• Measures of central tendency are statistical methods used in market research to determine the central or typical value of a data set.
• The three common measures of central tendency are mean, median, and mode.

For our calculations we will use the following data which shows sales of a given item by a seller at Gulf Complex each week:

• 10, 12, 13, 14, 14, 15, 16, 17, 18, 20

#### Mean: Features:

• It is the arithmetic average of all the data values in a set.
• It is sensitive to extreme values or outliers in the data. Calculation:
• Mean = (10 + 12 + 13 + 14 + 14 + 15 + 16 + 17 + 18 + 20) / 10 = 15

• It is easy to calculate and understand.
• It uses all the data values in the calculation, so it is more accurate than other measures. Disadvantages:
• It is affected by outliers, making it less useful in data sets with extreme values.
• It may not be a good representation of the data if the data set is skewed.

• It is affected by outliers, making it less useful in data sets with extreme values.
• It may not be a good representation of the data if the data set is skewed.
• It is sensitive to changes in the data set, especially when the data set is small.
• It may not provide a complete picture of the data distribution or variability.
• It can be influenced by missing or incomplete data points, leading to biased results.
• It assumes that the data follows a normal distribution, which may not be true for all data sets.
• It can be misleading if the data set contains extreme values or data points that do not fit the general trend of the data.

#### Median: Features:

• It is the middle value in a data set when the values are arranged in order.
• It is not affected by outliers in the data set. Calculation:
• Arrange the data set in order: 10, 12, 13, 14, 14, 15, 16, 17, 18, 20
• Median = (14 + 15) / 2 = 14.5

• It is useful in data sets with outliers, as it is not affected by extreme values.
• It is easy to calculate and understand.

• It may not use all the data values in the calculation, making it less accurate than the mean.
• It may not be a good representation of the data if the data set is skewed.
• It may not exist or be unique in a data set with an even number of values.
• It does not provide any information on the variability of the data or the distance between data points.

#### Mode: Features:

• It is the value that occurs most frequently in a data set.
• It is not affected by extreme values or outliers in the data set. Calculation:
• Mode = 14 (since it occurs twice in the data set)