AVERAGES OR MEASURES OF CENTRAL TENDENCY

According to Professor Bowley, averages are “ statistical constants which enable us to

comprehend in a single effort the significance of the whole.” They give us an idea
about the concentration of the values in the central part of the distribution. Plainly
speaking, an average of a statistical series is the value of the variable, which is
representative of the entire distribution. The following are the five measures of central
tendency that are in common use:
(i) Arithmetic mean
(ii) Median
(iii) Mode
(iv) Geometric Mean
(v) Harmonic Mean

Arithmetic Mean
Arithmetic mean of a set of observations is their sum divided by the number of
observations, e.g., the arithmetic mean of n observations x1, x2, .. . . . x n is given by
n
∑x
i=1
x= x1 + x2 + x3 + . . . . . .+ x n = n where i= 1,2, 3. . . . .n
n
Example1: Find the mean of the set of numbers 63, 65, 67,68, 69

∑x
Solution: x = n
5¿
63+65+67 +68+69 332¿ ¿
= 5 = ¿ = 66.4

Finding the mean of a frequency distribution

Ungrouped data
 The mean of a frequency distribution with ungrouped data can be estimated by the
formula:
∑ fx
x= n
Where f x = the product of the frequency and the corresponding observation.
And  f x = the sum of the product f x.

Example 2: Find the arithmetic mean of the following frequency distribution:

x: 1 2 3 4 5 6 7

f: 5 9 12 17 14 10 6

∑ fx 5+ 18+ 36+68+70+60+ 42 299

x = n = 73 = 73 = 4.09

Grouped data

The mean of a frequency distribution for grouped data can be estimated by taking the mid-point
of the class interval to represent the whole group.

∑ fx
The mean, x = n
Where, f = the frequency
x = the mid-point of the class interval
And n = the total frequency

Example 3
The following data represented the distribution of the ages of employees of a publishing
company.

Age of employees (years) Frequency

20 – 30 8
30 – 40 17
40 – 50 11
50 – 60 8
60 – 70 2

Calculate the Arithmetic mean

 Advantages and disadvantages of arithmetic mean

Advantages:

(i) It is rigidly defined

(ii) It is easy to understand and easy to calculate
(iii) It is based upon all the observations
(iv) It is useful for performing statistical procedures such as comparing the
mean from several data sets.

Disadvantages

(i) It cannot be determined by inspection nor it can be located graphically

(ii) Arithmetic mean cannot be used if we are dealing with qualitative
characteristics, which cannot measure punitively; such as, intelligence,
honesty, beauty, etc.
(iii) Arithmetic mean cannot be obtained if a single observation is missing or
lost or is illegible unless we drop it out and compute the arithmetic mean
of the remaining values.
(iv) Arithmetic mean is affected very much by extreme values.

Weighed Mean

In calculating arithmetic mean we suppose that all the items in the distribution have
equal importance. But in practice this may not be so. If some items in a distribution are
more important than others, then this point must be borne in mind, in order that average
computed is representative of the distribution. In such cases, proper weight age is to be
given to various items, the weights attached to each item being proportional to the
importance of the item in the distribution. For example, if we want to have an idea of
the change in cost of living of a certain group of people, then the simple mean of the
prices of the commodities consumed by them will not do, since all commodities are not
equally important, e.g., rice, meat and wheat are more important than cigarettes, tea,
confectionary, etc.

In general, if x1, x2, x 3 . . . . . . . .,x n are given weightings w1, w2, w3, . . . . . . .w n

w1 x1 + w2x2 + . . . . . . .+ w n x n
 Then weighted mean =
w1 + w2 + . . . . . . . . . .+w n

∑ wi x i
= ∑ wi for i= 1,2, 3, ………n

Example 4: The prices of articles A, B, C are $30, $42 and $65. Find the mean price, if
the three articles are given weights of 5, 3, and 2 respectively.

Solution: Weighed mean = 30  5 + 42 3 + 65  2 = 40.6

5 +3+2

Median

Median of a distribution is the value of the variable, which divides it into two equal parts.
It is the value, which exceeds and is exceeded by the same number of observations, i.e.,
it is the value such that the number of observations above it is equal to the number of
observations below it.

In the case of ungrouped data, if the observations are odd then median is the middle value
after the values have been arranged in ascending or descending order of magnitude. In
case of even number of observations, there are two middle terms and median is obtained
by taking the arithmetic mean of the middle terms. For example, the median of the values
25, 20, 15, 35, 18, i.e., 15,18, 20, 25, 35 is 20 and the median of 8, 20, 50, 25, 15, 30, i.e.,
20+25
8,15, 20, 25, 30, 50, is 2 = 22.5

Finding the median of a frequency distribution

Ungrouped data

In the case of discrete frequency distribution median is obtained by considering the

cumulative frequencies. The steps for calculating the median are given below:
(i) Find N / 2
(ii) See the cumulative frequency just greater than N / 2
(iii) The corresponding value of x is the median.

Example 5: Obtain the median for the following frequency distribution:

x: 1 2 3 4 5 6 7 8 9
f: 8 10 11 16 20 25 15 9 6
 Solution:
x f c.f
1 8 8
2 10 18
3 11 29
4 16 45
5 20 65
6 25 90
7 15 105
8 9 114
9 6 120

120

Hence N =120  N / 2 =60

Cumulative frequency just greater than N / 2, is 65 and the value of x corresponding to 65
is 5.Therefore, median is 5.

