University School of Business

MBA
SUBJECT NAME: Decision Science-I
SUBJECT CODE: 20BAT604

TOPIC OF PRESENTATION
CENTRAL TENDENCY (MODE) DISCOVER . LEARN . EMPOWER
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Course Outcome After undergoing this Course, the students will be able:

CO1 To understand and remember the nature of data and various statistical
techniques
CO2 To categorize and correlate the different descriptive measures with the
various complex managerial problems
CO3 To examine the results of different statistical techniques on diverse set
of data
CO4

To predict and forecast the future through time series modeling

CO5 To apply the principles of inferential statistics and develop solutions
for the business & social problems.

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Lecture Overview
In this Presentation, we will learn about:
Meaning of Mode
Methods to calculate Mode in Individual, Discrete and Continuous
Series ( For Grouped and ungrouped series)
Relationship between Mean, Median and Mode
Symmetrical and Asymmetrical Distribution

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 MODE

It is the value which occurs most frequently in a statistical series. It is the value which has

the highest frequency in a series.

The word ‘MODE’ is derived from the French word ‘ la mode’ which means a thing in

vogue or fashion Represented by Z

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Individual Series

• The terms are arranged in any order. Ascending or Descending. If each

term of the series is occurring once, then there is no mode, otherwise
the value that occurs Maximum Times is known as Mode. Mode is
often denoted by Z.

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Method to Calculate Mode
• Arrange the terms in ascending or descending order (Preferably
Ascending)
• (2) Note the term occurring maximum times if it is or is a unique one.
• (3) This term is Mode. (Z).

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Calculation of Mode

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 Discrete Series:
• Here the mode is known by Inspection Method only. Here that
variable is the^ Mode where the frequency is highest.; But this
method is applicable only if ;
• There is a gradual rise or fall in the sequence of frequencies.
• (2) The highest frequency and the next highest frequency are not too
close
• Maximum frequency is not repeated.

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Discrete Series (Mode)
• In the above given series highest frequency is 21 and variable
corresponding to i this frequency is 16. Thus Mode (Z) is 16.

• Special Note:-But, however sometimes it becomes impossible to

locate Mode by inspection as concentration of frequencies is not in a
unique manner or fashion as desired for this method.

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 INDIVIDUAL SERIES

In Individual series, choose the value from X , Which is ocuring

maximum times.
Find the mode in the following series

Age 22 24 17 18 17 19 18 21 20 21 20 23 22 22 22

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DISCRETE SERIES

Mode is that value of X which have maximum corresponding frequency

or the X which is there in the series with maximum number of times of
occurrence

Size 2 3 4 5 6 7 8 9 10 11 12 13

Frequency 3 8 10 12 16 14 10 8 17 5 4 1

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Advantages of Mode :
• Mode is readily comprehensible and easily calculated
• It is the best representative of data (most frequent value is
taken)
• It is not at all affected by extreme value.
• (0 , 100)
• The value of mode can also be determined graphically.
(bar graph)
• It is usually an actual value of an important part of the
series. (repeating maximum)
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 Disadvantages of (Mode -position)

 It is not based on all observations.

 It is not capable of further mathematical
manipulation.(AM is used extensively)
 Mathematical calculations
 Mode is affected to a great extent by sampling
fluctuations.
 Choice of grouping has great influence on the value
of mode.
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What is the Best average?

• Before selecting a relevant average, following points should be kept in

mind:
1) Objective  If all values are to be given importance, then mean
 If the value occurring most frequently in series is to
be identified then, mode
1) Number of  In case, number of variables are small, then mean
variables
1) Distribution  If the value of large number of items in a series is
of items and small, but that of one or two items is large, then
frequency mean
 If most of the values are located at the middle, then
median
1) Importance  If no importance is to be attached to any items, then
to the use of median and mode is most suitable
highest and
the lowest
items

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 References
TEXT BOOKS
• 1. Levine, D., Sazbat, K. and Stephan, D. 2013. Business Statistics, 7thEdition, Pearson Education,
India, ISBN: 9780132807265.
• 2. J.K Sharma, 2012. Business Statistics, 2nd Edition, Sixth Impression, Pearson Education India,
2012 a, ISBN: 9788177586541
 
REFERENCE BOOKS
• R1 J.K Sharma, Fourth Edition 2014 Business Statistics , Vikas Publishing House , ISBN:
9789325980805.
• R2 Gupta, S. 2011. Statistical Methods, 4thEdition, Sultan Chand & Sons, ISBN: 8180548627
• https://www.google.com/search?
q=investopedia&rlz=1C1CHBF_enIN859IN859&oq=investopedia+&aqs=chrome..6
9i57j0l2j69i60l3.3907j0j7&sourceid=chrome&ie=UTF-8
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Assessment Pattern

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 THANK YOU

For queries get in touch with me at: pawan.e11133@cumail.in

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