0% found this document useful (0 votes)
140 views50 pages

Class 5.2 B Business Statistics Central Tendency: Research Scholar Priya Chugh

1) Measures of central tendency, also known as averages, are used to describe key characteristics of data by condensing large data sets into single representative values. Averages include the mean, median, and mode. 2) There are several objectives for measuring central tendency, including presenting a brief overview of data, enabling comparison between groups, informing decision making, and aiding in statistical analysis. 3) The most common types of averages are the arithmetic mean, geometric mean, harmonic mean, median, and mode. The arithmetic mean is calculated by adding all values and dividing by the total number of data points.

Uploaded by

Priya Chugh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
140 views50 pages

Class 5.2 B Business Statistics Central Tendency: Research Scholar Priya Chugh

1) Measures of central tendency, also known as averages, are used to describe key characteristics of data by condensing large data sets into single representative values. Averages include the mean, median, and mode. 2) There are several objectives for measuring central tendency, including presenting a brief overview of data, enabling comparison between groups, informing decision making, and aiding in statistical analysis. 3) The most common types of averages are the arithmetic mean, geometric mean, harmonic mean, median, and mode. The arithmetic mean is calculated by adding all values and dividing by the total number of data points.

Uploaded by

Priya Chugh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 50

CLASS 5.

2 B
BUSINESS STATISTICS
CENTRAL TENDENCY

RESEARCH SCHOLAR
PRIYA CHUGH
Central Tendency/Average
• One of the important objectives of statistical analysis is to determine various numerical measures
which describe the inherent characteristics of a frequency distribution.
• The first of such measures is central tendency or average.
• The averages are the measures which condense a huge unwieldy set of numerical data into single
numerical values which are representative of the entire distribution.
• In the words of Prof. R.A. Fisher, “The inherent inability of the human mind to grasp in its entirety a
large body of numerical data compels us to seek relatively few constants that will adequately
describe the data”.
• Averages are one of such few constants. Averages provide us the gist and give a bird’s eye view of the
huge mass of unwieldy numerical data.
• Averages are the values which lie between the two extreme observations, (i.e., the smallest and the
largest observations), of the distribution and give us an idea about the concentration of the values in
the central part of the distribution. Accordingly they are also sometimes referred to as the Measures of
Central Tendency.

• Averages are also sometimes referred to as Measures of Location since they enable us to locate the
position or place of the distribution in question.
Objectives of Measuring Central Tendency
To present a brief picture of data: It helps in giving a brief description of the main feature of the entire data.
Essential for comparison: It helps in reducing the data to a single valueand it enables us to compare two or more
groups in terms of typical performance
Helps in decision making: Most of the companies use measuring central tendency to plan and develop their
businesses’ economy.
Formulation of policies: Many governments rely on this medium while forming any policies.
Overall picture of the series: Average provides the overall picture of the series. We cannot remember each and
every facts relating to a field of enquiry.
To find representative value:
Measures of central tendency or averages give us one value for the distribution and this value represents the entire
distribution. In this way averages convert a group of figures into one value.
Helpful in further statistical analysis:
Many techniques of statistical analysis like Measures of Dispersion, Measures of Skewness, Measures of Correlation,
and Index Numbers are based on measures of central tendency. That is why; measures of central tendency are also
called as measures of the first order.
MEASURES OF CENTRAL TENDENCY
The following are the five measures of average or central tendency that are in
common use :
(i) Arithmetic average or arithmetic mean or simple mean
(ii) Median
(iii) Mode
(iv) Geometric mean
(v) Harmonic mean
Arithmetic mean, Geometric mean and Harmonic means are usually called
Mathematical averages
while Mode and Median are called Positional averages.
We come across statements like "the average monthly income of a family is ₹15,000 or the average monthly rainfall of a place
is 1000 mm" quite often. Average is typically referred to as Arithmetic Mean but the fact is one of the types of average. In
statistics, the Arithmetic Mean (AM) is nothing but the ratio of all observations to the total number of observations in a data
set. Some of the examples include the average rainfall of a place, the average income of employees in an organization.

What Is Arithmetic Mean?


