Abstract

I am pleased to submit this project assignment for 12th Commerce Business Mathematics to the
given by the CBSE. This project gave me an ample opportunity to disclose the importance and
explainanton of different statistical average which is mean , median and mode. Which shows the
application and uses of these statistical average in day to day life with an example
 Content
SL NO PARTICULARS PAGE NO

1 INTRODUCTION 4

2 5
ARITHMATIC MEAN

3 MEDIAN 6
4 MODE 7

5 APPLICATION OF MEAN MEDIAN MODE 8

6 DISCUSSION & SOLUTION 9

7 CONCLUSION 10

8 REFERENCES 11
 Introduction
Mean, median and mode describe different characteristics of a data set. The mean is the sum of
the values divided by the number of values. The median is the middle value when the data is
sorted. If the number of values is even, the median is the average of the two middle values.
The mode is any value that occurs most frequently in the set; there may be more than one mode.
The average of a data set usually refers to the mean, though representative values such as median
or mode are sometimes referred to as averages. Add an extra value to the list of data to find out
how it affects these results. Generate a new set of random numbers by changing the random seed.

Objective of the study

 ARITHMATIC MEAN
The arithmetic mean is the simplest and most widely used measure of a mean, or average. It
simply involves taking the sum of a group of numbers, then dividing that sum by the count of the
numbers used in the series. In addition to mathematics and statistics, the arithmetic mean is used
frequently in many diverse fields such as economics, anthropology, and history, and it is used in
almost every academic field to some extent. For example, per capita income is the arithmetic
average income of a nation's population.

While the arithmetic mean is often used to report central tendencies, it is not a robust statistic,
meaning that it is greatly influenced by outliers (values that are very much larger or smaller than
most of the values). Notably, for skewed distributions, such as the distribution of income for
which a few people's incomes are substantially greater than most people's, the arithmetic mean
may not coincide with one's notion of "middle", and robust statistics, such as the median, may be
a better description of central tendency.

For example, take 34, 44, 56 and 78. The sum is 212. The arithmetic mean is 212 divided by
four, or 53.

People also use several other types of means, such as the geometric mean and harmonic mean,
which comes into play in certain situations in finance and investing. Another example is
the trimmed mean, used when calculating CPI and CPE. he arithmetic mean maintains its place
in finance, as well.

 The arithmetic mean (average) is the sum of a series of numbers divided by the count of
that series of numbers.
 In the world of finance, the arithmetic mean is not usually an appropriate method for
calculating an average.
 However, the arithmetic mean isn't always ideal, especially when a single outlier can
skew the mean by a large amount.
 MEDIAN

The median is the middle number in a sorted, ascending or descending, list of numbers and can
be more descriptive of that data set than the average.

Median is the middle number in a sorted list of numbers. To determine the median value in a
sequence of numbers, the numbers must first be sorted, or arranged, in value order from lowest
to highest or highest to lowest. The median can be used to determine an approximate average,
or mean, but is not to be confused with the actual mean.

 If there is an odd amount of numbers, the median value is the number that is in the
middle, with the same amount of numbers below and above.
 If there is an even amount of numbers in the list, the middle pair must be determined,
added together, and divided by two to find the median value.

The median is sometimes used as opposed to the mean when there are outliers in the sequence
that might skew the average of the values. The median of a sequence can be less affected by
outliers than the mean

 The median is the middle number in a sorted, ascending or descending, list of numbers
and can be more descriptive of that data set than the average.

 The median is sometimes used as opposed to the mean when there are outliers in the
sequence that might skew the average of the values.

 If there is an odd amount of numbers, the median value is the number that is in the
middle, with the same amount of numbers below and above.

