CA2
On
TYPES OF ARTHEMATIC MEAN WITH SOLVED
NUMERICALS
Submitted by
Rahul Kumar Singh
Registration No. 42000223
Assignment
in
GEN741: RESEARCH METHODOLOGY
Submitted to
Dr. Zahoor Ahmad Lone
LOVELY PROFESSIONAL UNIVERSITY
PUNJAB
November, 2020
1
CONTENTS
Sr Topics Page
No No
1 Mean 3
2 Types of Average 4
3 Calculation of Arithmetic Mean from Individual Series 5
4 Calculation of Arithmetic Mean from discrete series 7
5 Calculation of Arithmetic Mean from Continuous Series 9
6 Calculation of Arithmetic mean from Open Ended Classes 13
7 Weighted Arithmetic Mean 14
8 References 16
2
Mean
Mean is also known as Arithmetic average, calculated by adding up all the responses and
dividing the sum total by the total number of respondents. As the most popular and the best form
of average, mean is required in all types of calculations and analyses. The following are the
characteristics of mean or arithmetic average.
It is calculated by dividing the sum of measurements by total number of items.
While calculating mean, all the items are taken into account. Therefore, when we
know the total number of items and the average, the total values can be found out.
Mean can also be calculated when the total of the measurements and the total number
of items are known.
Mean or arithmetic average does not depend upon frequency as in case of median or
mode.
Mean or arithmetic average is based on the area formed by the frequency curve.
The sum of the differences of all the values from the mean is exactly equal to zero.
The arithmetic mean is perhaps the most commonly used statistical mean to measure the central
tendency of data.
The arithmetic mean is also called the "average." It is used in most scientific experiments.
3
Types of Averages
The various types of measures of central tendency can broadly be classified into
following two groups.
1. Mathematical Average
2. Positional Average
Besides the above two groups there are some other averages like Moving
Average, Progressive Average and Composite Average headed under Commercial
Average. But these averages have limited practical application and are not so
popular.
• Arithmetic Mean (X̅)
Arithmetic mean is the most popular, widely used and best form of average. It
considers all the items of the series and capable of further algebraic treatment. It
is obtained by adding together all the items and by dividing this total by the
number of items. Arithmetic mean may either be simple arithmetic mean or
weighted arithmetic mean.
4
A. Calculation of Arithmetic Mean from Individual Series
(i) Direct Method
Mean from individual series (where frequencies are not given) can be
calculated by adding all the values of the variable and by dividing total by the
number of items.
Example 1.
Calculate the Arithmetic Mean of Monthly income of XYZ Village?
House No : 1 2 3 4 5 6 7 8 9 10
Income (INR) 800 880 700 450 500 680 720 930 660 750
Solution
House No. Monthly Income (X) INR
1 800
2 880
3 700
4 450
5 500
6 680
7 720
8 930
9 660
10 750
N = 10 ∑X = 7070
Arithmetic Mean
So average income in that village is Rs. 707.
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(ii) Mean from Individual Series (Short-Cut Method)
Arithmetic Mean of Individual series can also be calculated by
taking an arbitrary origin. The formula for calculating arithmetic
mean is
Where A is the assumed mean, d denotes deviations of values taken from
Assumed Mean d = (X—A)
Example 2.
Arithmetic Mean for the previous question can also be calculated by short-cut
method. (Let the Assumed Mean be 600)
House No. Monthly Income d(X—A)
(X) {(X—600)}
01 800 200
02 880 280
03 700 100
04 450 —150
05 500 —100
06 680 80
07 720 120
08 930 330
09 660 660
10 750 150
Id = 1070
Let the assumed Mean be 600
i.e. A = 600
= 600 + 107
= 707 (Ans).
The mean value of income is 707. Which is the same as calculated by direct method.
6
B. Calculation of Arithmetic Mean from discrete series
(i) Direct Method
In discrete series, Arithmetic Mean by direct method can be calculated by
multiplying the values of the variables by their respective frequencies. The
products obtained are added and this total is divided by number of items or
observations. The formula is
Where X is Arithmetic Mean f is frequency X is variable.
Example 3.
Marks of 50 students of a class are given. Find the mean marks.
Marks Secured 30 45 54 60 72 80
No. of Students 4 10 12 8 10 6
Solution
Let the marks be denoted by ‘X’ and number of students as ‘f’
Mark(X) No. of Students f f.X
30 04 120
45 10 450
54 12 648
60 08 480
72 10 720
80 06 480
N= ∑f=50 ∑fX =2898
Hence the mean marks obtained by a class of 50 students is 57.96
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(ii) Short-Cut Method
The mean from discrete series can also be calculated by short-cut method by
taking an arbitrary origin.
The formula is X = A+ ∑fd
N
Where A is the assumed mean of the series.
d is the deviation of each item from assumed mean i.e. (X—A) N is the total number of
observations i.e. ∑f. Apply the formula to calculate Mean by short-cut-method.
Example 4.
The previous illustration may also be solved by short-cut method.
Solution
Let the assumed mean be 60. So A = 60
Marks No. of d = (X-A) fd
X1 Students i.e. (X-60)
30 04 —30 —120
45 10 —15 —150 —342
54 12 —06 —72
60 8 00 00
72 10 12 120 240
70 6 20 120
∑f =50 ∑fd = —102
= 60 — 2.04 = 57.96 (Ans.)
8
C. Calculation of Arithmetic Mean from Continuous Series
In a continuous series also the same procedure will be adopted to calculate arithmetic
mean. Here midpoints of various class intervals will be written down to replace class
intervals. The following methods can be adopted to calculate mean from continuous
series.
(i) Direct Method.
(ii) Short-Cut Method.
(iii) Step- deviation Method.
(i) Direct Method
Following steps are to be followed while calculating arithmetic mean from continuous
series.
