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Measures of Central Tendency CPT Section D Quantitative Aptitude Chapter 11 Dr. R. B. Tiwari

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Page 1: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Measures of Central Tendency

CPT Section D Quantitative Aptitude Chapter 11 Dr. R. B. Tiwari

Page 2: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Introduction

Central Behavior of the data.

Off Central Behavior of the data.

Page 3: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

1. Measures of Central Tendency.

The tendency of a given set of observations to cluster around a single central or middle value and the single value that represents the given set of observations is described as a measure of central tendency or location or average.

e.g. a company is recognized by its high average profit and an educational institution is judged on the basis of the average marks obtained by the students.

Page 4: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Arithmetic Mean

Page 5: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Arithmetic Mean

Case (i) Arithmetic Mean (AM)

1 2 ...(i) nX X X

Xn

Xor X

n

+ + +=

=∑

Page 6: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case (ii) For Discrete Series

i.e. For x1-f1, x2-f2,…xn-fn type data

Page 7: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

If values of X are large enough

(ii)

1, 2,3....

.

ii

fdX A X C

NX A

where d i nC

A Assumed Mean

or C Common divisor for ungrouped data

= +

−= ∀ =

=

=

Page 8: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case (iii) For Continuous Series

i. e. If frequencies are given to corresponding class intervals

Page 9: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 1. Following are the daily wages in rupees of a sample of 9 workers: 58,62,48,53,70,52,60,84,75.Compute the mean wage.

Solution: Given that no. of workers, n = 9 ,and

58 62 48 53 70 52 60 84 75 562

562 62.449

Sum of the wages X

XTherefore the mean wage is givenby AM X

n

= + + + + + + + + =

= = = =

∑∑

Page 10: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution:

Example 2: Find the AM for the following data: X : 10 20 30 40 50 f : 2 5 6 3 4

Page 11: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 3.

Compute the mean weight of a group of BBA students of St. Xavier’s College from the following data:

• Weights in Kgs: 44-48 49-53 54-58 59-63 64-68 69-73

• No. of students. 3 4 5 7 9 8

Page 12: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution Weights in Kgs. No. of

Students (f)

Mid –Values (X) fX

44-48 3 46 138

49-53 4 51 204

54-58 5 56 280

59-63 7 61 427

64-68 9 66 594

69-73 8 71 568

Totals N=36 2211

Page 13: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Answer

2211 61.4236

fXX kgs

N= = =∑

Page 14: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 4.

Find the AM for the following frequency distribution.

• Class Intervals: 350-369 370-389 390-409 410-429 430-449 450-469 470-489

• Frequency : 23 38 58 82 65 31 11

Page 15: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Class intervals

Frequency (f)

Mid-Values

(X)

fd

350-369 23 359.50 -3 -69

370-389 38 379.50 -2 -76

390-409 58 399.50 -1 -58

410-429 82 419.50=A

0 0

430-449 65 439.50 1 65

450-469 31 459.50 2 62

470-489 11 479.50 3 33

Totals N=308 -43

419.5020

i ii

X A Xd

C− −

= =

Solution

Page 16: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution

( )43419.50 20

308416.71

fdX A X C

N

X

= +

−= +

=

Note that here A is taken as guessed mid – value and C is a common divisor. Then AM is given as

Page 17: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Properties of AM

If all observations are equal to a constant, k say, Then AM is also equal to k.

Page 18: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

The algebraic sum of deviations taken about AM is always zero. i.e. e.g. the AM of 3,5 and 7 is 5 and (3-5)+(5-5)+(7-5)=0

( )( )

0 .

0 .i

i i

X X for ungrouped data and

f X X for grouped frequancy distribution

− =

− =

∑∑

Properties of AM

Page 19: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

AM is affected by change of origin and/or scale. i.e. if

.

fdX Ad and dC N

then X A C d

−= =

= +

Properties of AM

Page 20: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

If there are two groups having n1 and n2 observations and

as their respective AMs , then the AM of combined group is given as

1 2X and X

1 1 2 2

1 2

n X n XX

n n+

=+

Properties of AM

Page 21: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 5.

