Central Tendency

Central Tendency refers to a central value or a representative

value of a statistical series.
The basic purpose of finding an average is to identify such a value
that represents characteristics of all the items in series.
Functions of Averages:
1. To present a simple and systematic description of the principal
features of the raw data.
2. Comparison of different sets of data.
3. Averages help in formulation of policies.
4. They are the basis of statistical analysis.
5. One value for all.

Essentials of a Good Average:

1. Clear and stable definition.
2. Representative; should be based on all the items of series.
3. Simplicity: it must be so simple that it can be easily worked
out.
4. Certainty; only then it can be used as the basis of statistical
analysis.
5. Absolute Number; it should be an absolute number. A
percentage or a relative value does not serve as a good
average.
6. Least affected by a change in the sample on which the
average is based "
7. Should be capable of further mathematical or algebraic
treatment.
Types of Statistical Average
Averages are broadly classified into two categories:
1. Mathematical Averages - Arithmetic Mean, Geometric
Mean, Harmonic Mean
2. Positional Averages - Median, Partition Value, Mode
Arithmetic Mean is the number which is obtained by adding the
values of all the items of a series and dividing the total by the
number of items.
Types of Arithmetic Mean:
1. Simple Arithmetic Mean: In it, all items of a series are given
equal importance.
2. In it, different items of a series are accorded different
weights in accordance with their relative importance.
Merits of Arithmetic Mean
1. Simplicity: From the viewpoint of calculation and usage,
arithmetic mean is the simplest of all the measures
of central tendency.
2. Certainty: Arithmetic Mean is a certain value; it has no
scope for estimated values.
3. Based on all items: It is based on all the item in a series.It is
therefore representative value of the series.
4. Algebraic Treatment: Arithmetic Mean is capable of further
algebraic treatment. It is therefore, extensively used in
statistical analysis.
5. Stability: Arithmetic Mean is a stable measure
of central tendency; if the items of series are large in number
then changes in the sample of a series have minimum effect
on the arithmetic average.
6. Basis of comparison: Being stable and certain, arithmetic
mean can be easily used for comparison.
7. Accuracy Test: Arithmetic Mean can be tested for its
accuracy as a representative value of the series.

Demerits of the Arithmetic Mean:

1. Distorted by extreme values of the series
2. Mean value may not figure in the series at all. It further
erodes its representative character.
3. Sometimes it offers misleading conclusions.
 4. Arithmetic Mean is not a suitable measure in case of
percentage or proportionate values.
Positional Averages:
1. Median
2. Partition Value - quartile, decile, percentile etc.
3. Mode

Median: The median is that value of the variable which divides

the series/ group into two equal parts, one part comprising all
values greater than the median value and the other part
comprising all the values smaller than the median value.
Merits of Median: Median is a widely used measure of
the central tendency, particularly in the field of socio-economic
studies.
1. Simplicity: Very simple measure of the central tendency, in
the case of simple statistical series, just a glance at the data
is enough to locate the Median value.
2. Free from the effect of extreme values; not distorted by the
extreme values.
3. Certainty: Always certain specific value in the series "
4. Real Value, although may not exist in the series at All.
5. Graphic Presentation: Besides algebraic approach, the
Median value can be estimated also through the graphic
presentation of the data.
6. Possible to calculate even when data is incomplete,
estimated even in the case of certain incomplete series.
Demerits of Median
1. Lack of representative character : Median is of limited
representative character as it is not based on all the items in
the series. It also fails to be a representative measure in case
of such series the different values of which are wide apart
from each other.
 2. Unrealistic: When the Median is located somewhere
between the two middle values, it remains only an
approximate measure, not a precise value.
3. Lack of algebraic treatment: Arithmetic Mean is capable of
further algebraic treatment, but Median is not. For example,
multiplying the Median with the number of items in the
series will not give us the sum total of the values of the
series
Mode
Mode is another important measure of central Tendency of
statistical series. It is the value which occurs most frequently in
the series /distribution; i.e. Modal value has the highest frequency
in the series.
Calculation of Mode:
In Individual Series:
1. By inspection
2. By converting Individual Series into Discrete Frequency
Series
In Discrete Frequency Series
1. By inspection
2. Grouping Method
In Frequency Distribution Series
1. Inspection Method
2. Grouping Method
Merits of Mode
1. Simple and popular: sometimes, just a glance at the series is
enough to locate the modal value. Besides, it is the best
representative value of all items of series, because it is the
value which occurs most frequently in the series.
2. Less effect of marginal values
3. Graphic Determination; it can be located graphically, with
the help of histogram.
 4. No need of knowing all the items or frequencies; In simple
series, it is enough if one knows the item with highest
frequency in the distribution.
Demerits of Mode
1. Uncertain and Vague
2. Not capable of Algebraic Treatment
3. Difficult; when frequencies of all items are identical, it is
difficult to identify the modal value.
4. Complex procedure of grouping
5. Ignores extreme marginal frequencies
6. Besides one can question the representative character of the
modal value as its calculation does not involve all items of
the series.
Uses of Mode
In the trading sector, this measure is frequently used. Average
expenditure, average income of the customers or popularity of
goods in the market invariably refers to modal value. Average
rainfall or temperature of a place invariably refers the modal
value.

Relationship among Mean, Mode and Median

Before knowing the relationship among Mean, Median and Mode,
it is necessary to know whether the distribution is symmetrical or
asymmetrical.
1. In case of symmetrical distribution, Mean, Median and
Mode will be identical and Frequency curve will be bell-
shaped.
2. In case of asymmetrical distributed value of Mean, Median
and Mode will be different. As such, frequency curve will
not be bell- shaped. It may be skewed either to the right or to
the left.
Positive Skewness Skewed to Right: If the distribution is skewed
more to the right then mean and Median will be greater than
Mode.
Negative Skewness Skewed to left; If the distribution is Skewed
more to the left, then Mean and Median will be less than Mode.
The following formula generalizes the relationship between
Mode, Median and Mean of a series:
Mode =3 Median- 2 Mean