Arithmetic mean is often referred to as the mean or arithmetic average.
Arithmetic mean is calculated by adding all the numbers in a given data set and then dividing it by the total number of items
within that set.
The arithmetic mean for evenly distributed numbers is equal to the middle most number. Let's discuss an example where we
find the use of arithmetic mean.
The mean of the numbers 6, 8, 10 is 8 since 6 + 8 + 10 = 24 and 24 divided by 3 [there are three numbers] is 8.
The arithmetic mean maintains its place in calculating a stock’s average closing price during a particular month. Let's
assume there are 24 trading days in a month. How can we calculate the mean? All you need to do is take all the prices, add
them up, and divide by 24 to get the arithmetic mean. 
Arithmetic Mean Formula
The general formula to find the arithmetic mean of a given data is:
Mean (x̄) = Sum of all observations/ Number of observations
It is denoted by x̄, (read as x bar). Data can be presented in different forms. For example, when we have raw data like the marks of
a student in five subjects, we add the marks obtained in the five subjects and divide the sum by 5, since there are 5 subjects in
total. 
Now consider a case where we have huge data like the heights of 40 students in a class or the number of people visiting an
amusement park across each of the seven days of a week.
Will it be convenient to find the arithmetic mean with the above method? The answer is a big NO! So, how can we find the mean?
We arrange the data in a form that is meaningful and easy to comprehend. Let's understand how to compute the arithmetic
average in such cases. We will study more in detail about finding the arithmetic mean for ungrouped and grouped data.
Arithmetic Mean for Ungrouped Data
Here the arithmetic mean is calculated using the formula:
Mean x̄ = Sum of all observations / Number of observations
Example: Compute the mean of the first 6 odd, natural numbers.
Solution: The first 6 odd, natural numbers: 1, 3, 5, 7, 9, 11
x̄ = (1+3+5+7+9+11) / 6 = 36/6 = 6.
Thus, the arithmetic mean is 6
Arithmetic Mean for Grouped Data 
There are three methods (Direct method, Short-cut method, and Step-deviation method) to find the arithmetic mean for grouped
data. The choice of the method to be used depends on the numerical value of xi and fi. xi is the sum of all data inputs and fi is the
sum of their frequencies. ∑ (sigma) symbol represents summation. If xi and fi are sufficiently small, the direct method will work.
But, if they are numerically large, we use the assumed arithmetic mean method or step-deviation method. In this section, we will
be studying all three methods along with examples.  
1. Direct Method for Finding the Arithmetic Mean
Let x1, x2, x3 ……xn be the observations with the frequency f1, f2, f3 ……fn.
Then, mean is calculated using the formula:
x̄ = (x1f1+x2f2+......+xnfn) / ∑fi
Here, f1+ f2 + ....fn =  ∑fi indicates the sum of all frequencies.
Example I (discrete grouped data): Find the mean of the following distribution:
x 10 30 50 70 89

f 7 8 10 15 10
Solution:
xi fi xifi

10 7 10×7 = 70

30 8 30×8 = 240

50 10 50×10 = 500

70 15 70×15 = 1050

89 10 89×10 = 890

Total  ∑fi=50 ∑xifi=2750


Add up all the (xifi) values to obtain ∑xifi. Add up all the fi values to get ∑fi
Now, use the mean formula.
x̄ = ∑xifi / ∑fi = 2750/50 = 55
Mean = 55. The above problem is an example of discrete grouped data.
Let's now consider an example where the data is present in the form of continuous
class intervals.

Class-
15-25 25-35 35-45 45-55 55-65 65-75 75-85
Interval

Frequency 6 11 7 4 4 2 1

Example II (continuous class intervals): Let's try finding the mean of the following distribution: 
Solution:
When the data is presented in the form of class intervals, the mid-point of each class
(also called class mark) is considered for calculating the mean.
The formula for mean remains the same as discussed above.
Note:
Class Mark = (Upper limit + Lower limit) / 2
Class- Interval Class Mark (xi) Frequency (fi) xifi
15-25 20 6 120
25-35 30 11 330
35-45 40 7 280
45-55 50 4 200
55-65 60 4 240
65-75 70 2 140
75-85 80 1 80
  Total 35 1390

x̄ = ∑xifi/ ∑fi = 1390/35 = 39.71We have, ∑fi = 35 and ∑xifi =


35
Mean = 39.71
The below-given image presents the general formula to find the
arithmetic mean:
       
2. Short-cut Method for Finding the Arithmetic Mean
The short-cut method is called as assumed mean method or change of origin method. The following steps describe this method.
Step1: Calculate the class marks (mid-point) of each class (x i).
Step2: Let A denote the assumed mean of the data.
Step3: Find deviation (di) = xi – A
Step4: Use the formula:
x̄ = A + (∑fidi/∑fi)
Example: Let's understand this with the help of the following example. Calculate the mean of the following using the short-cut
method.

