Statistics Foundations
Mean, Median, and Mode
Three ways to describe the center of a data set.
Three Different 'Averages' — and Why They Can Disagree
A small company's employees earn these yearly salaries, in thousands: 45, 48, 50, 52, 200 — that last number belonging to the company's founder. Before reading on, think about which single number would honestly describe a 'typical' salary at this company, and whether the ordinary average is really the best choice here.
Definition — Mean, Median, and Mode
The mean of the salary data is (45+48+50+52+200) ÷ 5 = 79 — a number no actual employee besides the founder comes anywhere close to earning. The single extreme value pulled the mean far higher than what's typical. The median, though, is unaffected by exactly how extreme that outlier is — it only cares about the value's position once sorted, not its size.
Worked Example — Comparing Mean and Median with an Outlier
Worked Example — Finding the Mode of a Data Set
Tip
Common Mistakes
Finding the median from unsorted data, picking the value that happens to sit in the middle position of the original, unsorted list.
Sort every value from least to greatest first — only then does the middle position actually represent the median.
Assuming the mean is always the best measure of 'typical,' even when a data set contains an extreme outlier.
Check whether a data set has values far away from the rest — an extreme outlier pulls the mean toward it much more than it affects the median.
Key Takeaways
- The mean, median, and mode each describe a data set's center differently, and can genuinely disagree with each other.
- The median resists the pull of extreme outliers far better than the mean does.
- The mode identifies the single most frequently occurring value, and is most useful for data that isn't purely numerical.
Summary
Choosing between mean, median, and mode means understanding what each one is actually sensitive to. The next lesson shifts from describing data that's already happened to predicting the likelihood of events that haven't happened yet.
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