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Mathematical Properties
The sum of deviations of the items from the arithmetic mean (taking signs into account) is always zero, i.e. = 0.
The sum of the squared deviations of the items from arithmetic mean is less than the sum of the squared deviations of the items from any other value, i.e. is less than where A is any other point, different from .
Since, = , (N x ) = .
If we have the arithmetic mean and number of items of two or more than two groups, we can compute combined average of these groups, by applying the following formula:
where,
Example of discrete random variable: 1. What is a discrete random variable? Give three examples from the field of business. 2. Of 1000 items produced in a day at XYZ Manufa
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Disadvantages For calculating median it is necessary to arrange the data; other averages do not need any arrangement. Since it is a positional average, its value is not d
Related Positional Measures Besides median, there are other measures which divide a series into equal parts. Important amongst these are quartiles, deciles and percentiles.
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