The mean salary for a group of 40 female workers is Rs. 5200 per month and that for a group of 60 male workers is Rs. 6800 per month. What is the combined salary?

Page 22: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution.

1 1

2 2

1 1 2 2

1 2

40, 520060, 6800

40 5200 60 680040 60

.6160

n Xn XThen combined mean salary is givenby

n X n XX

n nX X

Rs

= =

= =

+=

++

=+

=

Page 23: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 6.

Find the AM of the following data.

• Marks: less than 10 <20 <30 <40 <50

No. of students: 5 13 23 27 30

Page 24: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution

Marks No. of students

(f)

Mid-value (X)

fx

0-10 5 5 25

10-20 13-5=8 15 120

20-30 23-13=10 25 250

30-40 27-23=4 35 140

40-50 30-27=3 45 135

N=30 670

Page 25: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution: AM

670 22.3330

fXX

N= = =∑

Page 26: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example.7

Find the missing value Y, if the following frequency distribution has AM as 5.

• X: 3 5 Y 6 • f: 1 3 2 4

Page 27: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution. AM is given by

1 3 3 5 2 6 4 42 21 3 2 4 10

42 2. . 510

50 42 24

fX Y YXN

Yi e

or Ytherefore Y

× + × + + × += = =

+ + ++

=

− ==

Page 28: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

MCQ’s on Arithmetic Mean Question Time

Page 29: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 1.

a) 2.5

b) 3.5

c) 4.5

d) 5.5

Answer: (b) 3.5

AM of 1,2,3,4,5,6 is

Page 30: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 2.

(a) 3

(b) 5

(c) 7

(d) 9

Answer: (b) 5

AM of 5,5,5,5,5, is

Page 31: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question.3.

(a) 0

(b) 5

(c) -5

(d) None of these

Answer: (a) 0

The algebraic sum of deviations taken about the AM of 15, 20 and 25 is

Page 32: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 4.

(a) 11/3

(b) 5

(c) 4

(d) 4.5

Answer: (a) 11/3

If a variable assumes the values 1,2,3,4,5 with frequencies as 1,2,3,4,5 respectively, then AM is

Page 33: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

(a) 40%

(b)50%

(c) 60%

(d) None of these

Answer: (a) 40%

The average salary of a group of unskilled workers is Rs. 10000 and that of a group of skilled workers is Rs. 15000.If

the combined salary is Rs. 12000, then what is the percentage of skilled workers?

Question.5

Page 34: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 6 Find the AM for the following frequency distribution

Marks : 5-14 15-24 25-34 35-44 45-54 55-64 No. Of students: 10 18 32 26 14 10

(a) 30

(b) 29

(c) 33.68

(d) 34.21

Answer: (c) 33.68

Page 35: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question7

Find the AM of the following data.

• Marks: less than 20 <40 <60 <80 <100

• No. of students: 5 17 28 42 50

Page 36: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 7

(a) 51.2

(b) 52.2

(c) 53.2

(d) 54.2

Answer: (c) 53.2

Question 7

(a) 51.2

(b) 52.2

(c) 53.2

(d) 54.2

Answer: (c) 53.2

Page 37: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question.8

Find the missing value Y, if the following frequency distribution has AM as 5.

• X: 6 4 Y 2 • f: 4 3 2 1

Page 38: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 8

(a) 5

(b) 6

(c) 7

(d) 8

Answer: (b) 6

Page 39: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question.9

Find the AM of the following frequency distribution.

• X: 0-10 10-20 20-30 30-40 40-50 • f: 3 5 7 4 1

Page 40: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 9

(a) 20.5

(b) 21.5

(c) 22.5

(d) 23.5

Answer: (c) 22.5

Page 41: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question.10

Find the AM of the following frequency distribution.

• X: 0-50 50-100 100-150 150-200 200-250 • f: 15 25 30 20 10

Page 42: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 10

(a) 115.5

(b) 116.5

(c) 117.5

(d) 118.5

Answer: (c) 117.5

Page 43: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question.11

If the AM of the following frequency distribution is 14.7 for age in years of 20

individuals. Find the missing values. • X: 0-6 6-12 12-18 18-24 24-30 • f: 3 5 - - 4

Page 44: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 11

(a) 4, 4

(b) 6, 2

(c) 5, 3

(d) 7, 1

Answer: (b) 6, 2

Page 45: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question.12 If the AM of the series 1,2,3,…n is 6. Find the value of n.

