INTRODUCTION
A large number of figures in confusing to mind. It is also difficult to analyse
them in order to reduce the complexity of data and to make the comparable
it is essential that the various figures which are being compared are
reduced to one single figure each. If, for example a comparison is made
between the marks obtained by 100 students of B.Com. 11 class of a collage
and the marks obtained by 700 students belonging to B. Com 11 class of
another college, it would be impossible to arrive at any conclusion. If the
two series relative to these marks are directly compared. On the other hand
if each of these series is represented by one single figure comparison and
understanding would become very easy. The single figure which represents
the whole set of data is called an average. Averages are also called
measures of central tendency or measures of location.
PROPORTIES
 It should be easy to understand.
 It should be simple to compute.
 It should be uniquely defined.
 It should be based on all observations.
 It should not be underly affected.
 It should be capable of further algebraic treatment.
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MEAN
Arithmetic mean is the most popular and widely used measure of central
tendency. it is a mathematical average. Generally, when we talk of ‘average’
it signifies arithematic mean. It is generally known as ‘Mean’ Arithmatic is
defined as the values which is obtained by adding all the items of a series
and dividing this total by the number of items.
METHODS
Direct, Method
x
x
N
x = Mean
X = Sum of the values of the items of a series
N = Number of observation
STEP DEVIATION METHOD
fd 1
x A i
N
M A
D1 m = mid value of the class
i
P = Common magnitude of class interval
R = Assumed Mean
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MERITS
01. It is easy to calculate and simple to understand
02. It is based on all observation
03. It is capable of further algebraic treatment
04. It is rigidly defined
DEMERITS
01. It cannot be calculated in open end series
02. It cannot be ascertained graphically.
03. It cannot be determined in a situation when any value is missing.
04. It is highly affected by extreme values. It is not advised if the series
has a few extreme items advised if the series gas a few extreme items.
MEDIAN
Median is another important measure of central tendency. It is a positional
average, it is a positional average. Median is defined as the middle value of
the series when arranged either in ascending or descending order. It is a
value which divides the arranged series in two equal parts in such a way
that the number of observations smaller than the median is equal to the
number greater than it. Median is denoted way the symbol ‘M’.
METHOD
Individual Series
𝑛+1
M = Size of ( )th item.
2
M = Mealpan
N = Total number of items in the series.
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COUNTINIOUS SERIES
N C.F .
M = l1 2 i
f
L1 = Lower limit of the median class
C.F = Cumulative frequency of the class preceding modern
f = Frequency of median class
I = size of class internal of the median class.
MERITS
 It is not based on all observation of the services since it is a positional
average.
 It is not capable of further algebraic treatment like arithmetic means.
 It cannot be computed exactly where the number of items in a series
is even.
 It is very difficult to calculate if the number of items is very smaller or
large.
MODE
Mode is another important measure of central tendency. it is positional
average mode is defined as the values which occurs most frequently in a
series. In other words it is a value which has the greater frequency in a
distribution. So mode is denoted by the symbols ‘Z’.
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METHOD
f1 f 0
Z l1 i
2 f1 f 0 f 2
Z = mode
l1 = lower limit of modal class
f1 = frequency of modal class
f0 = frequency of the modal class
f2 = frequency of the post modals class
I = size of the modal group.
MERITS
 It is easy to understand and simple to calculate.
 It is not affected by extreme value.
 It can be located graphically with the histogram.
 It can be easily calculated in case of opened ended classes.

DEMERITS
 it is not suited to algebraic treatment
 there can be bimodal frequency series
 It is not based on all the items of the series
 it is not rigidly defined
 It has no mathematical property.
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PROBLEMS
Marks 010 10 20 30 40 50 60 70 80 90
20 30 40 50 60 70 80 90 100
Students 02 04 06 08 10 12 14 16 18
FIND MEAN, MEDIAN, MODE
D
X F M (AM) Dl = fDl
I
010 2 5 40 4 8
1020 4 15 30 3 12
2030 6 25 20 2 12
3040 8 35 10 1 8
4050 10 45 0 0 0
5060 12 55 10 1 12
6070 14 65 20 20 28
7080 16 75 30 3 48
8090 18 85 40 4 72
90100 20 95 50 5 100
N = 110 FDI =220
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A = 45, I = 10, N = 110, D1
FD1
x A i
N
220
= 45 10 = 65
110
MEDIAN
X F CF
010 2 2
1020 4 6
2030 4 12
3040 8 20
4050 10 30
5060 12 42 = C.F
6070 14 F 56 = M
7080 16 72
8090 18 90
90100 20 110
N = 110
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n
M= th item
2
110
= = 55th item
2
The next best c.f = 56
Hence the modal class = 60 – 70
n CF
M = l1 2 i
f
55 42
Z = 60+ 10
14
= 60+9.28 = 69.28
MODE (Grouping Table)
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ANALYSIS TABLE
010 1020 2030 3040 4050 5060 6070 7080 8090 90100
1 1
1 1
1 1 1
1 1 1
1 1 1
1 2 4 4 3
MODE = 3M  2 X
= (3x69.28) – (2x65)
= 207.84 – 130
= 77.84
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MARKS IN COSTING
Marks 010 1020 2030 3040 4050 5060 6070
No. of students 5 17 23 41 23 17 5
FIND MEAN, MEDIAN, MODE
MEAN
X F M D(AM) D1
D FD1
I
010 5 5 30 3 15
1020 17 11 20 2 14
2030 23 25 10 1 23
3040 41 35=A 0 0 0
4050 23 45 10 1 23
5060 17 55 20 2 34
6070 5 65 30 3 15
N=B1 0
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A = 35 FD1 = 0
I = 10 N = 131
FD1
x A i
N
0
= 35 + 10 = 35
131
MEDIAN
X F Cf
010 5 5
1020 17 22
2030 23 45=cf
3040 41 86=M
4050 23 109
5060 17 126
6070 5 131
M = n/2th item
= 131/2 = 65.5 the item
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The next best CF = BF
Hence the modals class = 30 – 40, f = 41
n
m l1 2 CF i
F
65.5 45
= 30 10
41
= 35
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MODE
010 1020 2030 3040 4050 5060 6070
I 1
II 1 1
III 1 1
IV 1 1 1
V 1 1 1
VI 1 1 1
TOTAL 1 3 6 3 1
MODAL CLASS = 30 – 40
l1 = 30, f1 = 41, f0 = 23, f2 = 23, I = 10
41 23
30 10
2(41) 23 23
18
= 30 10
82 46
180
= 30 + = 30 + 5 = 35
36
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CONCLUSION
From the above study about the average marks in accounting the value
mode is maximum. While the value of mean is minimum and median lies
between the two. So the distribution of marks is a symmetrical. Where as in
costing the value of mean, median, mode are same as a result. the
distribution of marks is a nomal distribution or semetrical distribution.
REFERENCE
Books: Business Mathematics And Statistics Published By Kalyani
Publisher.
Business mathematics and statistics published by VK
"mathematics, n.". Oxford English Dictionary. Oxford University Press.
2012. Retrieved June 16, 2012. The science of space, number, quantity,
and arrangement, whose methods involve logical reasoning and usually
the use of symbolic notation, and which includes geometry, arithmetic,
algebra, and analysis.
Einstein, p. 28. The quote is Einstein's answer to the question: "How can
it be that mathematics, being after all a product of human thought
which is independent of experience,
Website
www.slidshare.in
www.scribd.com
wwwwikipedia.com
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