Introduction

Mean, median and mode are three statistical measures commonly used to

summarize data sets. They are known by the common name average. In its

broadest sense, an average is simply any single value that is representative of

many numbers. Averages are also called measures of central tendency because

an average is usually located near the center of the data set. Some examples:

average age of the players of a cricket team, average reaction time of a

particular chemical, average amount spent by a customer in a shopping mall,

etc.

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 Objectives of study

 The child learns to express and thoughts clearly and accurately

 He learns to perform calculations orally

 He develops the ability to organize and interpret the given data

 He learns to analyse problems and discover fundamental relationship

 He develops speed and accuracy in solving problems

Methodology

The sources of data this project work includes:-

Business Mathematics And Statistics-II

WEBSITE:-WWW.PROJECTTOPIC.IN

www.googlesearch.in.

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Main body of the project
Definitions Mean

Definition: Mean as a basic statistical measure is defined as an average value

attained. With less time and resources available for calculation of complex or
complicated measures, mean is considered desirable to get a quick, first hand
estimate of future returns based on the data available of the returns from the
asset in the past

Description: In case of a stock, fund or commodity, a mean is defined as an

average of returns offered by the assess in the past and is used to predict the
future returns it is expected to deliver, calculated on the basis of the past data
available.

A detailed trend analysis of the past returns on the funds helps in the assessment
of the average expected return which is useful for determination of the values it
can take in future and hence is of great importance for the investor in making
investment decisions.

Methods of computation of mean

There are 4 different methods for calculating mean are as follows:-

 Direct Method
 Short-cut Method
 Step Deviation Methods
 Shortest method

The characteristics of Arithmetic Mean :

(i) Easy to compute:- The calculation of arithmetic mean is very simple and
easy
(ii) Easy to understand :- It is very easy to understand even common man can
understand it easily.
(iii) Least affected by fluctuations :- Its main feature is that it is hardly affected
by the changes.
(iv) Based on all the items of series :- It is based on all items of series which
helps in getting the proper j picture of whole data.

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Merits of Mean :

1) Arithmetic mean rigidly defined by Algebraic Formula.

2) It is easy to calculate and simple to understand.

3) It is based on all observations of the given data.

4) It is capable of being treated mathematically hence it is widely used in

statistical analysis.

5) Arithmetic mean can be computed even if the derailed distribution is not

known but some of the observation and number of the observation are known.

6) It is least affected by the fluctuation of sampling.

7) For every kind of data mean can be calculated.

Demerits of Arithmetic mean :

1) It can neither be determined by inspection or by graphical location.

2) Arithmetic mean can not be computed for qualitative data like data on

intelligence honesty and smoking habit etc.

3) It is too much affected by extreme observations and hence it is not adequately

represent data consisting of some extreme point.

4) Arithmetic mean can not be computed when class intervals have open ends.

5) If any one of the data is missing then mean can not be calculated.

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Median
A median is the middle number in a sorted list of numbers. To determine the
median value in a sequence of numbers, the numbers must first be arranged in
value order from lowest to highest. If there is an odd amount of numbers, the
median value is the number that is in the middle, with the same amount of
numbers below and above. If there is an even amount of numbers in the list, the
middle pair must be determined, added together and divided by two to find the
median value. The median can be used to determine an approximate average.

Merits of Median :
Median is the middle value of the distribution i.e median of a distribution is the
value of the variable which divides it into two equal parts. It is the value of the
variable such that the number of observations above it is equal to the number of
observations below it.
1) It is easy to compute and understand.
2) It is well defined an ideal average should be.
3) It can also be computed in case of frequency distribution with open ended
classes.
4) It is not affected by extreme values and also interdependent of range or
dispersion of the data.
5) It can be determined graphically.
6) It is proper average for qualitative data where items are not measured but are
scored.
Demerits of Median
1) For computing median data needs to be arranged in ascending or descending
order.
2) It is not based on all the observations of the data.

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 3) It can not be given further algebraic treatment.

4) It is affected by fluctuation of sampling.

5) It is not accurate when the data is not large.
6) In some cases median is determined approximately as the mid-point of two
observations whereas for mean this does not happen.

Mode
The mode or modal value of a distribution is that value of the variable for which
the frequency is maximum .The number which is repeated maximum number of
times is the mode.