Page 46: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 12

(a) 7

(b) 9

(c) 11

(d) 12

Answer: (c) 11

Page 47: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Median

Page 48: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Median (Md) and other Partition Values

Median is a positional average, which divides the data into two equal parts.

Page 49: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

If Y= a +b X then Md(Y) = a + b Md(X)

Properties of Median

Page 50: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

The sum of absolute deviations is minimum when it is measured about Md. i.e.

minimum if AX A is Md− =∑

Properties of Median

Page 51: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Determination of Median Case (i): When number of observations is odd, i.e. n is odd.

First arrange the observations in ascending or descending order . If no. of observations is n which is an odd number, then

12

nThen Md th term+ =

Page 52: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 1 : Find median of the following data 40, 29, 15, 58, 70

1 5 1 32 2

. . 40

rdnMd th term term

i e Md

+ + = = =

=

Solution: Let us arrange the observations in ascending order as 15, 29, 40, 58, 70 Here n= 5,Therefore

Page 53: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case(ii)

1 ( ) ( 1)2 2 2

n nThen Md th term th term = + +

When number of observations is even, i.e. n is even. First arrange the observations in ascending or descending order.

Page 54: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 2. Find the Median of the following observations. 5, 25, 11, 14, 26, 30.

( )

1 ( ) ( 1)2 2 21 6 6 1( ) ( 1) 14 25 19.52 2 2 2

n nMd th term th term

Then Md th term th term

= + + = + + = + =

Solution: Let us arrange these observations into ascending order as 5, 11, 14, 25, 26, 30. Here n = 6 i.e. n is even, hence

Page 55: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case (iii)

For x1-f1, x2-f2,…xn-fn type data, Form a column of less than type cumulative

frequencies.

Then Md = Value of the variable X corresponding to the cumulative frequency

just greater than N/2

Page 56: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 3.

Find the median of the following frequency distribution.

• X: 60 65 70 75 80 85 90 • f : 7 12 20 22 18 14 9

Page 57: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution:

X f Less than type c.f.

60 7 7

65 12 19

70 20 39

75 22 61

80 18 79

85 14 83

90 9 92

Total N=92

Page 58: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution

Here the c.f. just greater than N/2 i.e. 46, is 61. Therefore the corresponding value of X is Median, i.e. Md = 75

Page 59: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case (iv)

For grouped data i.e. if frequencies are given corresponding to the class

intervals.

First find the Md class corresponding to the cumulative

frequency just greater than N/2.

Page 60: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

2

limit

(besure that theclass intervals are , . . )

N cThen Md l h

fwhere l lower of the Md class

f frequency of the Md classc cumulative frequency preceeding the Md classh class width exclussivetype i e continuous classes

− = + ×

====

Median Formula for Continuous Series

Page 61: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example. 4.

Find the Median of the following data.

• Marks: 0- 10 10-20 20-30 30-40 40-50 • No. of students: 5 8 10 7 6

Page 62: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution Marks

Class Intervals No. Of students

(f) c.f.

0-10 5 5

10-20 8 13=c

20-30 10=f 23

30-40 7 30

40-50 6 36

Totals N=36

Page 63: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution

2

36 132. . 20 10 25

10

N cThen Md l h

f

i e Md

− = + ×

− = + × =

The c.f. just greater than N/2 i.e. 18, is 36, which is the Md class. Hence, Note that if class intervals are not continuous then they are first made continuous by adding d/2 to the all upper limits and subtracting d/2 from all the lower limits, where d is the difference between lower limit of any class and upper limit of the previous class.

Page 64: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Quartiles There are three quartiles viz. Q1, Q2 and Q3,which divide the data into four equal parts.

Page 65: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case (i) For x1-f1, x2-f2,…xn-fn type data

First form a column of cumulative frequencies then the value of the variable corresponding to the c.f. just greater than

iN/4 gives the ith quartile.

