Lecture 2 - Mean, Median and Mode
Lecture 2 - Mean, Median and Mode
2. Median- value of middle observation- after sorting the data in ascending order.
1 3 4 8 9 Median value= 4.
11 22 30 40 50 60 700000 Median value= 40.
1 3 4 8 9 12, Even number of observations Median value= 6 = (4+8)/2.
2 5 6 7 8 9 11 18 1500
4. Distribution of wealth is highly skewed- few individuals have high
wealth, as in above data. Hence median wealth is preferred over
mean wealth. Distribution of income and salary are also skewed,
hence median income and median salary are preferred over mean
income and mean salary.
Men's 5000 meters 2016 Summer Olympics
3
When to use Mode?
4
Central tendency measures of raw data
Sorted data: Spending, GradSurvey dataset
200 400 400 500 550
250 400 425 500 600
300 400 450 500 600
300 400 450 500 600
350 400 450 500 600
350 400 450 500 600
350 400 450 500 650
350 400 450 525 700
360 400 500 550 800
375 400 500 550 1000
Mean 470.7
Median 450
Mode 400 11 times
5
Measures of dispersion (What is the
spread in the data)
6
Central Tendency Measures-
Raw vs. Grouped data
Value 500 will be considered in
Raw data: Sorted Grouped data Class Interval 300-500.
200 400 400 500 550 Class Interval, CI Freq. Cum. Freq.
250 400 425 500 600 100-300 4 4
300 400 450 500 600 300-500 33 37
300 400 450 500 600
350 400 450 500 600
500-700 11 48
350 400 450 500 600 700-900 1 49
350 400 450 500 650 900-1100 1 50
350 400 450 525 700
Sum 50
360 400 500 550 800
375 400 500 550 1000
Mean 448.0
Median 427.3
11 times Mode 413.7
All the observations that have z score of less than -3 or more than +3
1. Range = Maximum-Minimum
2. Variance, population = σ2 = 1/N * ∑ (xi-Mean)2
3. Standard deviation, population =σ
4. Coefficient of Variation, population = σ/Mean
5. Variance, sample = s2 = 1/(N-1) * ∑ (xi-Mean)2
6. Standard deviation, sample =s
7. Coefficient of Variation, sample = s/Mean
8. Mean absolute deviation = 1/N * ∑ |xi-Mean|
9. Z score = [xi-Mean]/ σ
10. Quartiles (Q , Q , Q )
1 2 3 Smallest 25%, 50%, 75% observations.
11. Inter-quartile range = Q 3 – Q1
12. 5-number summary (Min., Q , Q , Q Max.)
1 2 3, Minimum, 3 Quartiles, Maximum
13. Boxplot (Called Box and Whisker chart in MS Excel) Plot of 5-number summary