The formula to get mean of continuous series by direct method is
N where X is the mean,
m is the midpoint of each class interval, f is the frequency of each variable and
N is the total number of observations i.e. ∑f.
Example 5.
The weekly wages of 50 labourers are given. Calculate the Mean.
Weekly Wages No. of Labourers
10—20 5
20—30 7
30— 40 8
40—50 12
50—60 06
60—70 03
70—80 05
80—90 02
90—100 02
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• Solution
Weekly Wages d Point (m) No. of (f) m.f.
Labourers
10—20 15 05 75
20—30 25 07 175
30—40 35 08 280
40—50 45 12 540
50—60 55 06 330
60—70 65 03 195
70—80 75 05 375
80—90 85 02 170
90—100 95 02 190
∑f = 50 ∑mf= 2330
Arithmetic Mean
(ii) Short-Cut Method
In case of short-cut method in continuous series, the formula used is
Where X is the arithmetic mean.
A is the assumed mean, f "represents frequency, dm denotes deviations of mid-
values from assumed mean, i.e. (m—A) and N the total is number of observations.
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Example 6.
Calculate the arithmetic mean by using the short-cut method of previous
illustration.
Weekly No. of Mid dm(m—A) ∑fdm
Wages (X) Labourers Point i.e. (M—
(m) 55)
10—20 05 15 —40 —200 —
20—30 07 25 —30 210
30—40 08 35 —20 —160
40—50 12 45 —10 —120
50—60 06 55 0 0
60—70 03 65 10 30
70—80 05 75 20 100
80—90 02 85 30 60
90—100 02 95 40 80
N = ∑f =50 ∑fdm = - 420
Mean of the above series can be calculated by the formula.
Substituting the values in the above formula, we get
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(iii) Step Deviation Method
Mean from continuous series can also be calculated by step deviation formula, i.e.
Where A = Assumed Mean
f = frequency
d’= (m —A)
C
N = total number of observations.
m = mid-point of each class interval.
C = Class interval.
Example 7.
The same illustration can also be solved by step deviation method.
Let the Assumed mean be 55 in this example.
Weekly No. of Labourers Mid d(m-A) ∑fd'
Wages Point =(m—55)
(X) f (m)
10—20 05 15 —40 —4 —20
20—30 07 25 —30 -3 —21
30—40 08 35 —20 —2 —16
40—50 12 45 —10 —1 —12
50—60 06 55 0 0 0
60—70 03 65 10 1 03
70—80 05 75 20 2 10
80—90 02 85 30 3 06
90—100 02 95 40 4 08
N = 50 ∑fd’=-42
Out of above three methods of calculation of mean from continuous series, the step
deviation method is the most widely used method, but where class intervals are unequal,
this method cannot be used.
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D. Calculation of Arithmetic mean from Open Ended Classes
Open ended classes are those in which lower limit of the first class and upper limit of
the last class are not given. In such a series arithmetic mean can be calculated by
making the assumption about unknown limits.
Example 8.
Monthly income of 25 households are given below. Find out the
Arithmetic Mean.
• Solution
Monthly No. of
income (in Rs.) Households
(X)
0—100 03
100—200 02
200—300 05
300—400 07
above 400 08
Then mean can be calculated
Monthly Mid Point f f.m
income (in Rs.) (M)
(X)
0—100 50 03 150
100—200 150 02 300
200—300 250 05 1250
300—400 350 07 2450
400—500 450 . 08 3600
N = 35 ∑fm - 9950
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E. Weighted Arithmetic Mean
The simple arithmetic mean gives equal weightage to all the items but usually all items
don't have equal importance in the series, some may be more important and some may
be less important. In that case simple arithmetic average will not fulfill the very purpose
of the average i.e. it will not give a value which will truly represent the series. In that case
an average is required which will give more importance to the important items and lesser
importance to less important items, so that a true representative of the series can be find
out. The weighted average can fulfill the requirement. As the name suggests weighted
mean gives different weights to different items as per their importance in the series.
Weighted mean can be calculated by both direct and short-cut method.
The formulae are:
(i) For direct method
Where Xw is weighted mean.
X represents the variable items
W represents weights of each variable W1:, W2 , W3 .... etc.
(ii) Short-Cut Method
a) Individual series
Where Aw is Assumed mean, dx is deviation of each value from assumed
mean. W is weight of each variable.
b) In case of grouped data the formula is :
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Example 9.
From the survey of income of a company following data are collected.
Find out weighted mean by using both direct and short-cut method and
compare it with simple mean.
Designation/Cadre Monthly Salary Strength of
Cadre
Managers 3,000 5
Deputy-Managers 2,000 10
Supervisors 1,500 30
Workers
700 50
Solution
In case of simple arithmetic mean the strength of cadre will not be considered rather
mean will be calculated by giving equal importance to all cadre whereas in weighted
mean it will give more importance to most important items and lesser importance to
less important items according to its strength.
• Direct Method
Designation Monthly Strength (WX)
salary (X) of Cadre
(W)
Manager 3,000 5 15,000
Deputy-Manager 2,000 10 20,000
Supervisor 1,500 30 45,000
Labourer 700 50 35,000
∑X= 7,200 ∑W- 95 ∑WX=
1,15,000
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• Short-Cut Method
Let the Assumed mean Aw be 2,000
Monthl Strength
Designationincome Deviatio of Cadre Vtdx
(X) (W)
Manager 3,000 1,000 5 5,000
Deputy-Manager 2,000 0 10 0
Supervisor 100 —500 30 —15,000
Worker 700 —1,300 50 —65,000
∑Wdx —75,000
References
LPU DECO504 “Statistical Methods in Economics”
P.K.Kar “Research Methology” Sociology -7
S.P.Gupta “Statistical Methods”
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