Averages

The following are the important types of averages generally used in business.


ARITHMETIC MEAN
The most used measure for representing the entire data by one value is called an 'average' and what the statisticians call the arithmetic mean.
Before we actually talk of data or its applications, we must know what a data is. Data is any information rather statistical about any study or applications. It may be presented in Ungrouped or Raw or Primary Data which is not tilted or defected from its original shape. It directly belongs to the study group and is an individual's study. A grouped information or Final or Secondary Data is a data presentation system in our liking or as per our requirement. It is also called Indirect Data where by the direct source is not available.

Ungrouped or Raw or Primary Data
Marks of 15 students 45, 48, 59 , 95, 86, 79, 87, 98, 57, 48, 39, 85, 74, 82, 73
This is an example of Primary or Raw data where we can study each individual.

Grouped or Final or Secondary Data
Marks obtained by 15 students in a class are given as under:

Here it is not possible to study which individual student scored how many marks. The information, in its raw shape, is available only with the Enumerator and he has presented the information for us in the required manner (in a grouped shape) only.

ARITHMETIC MEAN (AM) - UNGROUPED DATA
The process of computing mean in case of ungrouped data (i.e., where frequencies are not given) is very simple. Add together the various values of the variable and divide the total by the number of observations. The A.M. or, read as X bar. It is defined as:

Example 2 Here given is the salary of 140 employees: Given that

Calculate the average salary drawn.

CALCULATION OF AVERAGE SALARY

=. Thus the average salary is Rs.605.70
Example 3 (a) The average income of a group of 50 persons was calculated to be Rs.39.20. Later it was discovered that a salary of Rs.96 was misread as Rs.69. Calculate the correct average income.



MEDIAN (M) - UNGROUPED DATA

Remember the following steps:
Arrange the data in ascending or descending order of magnitude. (Both arrangements would give the same answer.)
Find the Mid - term

if # of terms N is odd the mid - term is item.

0= 12; f

⚡ Recently practiced quizzes in this class

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