Aman Khedia Statistics Theory

Measures of Central Tendency

Basics of MOCT

• MOCT are known as

• The average has relevance

• Measures of central tendency are called averages of the

• Correction factor is applied in

• Weighted averages are considered when all the observations are

• Simple average is sometimes called

• Each value is considered only once for

• Each value is considered as many times as it occurs for

• Frequencies are generally used are

Mean

• Formula

All the values of a class are equal

• While computing the AM from a Grouped frequency, we assume that to the Mid-Point of Class

• Algebraic sum of deviations of observations from their A.M

• The total of a set of observations is equal to the product of their number of observations and the AM

• Pooled Mean is also called

• A.M is used when has also to be calculated

• Out of all the measures cannot be calculated by Graphical Method

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Median

• Median always lies in Between the Arithmetic mean & Mode.

• For classification, Median is the best measure of central tendency

• Median is based on only Fifty percent of the central values

• For calculation of Median, we have to construct cumulative frequency distribution

𝑵
• In the case of a continuous frequency distribution, the size of the item indicates class interval in which the
𝟐
median lies

• Median Middlemost item in Order of magnitude

• In a distribution with a single peak and moderate skewness to the right, it is closer to the concentration
of the distribution in case of Median

• Median is used when distribution pattern has to be studied at varying levels.

• The number of observations smaller than Median is the same as the number larger than it.

• Out of all the measures Doesn’t possess Mathematical Properties

Partition Value
• Quartiles are used for measuring central tendency, dispersion & skewness.

• Three Quartiles are used by Bowley’s formula

• Quartile can be determined Graphically using

Mode

• Mode is not uniquely defined

• When all values occur with equal frequency, there is

• The class in which mode belongs is known as

• For calculation of Mode, we have to construct a

• Mode is the value of the variable at which the concentration of observation is the Densest.

• The formula of mode is applicable if classes are of width.

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GM
• GM is Difficult to compute

• G.M is Defined only when All observations have the and none is

• Logarithm of G.M is the Weighted Mean of logarithms of the different values

• G.M is used when rate of growth or decline is required.

• In G.M the quantities are in Ratios.

• G.M & H.M is useful to calculate average of

HM
• H.M has a limited use

• G.M & H.M is used to calculate Average of Ratios.

• H.M & G.M cannot be calculated if any observation is zero.

• H.M is a good substitute to a weighted average.

• Extreme values have Greatest effect on H.M

• H.M is the Reciprocal of the A.M of reciprocal of observations.

Mixed Theory
• Mean, Median & Mode, obey the Approximate Relation, provided the distribution is Not very skew

• MOCT Satisfies a linear Relationship

• Patriation Values are Positional Average. (Median, Quartile, Decile, Percentile)

Find Most Appropriate Method in Following Case (Practical cum Theory)

Case-1: One hundred participants expressed their opinion on recommending a new product to their friends using the
attributes: most unlikely, not sure, likely, most likely. The appropriate measure of central tendency that can be used
here is

Case-2: Along a road there are 5 buildings of apartments, marked as 1, 2, 3, 4, 5. Number of people residing in each
building is available. A bus stop is to be setup near one of the buildings so that the total distance walked by the residents
to the bus stop from their buildings must be kept minimum. One must consider involving to find the
position of the bus stop

Case-3: For ordering shoes of various sizes & Particular Size of a Cloth in Showroom for resale, Which Measure will be
more appropriate.

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 Aman Khedia Statistics Theory

Comparative Chart of Common Theory Point of MOCT

Sr No. Particulars Arithmetic Mean Median Mode Geometric Mean (GM) Harmonic Mean (HM)
It is the central value
that divides the It is that
It is obtained by
series into two equal value in a
dividing the sum of HM of Various items
parts in such a way series
values of all items GM of n items is the nth root of of a series is the
1 Meaning that half of the items which is
of a series by the their Product. reciprocal of the AM of
lie above this value the
number of items of their reciprocal
and the remaining greatest
that Series
half lie below this frequency
value

2 Symbol Used 𝑋 Md MO G.M. H.M.

Whether based on
3 YES No No YES YES
All items of Series

Can its formula be

extended to
calculate
4 YES No No YES YES
Combined Average
of two or more
related series?

No

Whether it requires
arrangement of
5 No Yes No No
data in ascending/
descending order?

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Whether affected Affected

Affected more than Affected more than
6 by Sampling Least more than Affected more than AM
AM AM
Fluctuation AM

Yes (gives largest

Whether affected Yes (Gives more weight to small
7 Yes No No weight to smallest
by extreme values item
item)

For Rates and Ratios

Average Rate of Increase/
Open-ended Qualitative involving Speed,
8 Suitable for Other Cases Decrease, Average Ratios/
distribution data Time, Distance, Price
Percentages
& Quantity.
Can it be
9 determined No Yes Yes No No
graphically

Is it independent of
10 No No No No No
choice of origin

Is it independent of
11 No No No No No
choice of scale

1. The product of the values of

1.Sum of series will remain unchanged
Deviations from AM when the value of geometric If each value of the
is always zero. mean is substituted for each variant id replaced by
The Sum of Absolute
Mathematical individual value. harmonic mean the
12 Deviations from
Property 2.the sum of 2. The sum of the deviations of total of reciprocals of
Median is Minimum
Squared the logarithms of the of the value of variant
Deviations from AM original observations above remains the same.
is Minimum or below the logarithm of the
geometric mean is equal.

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Other Useful Theory

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