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Lecture 3

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Lecture # 03

Measures of Central Tendencies


The Arithmetic Mean and their Properties
To determine a specific value of the variable
around which the majority of the observations
tend to concentrate. This representation
shows the tendency or behavior of the
Definition: distribution of the variable under study. This
value is called average or the central value.
The measures or techniques that are used to
determine this central value are called
Measures of Central Tendency.
Some Important Types of Averages:
1. Arithmetic Mean
2. Geometric Mean
3. Harmonic Mean
4. Median
5. Mode
Arithmetic Mean
1. Arithmetic Mean
The Arithmetic Mean or simply mean is defined as:

𝑆𝑢𝑚 𝑜𝑓 𝑎𝑙𝑙 𝑡ℎ𝑒 𝑜𝑏𝑒𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛𝑠


𝑀𝑒𝑎𝑛 =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑡ℎ𝑒 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛𝑠
Or
𝑋
𝑋=
𝑛
Computation of Arithmetic Mean
a. For Ungrouped Data
i) Direct Method (By Definition)
𝑋
𝑋=
𝑛
ii) Indirect Method
𝑛
𝑖=1 𝐷𝑖
𝑋=𝐴+
𝑛
Where, 𝐷𝑖 = 𝑋𝑖 − 𝐴 , 𝐴 is any assumed value of X called Assumed or
Provisional Mean
Computation of Arithmetic Mean
a. For Grouped Data
i) Direct Method
𝑓𝑋
𝑋=
𝑓
ii) Indirect Method
𝑓𝐷
𝑋=𝐴+
𝑓
Where, 𝐷𝑖 = 𝑋𝑖 − 𝐴 , 𝐴 is any assumed value of X called Assumed or
Provisional Mean
Question # 01
The Marks of 5 students in Statistics
are 25, 38, 46, 39, 30. Calculate
Arithmetic Mean using direct and
indirect Method and interpret the
result.
Solution
a. Using Direct Method
Let 𝑋 = 𝑚𝑎𝑟𝑘𝑠 𝑜𝑓 𝑎 𝑠𝑡𝑢𝑑𝑒𝑛𝑡
𝑋
𝑋=
𝑛
25 + 38 + 46 + 39 + 30
𝑋=
5
178
𝑋=
5
𝑋 = 35.6 𝑚𝑎𝑟𝑘𝑠
Hence each of the 5 students obtains 35.6 or 36 marks on the average.
Solution
b. Using Indirect Method
Let 𝑋 = 𝑚𝑎𝑟𝑘𝑠 𝑜𝑓 𝑎 𝑠𝑡𝑢𝑑𝑒𝑛𝑡, Suppose 𝐴 = 30

𝑛
𝑖=1 𝐷𝑖
X 𝑫 = 𝑿 − 𝑨 = (𝑿 − 𝟑𝟎)
𝑋=𝐴+
25 25 − 30 = −5
𝑛
38 38 − 30 = 8 28
46 46 − 30 = 16 𝑋 = 30 +
5
39 39 − 30 = 9
30 30 − 30 = 0 𝑋 = 30 + 5.6
𝐷 = 28
𝑋 = 35.6 𝑚𝑎𝑟𝑘𝑠
Hence each of the 5 students obtains 35.6 or 36 marks on the average.
Question # 02
The Marks of students in
Statistics are given
Calculate Arithmetic
Mean using direct and
indirect Method and
interpret the result.
Solution:
Suppose 𝑨 = 𝟑𝟎
Class Interval Class Boundries X f fX D = X - A fD
0-9 2
10-19 10
20-29 5
30-39 9
40-49 6
50-59 7
60-69 1
Total ? ? ? Solution:
𝑿 = 𝟑𝟐. 𝟓
Properties of
Arithmetic Mean
Property 1 :

• If all the observations assumed by a variable are constants,


say "k", then arithmetic mean is also "k".
• For example, if the height of every student in a group of 10
students is 170 cm, the mean height is, of course 170 cm.
Property 2 :

• The algebraic sum of deviations of a set of observations from


their arithmetic mean is zero.
• That is,
• for unclassified data, ∑(x - x̄) = 0.
• And for a grouped frequency distribution, ∑f(x - x̄) = 0.
• For example, if a variable "x" assumes five observations, say 10,
20, 30, 40, 50, then x̄ = 30.
• The deviations of the observations from arithmetic mean (x - x̄)
are -20, -10, 0, 10, 20.
• Now, ∑(x - x̄) = (-20) + (-10) + 0 + 10 + 20 = 0
Property 3 :

• Arithmetic mean is affected due to a change of origin and/or scale which implies
that if the original variable "x" is changed to another variable "y" effecting a change
of origin, say "a" and scale, say "b", of "x". That is y = a + bx.
• Then we have,
• Arithmetic mean of "y" = a + bx̄
• For example, if it is known that two variables x and y are related by 2x + 3y + 7 = 0
and x̄ = 15, then
• Arithmetic mean of "y" = (-7 - 2𝒙) / 3
• Plug x̄ = 15
• Arithmetic mean of "y" = (-7 – 2(15)) / 3
• Arithmetic mean of "y" = (-7 - 30) / 3
• Arithmetic mean of "y" = -37/ 3
• Arithmetic mean of "y" = -12.33
Property 4 :

• If there are two groups containing n₁ and n₂ observations


• x̄1 and x̄2 are the respective arithmetic means, then the
combined arithmetic mean is given by
• x̄ = (n1x̄1 + n2x̄2) / (n1 + n2)
• This property could be extended to more than two groups and we
may write it as
• x̄ = ∑nx̄ / ∑n
• Here,
• ∑nx̄ = n1x̄1 + n2x̄2 + ..............
• ∑n = n1 + n2 + ........................
Practice
Example 3.1, 3.5, 3.6
Exercise 3.1, 3.2, 3.7, 3.15, 3.16

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