Central Tendency

The word “average” denotes a “representative”

or “typical value” of a whole set of observations. It
is a single figure which describes the whole set of
observations. Since a typical value usually occupies
central position, so that some observations are
lager and others are smaller than it, average are
also known as measure of central tendency.

There are 3 measures of central tendency-Mean,

Median and Mode. Again Mean is of 3 types –
Arithmetic Mean (A.M.),Geometric Mean(G.M.),
Harmonic Mean(H.M.)
 Arithmetic Mean (A.M)

The most popular and widely used

measure for representing the entire data by
one value is what most laymen call an
“average” and what the statisticians call the
arithmetic mean. Its value is obtained by
adding together all the observations and by
dividing this total by the number of
observations.
 Types of A.M
There are two types of A.M
1)Simple A.M.
2)Weighted A.M.
 1)Simple A.M.
Formula:-

∑ xi
x= n

Where i = 1,2, ………,n.

 ILLUSTRATION 1:-
Q) What is A.M. of 8,1,6?
Solution:- Here n = 3 and i = 1,2,3.

x = (8+1+6)/3
= 15/3
= 5
 ILLUSTRATION 2:-
Q) Monthly income (in rupees) of 10 employees working in a
firm is as follows:-
4487,4493,4502,4446,4475,4492,4572,4516,
4468 and 4489.
Find the average monthly income.

Solution:- Let income be denoted by X.

∑X = (4487+4493+4502+4446+4475+4492+4572+4516+
4468 + 4489) = 44940

X = ∑X /n = 44940/10 = 4494
 2) Weighted A.M.
Formula:-

∑ fi xi
X =
N

Where N = ∑ fi and i = 1,2, ………,n.

 ILLUSTRATION 3:- Weighted A.M. in case of
simple frequency distribution
Q) A.M. of 8,1,6 with frequencies (or weight) 3,2,5 respectively is

Value ( xi ) Frequency ( fi ) fi xi
8 3 24
1 2 2
6 5 30
Total ∑ fi = 10 ∑ fi xi = 56
 ∑ fi xi
X =
∑ fi

= 56/10

= 5.6 (answer )

Ans)TheWeighted A.M. is 5.6

 ILLUSTRATION 3:- Weighted A.M. in case of
grouped frequency distribution

The following are the figures of profits earned by 1400

companies during 2003-04.
Profits (Rs. Lakhs) No of companies
200 ------------- 400 500
400 ------------- 600 300
600 ------------- 800 280
800 ------------- 1000 120
1000 ------------- 1200 100
1200 ------------- 1400 80
1400 ------------- 1600 20
Total 1400
 Profits (Rs. Mid- Points No of companies fx
Lakhs) x f

200 ------- 400 300 500 1,50,000

400 ------- 600 500 300 1,50,000
600 ------ 800 700 280 1,96,000
800 ------ 1000 900 120 1,08,000
1000 ------ 1200 1100 100 1,10,000
1200 ----- 1400 1300 80 1,04,000
1400 ----- 1600 1500 20 30,000
Total N = 1400 ∑ fi xi= 8,48,000

X = ∑ fi xi /N = 8,48,000/1400= 605.71
 Simplified Calculation for
A.M.
The calculations of A.M can be considerably simplified
based on the following theory:-
• We can always reduce the given observations xi by
subtracting a convenient number c , preferably near the
middle and obtain deviations yi = xi – c.The mean of
these deviation yi, which can be calculated easily, is
added to the constant c,giving the required mean of x
i.e.

If yi = xi – c, then x=c+y
 Illustration:-1
Q) Compute the mean of daily wages (x) of the 65 employees
working in a factory from the frequency table given below.

x 55 65 75 85 95 105 115 Total

f 8 10 16 14 10 5 2 65
 Solving by direct method

x (daily wages) f fx
55 8 440
65 10 650
75 16 1200
85 14 1190
95 10 950
105 5 525
115 2 230
Total N=∑ fi = 65 ∑ fi xi = 5185

X = ∑ fi xi /N = 5185/65 =79.77 ( Ans)

 Solving by simplified method
x (daily wages) f y = x – 85 fy
55 8 -30 -240
65 10 -20 -200
75 16 -10 -160
85 14 0 0
95 10 10 100
105 5 20 100
115 2 30 60
Total N=∑ fi = 65 ∑ fiyi =-340

x =c + y
= 85 + ∑ fiyi /N = 85 – 5.23 = 79.77(Ans)
 Further Simplification
In some cases, the values of xi are such that
after subtracting a constant c, the deviation
can further be reduced on division by a
constant factor d i.e.
xi – c
If yi = ------------------ then, x=c+dy
d
Where d= common width
 Solving illustration:-1 by this
method
X f x – 85 fy
Y=-------------------
10
55 8 -3 -24
65 10 -2 -20
75 16 -1 -16
85 14 0 0
95 10 1 10
105 5 2 10
115 2 3 6
Total N = 65 ∑fy= -34
Y = ∑ fiyi /N = -34/65

X = 85 + 10(-34/65 )

= 85 - 340/65

= 85 - 5.23

= 79.77(Ans)
 ILLUSTRATION 2:-
Given the following frequency distribution, calcalculate the mean.

