These Class 11 Economics Notes for Chapter 5 introduce the Measures of Central Tendency, also known as averages. An average is a typical or representative value of a dataset. The notes detail the functions of averages, including simplifying complex data, facilitating comparisons, aiding government policy formation, and usefulness in economic analysis. Essential qualities of a good average are also listed, such as simplicity, clear definition, use of all data points, minimal impact from extreme values, and suitability for further algebraic treatment. The primary types of averages discussed are Arithmetic Mean, Median, Mode, and Quartiles. The Arithmetic Mean is explained as the sum of observations divided by the total number of observations, with its merits and demerits outlined. Weighted Arithmetic Mean is also briefly mentioned. The Median is defined as the middle value in an ordered dataset. These notes are designed for effective revision of key economic concepts.
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1. Average: It is a value which is typical or representative of a set of data.
Averages are also called Measures of Central Tendency.
2. Functions of Average:
i] Presents complex data in a simple form.
ii] Facilitates comparison.
iii] Helps government to form policies.
iv] Useful in Economic analysis.
3. Essentials of a good Average:
i. Simple to calculate.
ii. It should be easy to understand.
iii. Rigidly defined.
iv. Based on all items of observation.
v. Least affected by extreme values.
vi. Capable of further algebraic treatment.
vii. Least affected by sampling fluctuation.
viii. Graphic measurement possible.
4. Types of Averages:
i. Arithmetic Mean
ii. Median
iii. Mode
iv. Quartiles
5. Arithmetic Mean (X)
It is the most common type of measures of central tendency.
It is obtained by dividing the sum of all observation in a series by the total number of observation.
6. Calculation of Arithmetic Mean:
7. Merits of Arithmetic Mean:
1] Easy to calculate
2] Simple to understand
3] Based on all observations
4] Capable of further mathematical calculations.
Demerits :
1] Affected by extreme values.
2] Cannot be calculated in open-end series.
3] Cannot be graphically ascertained.
4] Sometimes misleading or absurd result.
8. Weighted Arithmetic Mean:
Values to be arranged are given varying importance.
9. Median (M)
It is defined as the middle value of the series, when the data is arranged in ascending or descending order.
Measures of Central Tendency, also known as averages, are typical or representative values of a dataset. They are covered in Class 11 Economics Chapter 5. The functions of an average include presenting complex data simply, facilitating comparison, helping government policy formation, and being useful in economic analysis. A good average should be simple to calculate and understand, rigidly defined, based on all items, least affected by extreme values, capable of further algebraic treatment, and ideally graphically measurable. The main types of averages covered are Arithmetic Mean, Median, Mode, and Quartiles. The Arithmetic Mean is calculated by dividing the sum of all observations in a series by the total number of observations. A demerit of the Arithmetic Mean is that it is affected by extreme values and cannot be calculated for open-end series. The Median is defined as the middle value of a series when the data is arranged in ascending or descending order.
Frequently asked questions
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