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THE ARITHMETIC MEAN

The arithmetic mean is the statistician’s term for what


the layman knows as the average. It can be thought of as that
value of the variable series which is numerically MOST
representative of the whole series.

“The arithmetic mean or simply the mean is a value


obtained by dividing the sum of all the observations by their
number.”

X
n where n represents the number of
∑ Xi observations in the sample that has been
the ith observation in the sample (i = 1, 2,
X = i =1 3, …, n), and represents the mean of the
n
sample.

For simplicity, the above formula can be written as

X=
∑ X
n
(In other words, it is not necessary to insert the subscript
‘i’.)
EXAMPLE
Information regarding the receipts of a news agent for seven
days of a particular week are given below:
Day Receipt of News Agent
Monday £ 9.90
Tuesday £ 7.75
Wednesday £ 19.50
Thursday £ 32.75
Friday £ 63.75
Saturday £ 75.50
Sunday £ 50.70
Week Total £ 259.85

Mean sales per day in this week :


X = £ 259.85/7 = £ 37.12
(to the nearest penny).
Interpretation:

The mean, £ 37.12, represents the amount (in pounds


sterling) that would have been obtained on each day if the same
amount were to be obtained on each day.
To calculate the approximate value of the mean, the
observations in each class are assumed to be identical with the
class midpoint Xi.
As was just mentioned, the observations in each class
are assumed to be identical with the midpoint i.e. the class-
mark.
, (This is based on the assumption that the observations
in the group are evenly scattered between the two extremes of
the class interval).
The mid-point of every class is known as its class-mark.
In other words, the midpoint of a class ‘marks’ that class.
FREQUENCY DISTRIBUTION
Mid Point Frequency
X f
X1 f1
X2 f2
X3 f3
: :
: :
: :
Xk fk
In case of a frequency distribution, the arithmetic mean is
defined as: k k
∑ fi Xi ∑ fi Xi
X = i =1k = i =1
n
∑ fi
i =1
For simplicity, the above formula can be written as

X=
∑ fX ∑ fX
=
(The subscript ‘i’ can be
dropped.)
∑f n
EPA MILEAGE RATINGS OF 30 CARS OF A
CERTAIN MODEL

C
CLASS-MARK
(MID-POINT):
The mid-point of each class is obtained by adding the
sum of the two limits of the class and dividing by 2.
Hence, in this example, our mid-points are computed in this
manner:
30.0 plus 32.9 divided by 2 is equal to 31.45,
33.0 plus 35.9 divided by 2 is equal to 34.45,
and so on.
Class Class-mark
(Mileage Rating) (Midpoint)
X
30.0 – 32.9 31.45
33.0 – 35.9 34.45
36.0 – 38.9 37.45
39.0 – 41.9 40.45
42.0 – 44.9 43.45
Class-mark
Frequency
(Midpoint) fX
f
X
31.45 2 62.9
34.45 4 137.8
37.45 14 524.3
40.45 8 323.6
43.45 2 86.9
30 1135.5

Applying the formula: X=


∑ fX
,
∑f
we obtain
1135 .5
X = =37 .85
30
GROUPING ERROR

“Grouping error” refers to the error that is introduced


by the assumption that all the values falling in a class are equal
to the mid-point of the class interval.
In reality, it is highly improbable to have a class for which all
the values lying in that class are equal to the mid-point of that
class.
This is why the mean that we calculate from a frequency
distribution does not give exactly the same answer as what we
would get by computing the mean of our raw data.
This grouping error arises in the computation of many
descriptive measures such as the geometric mean, harmonic
mean, mean deviation and standard deviation.
But, experience has shown that in the calculation of
the arithmetic mean, this error is usually small and never
serious.
Only a slight difference occurs between the true answer that
we would get from the raw data, and the answer that we get
from the data that has been grouped in the form of a
frequency distribution.
In this example, if we calculate the arithmetic mean directly
from the 30 EPA mileage ratings, we obtain:
36.3 + 30.1 + ..... + 33.9 + 39.8
X=
30
1134 .7
= = 37 .82
30
The arithmetic mean is predominantly used as a measure of
central tendency.
The question is, “Why is it that the arithmetic mean is known as
a measure of central tendency?”
The answer to this question is that we have just obtained
i.e. 37.85 falls more or less in the centre of our frequency
distribution. Y
Number of Cars

16
14
12
10
8
6
4
2
0 X
5

5
5

5
.4
.4

.4

.4

.4

.4

.4
8

6
1

0
2

4
Milesper gallon
Mean = 37.85
DESIRABLE PROPERTIES OF THE ARITHMETIC
MEAN

•Best understood average in statistics.


