Calculating the Mean
The mean, or arithmetic average, is calculated by summing all values in a data set and dividing by the number of values. For a data set with values x1, x2, ..., xn, the formula is mean = (x1 + x2 + ... + xn) / n, where n is the total number of values. This provides a balanced central value sensitive to all data points.
Calculating the Median
The median is the middle value in a data set when arranged in ascending order. For an odd number of observations n, it is the (n+1)/2 th value. For an even number, it is the average of the n/2 th and (n/2 + 1) th values. This measure is robust against extreme values, focusing on the central position.
Practical Example
Consider the data set: 3, 7, 2, 9, 1. First, sort it: 1, 2, 3, 7, 9. The mean is (1+2+3+7+9)/5 = 22/5 = 4.4. The median is the third value, 3. In this case, the mean is influenced by the outlier 9, while the median remains stable at 3.
Importance and Applications
Mean and median are fundamental in descriptive statistics for summarizing data distributions. The mean is ideal for symmetric data without outliers, such as average test scores in education. The median suits skewed data, like income distributions in economics, providing clearer insights into typical values and aiding decision-making in fields like research and policy.