Download - MEASURES OF CENTRAL TENDENCY
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MEASURES OF CENTRAL TENDENCY
(Mean , Median , Mode)
(Business Statistics)
RAM SINGH
ROLL NO.– 85
M.B.A.- 2.1
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MEANING OF AVERAGE An average is a single value which represents the whole set of figure and individual item concentrate around it.
DEFINATION “An average is a single figure that represents the whole group.’’ clark
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CHARACTERSTICS OF AVERAGE
It should be easy to understand.It should be simple to compute.It should be uniquely define.It should be based on all observation.It should be capable of future algebraic
treatment.
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Arithmetic meanArithmatic mean may be defined as a value
which is obtained by adding all the item of a series and dividing this total by the number of item.
Simple Arithmatic Mean-
Direct method-
n
XX
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Example- Direct methodThe pocket allowance is given. Calculate arithmatic mean
STUDENT POCKET ALLOWANCE (X)
1 15
2 20
3 30
4 22
5 25
6 18
7 40
8 50
9 55
10 65
N=10 ∑X=340
n
XX
= 340/10=34
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(Short cut method) mean=A+∑d/N
Mean= 40+(-60)/10=34
students X d=X-A(A=40)
1 15 15-40=-25
2 20 20-40=-20
3 30 30-20=-10
4 22 22-40=-18
5 25 25-40=-15
6 18 18-40=-22
7 40 40-40=0
8 50 50-40=10
9 55 55-40=15
10 65 65-40=25
N=10 ∑d=-60
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Discrete series-1. direct method n
XfX
Wages (Rs.)
10 20 30 40 50
No. Of workers
4 5 3 2 5
Wages (x) No of worker(f) fx
10 4 40
20 5 100
30 3 90
40 2 80
50 5 250
N=19 ∑fx=560
Mean=560/19=29.47
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2. Short cut method-Mean=A+∑fd/N, (here, d=X-A) n=∑f
Wages (x) 10 20 30 40 50
F 4 5 3 2 5
Wages (x)
f fx d=X-A(A=30)
fd
10 4 40 10-30=-20
-80
20 5 100 -10 -50
30 3 90 0 0
40 2 80 10 20
50 5 250 20 100
∑f=19 ∑fd=-10
Mean=30+(-10)/19=29.47
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Continuous series-1. Direct methodMean=∑fm/N, (here, m= mid-value, N=∑f)
Mean=3620/140= 25.85
marks 0-10 10-20 20-30 30-40 40-50
No. Of student
20 24 40 36 20
marks f Mid value
fm
0-10 20 5 100
10-20 24 15 360
20-30 40 25 1000
30-40 36 35 1260
40-50 20 45 900
∑f=140 ∑fm= 3620
solution
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Short-cut method-Mean=∑fm/NExample
Mean= 25+120/140=25.85
Marks No. of students
Mid-value
A=25d=M-A
fd
0-10 20 5 5-25=-20 -400
10-20 24 15 -10 -240
20-30 40 25=A 0 0
30-40 36 35 10 360
40-50 20 45 20 400
N=140 ∑fd=120
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MEDIAN-Median is defined as the middle value of the series when they arranged in ascending and descending order.
MedianMedian Location = (N +1)/2 th item
Here, M= Median, N= No. of items
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Example- Calculate median from the following data- 22,16,18,13,15,19,17,20,23
Median Location = (N +1)/2 th item
= (9+1)/2 th item
5th item=18
Hence, M=16.
Z Item (X)
1 13
2 15
3 16
4 17
5 18
6 19
7 20
8 22
9 23
N=9
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Discrete series-Median Location = (N +1)/2 th item
Here, N=total of frequency
Example- from the following data calculate median.
X 10 12 14 16 18 20 22
Y 2 5 12 20 10 7 3
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Solution-X f c.f.
10 2 2
12 5 7
14 12 19
16 20 39 =M
18 10 49
20 7 56
22 3 59
N=59
Median Location = (N +1)/2 th item59+1/2=30th item=16Hence, M=16.
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Continuous Series-
Median Location = (N +1)/2 th item
)(2 if
CFn
LMedian
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Calculate median-
Movies showing
Frequency Cumulative Frequency
1 up to 3 1 1
3 up to 5 2 3
5 up to 7 3 6
7 up to 9 1 7
9 up to 11 3 10
Movies showing
1 Up to 3 3 Up to 5 5 Up to 7 7 Up to 9 9 Up to 11
frequency 1 2 3 1 3
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From the table, L=5, n=10, f=3, i=2, CF=3
33.6)2(3
32
10
5)(2
if
CFn
LMedian
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MODE Mode is defined as the value which occurs most frequency in a series.
In other words, it is a value which has the highest frequency in a distribution. Mode is denoted “Z”.
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Individual Series1. Inspection method-Example-
Find the Mode from the following data-
8,10,5,8,12,7,8,9,11,7.
Solution- An inspection of the series shows that the value 8 occurs most frequency in the Series
Hence, mode (Z) =8.
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2. By changing the individual Series in Discrete Series-Example- Find the mode from the following data-
11.1,10.9,10.7,11.1,10.6,11.3,1o.6,10.7,10.6,10.9,10.6,10.5.10.4,10.6.
Solution. Firstly we convert the given series into a discrete series in ascending order as follows;
Size; 10.4 10.5 10.6 10.7 10.9 11.1 11.3
Frequency;
1 1 5 2 2 2 3
The modal value is 10.6. Since it appears maximum number of times in the series.
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Continuous Series:- In this series we calculate the mode with the help of
this formula:
Here, L1 = Lowest valuef1=frequence , h or i = class-interval difference
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Example :-calculate the mode from the following data:-
Wages:
0-5 5-10 10-15 15-20 20-25 25-30 30-35(f)
No. Of workers:
3 7 15 30 20 10 5
wages: f
0-5 3
05-10 7
10-15 15f0
L1=15-20 30 f1
20-25 20f2
25-30 10
30-35 5
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Solution:
Here, L1=15 , f1=30, f0=15, f2 =20, i =5 Z=15+{30-15/2(30)-15-20}×5
=18
Thus, mode= 18.
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