MEASURES OF

CENTRAL
TENDENCY
 MEANING
• The one single value that reads the characteristics of the complex and
varied mass of data is called average or central value.
• An average that represents the whole group is called a measure of central
tendency.
• An average value is a single value within the range of the data that is used
to represent all of the values in the series. Since the average is somewhere
within the range of the data, it is sometimes called a measure of central
value or tendency.
 OBJECTIVES OF AVERAGES
• To represent the features of a mass complex data.
• To facilitate comparison.
• To know about universe from a sample.
• To help in decision making.
• To trace mathematical relationship.
 CHARACTERISTICS OF REPRESENTATIVE
AVERAGE
• It should be simple to calculate and easy to understand.
• It should be rigidly defined.
• It should be based on all the observations.
• It should be least affected by the fluctuations of sample.
• It should be capable of further algebraic treatment.
• It should not be affected much by extreme values of data.
 CHOICE OF A SUITABLE AVERAGE
• Arithmetic Mean (Mean) – If all the values in a series are to be given
equal importance then arithmetic mean will be a suitable choice.
• Median – In case of qualitative data which cannot be measured
quantitatively, median is the only average to be used. If the object is to
determine an average that would indicate its position or ranking in
relation to all the values, median should be used.
• Mode – is particularly used to determine most frequently occurring item.
 ARITHMETIC MEAN
(ARITHMETIC AVERAGE)
• Arithmetic mean is the number obtained by dividing the total values of
different items by their number.
•
 CALCULATION OF SIMPLE ARITHMETIC
MEAN
• Simple Arithmetic Mean can be calculated by the following methods:
• Direct Method
• Short cut Method (Assumed Mean Method)
• Step Deviation Method
Calculations can be done in the following series:
• Individual Observations
• Discrete Series
• Continuous Series
 INDIVIDUAL OBSERVATIONS
• Direct Method:
• In individual observations Arithmetic Mean is calculated by dividing the total values by
total number of observations.
•

• Where :
• x̅ = Arithmetic Mean
• Σ X = sum of all the values of observation
• N = Number of observations
 SHORTCUT METHOD
(ASSUMED MEAN METHOD)
x̅ = A + Σd/N
Where:
• x̅ = Arithmetic Mean
• A= Assumed Mean
• Σd= Sum of the Deviation from Assumed mean (Σ X-A)
• N= Number of observations
 STEP DEVIATION METHOD
•

• Where:
• x̅ = Arithmetic Mean
• A = Assumed Mean
d’ = X – A/C
C = Common Factor
N = Number of observations
 DISCRETE SERIES(DIRECT METHOD )
• In discrete series we multiply the variables by their respective
frequencies and get the sum of the products.
• The total obtained is divided by the number of observations( the total
frequencies)
• x̅ = Σfx/ Σf
• Where:
• Σfx = sum of products of variables and their frequencies
• Σf = sum of frequencies
 DISCRETE SERIES(ASSUMED MEAN
METHOD )
• x̅ = A +Σfd/N
• Where:
• A= Assumed Mean
• f = Frequency
• d = X- A (deviations of variables from assumed mean)
• Σfd = Sum of the product of frequencies and their respective
deviations
• N= Number of observations
 STEPS
• Decide assumed mean
• Calculate deviations from assumed mean
• Multiply deviations by frequency and get fd
• Add the product of deviations and frequency
• Use the following formula
• x̅ = A +Σfd/N
 DISCRETE SERIES(STEP DEVIATION
METHOD )
• x̅ = A +Σfd’/N X C
• Where:
• A = Assumed Mean
• N = Number of observations
• C = Common factor
• f=Frequency
• d’ = X-A/C
• Σfd’ = Sum of the product of the deviations and their respective frequencies
 STEPS
• Decide assumed mean
• Calculate deviations from assumed mean
• Divide deviations by common factor
• Multiply step deviations by frequency
• Add the product of step deviations and frequency
• Use the following formula
• x̅ = A +Σfd’/N X C
 CONTINUOUS SERIES(DIRECT METHOD )
• x̅ = Σfm/N
• Where:
• f=Frequency
• m= Mid-point
• Σfm Sum of product of frequency and mid-point
• N= Σf Sum of frequencies
 STEPS
• Obtain mid-points of the classes (l1+l2/2)
• Multiply the frequency with mid-point
• Get the sum of product (Σ fm)
• Divide Σfm by the sum of frequencies
• Use the following formula
• ̅ x̅ = Σfm/N
 CONTINUOUS SERIES(ASSUMED MEAN
METHOD )
• x̅ = A+ Σfd/N
• Where:
• A= Assumed Mean
• Σfd = Sum of the product of deviation and frequency
• N = Σf
 STEPS
• Obtain mid-points
• Decide assumed mean
• Calculate the deviation of mid-points from assumed mean (d=m-A)
• Multiply deviation by frequency and get fd
• Add the product of deviation and frequency
• Use the formula X̅ = A+ Σfd/N
 CONTINUOUS SERIES(STEP DEVIATION
METHOD )
• x̅ = A+ Σfd’/N X C
• Where:
• A= Assumed Mean
• Σfd’ = Sum of the product of step deviation and frequency
• C = Common Factor
• N= Σf
 STEPS
• Obtain mid-points
• Decide assumed mean
• Calculate the deviation from assumed mean (d=m-A)
• Divide deviation by common factor(m-A/C)
• Multiply step deviation by frequency
• Add the product of step deviations and frequency
• Use the formula x̅ = A+ Σfd’/N X C
CHARLIER’S ACCURACY CHECK
Σf(d’ + 1) = Σfd’ + Σf
 MERITS OF ARITHMETIC MEAN

• Simple to calculate and easy to understand

• Rigidly defined
• Based on all observations.
• Capable of further algebraic treatment .
• A good base for comparison
• Accuracy test possible.
• It is a calculated value.
 DEMERITS OF ARITHMETIC MEAN
• Affected by extreme values.
• Mean value may not figure in the series.
• Gives importance to the bigger items.
• Cannot be used in case of qualitative phenomenon.