14. Statistical Techniques in Business & Economics (3)

3 ­ © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. 3 ­ 2 When you have completed this chapter, you will be able to:. 1. Calculate the arithmetic mean, the weighted mean, the median, . the mode, and the geometric mean of a given data set. 2. Identify the relative positions of the arithmetic mean, median . and mode for both symmetric and skewed distributions. 3. Point out the proper uses and common misuses of each . measure. 4. Explain your choice of the measure of central tendency of . data. 5. Explain the result of your analysisCopyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. Five Measures of. Five Measures of . 3 ­ 3. Central . Central . . arithmetic mean. Tendency. Tendency median mode. weighted mean geometric mean. Average price of a house in . Average price of a house in The average price of a . The average price of a . Ottawa (2000) was $126 000. Ottawa (2000) was $126 000 house in Toronto in 1996 . house in Toronto in 1996 . was $238,511 (StatCan). was $238,511 (StatCan). The average income of two . The average income of two . parent families with children in . parent families with children in My grade point average . My grade point average . Canada was $65,847 in 1995 and . Canada was $65,847 in 1995 and for last semester was . for last semester was . $72,910 in 1999. (StatCan). $72,910 in 1999. (StatCan).Copyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. Arithmetic Mean. Arithmetic Mean. 3 ­ 4 is the most widely used measure of location is the most widely used measure of location It is calculated by summing the values and . dividing by the number of values . It requires the interval scale . All values are used It is unique The sum of the deviations from the mean is 0 .Copyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. Population Mean. Population Mean.