September 2012
Beginner
328 pages
7h 42m
English
Content preview from Key Financial Market Concepts, 2nd Edition
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Mean, Median and Mode
Definition
All these three are in some sense an ‘average’ of a series of numbers.
The arithmetic mean of a series of numbers is their ‘average’ as we normally understand it. It is the total of all the numbers, divided by how many numbers there are.
The median of a series of numbers is the number in the middle of the series.
The mode of a series of numbers is the number that occurs most frequently in the series; there might be more than one mode.
How are they used?
The arithmetic mean (or simply ‘mean’) of a series of numbers is the average of the numbers as we normally understand it. If we have the following 13 numbers:
4, 10, –8, –2, 11, –3, 0, 4, –7, 0, 1, 7, 9
then their mean is:
The mean is useful, because it gives ...
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