Page 66: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Then ith (i=1,2,3) Quartile (Qi) is given by

4

limit

(besure that theclass intervals are , . . )

i

i

i

i

iN cThen Q l h

fwhere l lower of the Q class

f frequency of the Q classc cumulative frequency preceeding the Q classh class width exclussivetype i e continuous classes

− = + ×

====

Quartile

Page 67: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 1 Find the third quartile for the following

frequency distribution.

X: 10 20 30 40 50 60 70 80 90 100 f: 3 5 10 20 30 40 45 35 7 5

Page 68: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution X f c.f. 10 3 3 20 5 8 30 10 18 40 20 38 50 30 68 60 40 108 70 45 153 80 35 188 90 7 195

100 5 200 Total N= 200

Page 69: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Here to calculate third quartile we see the value of X

corresponding to the

cummulative frequency just greater than

3N/4=3x200/4=150, which is 153. Hence third quartile

is given by

Q3 = 70

Solution

Page 70: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case (ii)

If frequencies are given to corresponding class intervals.

Page 71: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Then ith (i=1,2,3) Quartile (Qi) is given by

4

limit

(besure that theclass intervals are , . . )

i

i

i

i

iN cThen Q l h

fwhere l lower of the Q class

f frequency of the Q classc cumulative frequency preceeding the Q classh class width exclussivetype i e continuous classes

− = + ×

====

Quartile

Page 72: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 2

• Marks: 0- 10 10-20 20-30 30-40 40-50 50-60 • No. of students: 5 8 10 7 6 4

Find the First and Third Quartiles for the following frequency distribution.

Page 73: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution Marks

Class Intervals No. Of students

(f) c.f.

0-10 5 5

10-20 8 13

20-30 10 23

30-40 7 30

40-50 6 36

50-60 4 40

Totals N=40

Page 74: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

1

1

4

40 54. . 10 10 16.25

8

N cThen Q l h

f

i e Q

− = + ×

− = + × =

And

3

3

34

3 40 304. . 40 10 40

6

N cThen Q l h

f

i e Q

− = + ×

× − = + × =

Solution

Page 75: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Deciles

There are nine deciles viz. D1, D2,…D9, which divide

the data into 10 equal parts.

Page 76: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case (i) For x1-f1, x2-f2,…xn-fn type data, Form a column of less than type cumulative frequencies.

Then ith decile is the value of the variable X corresponding to cumulative frequency just

greater than iN/10.

Page 77: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 1

Find the 5th decile for the following frequency distribution.

X: 10 20 30 40 50 60 70 80 90 100 f: 3 5 10 20 30 40 45 35 7 5

Page 78: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution X f c.f. 10 3 3 20 5 8 30 10 18 40 20 38 50 30 68 60 40 108 70 45 153 80 35 188 90 7 195

100 5 200 Total N= 200

Page 79: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution

Here we have formed the column of cumulative frequencies, now see the

c.f. just greater than 5N/10=5x200/10=100, which is 108,

hence the corresponding value of X is fifth decile, i.e.

D5 = 60

Page 80: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case (ii) For grouped data, i.e. frequencies against class intervals are given.

Then ith decile class is obtained corresponding to

the cumulative frequency just greater than iN/10.

Page 81: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Then ith (i-1,2,…9) decile (Di) is given by

10

limit

(besure that theclass intervals are , . . )

i

i

i

i

iN cD l h

fwhere l lower of the D class

f frequency of the D classc cumulative frequency preceeding the D classh class width exclussivetype i e continuous classes

− = + ×

====

Page 82: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 2

Find the seventh decile for the following frequency distribution.

Marks : 0- 10 10-20 20-30 30-40 40-50 50-60 No. of students: 5 8 10 7 6 4

Page 83: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution

Marks Class

Intervals

No. of students (f)

c.f.

