PRESENTED BY:

JATIN
MBA 1ST SEM
An average is a single value which represents the
whole set of figures. Average is also Measures of
Central Tendency.
Average is calculated in order to reduce the
complexity of the large data and make them
comparable.
A good average should possess following
properties:
i. Easy to understand
ii. Simple to compute
iii.Based on all observations
iv.Unduly affected by extreme values
v. Capable of further algebraic treatment
Average has been broadly classified into:
 Mathematical Average
Arithmetic Mean
Geometric Mean
Harmonic Mean
 Positional Average
Median
Mode
It is the most commonly used measure of central
tendency.
It is value which is obtained by adding all the
items of a series and then dividing it by the total
no. of items.
Individual Series
Mean = Sum of x / N

Discrete Series
Mean = Sum of fx / N

Continuous Series
Mean = Sum of fm / N
It is easy to calculate.
It is based on all observations.
It is capable of further algebraic treatment.
It is used for the quantitative data only & not for
qualitative data.
It is affected by extreme observations.
It cannot be determined graphically.
It is a mathematical average.
It is the root of the product of all the items in the
series. If there are only 2 items then we take the
square root of their product and if there are 3
items then cube root of their product and so on…
Individual Series
G.M = Antilog. Sum of log x/N

Discrete Series
G.M = Antilog. Sum of f log x/N

Continuous Series
G.M = Antilog. Sum of f log m/N
It is based on all items of the series.
It is capable of further algebraic treatment.
It is less affected by extreme values.
It is difficult to calculate because of logs and
antilog.
It may be a value which does not exist in the
series.
It cannot be calculated if any single item is
missing in the series.
Harmonic mean is also a mathematical average.
It is defined as the reciprocal of the arithmetic mean
of the reciprocal of the various items in the series.
Individual Series
H.M = __N__
sum of 1/x
Discrete Series
H.M = ___N___ or ___N___
sum of f.1/x sum of f/x
Continuous Series
H.M = ___N___ or ___N___
sum of f.1/m sum of f/m
It is based on all observations of the series.
It is capable of further algebraic treatment.
In certain problems, it gives better result than other
averages.
It is difficult to understand & calculate.
Its value cannot be computed where positive and
negative, both items lies in a series.
Median is the value which divides the series into 2
parts in such a way that no. of observations
smaller than median is equal to no. of
observations greater than median. Thus its called
Positional Average.
Median is calculated only after arranging the
series into ascending or descending order.
Individual Series
M = size of N+1/2 th item

 Discrete Series
M = size of N+1/2th item

Continuous Series
M= ___N/2-c.f___
L1 + f .i
It is easy to understand.
It is not affected by the extreme values of the
series.
It is easy to calculate.
It can be easily located graphically.
It requires prior arrangement of data in either
ascending or descending order.
It is not capable of further algebraic treatment.
It cannot be computed exactly where the no. of
items in the series are even.
It is another very important measure of central
tendency.
It is defined as the value which occurs most
frequently in the series. In other words, it is the
value which has the greatest frequency in a series.
It is denoted by Z.
Individual Series
Mode is calculated by Inspection method.
Discrete Series
It is calculated by both Inspection and Grouping
method.
Continuous Series
Z= ___f1-f0___
L1 + 2f1-f0-f2 . i
It is easy to understand and simple to calculate.
It is not affected by extreme values.
It can also be presented graphically with the help
of histogram.
It is not suitable for algebraic treatment.
It is not based on all items of the series.
It has no mathematical property.