Pre Term 2024
Fundamental of
Statistics
Mittal School of Business
Lovely Professional University
Lecture Outcome
• To understand the
Measures of Central
Tendency
• To apply the Measures
of Central Tendency
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Measures of Central Tendency
Mathematic Averages of
al Averages Position
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Arithmetic Mean
Mathematic
Geometric Mean
al Averages
Harmonic Mean
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Median
Quartile
Averages
of Decile
Position Percentile
Mode
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Arithmetic Mean
• The mean is the average of all values.
• If the data set represents a sample from some larger population, this measure
is called the sample mean and is denoted by X.
• If the data set represents the entire population, it is called the population
mean and is denoted by μ.
• In Excel, the mean can be calculated with the AVERAGE function.
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Arithmetic Mean in Grouped Data
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Example
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Example
Weekly Earning in Rs. No. of Employees
(x) (f) fXx
110 3 330
112 6 672
114 10 1140
116 15 1740
118 24 2832
120 42 5040
122 75 9150
∑f =175 ∑fx =20904
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Example
From the following information on the number of defective components in
1000 boxes;
Calculate the arithmetic mean of defective components for the whole of
the production line and comment on the results.
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Example
• A company is planning to improve plant safety. For this,
accident data for the last 50 weeks was compiled.
These data are grouped into the frequency distribution
as shown below. Calculate the A.M. of the number of
accidents per week.
Number of accidents: 0–4 5–9 10–14 15–19
20–24
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The sum of deviations of the items from
their arithmetic mean is always zero, i.e.
∑(x – ) = 0.
The sum of the squared deviations of the
Properties items from the Arithmetic Mean (A.M) is
minimum, which is less than the sum of
of Mean the squared deviations of the items from
any other values.
If each item in the arithmetic series is
substituted by the mean, then the sum of
these replacements will be equal to the
sum of the specific items.
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Median
• The median is the middle observation when the data are
sorted from smallest to largest.
• If the number of observations is odd, the median is literally the middle
observation.
• If the number of observations is even, the median is usually defined as
the average of the two middle observations.
• In Excel, the median can be calculated with the MEDIAN
function.
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Median in Ungrouped Data
N= Number of observations
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Median in Grouped Data
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Example
• Calculate the median of the following data that relates
to the service time (in minutes) per customer for 7
customers at a railway reservation counter: 3.5, 4.5, 3,
3.8, 5.0, 5.5, 4
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Example
• A survey was conducted to determine the age (in years)
of 120 automobiles. The result of such a survey is as
follows:
Age of auto : 0–4 4–8 8–12 12–16 16–20
Number of autos: 13 29 48 22 8
What is the median age for the autos
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Example
• The following is the distribution of weekly wages of 600 workers in a factory:
(a) Draw an ogive for the above data and hence obtain the median value. Check it
against the calculated value.
(b) Obtain the limits of weekly wages of central 50 per cent of the workers.
(c) Estimate graphically the percentage of workers who earned weekly wages between
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Example
• The following distribution gives the pattern of overtime work
per week done by 100 employees of a company. Calculate
the median, first quartile, seventh decile and sixtieth
percentile.
Overtime hours: 10–15 15–20 20–25 25–30 30–35 35–40
No. of employees: 11 20 35 20 8 6
Calculate M, Q1, D7 and P60.
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Ponder
• As the HR Manager of
the company, which
average of the
position will you use
for your reporting and
why?
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Mode
• A measure of location recognised by the location of the most
frequently occurring value of a set of data.
• The concept of mode is of great use to large-scale
manufacturers of consumable items such as ready-made
garments, shoe-makers, etc.
• In all such cases, knowing the size that fits most persons
rather than the ‘mean’ size is important.
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Mode
• In Ungrouped data and Discreet Series of Grouped Data,
Mode can be estimated by observation.
• In Continuous Series, the estimation has to be done
using a formula.
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Mode
Where : frequency of the modal class
: frequency of the class preceding the modal class
: frequency of the class following the modal class
: class interval of the modal class
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Exercise
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Relationship between Mean, Median
and Mode
• In case of Normal Distribution or symmetry in data
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Relationship between Mean, Median
and Mode
• Karl Pearson gave the relationship when the distribution
is not symmetrical
Mean – Mode = 3 (Mean – Median) or
Mode = 3 Median – 2 Mean
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Relationship between Mean, Median
and Mode
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Relationship between Mean, Median
and Mode
• If the distribution of data is positively skewed then
• If the distribution of data is negatively skewed then
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• Which measure
to use out of
Mean, Median
or Mode?
• When to use?
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Questions?
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