 If there is an even amount of numbers in the list, the middle pair must be determined,
added together, and divided by two to find the median value.
 MODE

The mode is the number that appears most frequently in a set. A set of numbers may have one
mode, more than one mode, or no mode at all. Other popular measures of central tendency
include the mean, or the average (mean) of a set, and the median, the middle value in a set. In
statistics, data are distributed in various ways. The most often cited distribution is the
classic normal (bell-curve) distribution. In this, and some other distributions, the mean (average)
value falls at the mid-point, which is also the peak frequency of observed values. For such a
distribution, this value is also the mode—the most frequently occurring value in the data.

In other distributions, the most frequent value may differ from the modal value. For instance, the
average frequency of people born with six fingers is around 0.2%, but the mode is zero since the
most common outcome is five fingers.

 In statistics, the mode is the most commonly observed value in a set of data.
 For the normal distribution, the mode is also the same value as the mean and median.
 In many cases, the modal value will differ from the average value in the data
Advantages and Disadvantages of the Mode
Advantages:

 The mode is easy to understand and calculate.

 The mode is not affected by extreme values.
 The mode is easy to identify in un-grouped data and discrete frequency distribution.
 The mode is useful for qualitative data.
 The mode can be computed in an open-ended frequency table.
 The mode can be located graphically.

Disadvantages:

 The mode is not well defined.

 The mode is not based on all values.
 The mode is stable for large values and will not be well defined if the data consist of a
small number of values.
 APPLICATION OF MEAN MEDIAN MODE

 Mean, median & mode shows different perspective of same data.

 Mean gives average of the data. All data is given equal importance. It is used in case
where all data is important. E.g. Average salary of employees in an organization
 Median is used to find middle most data. It is used to determine a point from where 50%
of data is more & 50% data is less. It is used where extreme cases can be ignored. E.g.
To find the performance of a cricketer where his worst & best extreme performance can
be ignored to give his consistent performance.
 Mode is used where we need to find the most frequent data. E.g. if we need to find the
most favorite Subject of students in a given class, mode can be used.
 DISCUSSION & SOLUTION

Find the mean, median, mode, and range for the following list of values: 13, 18, 13, 14, 13, 16,
14, 21, 13

Solution: The mean is the usual average, so we’ll add and then divide:
(13 + 18 + 13 + 14 + 13 + 16 + 14 + 21 + 13) ÷ 9 = 15

Note that the mean, in this case, isn’t a value from the original list. This is a common result. You
should not assume that your mean will be one of your original numbers.

The median is the middle value, so first we’ll have to rewrite the list in numerical order:

13, 13, 13, 13, 14, 14, 16, 18, 21

There are nine numbers in the list, so the middle one will be the (9 + 1) ÷ 2 = 10 ÷ 2 = 5th
number:

13, 13, 13, 13, 14, 14, 16, 18, 21

So the median is 14.

The mode is the number that is repeated more often than any other, so 13 is the mode, since 13 is
being repeated 4 times.

The largest value in the list is 21, and the smallest is 13, so the range is 21 – 13 = 8.

Mean: 15 |median: 14 |mode: 13

|range: 8
 CONCLUSION

According to Professor W.H. Ripatril, A project is a whole-hearted purposeful activity

proceeding in a social environment. A project from the point of view of student can be
purposeful learning activity including practical problem, planned and carried out in a real-life
manner to achieve specific goal. The project had been useful in understanding in the
significances

 Sttastical studies provide tools for squeezing information of tha data

 A measure of central tendency provide information about typical or average values of a
data set.
 Mean, median, mode are the most commonly used measures of central tendency
 The value of a mean is influenced by all observation of a data.
 REFERENCES

 BOOKS; -
1. Digambar & Jain: ELEMENTS OF BUSINESS MATHMETICS & STATISTICS: 2.1-
2.10
2. 2016: ELEMENTS OF MAHMETICS: III/3.1-III-3.9

 ARTICLES:
1. BUSINESS TODAY
2. BUSINESS & ECONOMY

 WEBSITES: -
1. https: //linkedin.in
2. https ://Investopedia.com
3. https ://ncert.nic.in