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Business Mathematics and Statistics · Ch 8 — Measures of Central Tendency

Arithmetic Mean — Continuous Series

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Arithmetic Mean — Continuous Series

In a continuous (grouped) series, observations are grouped into class intervals (e.g., 0–10, 10–20, …), each with a stated frequency ff. Because the individual values inside a class are not known separately, each class is represented by its mid-point x=lower limit+upper limit2x = \dfrac{\text{lower limit} + \text{upper limit}}{2}, and the mean is then computed exactly as for a discrete series, treating the mid-points as the xx values.

Direct method:

xˉ=ΣfxN\bar{x} = \dfrac{\Sigma fx}{N}

Assumed-mean method: choose a convenient mid-point as AA, compute d=x−Ad = x - A for every class, and apply

xˉ=A+ΣfdN\bar{x} = A + \dfrac{\Sigma fd}{N}

Step-deviation method: since class mid-points in a continuous series are always equally spaced by the class width hh, this method applies especially naturally here:

xˉ=A+Σfd′N×h,d′=x−Ah\bar{x} = A + \dfrac{\Sigma fd'}{N} \times h, \qquad d' = \dfrac{x-A}{h} …

Definition 1Class Mid-point

The representative value of a class interval in a continuous series, equal to the average of its lower …