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Measures of Central Tendency-

Mean(Lecture-2)
By
Dr. Ajay Singh
(Assistant Professor-Selection Grade)
Department of Business Administration
ABES Engineering College, Ghaziabad
DESCRIPTIVE STATISTICS : NUMERICAL
MEASURES
• The numerical value of an observation (also called central
value) around which most numerical values of all other
observations in the data set show a tendency to cluster
around is called central tendency.
• This typical central value (also called average) helps to
describe or project the characteristic of the entire data set.
• Methods of computing this central value are called
measures of central tendency.

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Mean or Mathematical
Averages
Direct Method (Ungrouped Data)
Adding values of all observations and dividing the total by the number of
observations. If x1, x2, . . ., xN represent the values of N observations, then A.M. for
a population of N observations is:

Population mean, =

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Calculation of Mean for Grouped Data

where A = assumed value for the A.M.


n = fi, sum of all frequencies
h = width of the class intervals
mi = mid-value of ith class-interval
mi - A
di = ,deviation from the assumed mean
h

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EXAMPLE 1:
The following table gives the marks of 58 students in Statistics. Calculate the
average marks of this group.

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d’ = m–A
 
Mid-point h
Marks m f   fd’
0-10 5 4 -3 -12
10-20 15 8 -2 -16
20-30 25 11 -1 -11
30-40 35=A 15 0 0
40-50 45 12 1 12
50-60 55 6 2 12
60-70 65 2 3 6

     58   ∑fd = -9
PRACTICE QUESTION-1A
 The following distribution gives the pattern of overtime
work done by 100 employees of company. Calculate the
average overtime work done per employee
Overtime hours: 10-15 15-20 20-25 25-30 30-35 35-
40
No. of Employees:11 20 35 20 8 6
SOLUTION
CI Mid Point(m) f d’ = (m – A)/h fd’
10-15 12.5 11 -2 -22
15-20 17.5 20 -1 -20
20-25 22.5 35 0 0
25-30 27.5 20 1 20
30-35 32.5 8 2 16
35-40 37.5 6 3 18
    100   12
      ∑fd ‘ = 12
    Mean=A+Ʃfd'/n*h  
    A=22.5 f=100  
    Mean=22.5+12/100*5  
    Mean 23.1 
PRACTICE QUESTION-1B
A company is planning to improve plant safety. For this,
accident data for the last 50 week was compiled as
shown below. Calculate A.M. of the number of
accidents per week.
Number of accidents: 0-4 5-9 10-14 15-19
20-24
Number of weeks : 5 22 13 8
2

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Solution : Calculations of A.M. of accidents are shown below

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EXAMPLE-2
Find the AM from the following Data
Age(Less Than): 10 20 30 40 50 60 70 80
No of Person :15 30 50 75 100 110 115 125
SOLUTION
CI Mid Point(m) f d’ = (m – A)/h fd’

0-10 5 15 -3 -45
10-20 15 15 -2 -30
20-30 25 20 -1 -20
30-40 35 25 0 0
40-50 45 25 1 25
50-60 55 10 2 20
60-70 65 5 3 15
70-80 75 10 4 40
    125   5
    Mean=A+Ʃfd'/n*h  
    A=35    
    Mean=35+5/125*10  
    Mean 35.4
PRACTISE QUESTION-2A
In an examination of 675 candidates ,the examiner supplied
the following information. Calculate the mean percentage
of marks obtained.( Ans-46.8)

Marks Obtained No. of Candidates


Less than 10 7
Less than 20 39
Less than 30 95
Less than 40 201
Less than 50 381
Less than 60 545
Less than 70 631
Less than 80 675
EXAMPLE-3
Compute mean from the following data:
Income (More than in Rs): 1000 2000 3000 4000 5000
6000 7000 8000
Number of Persons : 72 67 59 50 36
29 4 0
SOLUTION
Mid Point
CI cf f d’ = (m – A)/h fd’
(m)
1000-2000 1500 72 5 -3 -15
2000-3000 2500 67 8 -2 -16
3000-4000 3500 59 9 -1 -9
4000-5000 4500 50 14 0 0
5000-6000 5500 36 7 1 7
6000-7000 6500 29 25 2 50
7000-8000 7500 4 4 3 12
8000-9000 8500 0 0 4 0
      72   29
      Mean=A+Ʃfd'/n*h  
      A=4500    
      Mean=4500+29/72*1000  
      Mean 4902.78
PRACTISE QUESTION-3A
Following is the cumulative frequency distribution of the
preferred length of the kitchen slabs obtained from the
preference study on housewives(Ans-2.7)

Length (in metres) more than Preference of Housewife


1.0 50
1.5 48
2.0 42
2.5 40
3.0 10
3.5 5
EXAMPLE-4
 Find the missing frequencies in the following
distribution. The AM of the given data is 11.09.