Monthly wages (Rs) Number of worker

12.5 ---- 17.5 2

17.5 ---- 22.5 22
22.5 ---- 27.5 10
27.5 ---- 32.5 14
32.5 ---- 37.5 3
37.5 ---- 42.5 4
42.5 ---- 47.5 6
47.5 ---- 52.5 1
52.5 ---- 57.5 1
Total 63
 Class Frequency Mid-value X – 35 fy
Boundaries (f) ( x) Y =------------------
5

12.5 ---- 17.5 2 15 -4 -8

17.5 ---- 22.5 22 20 -3 -66
22.5 ---- 27.5 10 25 -2 -20
27.5 ---- 32.5 14 30 -1 -14
32.5 ---- 37.5 3 35 0 0
37.5 ---- 42.5 4 40 1 4
42.5 ---- 47.5 6 45 2 12
47.5 ---- 52.5 1 50 3 3
52.5 ---- 57.5 1 55 4 4
Total 63 ∑fy = - 85
Y = ∑ fiyi /N = -85/63

X = 35 + 5 (-85/63)

= 30 – 6.75

= 28.25 (Ans)
 ILLUSTRATION 3:-
Find the mean of the following distribution

Age in years Number of petrsons

15 ----- 19 37
20 ----- 24 81
25 ----- 29 43
30 ----- 34 24
35 ----- 44 9
45 ----- 59 6
Total 200
 Class Limit Frequency Mid-value X – 27 fy
(f) ( x) Y =-------------
5
15 ----- 19 37 17 -2 -71
20 ----- 24 81 22 -1 -81
25 ----- 29 43 27 0 0
30 ----- 34 24 32 1 24
35 ----- 44 9 39.5 2.5 22.5
45 ----- 59 6 52 5 30
Total 200 ∑fy = - 78.5
Y = ∑ fiyi /N = - 78.5/200

X = 27 + 5 (-78.5/200)

= 27 – 1.96

= 25.04 (Ans)
Mathematical properties of A.M.
The important mathematical property of A.M are:-
• The algebraic sum of deviation of observations
from their A.M is zero i.e.

Σ ( xi – x ) = 0 where x = simple A.M

Σ fi( xi – x ) = 0 where x = weighted A.M
 For example:-
Illustration 1:- Consider the observation 8,1 and 6.

Here x = (8+1+6)/3 = 5
The algebraic sum of deviation of observations
from their A.M is
Σ ( xi – x ) = (8 - 5) + (1 – 5) + (6 – 5)
= 0(proved)
Illustration 2:- Consider the observation 8,1,6
are weighted by 3,2,5 respectively.

Then x = ( 8x3 +1x2 + 6x5 )/10

= 56/10 = 5.6
And the algebraic sum of deviations is

Σ fi( xi – x ) = 3(8 – 5.6)+2(1-5.6)+5(6-5.6)

= 3 x 2.4 + 2 x (-4.6) + 5 x 0.4
= 0 (proved)
 2. The sum of the squared of deviation of a set of
observations has the smallest value, when
deviation is taken from their A.M. i.e.

i)Σ ( xi – A)2 is minimum, when A = simple A.M.

ii)Σfi( xi – A)2 is minimum, when A = weighted
A.M.
3. If two groups contain n1 and n2 observations
with mean x1 and x2 respectively, then the mean
( x ) of the composite group of n1+n2
observations is,

n1 x1 + n2 x2
x = --------------------------
n1+n2
 Example
Q) There are two branches of an
establishment employing 100 and 180
persons respectively. If the arithmetic
means of the monthly salaries paid by the
two branches are Rs. 275 and Rs.225
respectively, find the arithmetic mean of the
salaries of the employees of the
establishment as a whole.
 Characteristic Group Group Composite
s I II Groups
Number of n1 = 100 n2 = 80 n1+n2= 180
observations

Mean salary X
(Rs)
X1= 275 X2 = 225

n1 x1 + n2 x2 100 x 275 + 80 x 225

or x = -------------------------- = --------------------------------------
n1+ n2 275 + 225

or X = 45500/180 = 275.78 (Ans)

Frequency distribution with open
end class
Consider the following salary distribution of the
employees.

