Measures of Central Tendency-

Mode (Lecture-4)
By
Dr. Ajay Singh
ABES Business School, Ghaziabad
 MODE

 The mode of a data set is the value that occurs with greatest
frequency.
 The greatest frequency can occur at two or more different values.

 If the data have exactly two modes, the data are bimodal.
 If the data have more than two modes, the data are multimodal.

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 MODE

450 occurred most frequently (7 times)

Mode = 450
425 430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615

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MODE(GROUPED DATA)
Mode = l + fm−fm-1 *h
(2fm−fm-1−fm+1)

L=lower limit of modal class interval(CI)

fm=frequency of modal CI
fm-1=frequency of CI prior to modal CI
fm+1=frequency of CI following to modal CI
H=width of CI
EXAMPLE1-
Sales in Rs(lakhs) 58-60 60-62 62-64 64-66 66-68 68-70 70-72

No. of companies 12 18 25 30 10 3 2

Calculate the modal sales of the 100 companies from the following data
SOLUTION
Sales in Rs(lakhs) No. of companies
58-60 12
60-62 18
62-64 25 Prior modal class
64-66 30 Highest Frequency-
Modal Class
66-68 10 Following Modal
Class
68-70 3
70-72 2

Mode = l + [ fm−fm-1/ (2fm−fm-1−fm+1)]*h

Mode = 64+{(30-25)/2*30-25-10)}*2

Mode=64.4
PRACTICE QUESTION-1

Compute mean, median and mode from the following data:

Income (More than in Rs): 1000 2000 3000 4000 5000 6000 7000 8000
Number of Persons : 72 67 59 50 36 29 4 2
 Relationship Between Mean, Median, and Mode

Median = Mean = Mode Mode Median Mean Mean Median Mode

(a) Symmetrical (b) Skewed to the Right (c) Skewed to the Left

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 Relationship between mean, median, and mode

In an asymmetrical distribution most of the values of observations fall either

to the right or to the left of the mode. For such asymmetrical distribution
(skewed distribution ) Karl Pearson suggested a relationship between these
three summary measures as:
Mean – Mode = 3 (Mean – Median)
Mode = 3 Median – 2 Mean

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PARTITION VALUES- QUARTILES,
DECILES AND PERCENTILES
 Quartile-The values which divide an ordered data set
into 4 equal parts. The 2nd quartile is the median

 Deciles- The values which divide an ordered data set into

10 equal parts. The 5th decile is the median

 Percentiles-The values which divide an ordered data set

into 100 equal parts. The 50th percentile is the median
Quartiles
The values of observations in a data set, when arranged in an ordered
sequence, can be divided into four equal parts using three quartiles, Q 1,
Q2, and Q3.
 First quartile Q1 divides a data set where 25 per cent ( = n/4) of
observations have a value less than Q1 and 75 per cent (= 3n/4) have a
value more than Q1, i.e. Q1 is the median of the ordered values .

 Value of quartiles for grouped data :

wherec f = cumulative frequency prior to the quartile class

interval
l = lower limit of the quartile class interval 11
f = frequency of the quartile class interval
 Third quartile = 75th percentile
i = (p/100)X n = (75/100)X 70 = 52.5 = 53 th value
Third quartile = 525
425 430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615

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 Deciles
The values of observations in a data set when arranged in an ordered
sequence can be divided into ten equal parts, using nine deciles, D i (i = 1,
2, . . ., 9).
 Value of deciles for grouped data :

where the symbols have their usual meaning and interpretation.

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 Percentiles
The values of observations in a data when arranged in an ordered sequence
can be divided into hundred equal parts using ninety nine percentiles, P i (i =
1, 2, . . ., 99).
 In general, percentile , i represents per cent of the data values at or
below it .
 Formula for calculating percentiles in case of grouped data is

where the symbols have their usual meaning and interpretation.

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 Eighty Percentile
At least 80% of the items take on a value of 542 or less.

56/70 = 0.8 or 80%

425 430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615

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 EIGHTY PERCENTILE

i = (p/100)n = (80/100)70 = 56 ; Averaging 56 and 57 values:

th th

80th Percentile = (535 + 549)/2 = 542

425 430 430 435 435 435 435 435 440 440
440 440 440 445 445 445 445 445 450 450
450 450 450 450 450 460 460 460 465 465
465 470 470 472 475 475 475 480 480 480
480 485 490 490 490 500 500 500 500 510
510 515 525 525 525 535 549 550 570 570
575 575 580 590 600 600 600 600 615 615

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NUMERICAL
 The following distribution gives the pattern of overtime
work per week done by 100 employees of a company.
Calculate median,first quartile and seventh decile.
Overtime hours:10-15 15-20 20-25 25-30 30-35 35-40
No. of Employees 11 20 35 20 8 6
Calculate Q1,D7 and P60.
SOLUTION
CI No.of Employees(f) cf
10-15 11 11
15-20 20 31 Q1 class
20-25 35 66 Median Class
25-30 20 86 D7 class
30-35 8 94
35-40 6 100

Median n/2 50
Quartile n/4 25
Decile 7n/10 70

Median=l+{(n/2)-cf}/f*h
Median=20+((50-31)/35)*5
22.71
Q1=l+{(n/4)-cf}/f*h
Q1=15+((25-11)/20)*5
18.5
P60=24.15 D7=l+{i(n/10)-cf}/f*h
D7=25+((70-66)/20)*5
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PRACTISE QUESTION
 The length of time taken by each of 18 workers to
complete a specific job was observed to be in the
following:
Time(in min): 5-9 10-14 15-19 20-24 25-29
No. of workers: 3 8 4 2 1
a. Calculate the median time. ( Ans 13.25)

b. Calculate Q1 and Q3. (Ans Q3=17.6, Q1=10.4)

HOME ASSIGNMENT
 Calculate Q1,Q3 and mode from the following
data(17.2,39,25.6)
 Profit per shops : 0-10 10-20 20-30 30-40 40-50 50-60

 No. of shops: 12 18 27 20 17 6

 Calculate Q2, Q3 and mode from the following

data(35,47.5,40)
 Age(Less than): 10 20 30 40 50 60 70 80

 No. of Persons: 15 30 50 75 100 110 115 125

THANK YOU !!