Mean, Mode and Median are Applied

In the healthcare business, insurance analysts and actuaries frequently employ the mean, median, and mode. For instance: Mean: Insurance analysts frequently compute the mean age of the people they insure in order to determine the average age of their clients.

How Mean, mode and median are applied in Real Life Situations

Real estate salespeople frequently employ the mean, median, and mode. Real estate brokers compute the average price of properties in a certain region so that they can tell their customers how much they should anticipate to pay for a home.

In statistics, the three measures of central tendency are mean, median, and mode. While describing a set of data, we identify the core position of any data set; the central tendency measure is the name for this. Every day, we come across data. We discover them in newspapers, articles, bank statements, and phone and power bills, among other places. The list goes on and on; they are all around us. The question now is if we can determine some critical data features from a portion of the data. The use of measures of central tendency or averages, such as mean, median, and mode, makes this feasible.

In a numerical data collection, the mean, median, and mode are distinct measurements of centre. They’re all attempting to summarise a dataset with a single number that represents a “typical” data point.

The average value in a dataset is called the mean.

The centre value in a dataset is called the median.

The most often occurring value(s) in a dataset is known as the mode.

Eg 1 – Healthcare Mean, Median, and Mode

In the healthcare business, insurance analysts and actuaries frequently employ the mean, median, and mode.

For instance:

Mean: Insurance analysts frequently compute the mean age of the people they insure in order to determine the average age of their clients.

Actuaries frequently compute the median amount spent on healthcare by individuals each year in order to determine how much insurance they need to be able to give.

Actuaries also calculate their clients’ mode (the most common age) so they may see which age group is most likely to utilise their insurance.

Eg 2 – Human Resource Mean, Median, and Mode

The mean, median, and mode are widely used by those who work in human resource departments.

For instance:

Human resource managers frequently compute the mean income of persons in a certain field in order to determine what sort of “average” salary to offer to new hires.

Human resource managers frequently compute the median wage in certain areas so that they may understand what the usual “middle” income is in that field.

Human Resource managers also calculate the mode of various roles in the organisation so that they are aware of the most common positions held by their personnel.

Mean – The “average” value is calculated by multiplying all data points by the number of data points.

Eg:   ( 7+4+1)=12/3=4 is the mean of 7,4,and1.

There are many other types of means, but most people think of the arithmetic mean when they mention mean.

The arithmetic mean is calculated by dividing the total number of data points by the number of data points.

mean=total dataTotal number of data points

eg:  discover the data’s average

1,2,3,4,5 begins with entering the data.

12 = 1+2+4+5

There are four data points in total.

124= 3 = Means

3 is the means.

Median – The middle number is determined by sorting all of the data points and selecting the one in the centre (or if there are two middle numbers, taking the mean of those two numbers)

Eg:    The number 4 is the midpoint of the four numbers 4,1,7

The median is the point in a dataset where half of the data points are less and half are greater than the median.

To find the median, do the following:

Sort the data points from smallest to greatest in ascending order.

The median is the middle data point in a list containing odd numbers of data points.

The median is the average of the two middle data points in the list if the number of data points is even.

eg  :  determine the data’s median

1,7,3,5,0

Place the data in the following order: 0,1,3,5,7

Because there are an odd number of data points, the\ median is the middle data point, which is 3.

Mode – The most common number—that is, the number that appears the most frequently.

In a dataset, the mode is the most often occurring data point. When a dataset has a large number of repeated values, the mode comes in handy. A dataset can have no mode, one mode, or numerous modes.

eg    The mode of 4,2,4,3,2,2is 2 because it appears three times, which is the most of any number

eg  Mr. Udit asked the students in her class how many siblings they each have in order to determine the mode of data:

3,3,3,6,6,6,6,6,6,7,7,7,9,9

Look at the most common value.

3,3,3,6,6,6,6,6,6,7,7,7,9,9

There are 6 siblings in this mode.

Mean, mode and median characteristics

The measurements of central tendency mean, median and mode are used to investigate the various characteristics of a collection of data. A measure of central tendency identifies the centre location in a data set as a single number in order to characterise it. We may conceive of it as data tending to cluster around a median value.

The mean is the average of all the numbers divided by the total number of numbers, whereas the median is the midway value in a list of numerically sorted numbers from smallest to largest, and the mode is the value of the number that appears the most frequently in the list.

Conclusion: 

The measurements of central tendency mean, median and mode are used to investigate the various characteristics of a collection of data. The three measures of central tendency in statistics are mean, median, and mode.