Understanding Central

Tendency Properties in Statistics

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Numerical Data
Properties & Measures
Numerical Data
Properties

Central Variation Relative

Tenden Standing
cy Mean Range Percentiles
Median Interquartile Range
Z–scores
Mode Variance
Standard Deviation

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Mean
1. Measure of central tendency
2. Most common measure
3. Acts as ‘balance point’
4. Affected by extreme values (‘outliers’)
5. Formula (sample mean)

n
 X
i X  X … X
X  i  1  1 2 n
n n

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Raw Data: 10.3 4.9 8.9 11.7 6.3 7.7

X X X X X X X
X  1  1 2 3 4 5 6
n 6

10 .  .  8 9  11.  6 3  .

6
 .30

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Numerical Data
Properties & Measures
Numerical Data
Properties

Central Relative
Variation
Tendency Standing
Mean Range Percentiles

Median Interquartile Range Z–scores

Mode Variance
Standard Deviation

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Median
1. Measure of central tendency
2. Middle value in ordered sequence
 If n is odd, middle value of sequence
 If n is even, average of 2 middle values
3. Position of median in sequence
n1
Positioning Point 
4. Not affected by extreme values 2

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Median Example
Odd-Sized Sample
 Raw Data: 24.1 22.6 21.5 23.7 22.6
 Ordered: 21.5 22.6 22.6 23.7 24.1
 Position: 1 2 3 4 5

n 1 5 1
Positioning Point    3.0
2 2
Median  22.6

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Median Example
Even-Sized Sample

Raw Data: 10.3 4.9 8.9 11.7 6.3 7.7

Ordered: 4.9 6.3 7.7 8.9 10.3 11.7
Position: 1 2 3 4 5 6

n 1 6 1
Positioning Point    3.5
2 2
7.7  8.9
Median   8.30
2

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Numerical Data
Properties & Measures

Numerical Data
Properties

Central Relative
Variation
Tendency Standing
Mean Range Percentiles
Median Interquartile Range
Z–scores
Mode Variance
Standard Deviation

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Mode
1. Measure of central tendency
2. Value that occurs most often
3. Not affected by extreme values
4. May be no mode or several modes
5. May be used for quantitative or qualitative data

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Mode Example
 No Mode
Raw Data: 10.3 4.9 8.9 11.7 6.3 7.7
 One Mode
Raw Data: 6.3 4.9 8.9 6.3 4.9 4.9
 More Than 1 Mode
Raw Data: 21 28 28 41 43 43

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Thinking Challenge
You’re a financial analyst
for Prudential-Bache
Securities. You have
collected the following
closing stock prices of new
stock issues: 17, 16, 21, 18,
13, 16, 12, 11.
Describe the stock prices
in terms of central
tendency.

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Central Tendency Solution
Mean
n
X iX  X …  X
X  i 1  1 2 8
n 8

17  16  21  18  13  16  12  11

8

 15 .5

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 Central Tendency Solution
Median
• Raw Data: 17 16 21 18 13 16 12 11
• Ordered: 11 12 13 16 16 17 18 21
• Position: 1 2 3 4 5 6 7 8
n 1 8 1
Positioning    4.5
Point 2 2
16  16
Median   16
2
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Central Tendency Solution
Mode
Raw Data: 1716211813161211

Mode = 16

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 Summary of
Central Tendency Measures

Measure Formula Description

Mean Xi / n Balance Point
Median (n+1) Middle Value
Position
2 When Ordered
Mode none Most Frequent

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