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    Central Tendency

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    Devyansh Gupta
    This document discusses various measures of central tendency including median, mode, quartiles, percentiles and deciles. It provides definitions and examples of each term. The key learning outcome is to use different central tendency measures to describe the characteristics of a data set. Median is defined as the middle value that splits the data in half. Mode is the most frequently occurring value. Quartiles divide the data into four equal parts. Percentiles and deciles partition the data into 100 and 10 equal parts respectively. The document also discusses advantages and disadvantages of each measure.

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    Central Tendency

    Uploaded by

    Devyansh Gupta
    24 views32 pages
    This document discusses various measures of central tendency including median, mode, quartiles, percentiles and deciles. It provides definitions and examples of each term. The key learning outcome is to use different central tendency measures to describe the characteristics of a data set. Median is defined as the middle value that splits the data in half. Mode is the most frequently occurring value. Quartiles divide the data into four equal parts. Percentiles and deciles partition the data into 100 and 10 equal parts respectively. The document also discusses advantages and disadvantages of each measure.

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    This document discusses various measures of central tendency including median, mode, quartiles, percentiles and deciles. It provides definitions and examples of each term. The key learning outcome is to use different central tendency measures to describe the characteristics of a data set. Median is defined as the middle value that splits the data in half. Mode is the most frequently occurring value. Quartiles divide the data into four equal parts. Percentiles and deciles partition the data into 100 and 10 equal parts respectively. The document also discusses advantages and disadvantages of each measure.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    24 views32 pages

    Central Tendency

    Uploaded by

    Devyansh Gupta
    This document discusses various measures of central tendency including median, mode, quartiles, percentiles and deciles. It provides definitions and examples of each term. The key learning outcome is to use different central tendency measures to describe the characteristics of a data set. Median is defined as the middle value that splits the data in half. Mode is the most frequently occurring value. Quartiles divide the data into four equal parts. Percentiles and deciles partition the data into 100 and 10 equal parts respectively. The document also discusses advantages and disadvantages of each measure.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 32

    Lecture 7

    QTTM509
    RESEARCH
    METHODOLOGY- I
    QTTM509 – RESEARCH METHODOLOGY-I

    Lecture Plan
     Median and mode
     Quartiles
     Percentile and Deciles
    QTTM509 – RESEARCH METHODOLOGY-I

    Learning Outcome
    • To use several methods belonging to measures of central tendency to describe
    the characteristics of a data set.
    QTTM509 – RESEARCH METHODOLOGY-I

    Let’s recall…

    Suppose that a marketing firm conducts a survey of 1,000 households to

    determine the average number of TVs each household owns. The data show a

    large number of households with two or three TVs and a smaller number with

    one or four. Every household in the sample has at least one TV and no household

    has more than four. What kind of mean needs to be calculated and why?
    QTTM509 – RESEARCH METHODOLOGY-I

    Median
    • Middle value
    • Value that splits the dataset
    in half

    To find the median, order your


    data from smallest to largest,
    and then find the data point
    that has an equal amount of
    values above it and below it.
    QTTM509 – RESEARCH METHODOLOGY-I

    • Middle value
    • Value that splits the
    dataset in half

    To find the median, order


    your data from smallest to
    largest, and then find the data
    point that has an equal
    amount of values above it
    and below it.
    QTTM509 – RESEARCH METHODOLOGY-I

    When there is an even number of


    values, you count in to the two
    innermost values and then take
    the average. The average of 27
    and 29 is 28. Consequently, 28 is
    the median of this dataset.
    QTTM509 – RESEARCH METHODOLOGY-I

    Outliers and skewed data have a smaller effect on the


    median.
    QTTM509 – RESEARCH METHODOLOGY-I

    Advantages
    1. Median is unique
    2. Value of median is easy to understand and may be calculated from any type of
    data
    3. Extreme values in the data set do not affect the median value, and therefore it
    is useful measure of central tendency when extreme values in the data set
    occur
    4. The median is useful to study the qualitative attribute of an observation in the
    data set
    5. The median value can also be calculated for open-ended class intervals in the
    data set
    QTTM509 – RESEARCH METHODOLOGY-I

