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Lesson 11 of 19

Calculating Median and Mode of a Data Set

Median

Median refers to the midpoint or the middle value of a data set after sorting the values in ascending or descending order.

Our data set sorted in ascending order is presented below:

1.2, 1.5, 1.7, 2.3, 2.5, 2.9, 3, 3.8, 4.2, 4.3, 5.4, 5.5, 5.6, 5.9, 6.2, 6.7, 8.5, 8.8, 9.5, 9.8

Note that our data set has 20 values, so we don’t have one middle point. There are two values namely, 4.3 and 5.4. The median in this case will be the arithmetic mean of these two values.

Median = (4.3+5.4)/2 = 4.85

This will be the case for all data sets containing an even number of observations.

When we have an odd number of observations (such as 5, 7, or 9), the median is simply the middle value. For example in case of 5 observations, the median will be the 3rd value.

Mode

Mode refers to the most frequently occurring value in a data set.

Let’s look at our data set:

1.2, 1.5, 1.7, 2.3, 2.5, 2.9, 3, 3.8, 4.2, 4.3, 5.4, 5.5, 5.6, 5.9, 6.2, 6.7, 8.5, 8.8, 9.5, 9.8

All the values in this data set are different. This means that this data set has no mode.

Let’s look at another data set:

1, 3, 4, 4, 5, 7

In this data set the value 4 occurs twice while the rest of the values occur only once. So, the value 4 has the highest frequency of occurring. The mode of this data set is 4. Such a distribution is called unimodal.

If two values had occurred in the data set with highest frequency, the distribution  will be called bimodal. A data set having 3 values with highest frequency will be called trimodal, and so on. For example, the following data set has value 4 and 5 occurring with highest frequency.

1, 3, 4, 4, 5, 5, 7

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Calculating Harmonic Mean

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Quartiles, Quintiles, Deciles, and Percentiles

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Statistical Concepts and Market Returns

19 lessons

Lessons

1
Descriptive Vs. Inferential Statistics
2
Types of Measurement Scales
3
Parameter, Sample Statistic, and Frequency Distribution
4
Relative Frequencies and Cumulative Relative Frequencies
5
Properties of a Data Set (Histogram / Frequency Polygon)
6
Measures of Central Tendency
7
Calculating Arithmetic Mean
8
Calculating Weighted Average Mean
9
Calculating Geometric Mean
10
Calculating Harmonic Mean
11
Calculating Median and Mode of a Data Set
12
Quartiles, Quintiles, Deciles, and Percentiles
13
Range and Mean Absolute Deviation
14
Variance and Standard Deviation
15
Chebyshev’s Inequality
16
Coefficient of Variation
17
Sharpe Ratio
18
Skewness and Kurtosis
19
Relative Locations of Mean, Median and Mode

Quizzes

Statistical Concepts and Market Returns
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