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Course Course Code

Business Mathematics and Statistics MGT-311

Submitted to: Submitted By: Anfal Waqar Assignment Topic: Applications of mean, median and mode Submission Date 4/02/2013

Table of Content

Application of mean 3 Application of median 4 Application of mode 4 References .5

Applications of Mean, Median and Mode? Mean:The mean is often just called the average. It can be used with both discrete and continuous data, although its use is most often with continuous data.The mean is equal to the sum of all the values in the data set divided by the number of values in the data set. So, if we have n values in a data set and they have values x1, x2... xn, the sample mean, usually denoted by is:

.This formula is usually written in a slightly different manner using the Greek capitol letter, , pronounced "sigma", which means "sum of...":

Application of mean: Mean can be used to see the average mark of the class obtained. This average helps to see how many students are above average, how many are average students and how many are below averages. The teacher tries to help the average and below average students to score more grades in future. In a factory, the mean of the wages helps the authorities to recognize whether the benefits of the workers are continued or not. It also helps to compare the salaries of the employees of the different companies. In sales, the average sales in the district help the sales manager to plan for increasing the sales in the future. The government takes the average income and expense of the citizens to know whether the citizens rights are maintained. It is also used by government to find the income and expenses of any person. Using this family could balance their expenses with their average income. The average production of agricultural commodities, the industrial goods, the average exports and imports help the country to see their developments.

Median:As median may be defined as the middle value of any observation Median is another simple measurement used commonly in basic statistical analysis. When a data set is
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organized by the size of numbers, the median is the middle value. If there is an even number of data points, the median is the average of the two middle values. Medians can be used when the data set features extremely large or small values that could significantly affect the average. The median is less affected by outliers and skewed data. Median is likely to be the best measurement of age when a given group features one person aged 80, and everyone else between 18 and 20.

Applications of Median
It is used to measure the distribution of the earnings Median is used to find the students who score less or more than the middle value. Median is calculated to find the distribution of the wages. It is calculated to find the height of the players, in the points scored by players in a series of matches. Median is used to find the middle value of the ages of the students in a class etc. It also determines the poverty line.

Mode:Mode contains the highest frequency in any data. On a histogram it represents the highest bar in a bar chart or histogram. For example, A bakery that sells twice as many red velvet cupcakes as chocolate brownies will need to produce more cupcakes to satisfy their customers. In this bakery, the number of red velvet cupcakes sold is the mode.

Application of mode: It is used to calculate the frequency of the arrival of the public transport, The frequency of the games won by a team of players, The frequency of the needs of an infant. The mode is also seen in calculation of the wages, in the number of telephone calls received in a minute by the telephone department, the frequency of the visitors, the frequency of the patients visiting the hospitals, the mode of travel etc

References: http://answers.tutorvista.com/142647/why-do-you-use-mean-mode-and-median-inyour-daily-life.html# Read more: How Do People Use Mode, Mean & Average Everyday? | eHow.com http://www.ehow.com/info_8752223_do-mode-mean-averageeveryday.html#ixzz2JI097Icg Read more: How Do People Use Mode, Mean & Average Everyday? | eHow.com http://www.ehow.com/info_8752223_do-mode-mean-averageeveryday.html#ixzz2JHzdXcfL Read more: How Do People Use Mode, Mean & Average Everyday? | eHow.com http://www.ehow.com/info_8752223_do-mode-mean-averageeveryday.html#ixzz2JHz9k7UL https://statistics.laerd.com/statistical-guides/measures-central-tendency-mean-modemedian.php