Central Tendency

It is a single value used to represent an entire set of data. It is a typical value around which most of the other values cluster. The tendency of the observations to concentrate around a central point. An average is a figure that represents the whole group.

Measures of Central Tendency

Kinds of Average Mathematical Average & Positional Average Mathematical Average- a)AM- Simple & Weighted b) Geometric Mean (c) Harmonic Mean Positional Average Median, Mode, Quartiles, deciles, percentiles.

Prerequisites
It should be rigidly defined. It should be easy to calculate. It should be based upon all the observations. It should be suitable for further mathematical treatment. It should be affected as little as possible by the fluctuations of sampling.

Arithmetic Mean
Ungrouped Data: x = xi /n Grouped Data: x = fi xi / N Where N = fi Combined Mean can be calculated from two groups of data. AM is affected by both change of origin and change of scale.

Numerical Problems on AM
At the time of calculation of AM 2 observations were wrongly taken as 5 and 45 instead of 30 and 20. Calculate the corrected mean. Production (in tons per day) 21-22 23-24 25-26 27-28 29-30 No. of Days 7 13 22 10 8 Calculate Mean.

Numerical Problems on AM
If the average goals by A team and B team of a club are 12 and 8 and the no. of persons in team A and B are 13 and 15 respectively, what is the average goals by the club as a whole? Suppose z= (x-55)/30. If the mean of z is 4, what is the mean of x? A sample of electric bulbs from a supplier show: Length of Life (in hours) Company A 1500 2000 16 2000- 2500 26 2500- 3000 8 Total 50

Merits & Demerits

1. 2. 3. 4. 5. 1. 2. 3. 4. Merits It is rigidly defined Easy to calculate Based upon all observations Capable of further algebraic treatment Arrangement of data is not necessary Demerits Highly affected by extreme values Can not be determined by inspection For qualitative data it is not applicable It is not suitable for asymmetrical distribution

Geometric Mean
It is the n-th root of the product of n items of a series. It can not be defined if any value of x is zero. If any value of x is negative it can not be defined. For rate (Average) calculation it is very much necessary. For simple series data, discrete and continuous frequency series data it is applicable.

Problems
The annual rate of growth for a factory for 5 years is 7%, 8%, 6%, 4% and 10% respectively. What is the average rate of growth per annum for this period? If the paddy production grows by 8%, 3% and -2% in last 3 years, what will be the average growth rate over these 3 years?

Harmonic Mean
It is the reciprocal of the arithmetic mean of the reciprocals. Harmonic Mean is H = n/1/xi It also can be calculated in three different ways. It is useful for computation of average speed, average price, average profit etc.

Problems
A firm purchased an old machine for its manufacturing process. The seller claims that the machine will depreciate 40% in the first year, 30% in the second year, 25% in the third year and 20% in the fourth year. Compute the average depreciation for all 4 years. Calculate the harmonic mean of the following items: 2, 1.5, 3, 10, 250, 0.5, 0.905, 0.095, 2000, 0.099

Problems Contd.
Calculate GM and HM for the following series Salary Range (In 1000 Rs.) No. of Employees 50-60 12 60-70 15 70-80 20 80-90 44 90-100 42 100-110 32 110-120 32 120-130 12 Total 209

Problems Contd.
X started a journey to a village 9 km away from his house. After travelling 6 km, the car stopped running. He then travelled by rickshaw at a speed of 10 km/ hr. After travelling a distance of 2 km, he left the rickshaw and covered the remaining distance on foot at a speed of 4 km/hr. Find the average speed and verify the calculation.

Relationship Between AM, GM, and HM,

AM GM HM When all observations are same then AM = GM = HM For any two observations (GM)2 = (AM) (HM)

Assignment
Naval Bajpai- Page No. 82, Problem No. 3B3 & 3B4. Cities A, B, and C are equidistant from each other. A motorist travels from A to B at 30 km/hr, from B to C at 40 km/hr, and from C to A at 50 km/hr. Determine his average speed for the entire trip.

Median
It is the value of the variable that divides it into two equal parts. One half of the data has values less than the median while the other half has values greater than the median. It can be classified into three categories a) Median for individual series b) Median for the discrete frequency distribution c) Median for the continuous frequency distribution. When there are some extreme values in the data median is applicable. It is the locational average.

Computation of Median
Data can be arranged in ascending or descending order. Case 1: If N is odd, then the middle term of the series is the (n+1/2) th term and is the value of the median. Case 2: If n is even then there will be two middle terms and these will be n/2 and (n/2 +1) th term. In this case the AM of their value will be considered to be median.

Computation of Median Contd.

Median for discrete frequency distribution: Arrange the data in ascending or descending order. Obtain cumulative frequency. Size of ( N+1/2)th item must be determined. The value for which cumulative frequency includes (N+1/2)th item is taken as the median.

Median for Continuous Frequency Distribution

N/2 th item is calculated. The median class in the cumulative frequencies column where the size of N/2th item falls is located. Median = l + (N/2) c i f Calculate median salary for the following data 120, 135, 132, 128, 148, 136, 138, 151, 153, 150

Problem
Value 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Calculate Median Frequency 2 3 8 10 12 16 10 8 6 5 6 4 3 1

Mode
It is the value of the variable having the maximum frequency. It is the measure of location or central tendency. Mode can be determined in three ways In a grouped data Mode = Lm + f1 f0 i 2f1 - f0 f2

Problem on Mode
Calculate mode from the following 1,1,3,3,3,3,,4,5,,8,8,12,12 Calculate mode Vacancies 0-10 10-20 20-30 30-40 40-50 50-60 60-70 7080 No of employees: 2 18 30 45 35 20 6 3