•Relatively easy to calculate
•Takes into account every value in the series.
But there is one limitation to the use of the arithmetic
mean:
As we are aware, every value in a data-set is included in
the calculation of the mean, whether the value be high or
low.
Where there are a few very high or very low values
in the series, their effect can be to drag the arithmetic
mean towards them. this may make the mean
unrepresentative.
Let us consider an example:
Example of the Case Where the Arithmetic Mean Is
Not a Proper Representative of the Data:
Suppose one walks down the main street of a large
city centre and counts the number of floors in each
building.
Suppose, the following answers are obtained:

5, 4, 3, 4, 5, 4, 3, 4, 5,
20, 5, 6, 32, 8, 27

The mean number of floors is 9 even though 12 out


of 15 of the buildings have 6 floors or less.
The three skyscraper blocks are having a disproportionate
effect on the arithmetic mean.
EXAMPLE
Suppose that in a particular high school, there are:-
100 – freshmen
80 – sophomores
70 – juniors
50 – seniors
And suppose that on a given day, 15% of freshmen, 5% of
sophomores, 10% of juniors, 2% of seniors are absent.
The problem is that: What percentage of students is
absent for the school as a whole on that particular day?
Now a student is likely to attempt to find the answer by
adding the percentages and dividing by 4 i.e.

15 + 5 + 10 + 2 32
= =8
4 4
As we have already noted, 15% of the freshmen are
absent on this particular day. Since, in all, there are 100
freshmen in the school, hence the total number of freshmen
who are absent is also 15.
But as far as the sophomores are concerned, the total
number of them in the school is 80, and if 5% of them are
absent on this particular day, this means that the total number
of sophomores who are absent is only 4.

Number of Number of
Category
Students in Students who
of Student the school are absent
Freshman 100 15
Sophomore 80 4
Junior 70 7
Senior 50 1
TOTAL 300 27
Dividing the total number of students who are absent by the
total number of students enrolled in the school, and multiplying
by 100, we obtain:

27
× 100 = 9
300
In this example, the number of students enrolled in each
category acts as the weight for the number of absences
pertaining to that category i.e.
WEIGHTED MEAN

Xw =
∑ Wi X i
∑ Wi
And, in this example, the weighted mean is equal to:

Xw =
∑ Wi Xi = 2700
∑ Wi 300
=9
An important point to note here is the criterion for
assigning weights. Weights can be assigned in a number of
ways depending on the situation and the problem domain.
In the example that we have just considered, greater weights
are assigned to larger groups.
MEDIAN
The median is the middle value of the series when the
variable values are placed in order of magnitude.
The median is defined as a value which divides a
set of data into two halves, one half comprising of
observations greater than and the other half smaller
than it. More precisely, the median is a value at or
below which 50% of the data lie.
The median value can be ascertained by inspection in
many series. For instance, in this very example, the
data that we obtained was:
EXAMPLE:

The average number of floors in the buildings at


the centre of a city:
5, 4, 3, 4, 5, 4, 3, 4, 5, 20, 5, 6, 32, 8, 27
Arranging these values in ascending order, we
obtain
3, 3, 4, 4, 4, 4, 5, 5, 5, 5, 6, 8, 20, 27, 32
Picking up the middle value, we obtain the
median
~ equal to 5.
X
Interpretation:

The median number of floors is 5. Out of


those 15 buildings, 7 have up to 5 floors and 7 have
5 floors or more.
We noticed earlier that the arithmetic mean was
distorted toward the few extremely high values in
the series and hence became unrepresentative. The
median = 5 is much more representative of this
series.
EXAMPLE
Height of buildings (number of floors)
3
3
4
4 7 lower
4
5
5
5 = median height
5
5
6
8 7 higher
20
27
32
EXAMPLE

Re
EXAMPLE
Number of passengers travelling on a
bus at six Different times during the day
4
9
14
= median value
18
23
47
14 +18
Median = = 16 passengers
2
Example of Discrete a Frequency
Distribution
Comprehensive
No. of Pupils per class SchoolNo. of class

