Introduction - Measures of Central Tendency, Business Mathematics & Statistics

# Introduction - Measures of Central Tendency, Business Mathematics & Statistics - Business Mathematics and Statistics - B Com

MEASURES OF CENTRAL TENDENCY OR AVERAGE INTRODUCTION :
A given raw statistical data can be condensed to a large extent by the methods of classification and tabulation. But this is not enough. For interpreting a given data we are to depend on some mathematical measures. Such a type of measure is the measure of Central Tendency. By the term of ‘Central Tendency of a given statistical data’ we mean that central value of the data about which the observations are concentrated . A central value which ‘enables us to comprehend in a single effort the significance of the whole is known as Statistical Average or simply average. The three common measures of Central Tendency are :
(i) Mean
(ii) Median
(iii) Mode

The most common and useful measure is the mean. As we proceed, we shall discuss the methods of computation of the various measures. In all such discussions, we need some very useful notations, which we propose to explain before proceeding any further.
(i) Index or Subscript Notation : Let X be a variable assuming n values x1 , x2 , …..x3 , We use the symbol x j (read “x sub j”) to denote any of the above mentioned n numbers. The letter j, which can stand for any of the numbers x1 , x2 , …..x n is called a subscript notation of index. Obviously, any letter other than j, as I, k, p, q and s could be used.’
(ii) Summation Notation :

The symbol is used to denote the sum xj ’s from j = 1 to j = n. By definition.

Example 1 :

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## FAQs on Introduction - Measures of Central Tendency, Business Mathematics & Statistics - Business Mathematics and Statistics - B Com

 1. What are measures of central tendency in business mathematics and statistics?
Ans. Measures of central tendency in business mathematics and statistics are statistical measures used to determine the center or average of a set of data. They provide a single value that represents the whole dataset, making it easier to understand and analyze the data.
 2. What are the three main measures of central tendency?
Ans. The three main measures of central tendency are the mean, median, and mode. The mean is the average of all the values in the dataset, the median is the middle value when the data is arranged in ascending or descending order, and the mode is the value that appears most frequently in the dataset.
 3. How is the mean calculated in business mathematics and statistics?
Ans. To calculate the mean in business mathematics and statistics, you add up all the values in the dataset and divide the sum by the total number of values. It is represented by the formula: Mean = (Sum of all values) / (Total number of values).
 4. What is the median and how is it calculated?
Ans. The median is the middle value of a dataset when the data is arranged in ascending or descending order. To calculate the median, you arrange the data in order and find the middle value. If the dataset has an odd number of values, the median is the middle value itself. If the dataset has an even number of values, the median is the average of the two middle values.
 5. When is the mode used as a measure of central tendency?
Ans. The mode is used as a measure of central tendency when you want to find the value that occurs most frequently in a dataset. It is particularly useful when dealing with categorical or qualitative data, such as survey responses or types of products. Unlike the mean and median, the mode can be used for any type of data, including non-numeric data.

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