Class-
 45-50 50-55    55-60 60-65   65-70    70-75  75-80
Intervals

Frequenc
5 8 30 25 14 12 6
y  
Solution: Let us make the calculation table. Let the assumed mean be A = 62.5
Note: A is chosen from the xi values. Usually, the value which is around the middle is taken. 
Classmark/ Mid-
Class- Interval fi di = (xi - A) f id i
points (xi)
45-50 47.5 5 47.5-62.5 =-15 -75
50-55 52.5 8 52.5-62.5 =-10 -80

55-60 57.5 30 57.5-62.5 =-5 -150

60-65 62.5 25 62.5-62.5 =0 0


65-70 67.5 14 67.5-62.5 =5 70
70-75 72.5 12 72.5-62.5 =10 120
75-80 77.5 6 77.5-62.5 =15 90
    ∑fi=100   ∑fidi= -25
Now we use the formula,
x̄ = A + (∑fidi/∑fi) = 62.5 + (−25/100) =
62.5 − 0.25 = 62.25
∴ Mean = 62.25
3. Step Deviation Method for Finding the Arithmetic Mean
This is also called the change of origin or scale method. The following steps describe this method:
Step1: Calculate the class marks of each class (x i).
Step2: Let A denote the assumed mean of the data.
Step3: Find  ui=(xi−A)/h, where h is the class size.
Step4: Use the formula:
x̄ = A + h × (∑fiui/∑fi)
Example: Consider the following example to understand this method. Find the mean of the following using the step-deviation
method.

Class
0-10 10-20 20-30 30-40 40-50 50-60 60-70 Total
Intervals

Frequency 4 4 7 10 12 8 5 50
Solution: To find the mean, we first have to find the class
marks and decide A (assumed mean). Let A = 35 Here h (class
width) = 10
C.I. xi fi ui= xi−Ah​​xi−Ah fiui

