‘to compute various numerical values, which describe Gs eae then it is not possible to draw any Cerna lich coné an idea about the whole data. Averages are the measures W icl n of more series exam mparison i selected person is r ‘between the population of two towns of ae Pek sure is average. Average is also called measures of central impossible without a single value, That sinele value or meas tendency or measures of location. ‘Measures of central tendency is a single value which represents ‘According to Clark, “An average is a single figure that represents the whole group.” ‘According to A. L. Bowley, ““Averages are statistical constants which enable us 10 com he significance of the whole.”” ‘According to A. E. Waugh, ““An average stands for the whole group of w yhole.” the entire set of data. jprehend in a single effort hhich it forms a part yet represents the ‘According to Croxten and Cowden, “‘An average is atypical value that represents all the individual values in @ PURPOSE, IMPORTANCE AND FUNCTIONS OF AVERAGES Some of the important functions and purposes of an average are 1. Helpful in Comparison : The important function of measure: For example, comparison of per capita income of two or more than two countries can easily describe the standard of living of people in two countries. 2. Basis of Statistical Anal All the other statistical measures such as measures of dispersion, skewness, correlation, regression analysis, time series, index numbers etc., depend upon the various measures of central tendencies. Thus measures of central tendency fo basis for others statistical measures. 3, Helpful in policy formulation : The averages are very helpful policy for increasing growth rate of income, monetary po 4, Brief Deseription : The main purpose of averages raw data. An average reduces the complex and unorganised data into a typic: s of central tendency is to facilitate comparison. the govt. in policy formulation. For example, cal policy ete. je and systematic description of the ure. to present a si gnificant in decisio average figures. 5. Helpful in Decision-Making : The knowledge of average values of a variable making. Now in the modern business world all of the decisions are taken on the biknowing the ¢ income of a nation, we get one single value that gi “A good average should have the following properties : = Ttshould be easy to understand : A good average is free from large and complex mathematical calcul It should be very simple or easy to understand. It should be easy to compute : A good average should be easy to compute, An average which involves complex calculation cannot be regarded as a good average or measures of central tendency 3, Tt should not be affected by extreme values : An average value should not be unduly affected by presence of extreme values. If in the data a few very small and very large values unduly affect the average,» in that case it will not be a good representation of the whole group. 4. Tt should be capable of further algebraic treatment : The use of an average becomes restricted of fimited if it is not capable for further algebraic operations. So it should be capable of further algebrale treatment. 5. It should be based on all observations : A good average will be a true representative of all the items if itis based upon all the observations of the given data. 6. It should be located graphical 7. Itshould be rigidly defined wverage should be such that it does not have any confusion and doubt regarding its meaning and description. ‘An ideal or good average should be able to be located graphically. 8. It should be affected as little as possible by changing or fluctuations of sampling : An ideal average should posses the sampling stability. It means that if we take independent random sample of the same size from a given population and compute average for cach of these samples then, for an ideal average, the values so obtained from different samples should not vary much from one another. In statistics, averages are broadly classified as under: Types of Average == ro Positional Aver Harmonic| Median Mode These averages are calculated by using certain mathematical procedures, : . In these types of averages each and is of data is taken into account. a iHere X= sum of items = number of items % =arithmetic mean Ex 1, Fromthe following data find out mean of 17,6,4,3. Gol, Let, X= DX a 1746444342 n= 10 x ao Arithmetic Mean = X = 2 8 o 10 Ex 2. The weight of 10 students in :: 45, 56, 70, 40, 42, 64, 50, 48, 50,601 (XY4+XZ+YZ ame (2 Ex 4. Following are the runs scored by two cricketers i T and D in 10 one day matches during 2005. Sol. Given Oe Sy ou seu Ss Average runs scored by Cricketer D =any item from the series as assumed mean, denoted by ‘A’. oat Essen otis resumed ts dX =X - A are taken.‘Step deviation method can be used when some common factor can be tak aie e : ax= © A= Assumed Mean X= Arithmetic Mean ‘Calculate arithmetic mean from the following data using step deviation method. 50, 100, 150, 200, 250, 300, 350, 400, 450, 500 ‘Taking 300 as a assumed mean. A=300 ear renamcmn x = ae Ho ; n me ‘ees...‘arithmetic mean by using short cut method, 20, 140, 130, 135, 150, 160, 170, 180, 190 Find the arithmetic mean from the following data : AB, 47, 40, 52, 48, 52, 46, 45, 67, 55 Ans [50] 4. From the following data, find out the arithmetic mean by using short cut method. =o | 2 2 ea en ee Income:| 10 | 1s | 2 [| 2 | 30 | as | ao | 4 Ans, [325] 5. Find out arithmetic mean from the following data by suitable method. 1110, 1120, 1145, 1010, 1210, 1190, 1170, 890 ‘Ans, [1105.625] 6. From the following data find out the arithmetic mean. 50, 45, 47, 49, 60, 62, 64,71, 73,79 Ans [60] 7. From the given prices of 10 years find out the average price. | Year: | 1989 | 1990 1991 | 1992 1993 1994 1995 1996 1997 1998 | raes[io | [3% [as [wo | 6 [7s | 9% | 10 | 10 Discrete series is that series in which observations (items) are given along with their frequencies. 9 10 50) | os Arithmetic mean of discrete serics can be calculated by direct method, Short cut method and by Step deviatior thod.s Y 9 Dele T=] -powjaut rasip Bujsn Aq wwour orauutpe ayy IO PUL sarouanbayy Jo (tuns) [OL = aZ=Nn sarquanbayy Burpuodsaxioo pur san[es yo yonpaud Jo [OL = xX eau ongunnLy = X 29H N ana = muioy Huymomoy 247 Mu eau BAAR IAN PAE © ua ee MES ‘Dax =- 708