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Arithmetic Mean N It's Uses

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30 views8 pages

Arithmetic Mean N It's Uses

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saviorose701
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UNIT 2: UNIVARIATE DATA ANALYSIS

Measures of Central Tendency

Introduction

In statistics, the central tendency is the descriptive summary of a data set. Through the single
value from the dataset, it reflects the center of the data distribution. Moreover, it does not
provide information regarding individual data from the dataset, where it gives a summary of the
dataset. Generally, the central tendency of a dataset can be defined using some of the measures in
statistics.

Definition
The central tendency is stated as the statistical measure that represents the single value of the
entire distribution or a dataset. It aims to provide an accurate description of the entire data in the
distribution.

Measures of Central Tendency


The following are the 5 measures of central tendency that are in common use:

(i) Arithmetic Mean ( Simple and Weighted)


(ii) Median
(iii) Mode
(iv) Geometric Mean
(v) Harmonic Mean

Requisites for a Good Measure of Central Tendency

(i) It should be easy to understand and calculate.


(ii) It should be based on all the observations.
(iii) It should not be unduly affected by extreme observations.
(iv) It should be rigidly defined.
(v) It should be capable of further mathematical treatment.
Arithmetic Mean

(i) Simple
(ii) Weighted

Simple Arithmetic Mean: The mean represents the average value of the dataset. It can be
calculated as the sum of all the values in the dataset divided by the number of values. It is usually
denoted by ̅

Formula to find Simple Arithmetic Mean:

̅ =∑ (Raw Data)

̅ =∑ where N = ∑ (Discrete frequency distribution)

̅ =∑ where N = ∑ and Xi is the midpoint of each class

(Continuous frequency distribution).


Example 1:
Find out the arithmetic mean for the following data
212, 208, 198, 196, 160, 201, 210.

Solution: Raw data, ̅ =∑

n=7

̅ = 197.

Example 2:
Compute mean for the following data

Size of shoes(X) No. of shoes sold (f)


5 3
6 7
7 5
8 4
9 1
Total 20
Solution:

Size of shoes(X) No. of shoes sold (f) fx


5 3 15
6 7 42
7 5 35
8 4 32
9 1 9
Total 20 133

Discrete frequency, ̅ =∑

̅=

̅ = 6.65.
Example 3:

Marks No. of students (f)


10-20 2
20-30 5
30-40 8
40-50 6
50-60 4
60-70 1
Total 26

Solution:

Marks No. of students (f) Midpoint (x) fx


10-20 2 15 30
20-30 5 25 125
30-40 8 35 280
40-50 6 45 270
50-60 4 55 220
60-70 1 65 65
Total 26 990

Continuous frequency distribution, ̅ =∑

=
̅ = 38.07.

Assumed Mean Method (Shortcut method)

Formula to find Arithmetic Mean using assumed mean method:

̅=A+ where di = Xi – A, A is assumed mean (Raw Data)

̅=A+ where di = Xi – A, N = Σfi (Discrete frequency distribution)

̅=A+ where di = Xi – A, N = Σfi , Xi is the midpoint of each class

(Continuous frequency distribution)

Example 1:
Find the Arithmetic Mean using assumed mean method.
12, 16, 18, 10, 11, 9

Raw data, ̅ = A + where di = Xi – A,

A is assumed mean
Let A = 16
Xi di = Xi – A
12 -4
16 0
18 2
10 -6
11 -5
9 -7
Total -20

̅=A+

= 16 -

̅ = 12.67

Example 2:
Xi f
10 5
20 9
30 12
40 17
50 14
60 10
70 6

Solution:
Let A = 40
Xi f di = Xi – A
10 5 10-40=-30 -150
20 9 20-40=-20 -180
30 12 30-40=-10 -120
40 17 40-40=0 0
50 14 50-40=10 140
60 10 60-40=20 200
70 6 70-40=30 180
Total 73 70
Discrete frequency distribution,

̅=A+

̅ = 40+

̅ = 40.95.

Example 3:

Marks No. of students


0-10 12
10-20 18
20-30 27
30-40 20
40-50 70
50-60 6

Solution: Let A = 35

Marks No. of students Xi di = Xi – A


0-10 12 5 5-35=-30 -360
10-20 18 15 15-35=-20 -360
20-30 27 25 25-35=-10 -270
30-40 20 35 35-35=0 0
40-50 70 45 45-35=10 700
50-60 6 55 55-35=20 120
N = 153 -170

Continuous frequency distribution,

̅=A+

̅ = 35-
̅ = 33.89.

The calculations of mean using direct formula is quite time consuming. The calculation is
reduced to a great extend by taking the deviations of the given value from any arbitrary points A
as explained above.

Merits of Arithmetic Mean

(i) It should be easy to understand and calculate.


(ii) It should be based on all the observations.
(iii) It should be rigidly defined.
(iv) It should be capable of further mathematical treatment.

Demerits of Arithmetic Mean

(i) It cannot be located graphically.


(ii) It should not be unduly affected by extreme observations.

Weighted Arithmetic Mean:

In calculating AM we suppose that all the items in the distribution have equal importance but in
practice this may not be so if some items are more important than other, then this point must be
considered to compute mean. Let Wi (i = 1,2,3…,n) be the weight attached to the item Xi then we
define weighted arithmetic mean

̅ =∑
∑

Example:

Speed km (X) Time taken in WX


minutes (W)
30 50 1500

40 75 3000

10 06 60
24 60 1440

ΣW = 191 ΣWX = 6000

̅ =∑ = = 31.41 km/h.
∑

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