students are given below:
20, 15, 23, 22, 25, 20.
x

Mean marks

x 1 x 2 ......... x n
n

20 15 23 22 25 20
6

125
6

= 20.83
2. Six month income of departmental store are given below. Find mean income of
stores.
Month

Jan

Feb

Mar

Apr

May

June

Income (Rs.)

25000

30000

45000

20000

25000

20000

n = Total No. of items (observations) = 6

Total income = xi = (25000 + 30000 + 45000 + 20000 + 20000)
= 140000
Mean income =

x
n

140000
Rs. 23333.33
6

The above example shows that if there are large data or large figures are there
in data, computations required to get mean in high. In order to reduce computations
one can go for short-cut method.
The method is illustrated below.

Shortcut method
Steps of this method is given below.
Step 1: Assume any one value as a mean which is called arbitrary average (A).
Step 2: Find the difference (deviations) of each value from arbitrary average.
D = xi A
Step 3: Add all deviations (differences) to get d.
Step 4: Use following equation and compute the mean value.
xA

d
n
n = Total No. of observations
d = Total deviation value
A = Arbitrary mean

Example: Find the mean marks obtained by the students for the joining data given.
20

25

20

22

20

21

23

Let A = 20 and n = 10
Marks

D = (xi 20)

20

25

20

22

20

21

23

25

22

18

-2
d = 16

xA
x 20

d
n
16
10

= 20 + 1.6
Mean Marks

x 21.6

25

22

18

1. Mathematical characteristics of mean

a. Algebraic sum of deviations of all observations from their arithmetic mean is
zero i.e. (xi - x ) = 0.
b. The sum of squared deviations of the items from the mean is a minimum, that
is less than the sum of squared deviations of items from any other value.
d2 = minimum
c. Since x

x .
n

If any two values are given, third value can be computed.

d. If all the items of a sets are increased / decreased by any constant value, the
arithmetic mean will also increases / decreases by the same constant.

2. Weighted arithmetic mean

The weighted mean is computed by considering the relative importance of
each of values to the total value. The arithmetic mean gives equal importance to all
the items of distribution. In certain cases, relative importance of items is not the same.
To give relative importance, weightage may be given to variables depending on cases.
Thus, weightage represents the relative importance of the items.
The weighted arithmetic mean in computed by following equation.
Let
x1, x2, x3, xn are the variables and
w1, w2, w3, wn are the respective weights assigned. Then weighted
mean x w is given by below equation.
xw

x 1 w 1 x 2 w 2 x 3 w 3 ...... x n w n

w 1 w 2 w 3 ............ w n

xw
w

i.e., weighted average is the ratio of product of all values and respective
weights to sum of weights.
Ex: Compute simple weighted arithmetic mean and comment on them.
Monthly salary
Strength of
Designation
cadre (w)
(Rs) (x)

xw

General Manager

25000

10

250000

Mangers

19000

20

380000

Supervisors

14000

10

140000

Office Assistant

10000

50

500000

Helpers

8000

25

200000

x = 76000

w = 115

xw = 1470000

(N = 5) Total

a. Simple arithmetic mean =

x 76000

Rs. 15200
N
5

b. Weighted arithmetic mean =

xw 1470000

Rs. 12782.6
w
115

In this example, simple arithmetic mean does not accounts the difference in
salary range for various staff. It is given equal importance. The salary of General
Manager and Manager has inflated the value of simple mean. The weighted mean
gives importance to the number of persons in various salary range.
Ex: Comment on performance of students of two universities given below.
University

Bombay

Madras

% of
pas (x)

No. of (w)
students
(000)

wx

% of
pas (x)

No. of
(w)
students

wx

MBA

71

213

81

405

MCA

83

166

76

228

MA

73

365

58

174

M.Sc.

75

150

76

76

M.Com.

70

140

81

162

wx =1034

x =372

w =14

wx =1045

Course

Total ()

x = 372 w =14

a. Since x is same, simple arithmetic average for both universities.