Salary(Rs ‘000) Number of employee

below 10 4
10 – 20 6
20 – 30 10
30 – 40 20
40 and above 10
 In case of open end class it is generally assumed that the
open-end class has the same width as the adjacent class
i.e.
Salary Mid-value Number of X – 25 fiyi
(Rs‘000) employees yi =-------------
(fi) 10

0 – 10 (say) 5 4 -2 -8
10 – 20 15 6 -1 -6
20 – 30 25 10 0 0
30 – 40 35 20 1 20
40 – 50(say) 45 10 2 20
Total 50 Σfiyi= 26
Y = ∑ fiyi /N = 26/50

X = 25 + 10 (26/50)

= 25 + 10 x 0.52

= 25 + 5.2

30.2 (Ans)
 Advantages
1) The computation of A.M is easy and does not
involve any laborious numerical calculations.
Even if all observations are not known
individually,A.M can be found, provided their
sum and the number of observations are known.
2) A.M can be treated algebrically.Given the A.M
and the number of observations in each of the
several groups,A.M of the composite group can
be easily determined by using algebraic formula.
3) It is a very stable and reliable average as
regards sampling fluctuations. If many
samples are drawn from the same
population and each time several measures
of central tendency calculated, it will be
found that A.M. fluctuates less from sample
to sample than any other measure.
 Disadvantages
1) It can not be calculated unless the exact
magnitude of all observations and their number
is known accurately.If some of the extreme values
are missing, the accuracy of A.M is greatly
affected.A.M. cannot be calculated from a
grouped frequency distribution with open-end
class, unless some assumptions are made
regarding the sizes of these classes.
2) The greatest disadvantage of A.M is that it is
highly affected by the presence of even a few
extremely large or small observations.

For example:-
A.M. of 2,5,8,4,6,9 is 34/6 = 5.67, it represents the set
of observation properly, since most of the
observation lies closer to this 5.67.

But A.M of 2,5,8,4,6,9,71 is 105/7= 15, which is

nearly three times of the previous A.M. 5.67 and
most of the observations are much smaller than
15.So here the A.M. is not a proper representative of
the whole group of observations because of the
presence of the extreme values.
3) A.M may not be an actual value of the variable
For example:- Consider the following example,
Family size ( xi ) Frequency ( fi ) fi xi
2 4 8
3 3 9
4 3 12
Total ∑ fi = 10 ∑ fi xi = 29

∑ fi xi
X = -----------------------------
∑ fi

= 29/10

= 2.9 (answer )
A.M. of the family size come to 2.9.However
although there may be 2 or 3 family member in a
family, 2.9 family member is meaningless.
 Problem:- 1
Find the missing frequencies in the
following distribution, when it is known
that
A.M.= 11.09
Class 9.3 9.8 10.3 – 10.8 11.3 11.8 12.3 12.8 – Total
frequency – 9.7 -10.2 10.7 – 11.2 – 11.7 – 12.2 – 12.7 13.2

Frequency 2 5 f3 f4 14 6 3 1 60
Class Limits Frequency Mid- values X – 11 fiyi
yi =-------------
0.5
9.3 – 9.7 2 9.5 -3 -6
9.8 – 10.2 5 10.0 -2 -10
10.3 – 10.7 f3 10.5 -1 - f3
10.8 – 11.2 f4 11.0 0 0
11.3 – 11.7 14 11.5 10 14
11.8 – 12.2 6 12.0 2 12
12.3 – 12.7 3 12.5 3 9
12.8 – 13.2 1 13.0 4 4
Total ∑ fi = 60 - - ∑ fi xi = 23 – f3
 23 – f3
x = 11.9 = 11.0 + 0.5 x -------------
60

0.5
Or 11.9 – 11.0 = ------------- x (23 – f3)
60

Or f3= 12.2
Since the frequency f3 must be a whole number, f3= 12.
Again total frequency is

or 2+5+ f3 + f4 + 14+6+3+1 = 60
Or f3 + f4 = 60 - 31 = 29
Since f3= 12 , we have f4 = 17
 Problem - 2
The mean of 200 observations was 50. Later on, it was
discovered that two observations were wrongly read as 92
and 8 instead of 192 and 88.Find out the correct mean.
Solution:-
Here x = 50 and N =200
∑X = 200 x 50 = 10,000
Correct ∑X = 10,000 – (92+8) + (192+88)
= 10,000-100 + 280 = 10,180
Correct mean = 10,180/200 = 50.9