Get Instant Help From 5000+ Experts For
Get Instant Help From 5000+ Experts For
  

Understanding Central Tendency Properties (Mean, Median and Mode) in Statistics

By HWA | Publish On: February 11, 2011 | Posted In:

In Statistics, Measures of Central Tendency are numerical values that locate, in some sense, the centre of a set of data. The term average is often associated with all measures of central tendency.

Mean
1. Measure of central tendency
2. Most common measure
3. Acts as ‘balance point’
4. Affected by extreme values (‘outliers’)
5. Formula (sample mean)

Raw Data: 10.3 4.9 8.9 11.7 6.3 7.7
X = ∑ x/n = x1 + x2 + x3 …..xn /n

Here in this case 10.3+ 4.9+ 8.9 + 11.7 +6.3 + 7.7/6 = 8.3
The mean is 8.3

Median
1. Measure of central tendency
2. Middle value in ordered sequence
• If n is odd, middle value of sequence
• If n is even, average of 2 middle values
3. Position of median in sequence
Positioning Point = n+1/2
4. Not affected by extreme values

Calculating Median from an Odd-sized example
• Raw Data: 24.1 22.6 21.5 23.7 22.6
• Ordered: 21.5 22.6 22.6 23.7 24.1
• Position: 1 2 3 4 5
Positioning Point = n+1/2 = 5+1/2 = 3
Median = 22.6
Median Example from an Even-Sized Sample
• Raw Data: 10.3 4.9 8.9 11.7 6.3 7.7
• Ordered: 4.9 6.3 7.7 8.9 10.3 11.7
• Position: 1 2 3 4 5 6
Positioning Point = n+1/2 = 6+1/2 = 3.5
Median = 7.7 + 8.9/2 = 8.3

Mode
1. Measure of central tendency
2. Value that occurs most often
3. Not affected by extreme values
4. May be no mode or several modes
5. May be used for quantitative or qualitative data

• No Mode
Raw Data: 10.3 4.9 8.9 11.7 6.3 7.7
• One Mode
Raw Data: 6.3 4.9 8.9 6.3 4.9 4.9
• More Than 1 Mode
Raw Data: 21 28 28 41 43 43

Say, if you’re a financial analyst for Prudential-Bache Securities. You have collected the following closing stock prices of new stock issues: 17, 16, 21, 18, 13, 16, 12, 11.
Describe the stock prices in terms of central tendency.

Central Tendency Solution
Mean
X = ∑x/n = 17 + 16 + 21 + 18 + 13 + 16 + 12 + 11/8 = 15.5
Median
• Raw Data: 17 16 21 18 13 16 12 11
• Ordered: 11 12 13 16 16 17 18 21
• Position: 1 2 3 4 5 6 7 8
Positioning Point = n+1/2 = 8+1/2 = 4.5
Median = 16+16/2 = 16
Mode
Raw Data: 17, 16, 21, 18, 13, 16, 12, 11
Mode = 16

Understanding Central Tendency Properties
Central Tendency Measures – www.HelpwithAssignment.com

At HelpWithAssignment.com we provide best quality Assignment help, Homework help, Online Tutoring and Thesis and Dissertation help as well. For any of the above services you can contact us at https://www.helpwithassignment.com/ and
https://www.helpwithassignment.com/statistics-assignment-help
This article is in continuation with our previous article on Statistics (Regression), Statistics (Correlation), Statistics (Hypothesis Testing), Statistics Assignment help

Book Your Assignment

Drop files here or click to upload.
Or click here to upload

Recent Posts

How To Prepare An Excellent Thesis Defense?

Read More

How to Restate A Thesis? – A Detailed Guide

Read More

Explanatory Thesis: Examples and Guide for Clear Writing

Read More

How To Write 3 Types Of Thesis Statements?

Read More

How to Effectively Prepare for Your Thesis Defense?

Read More

Get assignment help from subject matter experts!

4.7/5 rating | 10,000+ happy students | Great tutors 24/7