confusion

A large hump of statistical

figures

Difficult to
grasp

•Eventually, no useful information will be extracted.

 understanda
ble

Condensed comparab
worthy form of data le

This reduces the data to a single value which represents the data
truly. For this purpose a central value that represents the whole
mass of data, is calculated. This value is called CENTRAL TENDENCY
or CENTRAL VALUE or an AVERAGE.
 Definition

A measure of central tendency is a typical value around which

other figures congregate.

-Simpsons and Kafka

An average stands for the whole group of which it forms a part
yet represents the whole.

-A.E.Waugh
An average value is a single value within the range of the data
that is used to represent all the values in the series.
series

-Croxten and Cowden

An average is a typical value in the sense that it is sometimes
employed to represent all the individual values in a series
or of a variable.
 Objectives

1. Representative of the group.

2. Helpful in comparison.
3. Helpful in formulation of policies.
4. Base of other statistical analysis.
5. Determines living standards.
6. Brief description.
 Types of averages

Mathemati
Positional Commercia
cal
averages l averages
averages

media m
n ode

Progressi Composit
Arithmeti Geometr Harmoni Moving
ve e
c mean ic mean c mean average
average average
 Arithmetic mean(A.M)
Types:
2. Simple A.M – all items of the series are given equal
importance.
3. Weighted A.M – different items of the series are
assigned weights according to their relative
importance.

Calculation of A.M
• For Individual series: in this frequencies are not
given.
three methods are used to calculate:
----
8. Direct method: X = X1+ X2+ X3+ ………. Xn =
∑X
N
N

---
X =∑X = total value of item
2. Short cut method: Here X is calculated
--

using assumed mean;taking deviation from

it,the formula used is
--
X = A + ∑ dx
N
A - assumed mean
dx - deviation of items from assumed mean
(X–A )
∑ dx - correction factor
N
3. Step deviation method: this method can
only be applied where dx has some
common factor ( i ) .
--
X = A + [ ∑ dx‘ ] i ; dx‘ = dx
N i

--
EXAMPLE: Solve for X by a) direct
method
b) short cut method c) step deviation
method.
as,
-- --
a) X = ∑X / N , therefore X =188 / 8
= 23.5

e) Asummed mean = (36+16)/2 =52/2 = 26

--
X = A + ∑dx/ N , therefore
--
X = 26 + (-20)/ 8 = 26 + (-2.5) = 23.5

c) i= common factor in dx = 2
--
X = A + { ∑dx’/ N } i , therefore
--
X = 26 + {(-10)/ 8 } 2 = 26 + (-10/4)2
= 26 + (-2.5)
FOR DISCRETE SERIES: frquencies of
variables are given but the variable is
without class intervals .
1. Direct method:
--
X = ∑ fX
N
f – frequency
X – value of variable
N – the sum of frequency (∑ f )
2. Short cut method:
--
X = A + ∑ fX
N
A - assumed mean
dx - deviation of items from assumed mean ( X –
A )
f – frequency
X – value of variable
N – the sum of frequency (∑ f )

3. Step deviation method:

--
X = A + [ ∑ fdx‘ ] i ; dx‘ = dx
N i
EXAMPLE : Solve for mean by a) direct
method
b) short cut method c) step deviation
method.
The data given as:
 --
a) X = ∑fX/ N ,
--
therefore X =756 / 60 = 12.6

g) Asummed mean = (20+4)/2 =24/2 =

12
--
X = A + ∑fdx/ N , therefore
--
X = 12 + (36)/ 60 = 12 + (0.6) =
12.6
FOR CONTINUOUS SERIES: frequencies
are given along with the value of the
variable in the form of class interval.
Direct method :
---
X = ∑ fX
N
Short cut method:
--
X = A + ∑ dx
N
Step deviation method:
--
X = A + [ ∑ fdx‘ ] i ; dx‘ = dx

N i
 --
a) X = ∑fx/ N ,
--
therefore X =3040 / 70 = 43.43

f) Assumed mean = (15+65)/2 =80/2

= 40 ≈45(to make calculation easier)
--
X = A + ∑fdx/ N , therefore
--
X = 45 + (-110)/70 = 45 + (-11/7) =
43.43
c) i= common factor in dx = 10
--
X = A + { ∑fdx’/ N } i , therefore
--
X = 45 + {(-11)/70 } 10 = 45 + (-11
/70)10
= 45 – 1.57 = 43.43
 Special cases of continuous
INCLUSIVE SERIES:
• series like 5-9,10-14,15-19…..
• Difference---upper and lower limit of
successive intervals.
• Difference is then distributed as:
Lower limit---subtracted
Upper limit---added
OPEN END INTERVALS:
• series like less than 10,10-20,20-30,30-40,40-
50,more than 50.
• Lower limit of 1st interval or
Upper limit of last interval or
Both are not given.
• The 1st interval= 2nd interval
The last interval=penultimate one.
• Inclusive series to exclusive series :

Lower limit : 9 : Upper limit: 10

Difference : 10-9 = 1
Now half of 1 i.e 0.5 is subtracted and
added to lower and upper limit
respectively.
Open end intervals:

Ist interval should be taken equal to

second interval.
Last interval should be taken equal to
previous interval.
i.e length of the interval nearest to
these.
CUMULATIVE SERIES:
Two types :
3. Less than OR 1. Not above
4. More than 2. Not below
• Conversion into exclusive series :
• WHEN THE MIDDLE POINTS ARE GIVEN:

The difference between each mid point

we get the length of the each interval.
 Properties of A.M
• Sum of the deviations of the terms from the Actual
mean is always zero.
--
i.e. ∑ ( X - X )= 0.

• If we have arithmetic mean and the number of

items of two or more
than two groups we can calculate the combined
average of groups.

• If the terms of a series are increased, decreased,

multiplied or divided by some constant, the mean
also increases, decreases, multiplied or divided by
the same constant.

• The standard error of A.M is less than that of any

other measure of central tendency.
• Sum of the deviations of the terms from
the Actual mean is always zero.
--
i.e. ∑ ( X - X )= 0.

--
X = ∑X/N
--
∑ ( X - X )= 0
-- --
=(X1- X )+(X2- X )+……
--
(Xn- X )
--
=X1+X2…+Xn – NX
--
= ∑X - NX
= ∑X - ∑X = 0 . Hence
proved.
• If we replace each item in the series by mean
then the sum of these substitutions will be
equal to the sum of individual, terms. And it
shows that the product of arithmetic mean with
the number of terms is equal to sum of all terms
.

--
X = ∑X / N ,
• If the terms of a series are increased,
decreased, multiplied or divided by some
constant, the mean also increases, decreases,
multiplied or divided by the same constant.
Merits :
§ Easily calculated.
§ Every item taken in calculation.
§ Formula is rigid.
§ Fluctuations are minimum.
§ A calculated quantity.
Demerits :
§ Cannot be located graphically.
§ Single item can bring big change.
§ Cannot be located by inspection.
§ Qualitative forms cannot be expressed.
………..