0-10 5 5

10-20 8 13

20-30 10 23

30-40 7 30

40-50 6 36

50-60 4 40

Totals N=40

Page 84: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

First we find the seventh decile class

corresponding to the c.f. just greater than 7N/10=28, i.e. 30. Hence

7

7

7

710

7 40 2310. . 30 10

7i. . 30 7.14 37.14

N cThen D l h

f

i e D

e D

− = + ×

× − = + ×

= + =

Page 85: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Percentiles:

Percentiles divide the whole data into 100 equal

parts. They are 99 in number and denoted by

P1,P2,…P99

Page 86: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case (i) For x1-f1, x2-f2,…xn-fn type data.

First, form a column of less than type cumulative frequencies. Identify the ith

percentile class for which the cumulative frequency is just greater than iN/100.

Page 87: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 1

Find the 65th percentile for the following frequency distribution.

X: 10 20 30 40 50 60 70 80 90 100 f: 3 5 10 20 30 40 45 35 7 5

Page 88: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution X f c.f. 10 3 3 20 5 8 30 10 18 40 20 38 50 30 68 60 40 108 70 45 153 80 35 188 90 7 195

100 5 200 Total N= 200

Page 89: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

The 65th percentile is the value of X for which corresponding cumulative frequency is just greater

than 65N/100=65x200/100=130, which is 153 .

Hence P65 = 70

The 65th Percentile

Page 90: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case (ii) For grouped data, i.e. frequencies are given corresponding to class intervals.

First obtain the ith percentile class which is corresponding to the cumulative frequency just

greater than iN/100.

Page 91: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Then ith (i=1,2,…99) percentile (Pi) is given by

100

limit

(besure that theclass intervals are , . . )

i

i

i

i

iN cP l h

fwhere l lower of the P class

f frequency of the P classc cumulative frequency preceeding the P classh class width exclussivetype i e continuous classes

− = + ×

=

=

=

=

Percentile

Page 92: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 2.

• Marks: 0- 10 10-20 20-30 30-40 40-50 50-60 • No. of students: 5 8 10 7 6 4

Find the 52nd percentile for the following frequency distribution.

Page 93: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution Marks

Class Intervals No. Of students

(f) c.f.

0-10 5 5

10-20 8 13

20-30 10 23

30-40 7 30

40-50 6 36

50-60 4 40

Totals N=40

Page 94: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

The 52nd percentile

52

52

52

52100

52 40 1310020 10

1020 7.8 27.8

N cP l h

f

or P

P

× − = + ×

× − = + ×

= + =

First we obtain the 52nd Percentile class which is corresponding to the c.f. just greater than 52N/100 i.e. 52x40/100=20.8, which is 23, shown as red.

Page 95: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Partition Values for Ungrouped Data:

For unclassified data the pth Quartile is given by (n+1)pth value.

Take p=1/4 for first quartile p=2/4 for second quartile

p=3/4 for third quartile

Page 96: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example

Find Q3, for the wages of labourers: • Rs. 82, 56, 90, 50, 120, 75,

79, 80, 130, and 65.

Page 97: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution

( )

( )

33143i. . 10 1 8.254

. . 8 0.25(9 value 8 value)i.e. 90 0.25(120 90)i.e. 90.5

th

th th th

Q n th value

e th value value

i e value

= + ×

= + × =

= + −= + −=

Arrange the wages in ascending order as : 50, 56, 65, 75, 79, 80, 82, 90, 120, 130

Page 98: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Partition Values for Ungrouped Data:

For unclassified data the pth Decile is given by (n+1)pth value.

Take p=1/10 for first decile, p=2/10 for second decile, . . . p=9/10 for ninth decile.

Page 99: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example

Find D7, for the wages of labourers:

• Rs. 82, 56, 90, 50, 120, 75, 79, 80, 130, and 65.

Page 100: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution

( )

( )

7

7

7110

7i. . 10 1 7.710

. . 7 0.7 (8 value 7 value)i.e. 82 0.7(90 82)i.e. D 87.6

th

th th th

D n th value

e th value value

i e value

= + ×

= + × =

= + −= + −

=

Arrange the wages in ascending order as : 50, 56, 65, 75, 79, 80, 82, 90, 120, 130

Page 101: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Partition Values for Ungrouped Data:

For unclassified data the pth Percentile is given by (n+1)pth value.