    Disadvantages
    1. Not capable of algebraic operations
    2. Value of median is affected more by sampling variations i.e it is affected by
    the number of observations rather than the values of the observations
    3. Since median is an average of position, therefore arranging the data in
    ascending or descending order of magnitude is time consuming in case of
    large number of observations.
    QTTM509 – RESEARCH METHODOLOGY-I

    Polling question
    QTTM509 – RESEARCH METHODOLOGY-I

    If the number of observation is even, the median is in the middle of


    the distribution
    a. True
    b. False
    QTTM509 – RESEARCH METHODOLOGY-I

    Let’s do hands on
    QTTM509 – RESEARCH METHODOLOGY-I

    Objective: To learn how salaries are distributed across all 2011 MLB players.
    Solution: Data set contains data on 843 Major League Baseball players in the
    Example 2011 season.
    Variables are player’s name, team, position, and salary.
    Baseball Salaries
    Create summary measures of central tendency of baseball salaries using Excel.

    2011.xlsx
    QTTM509 – RESEARCH METHODOLOGY-I

    Mode
    • A measure of location recognized by the location of the most
    frequently occurring value of a set of data.
    • The concept of mode is of great use to large scale
    manufacturers of consumable items such as ready-made
    garments, shoe-makers, and so on. In all such cases it is
    important to know the size that fits most persons rather than
    ‘mean’ size.
    QTTM509 – RESEARCH METHODOLOGY-I

    • average man prefers . . . brand of trousers


    • average production of an item in a month
    • average service time at the service counter

    The mode is a poor measure of


    central tendency when most
    frequently occurring
    Values of an observation do not
    appear close to the center of the
    data.
    QTTM509 – RESEARCH METHODOLOGY-I

    Let’s
    find
    mode
    QTTM509 – RESEARCH METHODOLOGY-I

    Advantages

    1. Easy to understand and calculate


    2. Not affected by the extreme values in the distribution
    3. Mode can be used to describe quantitative as well as qualitative data.
    For example its value is used for comparing consumer preferences for
    various types of products, say cigarettes, soaps, toothpastes, or other
    products
    QTTM509 – RESEARCH METHODOLOGY-I

    Disadvantages

    1. Mode is not a rigidly defined measure as there are several methods of


    calculating its value.
    2. Not suitable for algebraic manipulations
    3. When data sets contains more than one mode, such values are difficult
    to interpret and compare.
    QTTM509 – RESEARCH METHODOLOGY-I

    Relationship

    Mean – Mode = 3 (Mean – Median)


    Mode = 3 Median – 2 Mean
    Mean > Median > Mode ::: Positively Skewed
    Mean < Median < Mode ::: Negatively Skewed
    QTTM509 – RESEARCH METHODOLOGY-I

    Partition Values
    Measures of central tendency which
    are used for dividing the data into
    several equal parts are called as
    partition values
    QTTM509 – RESEARCH METHODOLOGY-I

    Partition Values and role of


    Outliers
    Quartiles -- dividing data into four equal parts. It don’t shows the middle part of
    any quarter but show where it ends.
    QTTM509 – RESEARCH METHODOLOGY-I

    Data must be in ascending


    order for diagram clarity.

    100%

    75%

    50%

    25%
    QTTM509 – RESEARCH METHODOLOGY-I
    QTTM509 – RESEARCH METHODOLOGY-I

    Q1= N/4

    Quartile
    Q2= 2N/4
    Median
    value

    Q3= 3N/4
    QTTM509 – RESEARCH METHODOLOGY-I
    QTTM509 – RESEARCH METHODOLOGY-I

    Hundred
    Four equal
    equal
    parts
    parts

    Ten equal
    parts

    Percentile
    Quartile

    Decile
    QTTM509 – RESEARCH METHODOLOGY-I
    QTTM509 – RESEARCH METHODOLOGY-I
    QTTM509 – RESEARCH METHODOLOGY-I

    Polling question
    QTTM509 – RESEARCH METHODOLOGY-I

    The measure of central tendency which is most strongly influenced by extreme


    values in the ‘tail’ of the distribution is:

    Let’s
    a) Mean
    b) Median

    Poll
    c) Mode
    d) None of the above
    MKT503 – MARKETING MANAGEMENT

    Thank You

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