**Central Tendency: the tendency of any value to their central value of any data

set is known as central tendency.

Measures of central tendency are 3 types. Mean, Median, Mode.
**Mean: the sum of all values in a dataset divided by the total number of the
values. It can be denoted as x̄ or µ
For Ungrouped Data, x̄ = 𝚺xi /n
= x1, x2, x3,,,,,,,,, xn/n
For grouped data, x̄ = 𝚺fixi/n
= fix1, fix2, fix3,,,,,,,,, fnxn/n
Types of Mean: 1. Arithmetic Mean 2.Geometric Mean 3.Harmonic Mean
**Arithmetic Mean: the sum of all values in a dataset divided by the total
number of the values.
For Ungrouped Data, x̄ = 𝚺xi /n
For grouped data, x̄ = 𝚺fixi / n
Properties of Arithmetic Mean:
1. The sum of deviations of the items from their arithmetic mean is always
zero, i.e. ∑(x – x̄) = 0.
2. Arithmetic mean depends on change of origin and scale of measurement.
Merits of Arithmetic Mean:
1. The arithmetic mean is simple to understand and easy to calculate.
2. It has the capability of further algebraic treatment.
3. Arithmetic mean is rigidly defined.
Demerits of Arithmetic Mean:
1. It is changed by extreme items such as very small and very large items.
2. Arithmetic mean does not represent the originals item.
3. If any data is missing then Arithmetic mean cannot be calculated.
**Geometric Mean (GM): average value or mean which signifies the central
tendency of the set of numbers by finding the product of their values. In general,
the GM is defined as the nth root of the product of n numbers.
Ungrouped Data, G.M= (𝑥1 × 𝑥2. . . 𝑥𝑛) 1⁄𝑛
= Antilog ∑log𝑥𝑖 /n
Grouped data, GM = Antilog ∑𝑓𝑖 log𝑥𝑖 /n
Geometric Mean Properties:
1. The G.M for the given data set is always less than the arithmetic mean for
the data set .
2. If each object in the data set is substituted by the G.M, then the product of
the objects remains unchanged.
Application of Geometric Mean:
1. It is used in stock indexes.
2. It is used in financial department.
3. It is used to finds the growth rate in a large data set.

**Harmonic Mean: The Harmonic Mean is defined as the reciprocal of the

average of the data values. In general, the harmonic mean is used when there is a
necessity to give greater weight to the smaller items.
For Grouped data, HM = 𝐧 / 𝜮𝒇𝒊/𝒙𝒊
For Ungrouped data, HM = 𝐧 / 𝜮𝟏/𝒙𝒊
Merits of Harmonic Mean:
1. It is rigidly defined.
2. It is able to advance the algebraic method.
3. It can also be measured when a series holds any negative value.
Demerits of Harmonic Mean:
1. The harmonic mean is greatly affected by the values of the extreme items
2. It cannot be able to calculate if any of the items is zero.
**Median: A median is a positional number that determines the position of the
middle set of data. It divides the set of data into two parts.
Odd num, (n+1)/2
Even num, n/2 and (n/2) + 1
Merits of Median:
1. It is easy to calculate and simple to understand.
2. It is not affected by the extreme values.
3. Median is the best measure of central tendency when we deal with
qualitative data.
Demerits of Median:
1. It neglects the extreme values.
2. It is not dependent on all the observations.
3. It is a positional average, so further algebraic treatment is not possible.

**Mode: The mode of a distribution with a discrete random variable is the value
of the term that occurs the most often. The mode of a distribution with a
continuous random variable is the maximum value of the function.
Advantages:
1. The mode is easy to understand and calculate.
2. The mode is not affected by extreme values.
3. The mode is easy to identify in a data set
4. The mode is useful for qualitative data.
Disadvantages:
1. The mode is not defined when there are no repeats in a data set.
2. The mode is not based on all values.
**Range: difference between the maximum value and the minimum value.
**Measures of Dispersion: the measures of dispersion help to interpret the
variability of data to know how much homogenous or heterogeneous the data is.
2 Types: Absolute Measure of Dispersion, Relative Measure of Dispersion

**Absolute Measure of Dispersion: The measures which express the scattering of

observation in terms of distances.
5 types: Range, Variance, Standard Deviation, Quartile Deviation, Mean
Deviation.
**Relative Measure of Dispersion: used to compare the distribution of two or
more data sets.
5 types: Co-efficient of Range, Co-efficient of Variation, Co-efficient of Standard
Deviation, Co-efficient of Quartile Deviation, Co-efficient of Mean Deviation.

**Range: It is the difference between two extreme observations of the data set.
Range = X max – X min
**Quartile Deviation: The quartile deviation is half of the distance between the
third and the first quartile.
** Mean deviation: Mean deviation is the arithmetic mean of the absolute
deviations of the observations from a measure of central tendency.
**Variance: Deduct the mean from each data in the set then squaring each of
them and adding each square and finally dividing them by the total no of values in
the data set is the variance.
**Standard Deviation: A standard deviation is the positive square root of the
arithmetic mean of the squares of the deviations of the given values from their
arithmetic mean.
**Correlation: A correlation is a statistical measure of the relationship between
two variables.
**Correlation Coefficient: The correlation coefficient is a value that indicates the
strength of the relationship between variables. It can be denoted as r, the
coefficient can take any values from -1 to 1.
1. -1: Perfect negative correlation. Move in opposite directions (when one
variable increases, the other variable decreases).
2. 0: No correlation. The variables do not have a relationship with each other.
3. 1: Perfect positive correlation. The variables move in the same direction
(when one variable increases, the other variable also increases)
**Properties:
1. correlation Coefficient remains in the same measurement in which the two
variables are.
2. the sign which correlation of Coefficient have will always be the same as
the variance.
3. the numerical value of correlation of Coefficient will be in between –1 to
+1.
**Regression: used to find out the relationship between dependent variables and
independent variables.
**Importance: prediction of the sales in the long term.
Understand demand and supply.