Take p=1/100 for first percentile, p=2/100 for second percentile, . . . p=99/100 for ninety ninth percentile.

Page 102: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example

Find P73, for the wages of labourers: • Rs. 82, 56, 90, 50, 120, 75,

79, 80, 130, and 65.

Page 103: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution

( )

( )

73

73

731100

73i. . 10 1 8.03100

. . 8 0.03(9 value 8 value)i.e. 90 0.03(120 90)i.e. 90.9

rd

th th th

P n th value

e th value value

i e value

P

= + ×

= + × =

= + −= + −

=

Arrange the wages in ascending order as : 50, 56, 65, 75, 79, 80, 82, 90, 120, 130

Page 104: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question Time M.C.Q's. on Median and other

Partition Values

Page 105: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 1

What is the Median of 5, 8, 6, 9, 11 and 4.

a) 6

b) 7

c) 8

d) None of these

Answer: (b) 7

Page 106: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 2

What is the value of the first Quartile for the observations 15, 18,10, 20, 23, 28, 12, 16?

(a) 17

(b) 15.75

(c) 12

(d) 12.75

Answer: (d) 12.75

Page 107: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 3.

(a) 13

(b) 10.70

(c) 11

(d)11.50

Answer: (b) 10.70

The third decile for the numbers 15, 10, 20, 25, 18, 11, 9, 12 is

Page 108: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 4

Find the median of 12, 4, 36, 45, 3, 58, 65?

(a) 45

(b) 36

(c) 58

(d) 42

Answer: (b) 36

Page 109: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 5

Find the 73rd percentile of 4, 12, 36, 45, 3, 58, 65?

(a) 54.92

(b) 55.92

(c) 56.92

(d) 57.92

Answer: (b) 55.92

Page 110: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 6 Find the missing frequency if the median mark is 23?

X : 0-10 10-20 20-30 30-40 40-50 f : 5 8 ? 6 3

(a) 9

(b) 11

(c) 10

(d) 7

Answer: (c) 10

Page 111: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 7

The absolute sum of deviations is minimum when it is measured about

(a) Mean

(b) Median

(c) Mode

(d) None of these

Answer: (b) Median

Page 112: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 8

The variables X and Y are given by Y= 3X+6. If the median of X is 10, what is the median of Y?

(a) 3

(b) 6

(c) 18

(d) 36

Answer: (d) 36

Page 113: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 9

What is the value of the first quartile for observations 15, 18, 10, 20, 23, 28, 12, 16?

(a) 17

(b) 16

(c) 15.75

(d) 12

Answer: (c) 15.75

Page 114: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 10

The third decile for the numbers 15, 10, 20, 25, 18, 11, 9, 12 is

(a) 13

(b) 10.70

(c) 11

(d) 11.50

Answer: (b) 10.70

Page 115: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 11 Find the 27th percentile for the following frequency distribution. X: 0-9 10-19 20-29 30-39 39-49 f: 5 7 12 10 6

(a) 13

(b) 17.79

(c) 11

(d) 11.50

Answer: (b) 17.79

Page 116: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Mode

Page 117: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Mode (Mo):

This is an industrial average.

The most frequent value of the variable is called mode.

Page 118: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Determination of Mode:

Case (i) When data is unclassified.

• e.g. Mo of 5, 3, 8, 9, 5, 6 is 5 which is the most frequent value.

Page 119: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

0 1

0 1 1

0

1

1

2

limit of modalclassf modal classf modal classf modal

(note that class intervals must be continuous)

f fMo l hf f f

wherel lower

frequency of thefrequency of pre

frequency of post classh class width

−= + × − −

=== −= −=

Case (ii) For grouped data i.e. if frequencies corresponding to class intervals are given, then Mo is given as

Page 120: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example:

Find the Mo for the following frequency distribution.

