Page 142 - DMGT404 RESEARCH_METHODOLOGY

Research Methodology

Notes 8.1 Measure of Central Tendency

Summarisation of the data is a necessary function of any statistical analysis. As a first step in this
direction, the huge mass of unwieldy data are summarised in the form of tables and frequency
distributions. In order to bring the characteristics of the data into sharp focus, these tables and
frequency distributions need to be summarised further. A measure of central tendency or an
average is very essential and an important summary measure in any statistical analysis.

Notes An average is a single value which can be taken as representative of the whole
distribution.

Functions of an Average

1. To present huge mass of data in a summarised form: It is very difficult for human mind to
grasp a large body of numerical figures. A measure of average is used to summarise such
data into a single figure which makes it easier to understand and remember.
2. To facilitate comparison: Different sets of data can be compared by comparing their
averages. For example, the level of wages of workers in two factories can be compared by
mean (or average) wages of workers in each of them.
3. To help in decision-making: Most of the decisions to be taken in research, planning, etc.,
are based on the average value of certain variables.

Example: If the average monthly sales of a company are falling, the sales manager may have
to take certain decisions to improve it.

Characteristics of a Good Average

A good measure of average must posses the following characteristics:
1. It should be rigidly defined, preferably by an algebraic formula, so that different persons
obtain the same value for a given set of data.
2. It should be easy to compute.

3. It should be easy to understand.
4. It should be based on all the observations.
5. It should be capable of further algebraic treatment.
6. It should not be unduly affected by extreme observations.
7. It should not be much affected by the fluctuations of sampling.

Self Assessment

Fill in the blanks:
1. ................................ of the data is a necessary function of any statistical analysis.
2. Different sets of data can be compared by comparing their ................................

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