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Median house prices in WA mining towns peaked at $910,000 in October 2008 before
dipping 9.3 per cent the following year.
Now the median house price in the region are about 3 per cent below their peak at
$880,000. 1
The aim of statistics is to describe the sample
Consider these numbers 1,2,7,9,11
How would you come up with a single number that is as
close as possible to all the numbers.? You would be
considering location or central tendency
Look at these samples A: 4 6 5 3 4
B: 50 30 45 37 48
Sample A has smaller values than B
Its central tendency is smaller
What is a measure of central tendency?
2
Measures of Central Tendency
3
Measures of Central Tendency
Mode
The mode is the most frequently occurring value. (The
most popular choice.)
Median
The median is the middle score when all are ordered.
(Half the data will be above the median, and half below
n 1
when data is ordered.)It will be in position
2
Mean x
x
The mean is calculated using the formula. n
x bar is the symbol for the mean
sum all the observations of x, and divide by n
This is commonly known as the average.
(Mathematically, all 3 are averages)
4
Example 1: calculate the mode, median and
mean for the data below
4123432343
Place all data in order: 1,2,2,3,3,3,3,4,4,4
The mode is 3 since it occurs most.
The median is in position (n+1)2, so here it is the
5.5th score. It is between the 5th and the 6th. The 5th is 3
and the 6th is 3, so the median = (3+3)2
=3
The mean 1 2 2 3 3 3 3 4 4 4
x
10
29
10
2.9
5
Example 2: calculate the mode, median and
mean for the data below
11,12,14,15,22,32,37,40
There is no mode
The median is in position (8+1)/2 = 4.5
So the 4th score is 15 and the 5th score is 22.
The median = (15+22)2
= 18.5
The mean x 183
8
22.875
22.88 6
What if there is more than one Mode?
5 5
4 4
Frequency
Frequency
3 3
2 2
1 1
0 0
75 80 85 90 95
75 80 85 90 95
Score on Exam 1
Score on Exam 1
Page 70
Exercise 2.3
Question 3 a-d