=

x
372

74.4
5
N

b. Weighted mean for Bombay University =

c. Weighted mean for Madras University =

wx 1034

73.86
14
w
wx 1045

74.64
w
14

Comment: Madras University students performance is better than Bombay University

students.

Discrete Series
Frequencies of each value is multiplied with respective size to get total
number of items is discrete series and their total number of item is divided by total
number of frequencies to obtain arithmetic mean. This can be done in two methods
one
by
direct
or
by
short
cut
method.

Ex: Calculate the mean for following data.

Value (x)

Frequency (f)

10

15

10

Steps:
1. Multiply each size of item by frequency to get fx
2. Add all frequencies (f = N)
3. Use formula x

fx
fx

to get mean value.

f
N

Solution:
By direct method
Value (x)

Frequency (f)

fx

10

10

15

30

10

30

36

25

f = 49

fx = 131

fx 131

2.67
N
49

By short-cut method
Let A = 3, (Assumed mean = 3)
Value (x)

Frequency (f)

d = (x A)

fd

10

-2

-20

15

-1

-15

10

10

f = 49
x A

fd = - 16

fx
2.67

3 16

49

Continuous series
In continuous frequency distribution, the individual value of each item in the
frequency distribution is not known. In a continuous series the mid points of various
class intervals are written down to replace the class interval. In continuous series the
mean can be calculated by any of the following methods.
a. Direct method
b. Short cut method
c. Step deviation method
a. Direct method
Steps of their method are as follows
1. Find out the mid value of class group or class.
Ex: For a class interval 20-30, the mid value is
is denoted by m.

23 30 50

25 mid value
2
2

2. Multiply the mid value m by frequency f of each class and sum up to get
fm.
3. Use x

fm
where N = f formula to get mean value.
N

Ex: Compute the mean for following data.

Age group

No. of persons

Mid point

(CI)

(f)

0 10

25

10 20

15

15

225

20 30

25

25

625

30 40

35

280

40 50

45

315

Total

f = 60 = N

Mean age =

fm

fm = 1470

fm fm 1470

245
f
N
60
x = 24.5

b. Short cut method

Steps of above methods are described below.
1. Find the mid value of each class
2. Assume any of the mid value as arbitrary average (A).
3. Multiply the deviation (differences) d by frequency f.

Using the formula x A

fd
find the mean value.
N

Ex: Find the mean age of patient visiting to hospital in a particular day using
following data.
Age group

Mid value

CI

No. of patients
(f)

0 10

10 20

d = (m 25)

fd

-20

-100

15

15

-10

-150

20 30

25

25

30 40

35

10

80

40 50

45

20

140

Total

f = 60 = N

fd = 30

Let Arbitrary average = A = 25

Mean age

x A

fd
N

30 25 1 24.5
x 25

2
60
x 24.5

c. Step deviation method

In this method, after finding deviation from arbitrary mean, it is divided by a
common factor. Scaling down the deviation by a step will reduce the calculation to
minimum. The procedure of this method is described below.
Steps of step deviation method
1. Find out the mid value m.
2. Select the arbitrary men A.
3. Find the deviation (d) of mid value of each from A.
4. Deviations d are divided by a common factor d'.
5. multiply d' of each class by frequency f to get fd' and sum up for all classes
to get fd'.
6. Using the formula x A

fd'
N

calculate mean value.

x C (where, C is a common factor)

Ex: Find the mean age of following data.

Age (CI)
0 10
10 20
20 30
30 40
40 50
Total

Let

No. of persons
f
5
15
25
8
7
f=60=N

Mid value
m

(d=mA)
(d=m25)

5
15
25
35
45

-20
-10
0
10
20

A = 25 and
C = 10
xA

fd'

xC

N
x 25

(3)
x 10
60

x 25

1
2

x 24.5

10

d'=

d
10

-2
-1
0
1
2

fd'
-10
-15
0
8
14
fd'= -3