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

.
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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.

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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.

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 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.
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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.
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 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
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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
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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
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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