CENTRAL TENDENCY

Def: - Given a series of observations measured on a

quantitative variable, there is a general tendency
among the values to cluster around a central value.
Such clustering is called central tendency and
measures put forward to measure these tendency are
called measures of central tendency or averages.

Average: - Average is a value which is the

representative of a set of data.

Functions or objects of an
average:
It facilitates quick understanding of
complex data.
It facilitates comparison
To know about the universe from the
sample
To get the single value that describes the
characteristic of the entire group

Requisites of a good average:

It should be easy to understand
It should be easy to calculate.
It should be based on all the observations of
the data.
It should not be affected by the extreme values.
It should be strictly defined, so that it has one
and only one interpretation.
It should be capable of further algebraic
treatment.
Its definition should be in the form of a
mathematical formula.
It should have sampling stability.

Types of averages (or) Measures of

central tendency:
The following are the important types of averages.
Arithmetic mean.
Simple arithmetic mean.
Weighted arithmetic mean.
Geometric mean.
Simple geometric mean.
Weighted geometric mean
Harmonic mean
Median
Mode

ARITHMETIC MEAN
The arithmetic mean, also called the average or
average value, is the quantity obtained by summing two
or more numbers or variables and then dividing by the
total numbers of observation or variables. The
arithmetic mean is important in statistics.

Merits:
It is rigidly defined.
Itis easyto calculateand simple to follow.
It is based on all the observations.
It is determined for almost every kind of data.
It is readily put to algebric treatment.
It is leastaffectedbyfluctuationsof sampling.

Demerits:
The arithmetic mean is highly affected by extreme
values.
It cannot averagethe ratiosand precentages
properly.
It is not an approprite average for highly skewed
distributions.
It cannot be computed accurately if any item is
missing.
The mean sometimes does not coincide with any of
the observed value.

H O W T O C A L C U L AT E O F
A R I T H M E T I C M E A N I N I N D I V I D UA L
SERIES?
Individual series means where frequencies are not
given.Here the mean can be found by three methods.
(i) Direct Method:

(ii) Short Cut Method:

Here X is calculated using an Assumed Mean ; taking
deviations from it, the following formula is used.

Where A is assumed mean

and dx = the deviation of items from assumed mean
(X A),
dx/N is known as correction factor.
(Note: Value of Assumed Mean may be taken of any
magnitude; but we often take whole number near to
the average of largest and smallest terms to avoid big
calculations.)

H O W T O C A L C U L AT E A R I T H M E T I C
MEAN (A.M) IN DISCRETE SERIES?

Discrete series means where frequencies of a variable are

given but the variable is without class intervals.Here the
mean can be found by Three Methods:
(i) Direct Method:
Here each frequency is multiplied by the variable, taking
the total and dividing total by total number of frequencies,
we get X.
Symbolically,
X = fx/N
Where f = frequency,
X = the value of the variable
And N = the sum of frequency or N = f

(ii) Short Cut Method:

Here Assumed Mean is taken and taking deviations
of variable from it. We obtain X by using the
following formula.
Where A = Assumed Mean
dx = (X-A);
f = frequency f or N = Total number of terms

H O W T O C A L C U L AT E A R I T H M E T I C
MEAN (AM) IN CONTINUOUS SERIES?
Continuous series means where frequencies are given
along with the value of the variable in the form of
class intervals.

Here:
(i) 10-20, 20-30 etc. are class intervals.
(ii) 3, 7, 11, 9, 6 is known as their respective
frequencies.
(iii) In 20-30, 30-40. etc. 20 is the lower and 30 the
upper limit of 20-30 class interval.
(iv) Adding both the limits and taking their average,
we get midpoint of the class interval. The mid-value
of 20-30 is ; 20+30/2 = 25.
It is often denoted by m or X.
When we take mid points of class Intervals, it can be
denoted byX,morMX can be found by three
methods.

MEDIAN
The median is the middle most or central value of the
observations made on a variable when the values are
arranged either in ascending order or descending
order.

