Central Tendency

Central tendency is defined as an arithmetical measure that finds or calculate a single value that precisely define the center of the distribution and tells the whole distribution of the score.

The absorption of values around central value of a scattering is known as Central tendency. The altered measures that are used to study the features of the distribution are known as Measures of central tendency.

Types of Central Tendency

There are three types of Central Tendency:

  1. Arithmetic Mean
  2. Median
  3. Mode

Arithmetic Mean

It is simple and easy to understand and its calculations are also easy and it is always rigidly defined. The answer of the arithmetic mean is always a calculated value. But it is always influenced by the extreme items.

Median

It is not influenced by the extreme items and is useful for open ended questions. It defines the value of the central item in any given data. But median cannot do the algebraic operations. And the answer of the median is affected by the variations in the sampling.

Mode

It is the most repeated value of the given data. It is not influenced by the extreme items. The value of the mode can be calculated both graphically and mathematically. Unlike median it is also not capable of doing algebraic operations.

Requisite of good measure of Central Tendency

  • It should be inflexibly defined.
  • It should be simple to recognize and compute.
  • It should be built on all the clarifications.
  • It should be suitable for further mathematical treatment.
  • It should be affected by a little variation in sampling.
  • It should not be affected much by risky clarifications.
  • It should have sampling stability

business statistics

November 10, 2018