Class Interval Frequency


9.3-9.7 2
9.8-10.2 5
10.3-10.7 f3
10.8-11.2 f4
11.3-11.7 14
11.8-12.2 6
12.3-12.7 3
12.8-13.2 1
  Total=60
SOLUTION

d’ = (m – A)/h
Class Interval Frequency mid-value fd'
9.25-9.75 2 9.5 -3 -6
9.75-10.25 5 10.0 -2 -10
10.25-10.75 f3 10.5 -1 -f3
10.75-11.25 f4 11.0 0 0
11.25-11.75 14 11.5 1 14
11.75-12.25 6 12.0 2 12
12.25-12.75 3 12.5 3 9
12.75-13.25 1 13.0 4 4
  Total=60     23-f3

Mean=A+Ʃfd'/n*h
11.09=11+(23-f3/60)*0.5 this is equation- 1
so, f3=12.2
Now since Ʃf=60 we get equation-2
2+5+f3+f4+14+6+3+1=60
so, putting f3=12.2, we get f4=16.8
PRACTICE QUESTION 4A
The following table gives the weekly wages in rupees of
workers in certain commercial organisation. The
frequency of the class 49-52 is missing. It is known that
the mean of frequency distribution is 47.2. Find the
missing frequency.
Weekly Wages(Rs): 40-43 43-46 46-49 49-52 52-55
No. of Workers: 31 58 60 ? 27
PRACTICAL
DEMOSTRATION OF
MEAN(AVEARAGE) WITH
THE SITUATION OF 10
WORKERS SALARY
 Ten workers sit in a room. Their yearly salaries are:
Worker #1 € 15.00
Worker #2 € 18.00
Worker #3 € 18.00
Worker #4 € 18.00
Worker #5 € 18.00
Worker #6 € 19.00
Worker #7 € 20.00
Worker #8 € 22.00
Worker #9 € 22.00
Worker #10 € 22.00

What’s the central value of their salary?


Let’s try arithmetic mean first! The result is €19.200.
Is it a good enough “compressed value” of the information in the table
above? Can we say that these 10 workers are all making around €19.200
per year? I’d say: yes, $19.200 is not too far from €15.000 nor €22.000.
 But here comes the trouble: Worker #10 goes home, and
the CEO of the company comes in instead. She makes
€100.000 per year.
Worker #1 € 15.00
Worker #2 € 18.00
Worker #3 € 18.00
Worker #4 € 18.00
Worker #5 € 18.00
Worker #6 € 19.00
Worker #7 € 20.00
Worker #8 € 22.00
Worker #9 € 22.00
CEO € 100.00

Now, the arithmetic mean changes to €27.000. Is it still a good


enough value to describe the average salary? Well… Not really.
9 out of the 10 people make less than €27.000 a year – so
saying that €27.000 is a good central value doesn’t sound right.
 Now, the CEO goes home, and Bill Gates comes in.

Worker #1 € 15.00
Worker #2 € 18.00
Worker #3 € 18.00
Worker #4 € 18.00
Worker #5 € 18.00
Worker #6 € 19.00
Worker #7 € 20.00
Worker #8 € 22.00
Worker #9 € 22.00
Bill Gates €1.000.000.000

The arithmetic mean is €100.017.000! Is everyone in the room making


100 million Euros yearly!? Not even close.
When there are extreme values – or in statistics-language: outliers – in a
data set, arithmetic mean is not a good-enough representation of the data
anymore.
HOME ASSIGNMENT
 Q1-Find the AM from the following Data. Ans-35.4
 Age(Less Than): 10 20 30 40 50 60 70 80
 No of Person :15 30 50 75 100 110 115 125

 Q2-Following is the distribution of marks of 50 students in a


class Ans-28.8
 Marks(more than) : 0 10 20 30 40 50

 No. of Students : 50 46 40 20 10 3
 Calculate the mean.
THANK YOU !!

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