Question

One of the most important concepts to understand in introductory statistics and in Quantitative Business Analysis is how to find “middle” of a set of data. discusses the importance of finding the “middle” of a set of data.

Answer 1

Measures of Central Tendency:

mean, median, and mode.

A measure of central tendency is a single value that attempts to describe a set of data by identifying the central position within that set of data. As such, measures of central tendency are sometimes called measures of central location. They are also classed as summary statistics. The mean (often called the average) is most likely the measure of central tendency that you are most familiar with, but there are others, such as the median and the mode.

The mean, median and mode are all valid measures of central tendency, but under different conditions, some measures of central tendency become more appropriate to use than others. In the following sections, we will look at the mean, mode and median, and learn how to calculate them and under what conditions they are most appropriate to be used.

Only It’s mesns mean, median, and mode. Each of these measures calculates the location of the central point using a different method.

Mean:

The mean (or average) is the most popular and well known measure of central tendency. It can be used with both discrete and continuous data,

=sum of all elements / total count of elements

Median:

The median is the middle score for a set of data that has been arranged in order of magnitude. The median is less affected by outliers and skewed data. In order to calculate the median, suppose we have the data below:

65

55

89

56

35

14

56

55

87

45

92

We first need to rearrange that data into order of magnitude (smallest first):

14

35

45

55

55

56

56

65

87

89

92

Mode:

maximum reapeted value is mode.

Exp. 2,4,5,45,4,7,4,8,4,3,4,32,3,4

4 is mode.