Statistics

Central Tendency:

A measure of central tendency is a single value used to represent

the “center” of a group of data. Different variables may possess
different numerical characteristics. Such a value, usually
somewhere in the centre and representing the entire data set. The
tendency of the observations to cluster in the central part of the
data set is called Central Tendency. Since a measure of central
tendency the location or general position of the data set in the
range of observation, it is also known as a measure of location or
position.

Why to Calculate Central Tendency:

Statistics analyzes and interprets large sets of numbers. To make the lists
of data more comprehensible, central tendencies are calculated. A
measure of central tendency points the statistician toward a centralized,
repeated, or average number. There are three different ways to calculate
central tendency. Each reveals different information about the number
set. Yet, each method uncovers an important value, and each is used
extensively by mathematicians to make sense of data.
Mean (Arithmetic Mean):
To calculate the arithmetic mean of a set of data we must first add
up (sum) all of the data values(x) and then divide the result by the
number of values (n).Since _ is the symbol used to indicate that
values are to be summed (see Sigma Notation) we obtain the
following formula for the mean

Formulas for Mean

Group data :

Mean = fx

Ungroup data :

Mean = x

where

X= is a observation

N =is a number of observation

Advantages:
 It is rigidly defined.
 It is easy to calculate and simple to follow.
 It is based on all the observations.
 It is determined for almost every kind of data.
 It is readily put to algebraic treatment.
 It is least affected by fluctuations of sampling.
Disadvantages:
 The arithmetic mean is highly affected by extreme values.
 It cannot average the ratios and percentages properly.
 It cannot be computed accurately if any item is missing.
 The mean sometimes does not coincide with any of the
observed value. 

Characteristics:

 Takes all values in to account .

 Used in further Mathematical treatment .
 Sum of deviation from mean is always zero .
 Sum of square of deviation from the mean is minimum .

Median:
The median value of a set of data is the middle value of the ordered
data. That is, the data must be put in numerical order first.

Formulas for Median :

Group data :

X= l + h n –c
f 2
Ungroup data :

X = n + 1 th term
2
Advantages:
 Not influenced by extreme scores.
 Good with ordinal data.
 Easier to compute than the mean.
 Considered as the typical observation.

Disadvantages:
 May not exist in the data.
 Does not take actual values into account.
 It is amenable to mathematical treatment.

Characteristics:

 Not affected by extremes.

 Computable for open end classes
 Useful with qualitative data
 Its is suitable for calculation of salaries.

Mode:
The modal value of a set of the data is most frequently occurring value.

Formulas for Mode:

Group data :

X= l + fm – f1 h

(fm – f1)+(fm – f2)

Ungroup data :
Most repeated value
Advantages:

 It is easy to understand and simple to calculate.

 It is not affected by extreme large or small values.
 It can be useful for qualitative data.
 It can be located graphically.

Disadvantages:

 It is not well defined.

 It is not based on all the values.
 It is stable for large values and it will not be well defined if
the data consists of small number of values.
 It is not capable of further mathematical treatment.
 Sometimes, the data having one or more than one mode
and sometimes the data having no mode at all.

Characteristics:

 Most typical or representative value of distribution

 Not affected by extreme values.
 Value can be determined by open end distributions without
ascertaining class limit.