23 1
24 0
25 1
26 3
27 6
28 9
29 8
30 10
31 7
EXAMPLE OF A DISCRETE
FREQUENCY DISTRIBUTION
Comprehensive School:

Num ber of pupils per classN um ber of Classes


23 1
24 0
25 1
26 3
27 6
28 9
29 8
30 10
31 7
45
In this school, there are 45 classes in all, so that
we require as the median that class-size below which
there are 22 classes and above which also there are 22
classes.
In other words, we must find the 23rd class in an
ordered list. We could simply count down noticing that
there is
1 class of 23 children, 2 classes with up to 25 children, 5
classes with up to 26 children.
Proceeding in this manner, we find that 20 classes
contain up to 28 children whereas 28 classes contain
up to 29 children. This means that the 23rd class --- the
one that we are looking for --- is the one which contains
exactly 29 children.
Raw Data
23, 25, 26, 26, 26, 27, 27, 27, 27, 27
27, 28, 28, 28, 28, 28, 28, 28, 28, 28
29, 29, 29, 29, 29, 29, 29, 29, 30, 30
30, 30, 30, 30, 30, 30, 30, 30, 31, 31
31, 31, 31, 31, 31

Median = 23rd Value


Comprehensive School:
Number of Number of Cumulative
pupils per class Classes Frequency
X f cf
23 1 1
24 0 1
25 1 2
26 3 5
27 6 11
28 9 20
median 29 8 28
30 10 38
31 7 45
45
Median number of pupils per class:

~
X = 29
This means that 29 is the middle size of the class. In
other words, 22 classes are such which contain 29
or less than 29 children, and 22 classes are such
which contain 29 or more than 29 children.
Example

Displayed in the following table are the


annual attendance figures in millions of
visitors of 32 U.S public zoological parks:
Attendance figures of 32 zoos (in millions)

0.6 0.9 0.2 0.5 2.0 1.3 1.4 0.4


1.4 1.0 1.4 0.4 1.6 0.6 0.7 0.8
1.3 1.2 0.3 6.0 1.1 1.3 1.0 0.3
0.6 0.9 2.7 0.1 0.3 1.5 0.6 0.9

Source: The World Almanac and Book of


Facts, Funk & Wagnalls, 1995.
For these data, measures of location
can yield such information as the
average attendance of zoos, the
middle attendance figure and the most
frequently occurring figure.
Compute the mean, median and the
mode for the attendance figure listed
in the above table.
Solution

1. Computation of Mean:
For these data we have

∑X = 41.6, n = 32
Hence, the mean is:

41.6
X= = million
1.3
32
2. Computation of the Median:
Step-1
Arrange the data in an ordered array
0.3 0.4 0.5 0.6 0.6 0.6 0.6 0.6 0.7 0.8
0.9 0.9 0.9 1.0 1.0 1.0 1.1 1.2 1.3 1.3
1.3 1.4 1.4 1.4 1.5 1.6 2.0 2.0 2.7 3.0
3.0 4.0
Step-2

In order to compute the median, the


first point to be noted is that, in this
example, we are dealing with an even
number of values i.e. 32
We compute the average of the

n n+ 2
th & thvalues of the ordered data-set.
2 2

Here, we discuss another way to solve this


problem.
As, there are n = 32 values, we can say that
the median is located at

n + 1 32+ 1 33
= = = 16.5th value
2 2 2
eul a
v ht 5
1

eul a
v ht
61

eul a
v ht
71
“16.5th value”

eul a
v ht 8
1
X
Hence, we have

1.0 + 1.1
Median = = 1.05 million.
2
3. Computation of the Mode
By inspecting the attendance figures, we
find that 0.6 is occurring five times
whereas all the other figures are
occurring less often.

Hence,
Mode = 0.6 million
Conclusion
 The mean or average, attendance at these
32 zoological parks is 1.3 million.

 The median or middle attendance figure is


1.05 million

 The mode i.e. the most frequently occurring


attendance figure is 0.6 million
IN TODAY’S LECTURE,
YOU LEARNT
•The importance of the mode
•The non-modal and the bi-modal situation
•The (simple) arithmetic mean
•The weighted arithmetic mean
•The median (in case of raw data and in case of the
frequency distribution of a discrete variable).
IN THE NEXT LECTURE, YOU WILL
LEARN
•Computation of the median in the case of the frequency
distribution of a continuous variable.
•Empirical relation between the mean, median and the
mode.

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