A kCILC1 CN CLN1kAL 1LNDLNC

A8nINANDAN 8CkAD
88S 1A
kCLL NCS0203


IN1kCDUC1ICN

MLAnlnC
ln sLaLlsLlcs Lhe Lerm cenLral Lendency relaLes Lo Lhe way ln whlch quanLlLaLlve daLa ls
clusLered around some value A measure of cenLral Lendency (or an average) ls a way of
speclfylng cenLral slngle value wlLhln Lhe range of Lhe daLa LhaL ls used Lo represenL
group of values

C8!LC1lvLS/lunC1lCnS Cl AvL8ACL
O 1o represenL Lhe whole loL of daLa Lhrough a cenLral value
O 1o faclllLaLe comparlson

8LCulSl1LS Cl CCCu AvL8ACL
O Lasy Lo undersLand
O Lasy Lo calculaLe
O 8ased on all Lhe lLems or observaLlons
O Should noL be unduly affecLed by Lhe exLreme observaLlons
O Capable of furLher algebralc LreaLmenL
O 8lgldly deflned
O Sampllng sLablllLy

MLASu8LS Cl CLn18AL 1LnuLnC?
O MA1PLMA1lCAL AvL8ACLS
O 9CSl1lCnAL AvL8CLS


,A1nL,A1ICAL AVLkAGLS

1 A8l1PML1lC MLAn
lL ls LhaL value whlch ls obLalned by dlvldlng Lhe sum LoLal of all Lhe observaLlons wlLh
Lhe no of observaLlons




A99LlCA1lCnS
O lL ls used frequenLly ln flelds such as economlcs soclology and hlsLory Lhough lL
ls used ln almosL every academlc fleld Lo some exLenL lor example per caplLa
Cu9 glves an approxlmaLlon of Lhe arlLhmeLlc average lncome of a naLlons
populaLlon

MA1PLMA1lCAL 98C9L81lLS
O 1he sum of devlaLlons of all Lhe lLems Laken from mean ls 0
O Mean ls affecLed due Lo change of orlgln as well as change of scale
O 1he sum of Lhe square of devlaLlons of all Lhe lLems Laken from mean ls mlnlmum

ML8l1S
O lL ls easy Lo undersLand and easy Lo calculaLe
O lL ls Lhe cenLre of gravlLy balanclng Lhe value on Lhe elLher slde of lL
O lL ls rlgldly deflned wlLh Lhe resulL LhaL Lhere ls no chance of manlpulaLlon
O lL ls based on all Lhe observaLlons
O lL ls capable of furLher algebralc LreaLmenL

LlMl1A1lCnS
O lL ls noL sulLable for openend serles
O lL ls llkely Lo be unduly affecLed by Lhe exLreme observaLlons


A8l1PML1lC MLAn SuM 1C1AL Cl C8SL8vA1lCnS x1+x2+x3+xn
nuM8L8 Cl C8SL8vA1lCnS n
2 CLCML18lC MLAn
lL can be deflned as Lhe nLh rooL of Lhe producL of n lLems or observaLlons



A99LlCA1lCnS
O 1o compuLe Lhe average percenL lncrease or decrease ln producLlon revenue
cosL proflL populaLlon or any oLher varlable
O 8esL average ln Lhe consLrucLlon of lndex numbers lL saLlsfles Lhe Llme reversal
LesL and glves equal welghL Lo equal raLlo of change
O MosL sulLable when large welghLs have Lo be glven Lo small lLems and small
welghLs Lo large lLems especlally ln soclal and economlc flelds
MA1PLMA1lCAL 98C9L81lLS
O 1he producL of all Lhe observaLlons remaln unchanged even when Lhe value of
geomeLrlc mean ls subsLlLuLed for Lhem
O 1he sum of devlaLlons of Lhe logarlLhms of Lhe orlglnal observaLlons Laken from
Lhe logarlLhm of geomeLrlc mean ls 0

ML8l1S
O lL ls rlgldly deflned
O lL ls based on all Lhe lLems
O lL ls capable of furLher algebralc LreaLmenL lor example lL can be used for Lhe
calculaLlon of comblned geomeLrlc mean
O lL ls noL lnfluenced by Lhe exLreme observaLlons

