Mean versus Median
‘Skewness’ of the data
Frequency
0
2
4
6
8
10
12
14
0
75
150
225
300
375
450
525
Histogram
600
675
750
825
CEO Salaries (in thousands)
900
975
1050
More
Histogram
14
Skewed to the right
12
10
Frequency
0
75
1050
0
More
150
225
300
375
450
525
600
675
750
825
900
975
CEO Salaries (in thousands)
Histogram
14
Skewed to the right
12
Mean = 404.17
10
Median = 350
Frequency
0
75
1050
0
More
150
225
300
375
450
525
600
675
750
825
900
975
CEO Salaries (in thousands)
Histogram
14
Skewed to the right
12
Mean = 404.17
10
Median = 350
Frequency
6
Mean > Median
0
75
1050
0
More
150
225
300
375
450
525
600
675
750
825
900
975
CEO Salaries (in thousands)
Histogram
20
18 Skewed to the left
16
14
Frequency
12
10
8
6
4
2
0
35
40
45
50
55
60
65
70
75
80
85
90
95
100
Student Scores (out of 100)
Histogram
20
18 Skewed to the left
16 Mean = 74
14 Median = 79
Frequency
12
10
8
6
4
2
0
35
40
45
50
55
60
65
70
75
80
85
90
95
100
Student Scores (out of 100)
Histogram
20
18 Skewed to the left
16 Mean = 74
14 Median = 79
Frequency
Mean < Median
12
10
8
6
4
2
0
35
40
45
50
55
60
65
70
75
80
85
90
95
100
Student Scores (out of 100)
Mode
The mode is the most frequently occurring
value in a set of data.
Mode
The mode is the most frequently occurring
value in a set of data.
=MODE.SNGL(number1, number2, …)
Mode
Not a very relevant descriptive statistic when
the data is essentially continuous.
Date Rate
1-Jan-16 0.920945 Daily exchange rate, Dollar to Euro
2-Jan-16 0.920555
4-Jan-16 0.920725
5-Jan-16 0.926355
6-Jan-16 0.931012
7-Jan-16 0.929196
8-Jan-16 0.921235
9-Jan-16 0.917684
11-Jan-16 0.91533
12-Jan-16 0.918274
13-Jan-16 0.923063
… …
… …
Measures of Central Tendency
Mean
Median
Mode
Measures of Dispersion / Spread
Measures of Dispersion / Spread
Firm 1 Firm 2
$34,500 $35,800
$30,700 $25,500
$32,900 $31,600
$36,000 $41,700
$34,100 $35,300
$33,800 $33,800
$32,500 $30,800
Mean = $33,500 Mean = $33,500
Median = $33,800 Median = $33,800
Measures of Dispersion / Spread
3
3 Salaries in Firm 2
2
1 Salaries in Firm 1
$23,000 $28,000 $33,000 $38,000 $43,000
Measures of Dispersion / Spread
The ‘Range’ measure
= Maximum of data - Minimum of data
Measures of Dispersion / Spread
Range of salaries in Firm 1
= Maximum Salary - Minimum Salary
= $36,000 - $30,700
= $5,300
Range of salaries in Firm 2
= Maximum Salary - Minimum Salary
= $41,700 - $25,500
= $16,200
Measures of Dispersion / Spread
The ‘Range’ measure
The ‘Inter Quartile Range’ measure
Measures of Dispersion / Spread
The ‘Range’ measure
The ‘Inter Quartile Range’ measure
25% 50% 25%
Measures of Dispersion / Spread
The ‘Range’ measure
The ‘Inter Quartile Range’ measure
25% 50% 25%
1st
quartile
Measures of Dispersion / Spread
The ‘Range’ measure
The ‘Inter Quartile Range’ measure
25% 50% 25%
1st 3rd
quartile quartile
Measures of Dispersion / Spread
The ‘Range’ measure
The ‘Inter Quartile Range’ measure
25% 50% 25%
1st 2nd 3rd
quartile quartile quartile
[Median]
Measures of Dispersion / Spread
The ‘Range’ measure
The ‘Inter Quartile Range’ measure
25% 50% 25%
0th 1st 2nd 3rd
quartile quartile quartile quartile
[Minimum] [Median]
Measures of Dispersion / Spread
The ‘Range’ measure
The ‘Inter Quartile Range’ measure
25% 50% 25%
0th 1st 2nd 3rd 4rth
quartile quartile quartile quartile quartile
[Minimum] [Median] [Maximum]
Measures of Dispersion / Spread
The ‘Range’ measure
The ‘Inter Quartile Range’ measure
25% 50% 25%
0th 1st 2nd 3rd 4rth
quartile quartile quartile quartile quartile
[Minimum] [Median] [Maximum]
IQR = 3rd quartile – 1st quartile
Measures of Dispersion / Spread
The ‘Range’ measure
The ‘Inter Quartile Range’ measure
=QUARTILE.INC( )
Measures of Dispersion / Spread
The ‘Range’ measure
The ‘Inter Quartile Range’ measure
=QUARTILE.INC(array, quart)
Measures of Dispersion / Spread
The ‘Range’ measure
The ‘Inter Quartile Range’ measure
=QUARTILE.INC(array, quart)
IQR = QUARTILE.INC(array, 3) - QUARTILE.INC(array, 1)