0-10 5 4 -3 4 x (-3)=-12
10-20 15 4 -2 4 x (-2)=-8
20-30 25 7 -1 7 x (-1)=-7
30-40  35  10 0 10 x 0= 0
40-50 45 12 1 12 x 1=12
50-60 55 8 2 8 x 2=16
60-70 65 5 3 5 x 3=15
Total   ∑fi=50   ∑fiui=16
Using mean formula:
x̄ = A + h × (∑fiui/∑fi) =35 + (16/50) ×10 = 35 + 3.2 = 38.2
Mean = 38.
Properties of Arithmetic Mean
Let us have a look at some of the important properties of the arithmetic mean. Suppose we have n observations denoted by x1, x2,
x3, ….,xn and x̄ is their arithmetic mean, then:
1. If all the observations in the given data set have a value say ‘m’, then their arithmetic mean is also ‘m’. Consider the data
having 5 observations: 15,15,15,15,15. So, their total = 15+15+15+15+15= 15 × 5 = 75; n = 5. Now, arithmetic mean = total/n =
75/5 = 15
2. The algebraic sum of deviations of a set of observations from their arithmetic mean is zero. (x1−x̄ )+(x2−x̄)+(x3−x̄)+...+(xn−x̄)
= 0. For discrete data, ∑(xi−x̄)  =  0. For grouped frequency distribution, ∑f(xi−∑x̄) = 0 
3. If each value in the data increases or decreases by a fixed value, then the mean also increases/decreases by the same
number. Let the mean of x1, x2, x3 ……xn be X̄, then the mean of x1+k, x2+k, x3 +k ……xn+k will be X̄+k.
4. If each value in the data gets multiplied or divided by a fixed value, then the mean also gets multiplied or divided by the same
number. Let the mean of x1, x2, x3 ……xn be X̄, then the mean of kx1, kx2, kx3  ……xn+k will be kX̄. Similarly, the mean of 
x1/k, x2/k, x3/k  ……xn/k will be X̄k.
Note: While dividing each value by k, it must be a non-zero number as division by 0 is not defined.
Advantages of Arithmetic Mean  
The uses of arithmetic mean are not just limited to statistics and mathematics, but it is also used in experimental science,
economics, sociology, and other diverse academic disciplines. Listed below are some of the major advantages of the arithmetic
mean.
1. As the formula to find the arithmetic mean is rigid, the result doesn’t change. Unlike the median, it doesn’t get affected by
the position of the value in the data set.
2. It takes into consideration each value of the data set.
3. Finding arithmetic mean is quite simple; even a common man having very little finance and math skills can calculate it.
4. It’s also a useful measure of central tendency, as it tends to provide useful results, even with large groupings of numbers.
5. It can be further subjected to many algebraic treatments, unlike mode and median. For example, the mean of two or more
series can be obtained from the mean of the individual series.
6. The arithmetic mean is widely used in geometry as well. For example, the coordinates of the “centroid” of a triangle (or any
other figure bounded by line segments) are the arithmetic mean of the coordinates of the vertices.
After having discussed some of the major advantages of arithmetic mean, let's understand its limitations.
Disadvantages of Arithmetic Mean   
Let us now look at some of the disadvantages/demerits of using the arithmetic mean. 
1.The strongest drawback of arithmetic mean is that it is affected by extreme values in the data set. To understand this, consider
the following example. It’s Ryma’s birthday and she is planning to give return gifts to all who attend her party. She wants to
consider the mean age to decide what gift she could give everyone. The ages (in years) of the invitees are as follows: 2, 3, 7, 7, 9,
10, 13, 13, 14, 14 Here, n = 10. Sum of the ages = 2+3+7+7+9+10+13+13+14+14 = 92. Thus, mean = 92/10 = 9.2 In this case,
we can say that a gift that is desirable to a kid who is 9 years old may not be suitable for a child aged 2 or 14
2. In a distribution containing open-end classes, the value of the mean cannot be computed without making assumptions
regarding the size of the class.
We know that to find the arithmetic mean of grouped data, we need the mid-point of every class. As evident from the table, there
are two cases (less than 15 and 45 or more) where it is not possible to find the mid-point and hence, arithmetic mean can’t be
calculated for such cases.
3. It's practically impossible to locate the arithmetic mean by inspection or graphically.
4. It cannot be used for qualitative types of data such as honesty, favorite milkshake flavor, most popular product, etc.
5. We can't find the arithmetic mean if a single observation is missing or lost.
The geometric mean is a type of average , usually used for growth rates, like population growth or interest rates. While the
 arithmetic mean adds items, the geometric mean multiplies items. Also, you can only get the geometric mean for positive
numbers.

Geometric Mean Definition


In Mathematics, the Geometric Mean (GM) is the average value or mean which signifies the central tendency of the set
of numbers by finding the product of their values. Basically, we multiply the numbers altogether and take the nth root
of the multiplied numbers, where n is the total number of data values. For example: for a given set of two numbers
such as 3 and 1, the geometric mean is equal to √(3×1) = √3 = 1.732.

The geometric mean answers the question, “if all the quantities had the same value, what would that value have to be
in order to achieve the same product?” The geometric mean gets its name from the fact that when redistributed in this
way the sides form a geometric shape for which all sides have the same length. To see this, take the example of the
numbers 10, 51.2 and 8. The geometric mean is the product of multiplying these three numbers together (4,096) and
taking the cube root because there are three numbers among which this product is to be distributed. Thus the
geometric mean of these three numbers is 16. This describes a cube 16x16x16 and has a volume of 4,096 units.
Geometric Mean Properties
Some of the important properties of the G.M are:
•The G.M for the given data set is always less than the arithmetic mean for the data set
•If each object in the data set is substituted by the G.M, then the product of the objects remains unchanged.
•The ratio of the corresponding observations of the G.M in two series is equal to the ratio of their geometric means
•The products of the corresponding items of the G.M in two series are equal to the product of their geometric mean.

