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Measures of Location
Measures of Location
2
Objectives of Central Tendency
3
Types of average
Average or measures of central tendency
are of following types.
1. Mathematical average
a. Arithmetical mean
i. Simple mean
ii. Weighted mean
b. Geometric mean
c. Harmonic mean
2. Positional Averages
a. Median
b. Mode 4
3- 5
It is unique.
Population Mean is the
X
sum of all the population
values divided by the total
number of population N
values:
where
µ is the population mean
X is a particular value.
Population Mean
3- 7
A Parameter is a measurable characteristic of a
population.
X
56,000 ... 73,000
48,500
N 4
Example 1
3- 8
X
X
n
Sample Mean
3- 9
A sample of
five 14.0,
executives
15.0,
received the
following 17.0,
bonus last 16.0,
year ($000): 15.0
Example 2
3- 10
( X X ) (3 5) (8 5) (4 5) 0
Example 3
3- 12
( w1 X 1 w2 X 2 ... wn X n )
Xw
( w1 w2 ...wn )
Weighted Mean
3- 13
•Advantages
•Disadvantages
z
f z i i
f i
Geometric Mean
Geometric mean is defined as the positive root of the product of
observations. Symbolically,
It is also often used for a set of numbers whose values are meant to be
multiplied together or are exponential in nature, such as data on the
growth of the human population or interest rates of a financial
investment.
Find geometric mean of rate of growth: 34, 27, 45, 55, 22, 34 (raw)
Geometric mean of Group data
•If the “n” non-zero and positive variate-values f 1 , f 2 ,......., f n
n fi
1
x i
N
G x1
f1 f2 fn
x2 x n N
i 1
n
Where, N fi
Harmonic Mean i 1
n
1
fi
i 1
xi i 1
xi
Find the Arithmetic , Geometric and Harmonic Mean
Class Frequency X fx f Log x f/x
(f)
The Median
3- 20
Example 5
3- 22
n
CF
Median L 2 (i )
f
Example 12 continued
3- 27
n 10
CF 3
Median L 2 (i ) 5 2 (2) 6.33
f 3
Example 12 continued
3- 28
1
Mode L i
1 2
where L is the lower limit of the modal class , 1is the
difference between frequency of model class and pre
modal class, 2 is the difference between frequency of
model class and post modal class, and i is the model
class interval.
Example: the following data relate to the sales of 100 companies:
31
Left-Skewed Right-Skewed
Mean < Median Median < Mean
32
In moderately skewed distribution
there is a relationship among mean,
median and mode. The relationship is:
Mode = 3Median - 2Mean
33