CH 3
CH 3
Unit Three
Measures of Central Tendency
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2 objectives
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3 Recall Properties of Summation
c is constant
= ,
=
Example: If
Find
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4 Mean
Arithmetic mean ():
Definition
For, …,
, …, , then the mean becomes
, …, , then the mean becomes
Combined mean
If
=> combined mean =
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5 Mean …
Weighted Mean:
Geometric Mean:
For averages of %, Growth rates, proportions …
For
…
GM = with
Harmonic
Relationships: Mean:
For averages
1. For two observations of rate, Price/Earnings
3. For constant
observations:
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6 Example
For the data: 2, 8,6,4,10,6,8,4
Find 8/1.68 = 4.7525
Athematic mean
Geometric mean and
Harmonic Mean Example: Suppose you get an increment of 50%, 40% and
70% in your salary at the end of first, 2nd and 3rd year
Sol: Values 2 4 6 8 10 Total
respectively. If your initial salary is 100USD,
Frequency 1 2 2 2 1 8=N
a) what is the average increase in your salary?
b) what is your salary at the end of 3rd year salary?
=48/8 =6
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8 Mode
Most Frequently Occurring Value/or values
For ungrouped data-take the value with highest frequency by inspection
For Grouped data
-
=-
Example: Find the mode for
Butter Fats in kgs 40-44 45-49 50-54 55-59 60-64 65-69 70-74
(53.03) Number of cows 7 10 22 15 12 6 3
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9
Important Characteristics of a Good MCT
It Should be
Easy to calculate and understand (interpret).
Based on all the observations during computation.
Rigidly defined. Clear and Unambiguous
Representative of the data based on random sample.
Resistant to sampling fluctuation sampling stability.
Resistant to extreme value.
Capable for further statistical analysis and /or algebraic manipulation.
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10 Quantiles
Quartiles: Partitions the data in to 4 equal parts – Needs ordered data
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