business statistics
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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
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