Basic : Central tendency and How to measure the dispersions.

Central tendency and how to measure the dispersions.

Explaining the working of the most common central methods like mean, median, mode and how it can help in dealing with our data.

we are going to talk about different types of central tendency.Then different types of dispersions

What is measure of central tendency?

Measure of central tendency yield information aboutparticular places or locations in a group of numbers. Suppose there are a group of number is there that number group of numbers has to be replaced by a single number that single number we can call it as central tendency.

That is a single number to describe the characteristicsof a set of data.Some of the central tendency which we are going to see is

• arithmetic mean,
• weighted mean,
• median, and
• percentile.

In the dispersions we are going to talk about

• skewness,
• kurtosis,
• range,
• interquartile range,
• variance,
• standard score and
• coefficient of variation.

here we are try to understand concept of central tendancy of data and how it can be applied to data and analyze it , so a square root of the variance is nothing but standard deviation. Now the purpose is why we have to study the standard deviation because the standard deviationis giving an indicator of financial risk. (see the slides first/go through slides)

Higher the standard deviation is more risklesser the standard deviation less at risk.

• In quality control context generally whenwe manufacture something suppose here plant A and plant B or shift A and shift B wheneverthe variances in lesser then the quality of the product is high. The process capability also they should have the lesser variance means in the process capabilitieshigh. Then I suppose therefore comparing the populations household income of 2 cities, employee absentee is m in 2 plants for these purposes, it is for comparing the populationthat means wherever there is a lesser standard deviation so that is having higher homogeneousdata set.
• You see look at this one mue and Sigma, see this is a financial security A and B. See the return rate is 15, 15 it is both are giving equal return but look at this the Sigma standard deviation because in financial context it is, it is measured as the risk. So the firstone is 3% second with 7% so the security B having a higher risk, so always we will go for where there is a lesser standard deviation because mean is same.We are the same time the risk all should be same.

So far we have seen different central tendencies, different dispersions. here I will explain you how to find out central tendency and the dispersion of the given data set. Thank you very much. hope this will help you out!!!