Page 75 - DECO504_STATISTICAL_METHODS_IN_ECONOMICS_ENGLISH

Unit 5: Application of Mean, Median and Mode

Mode can also be determined from a frequency polygon in which case a perpendicular is drawn on Notes
the base from the apex of the polygon and the point where it meets the base gives the modal value.

LOCATING MODE GRAPHICALLY
27
28
24

20
20
18 17
NO. OF SHOPS 12 13 PREMODAL CLASS POST MODAL CLASS
16

4 8 6

0 100 200 300 400 500 600
MODE = Rs 256
PROFITS (Rs)

However, graphic method of determining mode can be used only where there is one class containing
the highest frequency. If two or more classes have the same highest frequency, mode cannot be
determined graphically. For example, for the data given below mode cannot be graphically ascertained.

Size of shoe No. of persons Size of shoe No. of persons

2 — 4 10 8 — 10 8
4 — 6 15 10 — 12 2
6 — 8 15

Self-Assessment

1. Fill in the Blanks
(i) Median is better suited for ............ interval series.
(ii) In moderately a symmetrical distributions, the distance between the ............ and the ............
is about ............ the distance between the ............ and the ............ .
(iii) Given mean 25, mode 24, the median would be ............ .
(iv) The mode of distribution is the value that has the greatest ............ of ............ .
(v) In a symmetrical distribution mean ............ median ............ mode.

5.4 Summary

• The most popular and widely used measure for representing the entire data by one value is
what most laymen call an ‘average’ and what statisticians call the arithmetic mean. Its value is
obtained by adding together all the items and by the dividing this total by the number of items.

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