The mean (or average) of a data set is calculated by summing all the values and dividing by the total number of values. Ungrouped data has not been organized into categories, while grouped data is organized into a frequency distribution table with class intervals, frequencies, and the product of frequency and midpoint. To find the mean of grouped data, the total of the product of frequency and midpoint is divided by the total frequency. The mean, median, and mode are measures of central tendency that analyze where data is centered. The mean is useful when there are no outliers, the median ignores outliers, and the mode finds the most common value.
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Basic Statistics (MEAN)
2. The mean ( or ) average of a set of data values is
the sum of all of the data values divided by the
number of data values.
7. Data that has been organized into groups ( into a
frequency distribution) if you see a table similar to
the one below, you will know youre dealing with
group data.
8. Example :
Find the mean of the grouped data in the given frequency
distribution table.
Class Interval
Frequency (f)
Midpoint (x)
Product of fx
16-20
2
18
36
11-15
5
13
65
6-10
6
8
48
1-5
9
3
27
Total =
22
176
Table 1.1 Annual Leave Days of 22 State College Employees
9.
10.
The mean, median and mode of a data set are collectively known
as measures of central tendency as these three measures focus on
where the data is centred or clustered. To analyse data using the
mean, median and mode, we need to use the most appropriate
measure of central tendency. The following points should be
remembered:
The mean is useful for predicting future results when there are no
extreme values in the data set. However, the impact of extreme
values on the mean may be important and should be considered.
E.g. The impact of a stock market crash on average investment
returns.
The median may be more useful than the mean when there are
extreme values in the data set as it is not affected by the extreme
values.
The mode is useful when the most common item, characteristic or
value of a data set is required.