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Measure Of Central 
Tendency
Page 2


Measure Of Central 
Tendency
Introduction:
• In statistics, a central tendency is a central value or a 
typical value for a probability distribution.                
• It is occasionally called an average or just the center 
of the distribution. 
• The most common measures of central tendency are 
the arithmetic mean, the median and the mode.
• Measures of central tendency are defined for a 
population(large set of objects of a similar nature) and 
for a sample (portion of the elements of a population). 
Page 3


Measure Of Central 
Tendency
Introduction:
• In statistics, a central tendency is a central value or a 
typical value for a probability distribution.                
• It is occasionally called an average or just the center 
of the distribution. 
• The most common measures of central tendency are 
the arithmetic mean, the median and the mode.
• Measures of central tendency are defined for a 
population(large set of objects of a similar nature) and 
for a sample (portion of the elements of a population). 
Some Definitions
Simpson and Kafka defined  it as “ A measure of central 
tendency is a typical value around which other figures 
gather”
Waugh has expressed “An average stand for the whole 
group of which it forms a part yet represents the whole”.
In layman’s term, a measure of central tendency is an 
A VERAGE.  It is a single number of value which can be 
considered typical in a set of data as a whole. 
Page 4


Measure Of Central 
Tendency
Introduction:
• In statistics, a central tendency is a central value or a 
typical value for a probability distribution.                
• It is occasionally called an average or just the center 
of the distribution. 
• The most common measures of central tendency are 
the arithmetic mean, the median and the mode.
• Measures of central tendency are defined for a 
population(large set of objects of a similar nature) and 
for a sample (portion of the elements of a population). 
Some Definitions
Simpson and Kafka defined  it as “ A measure of central 
tendency is a typical value around which other figures 
gather”
Waugh has expressed “An average stand for the whole 
group of which it forms a part yet represents the whole”.
In layman’s term, a measure of central tendency is an 
A VERAGE.  It is a single number of value which can be 
considered typical in a set of data as a whole. 
Importance Of Central Tendency
• To find representative value
• To make more concise data
• To make comparisons
• Helpful in further statistical analysis
Page 5


Measure Of Central 
Tendency
Introduction:
• In statistics, a central tendency is a central value or a 
typical value for a probability distribution.                
• It is occasionally called an average or just the center 
of the distribution. 
• The most common measures of central tendency are 
the arithmetic mean, the median and the mode.
• Measures of central tendency are defined for a 
population(large set of objects of a similar nature) and 
for a sample (portion of the elements of a population). 
Some Definitions
Simpson and Kafka defined  it as “ A measure of central 
tendency is a typical value around which other figures 
gather”
Waugh has expressed “An average stand for the whole 
group of which it forms a part yet represents the whole”.
In layman’s term, a measure of central tendency is an 
A VERAGE.  It is a single number of value which can be 
considered typical in a set of data as a whole. 
Importance Of Central Tendency
• To find representative value
• To make more concise data
• To make comparisons
• Helpful in further statistical analysis
Mean
• The MEAN of a set of values or measurements is the 
sum of all the measurements divided by the number 
of measurements in the set.
• The mean is the most popular and widely used.  It is 
sometimes called the arithmetic mean.
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FAQs on PPT: Statistics - CSAT Preparation - UPSC

1. What are measures of central tendency in commerce?
Ans. Measures of central tendency in commerce refer to statistical measures that represent the central or average value of a set of data. These measures include the mean, median, and mode, which provide insights into the typical value or central tendency of a dataset in a business or economic context.
2. How is the mean calculated in commerce?
Ans. The mean, also known as the average, is calculated in commerce by summing up all the values in a dataset and dividing the sum by the total number of values. This provides a measure of central tendency that represents the typical value of the data set, which is often used in commerce to analyze trends, forecast sales, or determine average customer spending.
3. What is the significance of the median in commerce?
Ans. The median is a measure of central tendency in commerce that represents the middle value of a dataset when arranged in ascending or descending order. It is significant in commerce as it provides a robust measure of central tendency that is less affected by extreme values or outliers. For example, the median income is often used in economic analysis to gauge the typical income level of a population.
4. How is the mode useful in commerce?
Ans. The mode is a measure of central tendency in commerce that represents the most frequently occurring value in a dataset. It is useful in commerce as it helps identify the most common or popular category, product, or behavior. For instance, the mode can be used to determine the most popular product sold by a company or the most common reason for customer complaints, aiding businesses in making informed decisions.
5. Can measures of central tendency be used to compare different businesses?
Ans. Yes, measures of central tendency can be used to compare different businesses. By calculating and comparing the means, medians, or modes of key performance indicators such as revenue, profit, or customer satisfaction, businesses can assess their relative performance and identify areas of improvement. However, it is important to consider other factors and context when making comparisons, as measures of central tendency alone may not provide a complete picture of business performance.
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