ADMS 2320 Lecture Notes - Lecture 2: Standard Deviation, Average Absolute Deviation
15 Sep 2016
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Document Summary
Measure of central location find center point of data. Because position matters: median is the middle value, even sample size: take two middle numbers, add them together, then divide sum by 2, odd sample size: the middle term. Mean - takes into consideration of every single value (outlier can drag it up or down) Median cares about the position of the values. Mode doesn"t care about everything single value and position, it cares about the frequency of the values. Geometric mean takes into consideration time and nature of data (growth rates and rates of returns) Relationship among mean, median, and mode: mean, median, and mode will coincide when the distribution is normal or symmetrical, distribution is positively skewed. At the peak will be the mode, always at the top of distribution for numbers. Skewing to the larger number, the mean will be to the right.