Grouped data

In the case of continuous frequency distribution, the class corresponding to the c.f. just
greater than N / 2 is called the median class and the value of median is obtained by the
following formula:

Median = L +
[ ] 2
−cf
f median
c. w.
Where L is the lower boundary of the median class,
f is the frequency of the median class,
c. w is the magnitude of the median class,
c f is the cumulative frequency of the preceding the median class, and N =  f

Example 6

Find the median wage of the following distribution:

Wages (in $) : 20 - 30 30 - 40 40 - 50 50 - 60 60 - 70

No. Of laborers : 3 5 20 10 5

Solution: c.f 3 8 28 38 43
 Here N / 2 is 43 / 2 = 21.5. Cumulative frequency just greater than 21.5 is 28 and the
corresponding class is 40 - 50 . Thus the median class is 40 - 50

21 . 5−8
Median = 40+ 20
[ ] ¿10
Thus median wage is $ 46.75

Advantages and Disadvantages of median

Advantages

(i) It is rigidly defined

(ii) It is easily understood and is easy to calculate. In some cases it can be
located merely by inspection.
(iii) It is not at all affected by the extreme values

Disadvantages

(i) In the case of even number of observations median cannot be determined

exactly. We merely estimate it by taking the mean of the two middle terms.
(ii) It is not based on all the observations.

Uses:

(i) Median is the only average to be used while dealing with qualitative data
which cannot be measured quantitatively but still can be arranged in
ascending or descending order of magnitude, e.g., to find the average
intelligence or average honesty among a group of people.
(ii) It is to be used for determining the typical value in problems concerning
wages, distribution of wealth, etc.

Mode
Let us consider the following statements:
(i) The average height of a Jamaican (Male) is 5 - 8
 (ii) The average size of the shoes sold in a shop is 10.
In all the above cases, the average referred to is mode. Mode is the value, which occurs
most frequently in a set of observations.

Example 7 : Find the mode of the following set of numbers.

2, 4, 5, 2, 4, 2, 7, 10

Finding the mode of a frequency distribution

Ungrouped data

In the case of discrete frequency distribution mode is the value of x corresponding to

maximum frequency.

Example 8: Find the mode of the following frequency distribution

x: 1 2 3 4 5 6 7 8
f: 4 9 16 25 22 15 7 3

Solution: The value of x corresponding to the maximum frequency, 25 is 4. Hence mode

is 4

Grouped data

In the case of continuous frequency distribution, mode is given by the formula

Δ1 ( f m−f a )

Mode = L +
[ ]
Δ1 + Δ2
×c . w
=L+
[ ( f m−f a )+( f m−f b ) ]
×c . w

Where L is the lower boundary, c. w. is the magnitude and fm the frequency of the modal
class, fa and fb are the frequencies of the classes preceding and succeeding the modal class
respectively.

Example 9: Find the mode of the following distribution.

Class- interval: 0 - 10 10 - 20 20 - 30 30 - 40 40 - 50 50 - 60 60 -70 70 -80

Frequency : 5 8 7 12 28 20 10 10

Solution: Here maximum frequency is 28. Thus the modal class 40 - 50 is the modal
class.

(28−12)
×10
Mode = 40 + (28−12 )+(28−20) = 46.67

Advantages and Disadvantages of mode

Advantages

(i) Mode is readily comprehensible and easy to calculate. Like median, mode can be
located is some cases merely by inspection.
(ii) Mode is not at all affected by extreme values.
(iii) Mode can be conveniently located even if the frequency distribution has class
intervals of unequal magnitude provided the modal class and the classes
preceding and succeeding it are of the same magnitude.

Disadvantages

(i) Mode is ill-defined. It is not always possible to find a clearly defined mode. In some
cases, we may come across distributions with two modes. Such distributions are
called bi-modal. If a distribution has more than two modes, it is said to be multi
modal.
(ii) It is not based upon all the observations.

Uses:

Mode is the average to be used to find the ideal size, e.g., in business forecasting, in the
manufacture of ready-made garments, shoes, etc.

Geometric mean

In addition to the median, the mode and the arithmetic mean, it is possible to average
observations using geometric mean when the measurement of data is on a ratio scale. This
mean is often used to average ratios and percents, and it is particularly valuable in
computing index numbers. The geometric mean of a set of n observations is the n th root of
their product. Thus the geometric mean G, of n observations x i, i= 1, 2, 3, . . . . . n is

1
G = ( x1 x2 x3…….x n ) n
The computation is facilitated by the use of logarithms. Taking logarithm of both sides, we
get
 n
1 1
∑ log x
Log G = n (log x1 + log x2+ . . . . . .+log x n ) = n i=1
n
1
G = Antilog 
n i=1
∑ log x

Example: 10

Profit earned by C, on four projects were 3%, 2%, 4%, 6%.

Average profit G.M. = (3  2  4  6)¼ = 3.46%

Advantages and Disadvantages of Geometric Mean

Advantages

(i) It is rigidly defined.

(ii) It is based upon all the observations.
(iii) It gives comparatively more weight to small items.

Disadvantages

(i) Because of its abstract mathematical character, geometric mean is not easy to
understand and to calculate for a non- mathematics person.
(ii) If any one of the observations is zero, geometric mean becomes zero and if any one
of the observations is negative, geometric mean becomes imaginary regardless of
the magnitude of the other items.

Uses:

Geometric mean is used-

(i) To find the rate of population growth and the rate of interest.
(ii) In the construction of index numbers.