Class Intervals: 350-369, 370-389, 390-409, 410-429, 430-449, 450-469, 470-489 Frequency : 23, 38, 58, 82, 65, 31, 11

Page 121: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution Class Intervals Continuous Class Intervals Frequency

350-369 349.5-369.5 23

370-389 369.5-389.5 38

390-409 389.5-409.5 58

410-429 409.5-429.5 82

430-449 429.5-449.5 65

450-469 449.5-469.5 31

470-489 469.5-489.5 11

Page 122: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution

0 1

0 1 12

82 58409.5 202 82 58 65

. . 409.5 11.71 421.21

f fMo l h

f f f

Mo

i e Mo

−= + × − −

− = + × × − − = + =

Page 123: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Relation between Mean, Median And Mode:

Mode =3 Median-2 Mean • (OR)

Mean-Mode=3(Mean-Median)

Page 124: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

MCQ’ on Mode

Question Time

Page 125: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 1 What is the Modal value for the numbers 5, 8, 6, 4, 10,15, 18, 10, 5, 10?

(a) 5

(b) 10

(c) 14

(d) None of these

Answer: (b) 10

Page 126: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 2 The Mode for the following frequency distribution:

(a) 390

(b) 394.86

(c) 395.86

(d) 396

Answer: (c) 395.86

Class Intervals: 350-369, 370-389, 390-409, 410-429, 430-449, 450-469 Frequency : 15 27 31 19 13 6

Page 127: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 6 Following is an incomplete distribution having modal mark as 44.

(a) 45

(b) 46

(c) 47

(d) 48

Answer : (d) 48

Marks: 0-20, 20-40, 40-60, 60-80, 80-100 No. of students: 5 18 X 12 5 What would be the mean marks?

Page 128: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 7 Measures of Central Tendency for given set of observations measures

(a) The scatterness of observations

(b) the central location of observations

(c) Both (a) and (b)

(d) None of these

Answer: (b) the central location of observations

Page 129: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 8

(a) The data are not classified

(b) The data are put in the form of grouped frequency distribution

(c) All the observations are not of equal importance

(d) Both (i) and (iii)

Answer: (c) All the observations are not of equal importance

Weighted averages are considered when

Page 130: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Geometric Mean

Page 131: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Geometric Mean (G)

GM is defined if no observation is zero or negative.

Page 132: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Geometric Mean (G)

GM of n positive observations is defined as the nth root of

their product.

Page 133: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Geometric Mean (G)

GM is used to calculate average growth rate or average of ratios.

Page 134: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Geometric Mean (G)

If Z=X.Y then GM(Z)=GM(X).GM(Y)

Page 135: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Geometric Mean (G)

If Z=X/Y then GM(Z)=GM(X)/GM(Y)

Page 136: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

1

1 2 n(X .X ...X )1log log

nG

or G Xn

=

= ∑

GM of X1, X2,…Xn is given by

GM for Individual series

Page 137: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

GM for Discrete Series

( )1 2

1

1 2. ...

1log log

nff f NnG X X X

or G f XN

=

= ∑

GM for X1-f1, X2-f2,…Xn-fn type data

Page 138: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 1

( ) ( )1 13 32 3 4 64 4G = × × = =

GM of 2, 3, and 4 is given as

Page 139: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 2.

• X : 2 4 8 16 • f : 2 3 3 2

Find the GM of the following frequency distribution.

Page 140: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution ( )

( )

( )

( )

1 2

1

1 2

12 3 3 2 (2 3 3 2)

12 6 9 8 10

125 2.510

. ...

2 .4 .8 .16

2 .2 .2 .2

2 2 4 2

5.66

nff f NnG X X X

or G

or G

or G

G

+ + +

=

=

=

= = =

=

Page 141: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Harmonic Mean

Page 142: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Harmonic Mean (H)

HM is defined if no observation is zero.

Page 143: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Harmonic Mean (H)

HM of n observations is defined as the reciprocal of Arithmetic Mean of the

reciprocals of the observations.

Page 144: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Harmonic Mean (H)

This is used to calculate the average speeds.

