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Central Tendency Assignment Jenab

The document discusses central tendency methods in statistics, including mean, median, and mode, which are used to represent data distributions. It highlights their importance in decision-making processes across various business sectors such as retail, banking, and marketing. Understanding these methods is essential for accurate data interpretation and informed business decisions.

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14 views2 pages

Central Tendency Assignment Jenab

The document discusses central tendency methods in statistics, including mean, median, and mode, which are used to represent data distributions. It highlights their importance in decision-making processes across various business sectors such as retail, banking, and marketing. Understanding these methods is essential for accurate data interpretation and informed business decisions.

Uploaded by

oldisgold3313
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Assignment: Use of Central Tendency Methods in Statistics

Subject: Statistics for Decision Making

Semester: BBA Sem-II

Name: Jenab Hussain

Institute: Modi Institute of Management & Technology

Introduction

Central tendency is a statistical measure that identifies a single value as representative of an entire

distribution.

It aims to provide an accurate description of the entire data set with one value that reflects the

center of the data distribution.

Types of Central Tendency Methods

1. Mean (Arithmetic Average)

- Definition: Sum of all values divided by the number of values.

- Formula: Mean = Sum of all values / Number of values

- Example: Suppose the sales (in lakhs) over 5 months are: 5, 7, 9, 6, 8

Mean = (5+7+9+6+8)/5 = 7 lakhs

2. Median

- Definition: The middle value when the data is arranged in ascending or descending order.

- How to Find:

If n is odd -> middle value.

If n is even -> average of two middle values.

- Example: Data: 3, 5, 7, 9, 11
Median = 7

3. Mode

- Definition: The value that occurs most frequently in a dataset.

- Example: Data: 4, 5, 5, 6, 7

Mode = 5

Importance in Decision Making

- Business Forecasting: Mean helps businesses forecast sales, revenue, and expenses.

- Customer Behavior: Mode identifies popular choices or most frequently sold items.

- Median in Salary Analysis: Median is used to analyze employee salaries to avoid the effect of

outliers.

Application in Real-Life Business Situations

1. Retail Sector:

- Mode helps find the most sold product.

2. Banking & Finance:

- Mean helps in analyzing average customer balance.

3. Marketing:

- Median helps in analyzing survey responses and customer feedback scores.

Conclusion

Central Tendency methods are crucial tools in business statistics. They help managers make

informed decisions based on data analysis.

Understanding mean, median, and mode is essential for interpreting data accurately and applying it

to practical business scenarios.

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