Merits:
The median is useful in case of frequency
distribution with open-end classes.
The median is recommended if distribution has
unequal classes.
Extreme values do not affect the median as strongly
as they affect the mean.
It is the most appropriate average in dealing with
qualitative data.
The value of median can be determined graphically
where as the value of mean can not be determined
graphically.
It is easy to calculate and understand

Demerits:
For calculating median it is necessary to arrange the
data, where as other averages do not need
arrangement.
Since it is a positional average its value is not
determined by all the observations in the series.
Median is not capable for further algebraic
calculations.
The sampling stability of the median is less as
compared to mean.

MODE
The mode or the modal value is that value in a series of
observations which occurs with the greatest frequency.
Ex: The mode of the series 3, 5,8,5,4,5,9,3 would be 5.
In certain cases there may not be a mode or there
may be more than one mode.
Ex:
1) 40, 44,57,78,84 (no mode)
2) 3, 4, 5, 5, 4, 2, 1 (modes 4 and 5)
3) 8, 8, 8, 8, 8 (no mode)
A series of data which having one mode is called
unimodal and a series of data which having two modes is
called bimodal. It may also have several modes and be called
multimodal.

Merits:
It is easy to calculate and simple to understand.
It is not affected by the extreme values.
The value of mode can be can be determined
graphically.
Its value can be determined in case of open-end
class interval.
The mode is the most representative of the
distribution

Demerits:
It is not suitable for further mathematical
treatments.
The value of mode can not always be
determined.
The value of mode is not based on each and
every items of the series.
The mode is strictly defined.
It is difficult to calculate when one of the
observations is zero or the sum of the
observations is zero.

Empirical relation between Mean, Median and Mode:

The relationship between mean, median and mode
depends upon the nature of the distribution. A
distribution may be symmetrical or asymmetrical.
In asymmetrical distribution the mean, median and
mode are equal
i.e. Mean(AM) = Median(M) = Mode(Mo)
In a highly asymmetrical distribution it is not possible
to find a relation ship among the averages. But in a
moderately asymmetric distribution the difference
between the mean and mode is three times the
difference between the mean and median.
i.e. Mean-Mode = 3(Mean-Median)

GEOMETRIC MEAN
Geometric mean is defined as the n th root of the
product of n items (or) values. The G.M is used to find
the average percentage increase in sales, production,
or other economic or business series.

Merits
It is based on all the items of the data.
It is rigidly defined. It means different
investigators will find the same result from the
given set of data.
It is a relative measure and given less importance
to large items and more to small ones unlike the
arithmetic mean.
Geometric mean is useful in ratios and
percentages and in determining rates of increase
or decrease.
It is capable of algebraic treatment. It mean we
can find out the combined geometric mean of two
or more series.

Demerits
It is not easily understood and therefore is not
widely used.
It is difficult to compute as it involves the
knowledge of ratios, roots, logs and antilog.
It becomes indeterminate in case any value in the
given series happen to be zero or negative.
With open-end class intervals of the data, geometric
mean cannot be calculated.
Geometric mean may not correspond to any value of
the given data

HARMONIC MEAN
The harmonic mean (H.M) is defined as the reciprocal of the
arithmetic mean of the reciprocal of the individual observations.
Uses of harmonic mean:
The H.M is used for computing the average rate of increase in
profits of a concern.
The H.M is used to calculate the average speed at which a
journey has been performed.

Merits:
Its value is based on all the observations of the data.
It is less affected by the extreme values.
It is suitable for further mathematical treatment.
It is strictly defined.

Demerits:
It is not simple to calculate and easy to understand.
It can not be calculated if one of the observations is
zero.
The H.M is always less than A.M and G.M.

Relation between A.M, G.M, and H.M:

The relation between A.M, G.M, and
H.M is given by

OVERVIEW
Central tentancy, its characteristics, requisites
Measures:
1. Mean
2. Median
3. Mode
4. Harmonic mean
5. Geometric mean