STA101: Lesson Note 6

Analyzing Data: Measure of Central Tendency (Measure of Location)

Grouped data:

Formulas: Mean

Xi fi
X1 f1
X2 f2
… …
XK fK
For population: Let, X1, X2, …, XK are values of a variable from a population of size N and they
occurred f1, f2, …, fK times respectively. Then,
∑𝐾𝑖=1 𝑓𝑖 𝑋𝑖
𝑃𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝑚𝑒𝑎𝑛, 𝜇 =
𝑁
For sample: Let, x1, x2, …, xk are values of a variable from a sample of size n and they occurred f1,
f2, …, fk times respectively. Then,
∑𝑘𝑖=1 𝑓𝑖 𝑥𝑖
𝑆𝑎𝑚𝑝𝑙𝑒 𝑚𝑒𝑎𝑛, 𝑥̅ =
𝑛

Formula: Median
𝑛
−𝐹
𝑀𝑒𝑑𝑖𝑎𝑛 = 𝐿𝑚 + 2 ∗𝑐
𝑓𝑚
Where,
L = Lower class limit of the median class
m
n= Total frequency
F= Cumulative frequency of the pre-median class
f = frequency of the median class
m
c= class interval

STA101 (Introduction to Statistics) _Lesson Note 6_Fall 2022

Formulas: Mode
Δ1
𝑀𝑜𝑑𝑒 = 𝐿𝑜 + ∗𝑐
Δ1 + Δ2
Where,
Lo = Lower class limit of the modal class
∆1 = Excess of modal frequency over frequency of the next lower class (Pre-modal class) =
difference between the frequencies of the modal class and pre-modal class.
∆2 = Excess of modal frequency over frequency of the next higher class (Post-modal class) =
difference between the frequencies of the modal class and post-modal class.
c= class interval

Example:

We have the historical data set of Netflix Inc. (NFLX) from the NASDAQ Stock Exchange for
the period of May 1, 2020 to July 15, 2020. (Source: www.investing.com).

415 418 428 429 437 434 436 442 436 445
441 451 453 454 449 437 428 410 417 417
419 426 427 422 407 416 422 436 428 429
421 426 442 449 449 455 467 469 459 466
445 450 454 486 481 497 499 508 520 568
517 516

Example (grouped data)

Opening Price (USD) No. of days

400-430 19
430-460 21
460-490 5
490-520 6
520-550 0
550-580 1

Find Mean, Median and Mode. Interpret the results

STA101 (Introduction to Statistics) _Lesson Note 6_Fall 2022

Solution:

MEAN:

No. of days (fi) Class Midpoint (xi) fixi

Opening Price (USD)
400-430 19 415 (19*415) = 7885
430-460 21 445 (21*445) = 9345
460-490 5 475 (5*475) = 2375
490-520 6 505 (6*505) = 3030
520-550 0 535 (0*535) = 0
550-580 1 565 (1*565) = 565
Total 52 23200

∑𝑘𝑖=1 𝑓𝑖 𝑥𝑖 23200
𝑀𝑒𝑎𝑛, 𝑥̅ = = = 446.15 𝑈𝑆𝐷
𝑛 52

Interpretation:

On an average Netflix Inc. stocks market opening price during the period (May 1, 2020 to July
15, 2020) is 446.15 USD.

STA101 (Introduction to Statistics) _Lesson Note 6_Fall 2022

 Opening Price No. of days (fi) Cumulative
(USD) frequency
400-430 19 19 (<= 19) MEDIAN:
430-460 21 40 (20-40)
460-490 5 45 (41-45)
Steps:
490-520 6 51 (46-51)
Step 1: Compute the Cumulative
520-550 0 51 --- Frequency cy
550-580 1 52 (51-52) 𝑛
Step 2: Determine 2 value, one half of the
Total 52 --- 𝟓𝟐
total number of cases. Here =26
𝟐

Step 3: Locate the median class. As 26 is less than the cumulative frequency value of 430-460
class so

Median class 430-460.

𝐿𝑚 = 430; 𝐹 = 19; 𝑓𝑚 = 21; 𝑐 = 460 − 430 = 30

𝑛
−𝐹 26 − 19
𝑀𝑒𝑑𝑖𝑎𝑛 = 𝐿𝑚 + 2 ∗ 𝑐 = 430 + ∗ 30 = 440 𝑈𝑆𝐷
𝑓𝑚 21

Interpretation:

In that period 50% of the trade days start the market with opening price less than or equal to 440
USD and 50% of the trade days start the market with opening price higher than or equal to 440
USD.

STA101 (Introduction to Statistics) _Lesson Note 6_Fall 2022

MODE:

Opening Price (USD) No. of days

400-430 19
430-460 21
460-490 5
490-520 6
520-550 0
550-580 1

Modal Class 430-460 (As it has the Maximum Frequency)

Δ1= 21-19 =2

Δ2 = 21-5= 16

𝑐 = 460-430= 30

Δ1 2
𝑀𝑜𝑑𝑒 = 𝐿𝑜 + ∗ 𝑐 = 430 + ∗ 30 = 433. 33 𝑈𝑆𝐷
Δ1 + Δ2 2 + 16

Interpretation:

Comparatively a higher number of the trading days started the market with opening price around
433.33 USD

STA101 (Introduction to Statistics) _Lesson Note 6_Fall 2022

In graph-

25
21
20 19
No. of traded days (Frequency)

15

10
6
5
5
1
0
0

Opening price (USD)

Mode Mean
433.33 446.15
Median
440

STA101 (Introduction to Statistics) _Lesson Note 6_Fall 2022

Exercises for practice:

1. Following information pertains to the daily income of 150 families. Calculate the arithmetic
mean.

Income (in Tk) Number of families

75-85 10

85-95 25

95-105 20

105-115 25

115-125 10

125-135 20

135-145 15

145-155 25

Answer: Mean 116.33 Tk

2. The size of land holdings of 380 families in a village is given below. Find the median size of
land holdings.

Size of Land Holdings Number of families

(in acres)

0-100 40

100-200 89

200-300 148

300-400 64

400-500 39

Answer: The median size of land holdings = 241.22 acres.

STA101 (Introduction to Statistics) _Lesson Note 6_Fall 2022

3. The following table gives production yield in kg. per hectare of wheat of 150 farms in a
village. Calculate the mean, median and mode production yield.

Production yield 50-53 53-56 56-59 59-62 62-65 65-68 68-71 71-74 74-77
(Kg. per hectare)

Number of farms 3 8 14 30 36 28 16 10 5

Answer: Mean = 63.82 kg/hectare, Median = 63.667 kg/hectare and Mode = 63.29 kg/hectare

STA101 (Introduction to Statistics) _Lesson Note 6_Fall 2022