Section 1
Measures of Center
Property
There are three such measures in common use: a) the arithmetic average of the data, b) the number that divides the data, when put in numerical order, into two pieces of the same size, c) the number that occurs the most often. In statistics these are respectively called: a) mean, b) median, c) mode. They each serve different purposes. A measure of center for a numerical data set summarizes all of its values with a single number.
Examples
- For the data set {2, 5, 5, 6, 7}, the mean is 5, the median is 5, and the mode is 5. Here, all three measures of center are the same.
- For the data set {3, 4, 4, 9}, the mean is 5, the median is 4 (the average of the two middle numbers), and the mode is 4.
- For house prices {200000 dollars, 210000 dollars, 220000 dollars, 500000 dollars}, the median (215000 dollars) is a better measure of center than the mean (282500 dollars) because the mean is affected by the very high price.
Explanation
A measure of center is one number that represents a 'typical' value for a whole group of data. The mean, median, and mode are three different tools for finding this central value, each useful in different situations.