Mean, Median and Mode
Introduction: In this world, we need a large amount of data to be collected in the forms of groups or individual.
For this purpose statistical tests are applied which helps us to generalize the data in groups and to compare with others group.
Statistical measuring tests include Mean, Median and Mode.
These three are commonly used to analyze data.
Mean: It refers to average, the sum of all the data items are divided by the number of data items.
Example: Mean is the average of numbers
To calculate we just add up all the numbers and divided by the how many numbers there are.
Also known as average.
The formula for calculating a mean is
Mean= (X1 +X2 +X3 +…+XN)/N
Example 1: Where X1, X2, X3 are the values of the given observation average and N = the number of observation.
Let’s assume that you like to find the mean price of company XYZ for the last four year. Here is the stock price for each of the four years:
Year 1 Rupees 10
Year 2 Rupees 15
Year 3 Rupees 20
Year 4 Rupees 25
Using this information and the formula above, we can calculate that the mean price of company XYZ is (Rupees 10 + Rupees 15 + Rupees 20 + Rupees 25) \ 4= Rupees 17.50
The mean is always between the smallest and the largest of the number in the set.