Application of Geometric Mean


The greatest assumption of the G.M is that data can be really interpreted as a scaling factor. Before that, we have to
know when to use the G.M. The answer to this is, it should be only applied to positive values and often used for the
set of numbers whose values are exponential in nature and whose values are meant to be multiplied together. This
means that there will be no zero value and negative value which we cannot really apply. Geometric mean has a lot
of advantages and it is used in many fields. Some of the applications are as follows:
•It is used in stock indexes. Because many of the value line indexes which is used by financial departments use
G.M.
•It is used to calculate the annual return on the portfolio.
•It is used in finance to find the average growth rates which are also referred to the compounded annual growth
rate.
•It is also used in studies like cell division and bacterial growth etc
Question 2 : Find the geometric mean of the following data.

Weight of ear head x ( g) Log x

45 1.653
60 1.778
48 1.681
100 2.000
65 1.813
Total 8.925
Solution: Here n=5
GM =  Antilog∑logx/n
= Antilog 8.925/5
= Antilog 1.785
= 60.95
Therefore the G.M of the given data is 60.95
Question 3: Find the geometric mean of the following grouped data for the frequency
distribution of weights.

Weights of ear heads (g) No of ear heads (f)


60-80 22
80-100 38
100-120 45
120-140 35
140-160 20
Total 160
Question 3: Find the geometric mean of the following grouped data for the frequency distribution of weights.
Solution:

Weights of No of ear Mid x Log x f log x


ear heads
Weightsheads
of ear(f)heads (g) No of ear heads (f)
(g)
60-80 22
60-80 22 70 1.845 40.59
80-100 38
80-100 38 90 1.954 74.25
100-120 45
100-120 45 110 2.041 91.85
120-140 35
120-140 35 130 2.114 73.99
140-160 20
140-160 20 150 2.176 43.52
Total 160
Total 160 324.2
From the given data, n = 160
We know that the G.M for the grouped data is
GM = Antilog∑flogx/n
GM = Antilog ( 324.2 /160 )
GM = Antilog ( 2.02625 )
GM = 106.23
Therefore, the G.M = 106.23
Harmonic Mean Definition
The Harmonic Mean (HM) is defined as the reciprocal of the average of the reciprocals of the data values. It is based
on all the observations, and it is rigidly defined. Harmonic mean gives less weightage to the large values and large
weightage to the small values to balance the values correctly. In general, the harmonic mean is used when there is a
necessity to give greater weight to the smaller items.

Harmonic Mean Formula


Since the harmonic mean is the reciprocal of the average of reciprocals, the formula to define the harmonic mean
“HM” is given as follows:
If x1, x2, x3,…, xn are the individual items up to n terms, then,
Harmonic Mean, HM = n / [(1/x1)+(1/x2)+(1/x3)+…+(1/xn)]

How to Find a Harmonic Mean?


If a, b, c, d, … are the given data values, then the steps to find the harmonic mean are as follows:
Step 1: Calculate the reciprocal of each value (1/a, 1/b, 1/c, 1/d, …)
Step 2: Find the average of reciprocals obtained from step 1.
Step 3: Finally, take the reciprocal of the average obtained in step 2.
Harmonic Mean Uses
The main uses of harmonic means are as follows:
•The harmonic mean is applied in the finance to the average multiples like price-earnings ratio
•It is also used by the market technicians in order to determine the patterns like Fibonacci Sequences

Merits and Demerits of Harmonic Mean


The following are the merits of the harmonic mean:
•It is rigidly confined.
•It is based on all the views of a series, i.e. it cannot be computed by ignoring any item of a series.
•It is able to advance the algebraic method.
•It provides a more reliable result when the results to be achieved are the same for the various means adopted.
•It provides the highest weight to the smallest item of a series.
•It can also be measured when a series holds any negative value.
•It produces a skewed distribution of a normal one.
•It produces a curve straighter than that of the A.M and G.M.

