Measures of Central Tendency
QMI1500 - Elementary Quantitative Methods · Descriptive Statistics
Measures of Central Tendency
Measures of central tendency are statistical metrics that describe the centre of a data set. These measures help summarise a large amount of data with a single value that represents the entire set. The three main measures of central tendency are the mean, median, and mode.
The Mean
The mean, often referred to as the average, is calculated by adding all the values in a data set and dividing by the total number of values. The formula for the mean is:
Mean (μ) = (Σx) / n
Where:
- Σx = the sum of all values
- n = the number of values
Example of Calculating the Mean
Consider the following data set representing the ages of five employees in a company: 25, 30, 35, 40, and 45.
- First, add all the ages together: 25 + 30 + 35 + 40 + 45 = 175.
- Next, count the number of employees (n = 5).
- Finally, divide the sum by the number of employees: 175 / 5 = 35.
The mean age of the employees is 35 years.
Remember: The mean can be affected by extremely high or low values (outliers) in the data set.
The Median
The median is the middle value of a data set when it is arranged in ascending or descending order. If there is an even number of values, the median is the average of the two middle values. The steps to find the median are:
- Arrange the data in order.
- Identify the middle value.
- If needed, calculate the average of the two middle values.
Example of Calculating the Median
Using the same data set of ages: 25, 30, 35, 40, and 45.
- Arrange the data: 25, 30, 35, 40, 45 (already in order).
- Find the middle value: The third value (35) is the middle value since there are five values.
The median age of the employees is 35 years.
Now consider another data set: 22, 25, 30, 35.
- Arrange the data: 22, 25, 30, 35.
- Since there are four values, the median will be the average of the two middle values (25 and 30).
- Calculate: (25 + 30) / 2 = 27.5.
The median of this data set is 27.5 years.
Watch out: Always ensure your data is ordered before finding the median.
The Mode
The mode is the value that appears most frequently in a data set. A data set can have one mode, more than one mode (bimodal or multimodal), or no mode at all. To find the mode, count the frequency of each value in the data set.
Example of Calculating the Mode
Consider the data set: 10, 12, 10, 15, 18, 12.
- Count the frequency of each value:
- 10 appears 2 times
- 12 appears 2 times
- 15 appears 1 time
- 18 appears 1 time
- Both 10 and 12 are the most frequent values.
This data set is bimodal, with modes of 10 and 12.
Now consider a different data set: 5, 6, 7, 8.
- Count the frequency:
- 5 appears 1 time
- 6 appears 1 time
- 7 appears 1 time
- 8 appears 1 time
In this case, there is no mode since no number repeats.
Remember: The mode can be useful in categorical data where we want to know the most common category.
Comparison of Mean, Median, and Mode
Each measure of central tendency provides different insights into the data:
- The mean is useful for understanding the overall average, but it can be skewed by outliers.
- The median provides a better measure of central tendency when the data contains outliers or is not symmetrically distributed.
- The mode indicates the most common value and is particularly useful for categorical data.
Choosing the Right Measure
When analysing data, it is important to choose the appropriate measure of central tendency based on the data's characteristics:
- Use the mean for normally distributed data without outliers.
- Use the median for skewed distributions or when outliers are present.
- Use the mode for categorical data or to identify the most frequent item in a data set.
Summary
Measures of central tendency include:
- The mean, which is the average of the data set.
- The median, which is the middle value when data is ordered.
- The mode, which is the most frequently occurring value.
Check your understanding
- Calculate the mean of the following data set: 12, 15, 22, 18, 30.
- Determine the median of the data set: 5, 3, 8, 2, 10.
- Identify the mode in the data set: 6, 7, 6, 9, 10, 10, 6.
- Explain when to use the median instead of the mean.