LlMl1A1lCnS
O lL ls dlfflculL Lo undersLand
O lL ls dlfflculL Lo compuLe and Lo lnLerpreL and so has llmlLed appllcaLlons
O lL has resLrlcLed appllcaLlons as lL cannoL be compuLed for negaLlve lLems and
zero


CLCML18lC MLAn (x1*x2*x3*xn)
1/n
3 PA8MCnlC MLAn
lL ls deflned as Lhe reclprocal of Lhe arlLhmeLlc mean of Lhe reclprocal of Lhe lndlvldual
lLems





A99LlCA1lCnS
O 1o calculaLe average speed for a [ourney average prlce of Lhe arLlcle sold

ML8l1S
O lL ls rlgldly deflned
O lL ls based on all Lhe lLems
O lL ls capable of furLher algebralc LreaLmenL

LlMl1A1lCnS
O lL ls relaLlvely dlfflculL Lo undersLand
O lL ls relaLlvely dlfflculL Lo compuLe
O lL glves largesL welghL Lo smallesL lLem and vlce versa LhaL ls maLhemaLlcally
undeslrable
O lL cannoL be compuLed for zero


PA8MCnlC MLAn 1
1/x1+1/x2+1/x3+1/xn
n
CSI1ICNAL AVLkAGLS

1 MLulAn
lL can be deflned as Lhe mlddlemosL value of Lhe serles when Lhe lLems are arranged ln
an ascendlng or descendlng order AlLernaLlvely lL ls LhaL value whlch dlvldes Lhe serles
lnLo Lwo equal halves

MA1PLMA1lCAL 98C9L81lLS
O 1he sum of devlaLlons of all Lhe lLems (lgnorlng Lhe slgns) Laken from medlan ls
mlnlmum
O Medlan ls affecLed by change of orlgln as well as change of scale

ML8l1S
O lL ls very useful ln case of openend serles
O lL ls noL lnfluenced by Lhe very large or small observaLlon
O lL ls rlgldly deflned
O lL can be deLermlned graphlcally

LlMl1A1lCnS
O lL ls noL based on all Lhe observaLlons
O lL does noL possess Loo many maLhemaLlcal properLles llke Lhe mean does lor
example lL cannoL be used for deLermlnlng comblned medlan







2 MCuL
lL ls LhaL value LhaL has maxlmum concenLraLlon ln Lhe serles ln layman's language
mode ls LhaL value ln a serles of observaLlons whlch has maxlmum frequency

ML8l1S
O lL ls easy Lo undersLand
O lL ls Lhe mosL represenLaLlve value of Lhe serles
O lL ls sulLable for openend serles
O lL ls noL affecLed by Lhe exLreme observaLlons
O lL can be deLermlned graphlcally

LlMl1A1lCnS
O lL ls noL based on all Lhe lLems
O lL ls noL capable of furLher algebralc LreaLmenL
O lL cannoL be deLermlned ln case of blmodal dlsLrlbuLlon
O lL ls noL a rlgldly deflned measure


kLLA1ICNSnI 8L1WLLN ,LAN ,LDIAN AND ,CDL







Z M x
lL ls observed LhaL approxlmaLely
ulsLance beLween mean and medlan1/3 ulsLance beLween medlan and mode
3 ,LDIAN,CDL+2,LAN

WnICn AVLkAGL 1C USL?

lL musL be clearly undersLood LhaL no one average can be regarded as besL for all
clrcumsLances 1he followlng clrcumsLances lnfluence Lhe selecLlon of an approprlaLe
average
O 1he purpose whlch Lhe average ls deslgned Lo use
O Jould Lhe average be used for furLher compuLaLlons?
O 1he Lype of daLa avallable Are Lhey badly skewed (avold Lhe mean) gappy
around Lhe medlan (avold Lhe medlan) or unequal ln class lnLervals (avold Lhe
mode)?
O 1he Lyplcal value requlred ln Lhe parLlcular problem JlLhln Lhe framework of
descrlpLlve sLaLlsLlcs Lhe maln requlremenL ls Lo know whaL each average means
and Lhen selecL one LhaL fulfllls Lhe purpose ln hand ls a composlLe average of all
Lhe absoluLe or relaLlve values needed (arlLhmeLlc mean or geomeLrlc mean) or
ls mlddle value wanLed (medlan) or Lhe mosL common value (mode)?