Merits of Mode

 It is readily comprehensible and easy to compute. In some case it can be

computed merely by inspection.
 It is not affected by extreme values. It can be obtained even if the extreme
values are not known.
 Mode can be determined in distributions with open classes.
 Mode can be located on the graph also.
 If all the data are not given then also mode can be calculated.
 It is easy to understand.
 It is the most observed data point

Demerits

 It is ill defined. It is not always possible to find clearly defined mode. In some
cases, we may come across distributions with two modes. Such distributions are
called Bimodal. If a distribution has more than two modes, it is said to be
Multimodal.
 It is not based upon all the observation

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 Mode can be calculated by various formulae as such the value may differ from
one to other. Therefore, it is not rigidly defined.
 It is affected to a greater extent fluctuations of sampling.

Case Study of Mode

The mode of a set of data values is the value(s) that occurs most often.

The mode has applications in printing. For example, it is important to print

more of the most popular books; because printing different books in equal
numbers would cause a shortage of some books and an oversupply of others.

Likewise, the mode has applications in manufacturing. For example, it is

important to manufacture more of the most popular shoes; because
manufacturing different shoes in equal numbers would cause a shortage of some
shoes and an oversupply of others.

Find the mode of the following data set:

48 44 48 45 42 49 48

Solution:

The mode is 48 since it occurs most often.

Note:

 It is possible for a set of data values to have more than one mode.
 If there are two data values that occur most frequently, we say that the set of
data values is bimodal.
 If there is no data value or data values that occur most frequently, we say that
the set of data values has no mode.

Problem Statements of (Mean, Median, Mode)Mean

On individual series

from the following data relating to the marks secured by 5 students ,calculate
the average mark under the different possible methods.

Roll no:- 1501 1502 1503 1504 1505

Marks:- 40 50 30 60 70

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Computation of arithmetic average of marks.

By Step-Deviation Method

Roll no Marks (X-A) d/c

X D d'

1501 40 0 0

1502 50 10 1

1503 30 -10 -1

1504 60 20 2

1505 70 30 3

Total - - N=5

∑d '
We have, Mean ¿ A+ N × c

X− A
Where, Mean = Arithmetic Mean, d' = , A = Assumed mean,
C

C = Common Factor, N = Number of items.

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Mean ¿ 40+ 5 ×10

= 40+ 10
¿ 50

Hence the value of mean is 50.

Discrete Series

From the following data relating to the monthly salaries of the teaching staff of
a college determine the average salary of a staff .

Salary 2,200 2,500 3,000 3,700 4,500

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No. of staff 5 10 15 7 3

Solution:-

computation of arithmetic average of salary by steps-deviation method

(at A =3,000 and c=100)

X F (X-A) (d/c) Fd'

D d'

2,200 5 -800 -8 -40

2,500 10 -500 -5 -50

3,000 15 000 0 00

3,700 7 700 7 49

4,500 3 1,500 15 45

Total 40 - ∑fd'=4 N=40

We have,
∑ fd '
Mean¿ A+ N ×C

4
¿ 3000+ ×100
40

1
¿ 3000+ ×100
10

¿ Rs .3010 .

Hence the value of mean=3010.

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Continues series

Calculate the arithmetic mean from the following data :

Class of 0-10 10-20 20-30 30-40 40-50 50-60
marks

Nos. of 5 10 25 30 20 10
students

Solution:-

computation of arithmetic average of marks by Direct Methods.

Marks No. of students. Mid-Value Fm

X F M

0-10 5 5 25

10-20 10 15 150

20-30 25 25 625

30-40 30 35 1,050

40-50 20 45 900

50-60 10 55 5,500

Total N=100 -- ∑fm=3,300

We have,
∑ fm
Mean=
N

Where,
Mean=Arithmetic mean,
∑fm=Sum of the products of mid values and corresponding frequencies.

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N = ∑fm = Total of frequencies.
3300
Mean=
100

Mean=33.

Hence the value of mean =33.

Median

On Individual Series

Determine the value of median from the following series:

X 35 12 40 18 6 14 61

Solution:-

For calculating median in ungrouped that we have to first arrange the items in
ascending or descending order .Value arranged in ascending order:

6 , 12 , 14 ,18 ,35 ,40 , 60 .

N +1
Now Median = Value of 2 th item .

7+1
= Value of 2 or 4th item

The 4th item in the ascending series is 18.

Hence median =18 .

On Discrete Series.