The demerits of the harmonic series are as follows:


•The harmonic mean is greatly affected by the values of the extreme items
•It cannot be able to calculate if any of the items is zero
•The calculation of the harmonic mean is cumbersome, as it involves the calculation using the reciprocals of the
Example 2:
Calculate the harmonic mean for the following data:
x 1 3 5 7 9 11
f 2 4 6 8 10 12

Solution:
The calculation for the harmonic
mean is shown in the below table:
x f 1/x f/x
1 2 1 2
3 4 0.333 1.332
5 6 0.2 1.2
7 8 0.143 1.144
9 10 0.1111 1.111
11 12 0.091 1.092
N =42 Σ f/x = 7.879
The formula for weighted harmonic mean is
HMw = N / [ (f1/x1) + (f2/x2) + (f3/x3)+ ….(fn/xn) ]
HMw = 42 / 7.879
HMw = 5.331
Therefore, the harmonic mean, HMw is 5.331.

What is the relationship between AM, GM, and HM?


If AM, GM, and HM are the arithmetic mean, geometric
mean and harmonic mean, respectively, then the
relationship between AM, GM and HM is GM2 = AM × HM
Median, in statistics, is the middle value of the given list of data, when arranged in an order. The arrangement of
data or observations can be done either in ascending order or descending order. 
Example: The median of 2,3,4 is 3.
In Maths, the median is also a type of average, which is used to find the center value. Therefore, it is also called 
measure of central tendency. 
Apart from the median, the other two central tendencies are mean and mode. Mean is the ratio of sum of all
observations and total number of observations. Mode is the value in the given data-set, repeated most of the time.
Learn more:
•Mean
•Mode
In geometry, a median is also defined as the center point of a polygon. For example, the median of a triangle is the
line segment joining the vertex of triangle to the center of the opposite sides. Therefore, a median bisects the
sides of triangle.
Median in Statistics
The median of a set of data is the middlemost number or
center value in the set. The median is also the number that
is halfway into the set.
To find the median, the data should be arranged, first, in
order of least to greatest or greatest to the least value. A
median is a number that is separated by the higher half of
a data sample, a population or a probability distribution,
from the lower half. The median is different for different
types of distribution. 
For example, the median of 3, 3, 5, 9, 11 is 5. If there is an even number of observations, then there is no single middle
value; the median is then usually defined to be the mean of the two middle values: so the median of 3, 5, 7, 9 is (5+7)/2
= 6.
Median Formula
The formula to calculate the median of the finite number
of data set is given here. Median formula is different for
even and odd numbers of observations. Therefore, it is
necessary to recognise first if we have odd number of
values or even number of values in a given data set.
The formula to calculate the median of the data set is
given as follow.
Odd Number of Observations
If the total number of observation given is odd, then the
formula to calculate the median is:
Median = {(n+1)/2}thterm
where n is the number of observations
Even Number of Observations
If the total number of observation is even, then the median
formula is:
Median  = [(n/2)th term + {(n/2)+1}th]/2
where n is the number of observations
How to Calculate the Median?
To find the median, place all the numbers in the ascending order and find the middle.
Example 1:
Find the Median of 14, 63 and 55
solution:
Put them in ascending order: 14, 55, 63
The middle number is 55, so the median is 55.
Example 2:
Find the median of the following:
4, 17, 77, 25, 22, 23, 92, 82, 40, 24, 14, 12, 67, 23, 29
Solution:
When we put those numbers in the order we have:
4, 12, 14, 17, 22, 23, 23, 24, 25, 29, 40, 67, 77, 82, 92,
There are fifteen numbers. Our middle is the eighth number:
The median value of this set of numbers is 24.
Example 3:
Rahul’s family drove through 7 states on summer
vacation. The prices of Gasoline differ from state to state.
Calculate the median of gasoline cost.
1.79, 1.61, 2.09, 1.84, 1.96, 2.11, 1.75
Solution:
By organizing the data from smallest to greatest, we get:
1.61, 1.75, 1.79, 1.84 , 1.96, 2.09, 2.11
Hence, the median of the gasoline cost is 1.84. There are
three states with greater gasoline costs and 3 with
smaller prices.
In statistics, the mode is the value which is repeatedly occurring in a given set. We can also say that the value or
number in a data set, which has a high frequency or appears more frequently is called mode or modal value. It is one
of the three measures of central tendency, apart from mean and median.
For example, mode of the set {3, 7, 8, 8, 9}, is 8. Therefore, for a finite number of observations, we can easily find the
