Median

Median of a set of observations is the value of the middle-

most items when they are arranged in order of magnitude
Formula: L1+ (( N/2) –F)/f(m))*c
L1 –Lower boundary of the median class.
N- Total Frequency.
F- Cumulative Frequency corresponding to L1.
F(m) of the median class.
C- Width of the median class.
 Mode
Mode of a set of observations is that value which occurs
with the maximum frequency. It represents the true
characteristic of the frequency distribution.
Formula: Mode= L1+ (d1/ d1+d2)*c
L1--- Lower boundary of the nodal class.
d1- difference in the freq in the nodal class and the
preceding class.
d2- difference in the freq. in the nodal class and the
following class.
c- common width of class.
 Example of median
• Class boundaries: 15-25 25-35 35-45 45-55
• Freq: : 4 11 19 14
• Class boundaries: 55-65 65-75
• Freq: :0 2
 Example of Mode
• Wages: 50- 59.99 60-69.99 70-79.99 80-89.99 90-99.99
• Employee: 8 10 16 14 10
• Wages: 100- 109.99 110.119.99
 Problems on Mean
• There are two branches of an establishment
employing 100 and 80 persons respectively. If the
AM of the monthly salaries of the two branches are
USD 275 and USD225 respectively what is salary and
the AM of the entire establishment.
• The mean salary paid to all employees in a certain
Co. is USD 500. The mean salary paid to male and
female employees are USD 520 and USD 420
respectively. Obtain the percentage of the male to
female employees.
 Geometric Mean
• Find the GM of y1, y2,y3,y4.
• GM= (y1Xy2Xy3Xy4)**1/4.

• Also = (y1**f1*y2**f2*y3**f3)1/3
 Examples of Median and Mode
• Blood pressure 60-65 65-70 70-75 75-80 80-85.
• No. of men 4 5 31 39 21
 Variances
• The variance is a measure of variability from
the mean.
• Formula for a series: Variance= Square of
difference of each sample from the mean/ Total
of freq.
• Formula for a distribution: ((Square of the
difference of each sample from the mean) *
Frequency of each distribution/ Total of the
freq.)
 Example of Std. Deviation
• Audit days 10-14 15-19 20-24 25-29 30-34
• Freq 4 8 5 2 1
 S.D formula simplified
• Variance= (Sum of square of each of the
variables)/ number of observations minus
square of (sum of observations/number of
observations).
• Calculate n=32; S.D.=5; sum of
observation=80; what is the sum of the
squares of these observations.
 Co-efficient of variation
• Co-efficient of variation: Standard deviation/
Mean*100
 Skewness
• A frequency distribution is “ symmetrical” if the
frequencies are symmetrically distributed about the
mean i.e. values of the variables equidistant from the
mean have equal frequencies. In a symmetrical
distribution the mean, median and mode are the
same.
• Skewness= Mean- Mode/ S.D.
• Skewness= 3 ( Mean- Median)/ S.D
• Both are measures of Pearson.
• Bowley’s measurement=Q3-2Q2+Q1/Q3-Q1.
 Calculation of skewness
• Class intervals 0-10 10-20 20-30 30-40
• Freq. 48 167 236 549
 Kurtosis
• Kurtosis refers to degree of “ peakedness” of
the frequency curves. Two distribution may
have the same average, dispersion and
skewness; yet in one there may be high
concentration of values near the mode
showing sharper peak in the frequency curve
than the other.
• Eg. Playkurtic/ Mesokurtic/ Leptokurtic.
 Weighted Average
• Month Price/ tonne Tons Purchased
• Jan 42.50 25
• Feb 51.25 30
• March 50.00 40
• Calculate weighted arithmetic average and
simple arithmetic average.

• Total of fx/ Total of f.