From the following frequency distribution, determine the value of Median:

Marks 5 50 15 60 55 40 35 75 10

Nos. of
students.
3 7 5 6 9 4 6 8 2

Solution:-

data arranged in ascending order and prepared a horizontal table.

Marks (X) 5 10 15 35 40 50 55 60 75
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Frequency.(F) 3 2 5 6 4 7 9 6 8

Cumulative
Frequency(C.F)
3 5 10 16 20 27 36 42 50

Median=Value of ( N2+1 )th item .

Median=Value of ( 50+1
2 )
th item ,∨25.5 th item.

The 25.5th item located in the ascending order comes against.

The C.F 27 and its value is 50.

Thus the value of median is 50.

On Continues Series.

Marks. 0-10 10-15 15-20 20-25 25-30

No. of Students 7 5 8 38 42

Solution.

Determination of Median

Marks. Nos. of Students Cumulative Frequency

0-10 7 7

10-15 5 12

15-20 8 20

20-25 38 58

25-30 42 100

Total 100

Median = Value of 'm'

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 (N)
= Value of 2 th item. [ it is the continuous series ]

= Value of ( 1002 ) th or 50th item of the series that falls within the.CF58.
The value of this item lies in the class (20-25).

By putting the formula of interpolation we have,

L 2−L 1
M =L 1+ ( m−c )
f1

Where,

M= Median to be found out. (Median)

L1= Lower Limit of the median class i.e.20

L2= Upper Limit of the median class i.e. 25

M=Median item i.e.50,and

C= Cumulative Frequency of the class proceeding the median class i.e.20

20−25
Thus, M =20+ 38 ( 50−20 )

5
¿ 20+ × 30
38

150
¿ 20+
38

¿ 20+3.95

¿ 23.95∨24≈.

Therefore the value of the Median or M=24.

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Mode
On Individual series:

From the following data relating to the daily wages of 10 workers in a factory,
determine the value of 'Modal' wage.

Wages in Rs. 14 16 16 14 22 13 15 14 12 23

Solution:

Determination of the modal Wages of the 10 workers by the method of

inspection.

Wages in ascending order Tally bars. Nos. of occurrences

(f)

12 I 1

13 I 1

14 III 3

15 I 1

16 II 2

22 I 1

23 I 1

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On an inspection of the above table, it is observed that the wage 14 has occurred
maximum times i.e. 3. Hence the modal Wage is Rs.14.

Marks 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-45

Frequenc 5 6 15 10 5 4 2 2
y

Solution:-
f 1−f 0
Mode=L 1+ ×(l2−l1)
2 f 1−fo−f 2

By the methods of inspection it comes out that the class (15-20) has the
maximum frequency i.e. 15.

Here, L1=15, L2=20, f1=15, f0=6, f2=10

15−6
Mode=15+ ×(20−15)
2(15−6−10)
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Mode=15+ × 5
30
45
Mode=15+
14
Mode=15+3.2 Mode=18.2

Hence the value of mode will be 18.2 (ans).

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Conclusion
The goal of this lesson is to introduce the concepts of mean, median and mode
and to develop understanding and familiarity with these ideas. The Measures
Activity lets students explore mean and median in an efficient way; the Mean,
Median and Mode Discussion helps them to formalize their knowledge.

Mean as a basic statistical measure is defined as an average value attained. With

less time and resources available for calculation of complex or complicated
measures, mean is considered desirable to get a quick, first hand estimate of
future returns based on the data available of the returns from the asset in the
past.

A median is the middle number in a sorted list of numbers. To determine the

median value in a sequence of numbers, the numbers must first be arranged in
value order from lowest to highest. If there is an odd amount of numbers, the
median value is the number that is in the middle, with the same amount of
numbers below and above. If there is an even amount of numbers in the list, the
middle pair must be determined, added together and divided by two to find the
median value. The median can be used to determine an approximate average.

The mode has applications in printing. For example, it is important to print

more of the most popular books; because printing different books in equal
numbers would cause a shortage of some books and an oversupply of others.

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Likewise, the mode has applications in manufacturing. For example, it is
important to manufacture more of the most popular shoes; because
manufacturing different shoes in equal numbers would cause a shortage of some
shoes and an oversupply of others.

Reference:
Business Mathematics & Statistics-II 2017 by Digambar Patri & D . N . Patri.

Business Statistics +3 2017 by Digambar Patri & D.N.Patri.

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