CHAPTER

2
MEASURES OF
CENTRAL TENDENCY
 MEASURES OF
CENTRAL TENDENCY
It is simply some representative point on the scale, a
central point with values scattering on either side

An average is a typical value which tends to describe the

set of data

An average is a typical value which tends to describe

the set of data
Example:

1. Teachers describe students’ performance as below or

above average
2. An NBA player performance
 3 MEASURES OF
CENTRAL TENDENCY
MEAN

MEDIAN

MODE
CHAPTER
2
mean
 MEAN
 The most common measurement of measure of
central tendency.
 It is also called the arithmetic mean or the computed average
 PROPERTIES OF MEAN
 More stable or reliable

 It is dependent upon every item in a set of data

 USES OF MEAN
 It is used when the distribution is symmetrical

 It is also used to evaluate extreme values or unusual

values.

 It is used in the computation of other advanced

statistical measure like the standard deviation and the
coefficient of correlation
 TYPES OF MEAN
 Arithmetic Mean

 Weighted Mean
 ARITHMETIC MEAN

∑X
X= n

where:
X - individual score
n - sample size
 TYPES OF MEAN

∑X
Xw = ∑W

where:
X - individual score/value
W - the weight of each score/value
 EXAMPLE OF ARITHMETIC MEAN

1. The daily income of five vendors is P380,

P550, P400, P475, and P365 respectively.
Find their average daily income.
 EXAMPLE OF ARITHMETIC MEAN

2. The grades of a student in five quizzes in

a Statistics course were 85, 83, 80, 89, and
91. Find the arithmetic mean of his grades in
Statistics.
 EXAMPLE OF ARITHMETIC MEAN

3. The XYZ company is in need of casual

workers. The managers interviewed
applicants whose ages are 21, 25, 19, 24,
27, 25, 30 and 26 respectively. Find the
mean age of the appplicants.
.
 EXAMPLE OF WEIGHTED MEAN

1. In a statistics class of 40 students, 12

students got a grade of 82, 10 students got a
grade of 85, 15 students got 87, and the rest
got 90. Find the average grade of the
students.
 EXAMPLE OF WEIGHTED MEAN

2. Mrs. Manahan has four investments:

P120,000 at 9%, P150,000 at 11%,
P110,000 at 8%, and P13,600 at 10%. What
will be the average yearly income of her four
investments
 EXAMPLE OF WEIGHTED MEAN

3. A student’s final grades in Mathematics,

English, Accounting, and Physical Education
are 88, 82, 86, and 85 respectively. If the
respective credits received for these courses
are 3, 3, 6, and 2, determine an appropriate
average grade.
 EXAMPLE

 Consider a portfolio invested in Canadian stocks

and bonds. The portfolio manager allocates 60% of
the portfolio to the Canadian stock fund and 40%
to the Canadian bond fund. The following table
shows the Returns for Canadian Equity and
Bond Funds, 2008 -2012.
 EXAMPLE
Returns for Canadian Equity and Bond
Funds,
YEAR Equity
2008 Fund (%) Bond Fund (%)
-2012
2008 -33.1 -0.1
2009 34.1 11
2010 16.8 6.4
2011 -9.2 8.4
2012 6.4 3.8

Calculate the mean total return for the portfolio.

CHAPTER
2
meDIan
 MEDIAN

 The middle-most value in an ordered array

of data

 It is an average position
 PROPERTIES of MEDIAN

 it is the value midway between the highest

and lowest value in the rank order distribution.

 it is not sensitive to the size of the extreme

values
 USES of MEDIAN

 It is used when an average of position is

desired.

 It is more typical where the middle values

of the series are closely grouped.
 formula of MEDIAN

X = Xn/2 + 1/2

where:
X - individual score
n - sample size
 EXAMPLE OF MEDIAN

1. The prices of certain notebooks are set at

P15, P12, P14, P16, P13, and P17. Find the
median.
 EXAMPLE OF MEDIAN

2. The following are the ages of 10 employees

of a certain company: 25, 21, 30, 25, 32, 46,
55, 40, 45, 58, 30, and 60 years old. What is
the median age?
 EXAMPLE OF MEDIAN

3. The data below represents the monthly

savings of 20 Commerce students:
P 500 400 450 200 440 350 150 200 125 300
450 500 200 510 400 200 250 350 100 250
CHAPTER
2
mODE
 MODE

 The value that appears the most number of

times in a data set.
 PROPERTIES OF MODE

 The most easily determined measure of

central tendency but very unstable.

 It is not affected by extreme values.

 USES OF MODE
 It is used when a quick but crude measure of
central tendency is needed.

 Although statisticians use the mode

infrequently, it is helpful in describing typical
behavior as evidenced by a commonly
occurring score
 EXAMPLES OF MODE

The following grades were received by selected

accounting students in a quiz in Mathematics : 14,
10, 12, 16, 19, 15, 12, 17, 10, 11, 7, 12, 6, 15, 12,
12, 10, 9, 18, and 12. What is the mode?
 EXAMPLES OF MODE

The members of a certain jeep drivers association

earn daily net incomes of P320, P450, 300, 290,
485, 400, 370, 325, 500, 370. What is the mode?
 EXAMPLES OF MODE

A student wants to find out how much pair of shoes

is sold in different shoe stores. After inquiring in 6
stores, he found out that a pair of shoes is sold at:
P1400; P1,350; P1,400; P1,400; P1,500; and
P1,350. Find the mode.