Page 145: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Harmonic Mean (H) Combined HM of two groups having n1 and n2

observations and H1 and H2 as their respective Harmonic Means is given by

( )1 2

1 2

1 2

n nH

n nH H

+=

+

Page 146: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case (i)

1nH

X

=

HM of X1, X2, … Xn is

Page 147: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 1

3 3 36 3.27111 1 1 1 11122 4 6

nH

X

= = = = = + +

∑ ∑

HM of 2, 4, and 6 is

Page 148: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Find the HM of the following data X : 2 4 8 16 f : 2 3 3 2

Example 2

( )2 3 3 24.44

2 3 3 22 4 16

:

8

NHf

Solut

X

ion+ + +

= = = + + +

∑ ∑

Page 149: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Case(ii) If the data is of X1-f1, X2-f2,…Xn-fn type

data, then HM is given by

NH where N ffX

= = ∑∑

Page 150: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Relation Between AM, GM and HM: 2( ) ( ) ( )

.

G A H

MoreoverAM GM HMNote that equality holds if all the observations are equal

= ×

≥ ≥

Page 151: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Weighted Average

Page 152: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Weighted Average:

If all the observations are not equally important i.e. weights are assigned to them, then Weighted AM, Weighted GM and Weighted

HM are calculated.

Page 153: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Weighted AM is

WX

AMW

= ∑∑

Page 154: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Weighted GM is

log

logW X

GM AnteW

=

∑∑

Page 155: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Weighted HM is

WHM

WX

= ∑∑

Page 156: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Example 1

Find the weighted AM and weighted HM for the following data

X : 1 2 3 4 5 6 7 8 9 10 W : 12 22 32 42 52 62 72 82 92 102

Page 157: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution 2 2 2

2 2 2

2

3 3 3

2 2 2

1 1 2 2 ...1 2 ...

(n 1)1 2 ... 2

(n 1)(2n 1)1 2 ...6

3n(n 1)2(2n 1)

WX n nWeighted AMW n

nn

nn

or AM

× + × + + ×= =

+ + +

+ + + + = =+ ++ + +

+=

+

∑∑

Page 158: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Solution 2 2 2

2 2 2

2 2 2

1 2 ...1 2 ...1 2

(n 1)(2n 1)1 2 ... 6

(n 1)1 2 ...2

(2n 1)3

W nWeighted HMW nX n

nn

nn

or HM

+ + += =

+ + +

+ + + + + = =

++ + +

+=

∑∑

Page 159: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question Time MCQ’ on GM & HM

Page 160: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 1

(a) AM

(b) GM

(c) HM

(d) Both (b) & (c)

Answer: (b) GM

Which measure of central tendency is used to find average rates.

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Question 2

(a) AM ≥ GM ≥ HM

(b) HM ≥ GM ≥ AM

(c) AM > GM > HM

(d) GM > AM > HM

Answer: (a) AM ≥ GM ≥ HM

Which of the following results hold for a set of distinct positive observations?

Page 162: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 3

(a) 2.00

(b) 3.33

(c) 2.90

(d) -3.33

Answer: (c) 2.90

The Harmonic Mean for the numbers 2,3,5 is

Page 163: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 4

(a) 24

(b) 12

(c) 36

(d) 18

Answer: (b) 12

What is the Geometric Mean of the numbers 4,12, 36?

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Question 5

(a) 6 and 7

(b) 9 and 4

(c) 10 and 3

(d) 8 and 5

Answer (b) 9 and 4

If the AM and GM for the two numbers are 6.50 and 6 respectively then the two numbers are

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Question 6

(a) 16

(b) 4.10

(c) 4.05

(d) 4.00

Answer: (d) 4

If the AM and HM for two numbers are 5 and 3.2 respectively then the GM will be

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Question 7

(a) 150

(b) log 10 x log15

(c) log 150

(d) none of these

Answer: (a) 150

If GM of X is 10 and GM of Y is 15, then the value of GM of XY is

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Question 8

(a) 40

(b) 50

(c) 20

(d) 30

Answer: (a) 40

If AM of a variable X is 10 and GM of X is 20, then the HM of X is

Page 168: Measures of Central Tendency - ICAI Knowledge …. Measures of Central Tendency. The tendency of a given set of observations to cluster around a single central or middle value and

Question 9

(a) n

(b) 2n

(c) 2/(n+1)

(d) n(n+1)/2

Answer: (c) 2/(n+1)

The HM of 1, 1/2, 1/3 … 1/n is

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Thank You