mode. A set of values may have one mode or more than one mode or no mode at all.
Definition
A mode is defined as the value that has a higher frequency in a given set of values. It is the value that appears the
most number of times. 
Example: In the given set of data: 2, 4, 5, 5, 6, 7, the mode of the data set is 5 since it has appeared in the set twice.
Statistics deals with the presentation, collection and analysis of data and information for a particular purpose. To
represent this data, we use tables, graphs, pie-charts, bar graphs, pictorial representation and so on. After the proper
organization of the data, it must be further analyzed to infer some useful information from it.
For this purpose, frequently in statistics, we tend to represent a set of data by a representative value which would
roughly define the entire collection of data. This representative value is known as the measure of central tendency. By
the name itself, it suggests that it is a value around which the data is centred. These measures of central tendency
allow us to create a statistical summary of the vast organized data. One such measure of central tendency is the
mode of data.
Example: In the given set of data: 2, 4, 5, 5, 6, 7, the mode of the data set is 5 since it has appeared in the set twice.
Bimodal, Trimodal & Multimodal (More than one mode)
•When there are two modes in a data set, then the set is
called bimodal
For example, The mode of Set A = {2,2,2,3,4,4,5,5,5} is 2
and 5, because both 2 and 5 is repeated three times in the
given set.
•When there are three modes in a data set, then the set is
called trimodal
For example, the mode of set A = {2,2,2,3,4,4,5,5,5,7,8,8,8}
is 2, 5 and 8
•When there are four or more modes in a data set, then
the set is called multimodal
Mode Formula
In the case of grouped frequency distribution, calculation of
mode just by looking into the frequency is not possible. To
determine the mode of data in such cases we calculate the
modal class. Mode lies inside the modal class. The mode of
data is given by the formula:
Where,
l = lower limit of the modal class
h = size of the class interval
f1 = frequency of the modal class
f0 = frequency of the class preceding the modal class
f2 = frequency of the class succeeding the modal class
Let us take an example to understand this clearly.
Finding the Mode
Let us learn here how to find the mode of a given data with the help of examples.
Example 1: Find the mode of the given data set: 3, 3, 6, 9, 15, 15, 15, 27, 27, 37, 48.
Solution:  In the following list of numbers,
3, 3, 6, 9, 15, 15, 15, 27, 27, 37, 48
15 is the mode since it is appearing more number of times in the set compared to other numbers.
Example 2: Find the mode of 4, 4, 4, 9, 15, 15, 15, 27, 37, 48 data set.
Solution: Given: 4, 4, 4, 9, 15, 15, 15, 27, 37, 48  is the data set.
As we know, a data set or set of values can have more than one mode if more than one value occurs with equal
frequency and number of time compared to the other values in the set.
Hence, here both the number 4 and 15 are modes of the set.
Example 3: Find the mode of 3, 6, 9, 16, 27, 37, 48.
Solution: If no value or number in a data set appears more than once, then the set has no mode.
Hence, for set 3, 6, 9, 16, 27, 37, 48, there is no mode available.
Mode of Grouped Data
Example 4: In a class of 30 students marks obtained by students in mathematics out of 50 is tabulated as below.
Calculate the mode of data given.
Solution:
The maximum class frequency is 12 and the class interval
corresponding to this frequency is 20 – 30. Thus, the
modal class is 20 – 30.
Lower limit of the modal class (l) = 20
Size of the class interval (h) = 10
Frequency of the modal class (f1) = 12
Frequency of the class preceding the modal class (f0) = 5
Frequency of the class succeeding the modal class (f2)= 8
Substituting these values in the formula we get;
Mean Median Mode Comparison

Mean Median Mode

Mean is the average


value that is equal to
the ration of sum of Median is the central Mode is the most
values in a data set and value of given set of repetitive value of a
total number of values. values when arranged
Mean = Sum of in an order. given set of values.
observations/Number
of observations

For example, if we have set of values = 2,2,3,4,5, then;

Mean = (2+2+3+4+5)/5 Median = 3 Mode = 2


= 3.2
Mean Median Mode
Let us see an example here to find mean, median and
mode of the observations.
For example, 2,6,9,12,12 is the given set of data
Thus,
Median = Middle Value = 9
Mean = Sum of observations/Number of observations =
(2+7+9+12+12)/5 = 41/5 = 8.2
Mode = Value repeated most number of times = 12
THANK YOU

You might also like