Why? Because very few people have a size 17 shoe size. For example, you would not see size 17 shoes stocked on the floor. Mode is used to calculate the 'modal size of a collar', 'modal size of shoe', or 'modal size of ready-made garments' etc.The mode may be beneficial for a manager of a shoe store. Those values are therefore less important when setting pricing in terms of what most customers paid. While there may have been sales at other prices, very few customers will have paid an average or a mean price. In analyzing prices, most of the sales occur at a particular list price or possibly at a reduced, sale price. The mode is the most important when an analysis is looking for what happens most often. The mode can also be defined as the element with the largest frequency in a given data set.
The mode is defined as the element that appears most frequently in a given set of elements. Census Bureau, "median household income" is defined as "the amount which divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount." (1.3 Mode Definition Census Bureau finds the median household income. These are also suitable for the problems of distribution of income, wealth, investment, etc. There are mainly used in the qualitative cases like honesty, intelligence, ability, etc. The median salary gives a value close to the average salary commonly paid, without taking the extreme values into consideration. Median is positional measures of central tendency. Anderson et al) Business Applications of Median In this case, we follow convention and define the median as the average of the values for the middle two observations. An even number of observations has no single middle value. The median is the value in the middle when the data are arranged in ascending order. With an odd number of observations, the median is the middle value. The median is another measure of central location.
Our result is a sample mean because we are interested in finding the mean annual income of all secretaries on the basis of the annual income of a smaller sample consisting of only 6 secretaries. We believe we can do this on the basis of our knowledge of annual salaries of 6 particular secretaries, who each earn $.10400, $34000, $14000, $25800 respectively. Say we want to find the average annual salary of all secretaries. further In economic analysis arithmetic mean is used extensively to calculate average production, average wage, average cost, per capital income exports, imports, consumption, prices, etc. number of items produced per day on a large assembly line, number of orders received per month for a firm. It is frequently used in all the aspects of business i.e. The arithmetic mean is considered a deal average. Anderson et al) Business Applications of Mean If the data are for a sample, the mean is denoted by if the data are for a population, the mean is denoted by the Greek letter μ. The mean provides a measure of central location for the data. Most important measure of location is the mean or average value, for a variable. There are different types of averages each has its own business applications. Order custom essay Business Applications of Measure of Central Tendency
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