Median
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The median is also a frequently used measure of central tendency. The
median is the midpoint of a distribution: the same number of scores is above
the median as below it. For the data in Table 1, there are 31 scores. The 16th
highest score (which equals 20) is the median because there are 15 scores
below the 16th score and 15 scores above the 16th score. The median can
also be thought of as the 50th percentile.
Computation of the Median
When there is an odd number of numbers, the median is simply the middle
number. For example, the median of 2, 4, and 7 is 4. When there is an even
number of numbers, the median is the mean of the two middle numbers.
Thus, the median of the numbers 2, 4, 7, 12 is (4+7)/2 = 5.5. When there are
numbers with the same values, then the formula for the third definition of
the 50th percentile should be used.
Median
Mode
The median is also a frequently used measure of central tendency. The
2 median
The modeis the midpoint
is the of a distribution:
most frequently occurring thevalue.
sameFornumber of scores
the data is above
in Table 1, the
the median as below it. For the data in Table 1, there are
mode is 18 since more teams (4) had 18 touchdown passes than any other 31 scores. The 16th
highest score
number (which equals
of touchdown passes.20) is the
With median because
continuous data suchthere are 15 scores
as response time
below the 16th score and 15 scores above the 16th score.
measured to many decimals, the frequency of each value is one since no The median cantwo
also be thought of as the 50th percentile .
scores will be exactly the same (see discussion of continuous variables).
Therefore theof
Computation mode of continuous data is normally computed from a grouped
the Median
frequency distribution.
When there is an odd number of numbers, the median is simply the middle
Standard Deviation and For
number. Chiexample,
-Squarethe Distribution
median of 2, 4, and 7 is 4. When there is an even
number
Standardofdeviation
numbers,isthe median of
a measure is the
the mean
dispersionof theoftwo middle
a set numbers.
of data from
Thus, the median of the numbers 2, 4, 7, 12 is (4+7)/2 =
its mean. It is calculated as the square root of variance by determining 5.5. When theretheare
numbers
variation with
betweenthe same values,
each data then
point the formula
relative to the for the If
mean. third
the definition
data pointsofare
the 50thfrom
further percentile
the mean,should beisused.
there higher deviation within the data set.
Mode
In finance, standard deviation is a statistical measurement; when applied to
the annual
The mode isratetheof return
most of an investment
frequently occurring, value.
it shedsFor
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theon theinhistorical
data Table 1, the
volatility
mode is 18 of since
that investment.
more teamsThe (4) greater the standardpasses
had 18 touchdown deviation
thanof a security,
any other
the greater
number the variancepasses.
of touchdown between each
With price anddata
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Therefore
The formula thefor
mode of continuous
standard deviationdata
usesisthree
normally computed
variables. fromvariable
The first a grouped
is
frequency distribution .
to be the value of each point within the data set, traditionally listed as x, with
a sub-number denoting each additional variable (x, x1, x2, x3, etc.). The
mean, or average, of the data points is applied to the value of the variable M,
Standard
and deviation
the number is a measure
of data of the dispersion
points involved is assignedoftoa the
set variable
of data from
n.
its
Standard Deviation mean . It
and Chi-the is calculated
Square as the square
Distribution root of variance by determining the
To determine mean value, the values of the data points must
variation between each data point relative to the mean. If the data points are be added
together,
further andthe
from thatmean,
total is thenisdivided
there by the number
higher deviation withinofthedata
datapoints
set. that
were included. For example, if the data points were 5, 7, 3 and 7, the total
In finance,
would be 22. standard deviation
That total is a statistical
of 22 would measurement;
then be divided when applied
by the number of datato
the annual
points, ratecase
in this of return of an investment
four, resulting in a mean, itofsheds lightleads
5.5. This on theto historical
the following
volatility of thatM
determinations: investment.
= 5.5 and nThe = [Link] the standard deviation of a security,
the greater the variance between each price and the mean, indicating a larger