Skip to content

Economics · Ch 5 — Measures of Central Tendency

Calculation of Arithmetic Mean for Grouped Data

5.2.3

Calculation of Arithmetic Mean for Grouped Data

For grouped data the observations carry frequencies. There are two cases.

Discrete series

Each distinct value XX occurs with frequency ff.

Direct method — multiply each value by its frequency, total the products, and divide by the total frequency:

Xˉ=∑fX∑f\bar{X} = \frac{\sum fX}{\sum f}

Example. Plots come in three sizes — 100, 200, 300 sq. m — with 200, 50 and 10 plots respectively.

Plot size (X)No. of plots (f)fX
10020020000
2005010000
300103000
Total26033000

Xˉ=33000260=126.92 sq. m\bar{X} = \frac{33000}{260} = 126.92 \text{ sq. m}

The same two shortcuts apply, now weighting each deviation by its frequency. Assumed mean: Xˉ=A+∑fd∑f\bar{X} = A + \dfrac{\sum fd}{\sum f}. Step deviation (with d′=X−Acd' = \dfrac{X-A}{c}): Xˉ=A+∑fd′∑f×c\bar{X} = A + \dfrac{\sum fd'}{\sum f} \times c.

Think About It

Activity

Find the mean plot size for the data given in Example 3, by using the step-deviation and assumed-mean methods.

Continuous series

Here the data is grouped into class intervals (which may be exclusive like 0–10, 10–20; inclusive like 0–9, 10–19; or unequal like 0–20, 20–50). The procedure is exactly the same as a discrete series, except that the mid-point mm of each class replaces the value XX.

Example. Marks of students by class:

MarksfMid-value mfm
0–105525
10–201215180
20–301525375
30–402535875
40–50845360
50–60355165
60–70265130