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MEASURES OF

CENTRAL
TENDENCY
The Middle most value of a data or the
value of variable which tend toward the
center of data is called Central tendency.
OBJECTIVES OF AVERAGING

To get one single value that describes


the characteristics of entire data.
Since an average represent the entire
data,it facilitate comparison between
two or more data set.
It is a base for computing others
measures i.e Dispersion,skewness etc.
CRITERIA OF GOOD CENTRAL
TENDENCY.
It should be rigidly define.
It should be easy to understand and
calculate.
It should be depend upon all the
observations.
It should be least affected by extreme
value.
TYPES OF MEASURE OF
CENTRAL TENDENCY
Mean
Median
Mode
MEAN:-
It is a sum of all the observations divided by number of
observation.
o In simple data:-
Mean (x)= ∑ x
n
o In case of frequency & class interval:-
Mean(x)= ∑fx
N

MERITS:-
1. It can be easily calculated & understood.
2. Its calculation is based on all observations.
1. DEMERITS:-
1.It cannot be calculated if all the values are not
known.
2.It cannot be determined for the qualitative data
such as love, beauty, honesty etc.
3.The extreme values have greater effect on mean.
USES:-
1. A common man uses mean for calculating
average marks or other values.
2. Business man uses it to find out profit per unit of
article output per man and per machine.
MEDIAN:-
The Term which divide the number in two equal parts is known as median.
o In simple data:-When odd no.
Md =(n+1)th term

o When 2 even no.


Md=(n)th term+(n+1)th term

2 2
o In case of frequency or Discrete form:-
N\2 2
o In case of class interval:-
N\2 Then,
Md=L1+i (N-C).

MERITS:-
1.It is easily understand,easy to calculate.
f 2 can be located graphically.
2.Value of variables
3.It is not affected by extreme value.
DEMERITS:-
1.It has no sampling stability.
2.Its determination is not based on all the observations.
MODE:-
The value of variable which has maximum frequency is called mode.
o In simple case:- we take maximum frequency as result.
o In case of class interval:-
Mo=L1+f1-f2 * i

MERITS:- 2f1-f2-f3
1.It is easily understand .
2.It can be located graphically.
DEMERITS:-
1.It is not based on all observation.
2.It is not precisely defined.
USES:-

1.It is used for the study of most popular fashion.


1.It is extensively used by the business man and the commercial management.
Conclusion
From this topic I came to conclude
that mean is the best method for
finding the average as it is based on
all the observations.
Prepared by:-
Vikash kr.1st
PGDM:-1stsem
sec-”A”