business statistics

Business StatisticsABM- 401

Presented by:Hina Varshney

B.Com (IV Sem)12D012

Topic: Median ( merits, demerits, calculation)

In statistics and probability theory, the median is the numerical value separating the higher half of a data sample, a population, or a probability distribution, from the lower half. The median of a finite list of numbers can be found by arranging all the observations from lowest value to highest value and picking the middle one. (e.g., the median of {3, 3, 5, 9, 11} is 5)

Median

(i) Simplicity: It is very easy to calculate

and is readily understood.

(ii) Unaffected by Extreme Values:

Median is not affected by the extreme

values. It is independent of the range of

series.

(iii) Graphic Measurement: Median can

be measured graphically.

Merits

(iv) Qualitative Suitability: Median serves as the

most appropriate average to deal with qualitative data.

(v) Certainty: Median value is always certain and

specific value in the series.

(vi) Typical Observations: Median is often used to

convey the typical observation. It is primarily affected

by the number of observations rather than their size.

Merits

(i) Lacks Representative ness: Median does

not represent the measure of such series of

which different values are wide apart from

each other.

(ii) Erratic: Median is erratic if the number of

items is small.

(iii) Incapable of Algebraic Treatment:

Median is incapable of further algebraic

treatment.

Demerits

(iv) Effect of Fluctuations: Median is very

much affected by the sampling fluctuations.

(v)For computing median data needs to be

arranged in ascending or descending order.

(vi) It is not accurate when the data is not

large.

Demerits

Individual series Make the data series in ascending or

descending format. Find median item no. by the formula: Median item no. = N+1

th term

2 Find value of median considering relevant

median item no.

Calculation of Median

Discrete series Calculate the cf for the data series. Find median item no. by the formula: median item no. = N+1

th term

2 Find the value of median considering

relevant median item no. in cf.

Calculation of Median

Continuous seriesCalculate cf for the data series.Find median item no. by the formula: median item no. = N 2Find value of median by the formula: M= l1 + i (m-c) f

Calculation of Median

• www.wikipedia.com• www.preservearticles.com• www.ask-math.com• www.publishyourarticles.n

et• DEI Study Material

Reference