Chapter 5 of Class 11 Economics, Measures of Central Tendency, is all about finding a single value that represents the entire dataset. It explains how to calculate the average or typical value from a group of numbers. This chapter introduces three main measures – Mean, Median, and Mode. These are basic tools used to summarise and understand data. Whether it’s marks of students, income of households, or rainfall records, central tendency helps to give a quick idea of the general pattern.
I’m writing about this chapter because it forms the base for understanding data analysis in economics. Without knowing how to calculate the average or central value, it’s difficult to study patterns, compare data or make economic decisions. This chapter is important not just for exams but also in real life where averages are used everywhere – from news reports to finance. Students often get confused between different types of averages, so having clear examples and a downloadable PDF can help a lot during revision and practice.
Understanding Measures of Central Tendency
Measures of central tendency are values that represent the middle or central part of a data set. They help in summarising large sets of numbers into a single, easy-to-understand figure.
The Three Main Measures
1. Mean (Arithmetic Average)
- Add all values and divide by the number of observations
- Best used when there are no extreme values
- Example: If marks in a class are 50, 60, 70, then Mean = (50+60+70)/3 = 60
2. Median (Middle Value)
- The middle number when data is arranged in order
- Best when data is skewed or has outliers
- Example: If data is 45, 50, 55, the median is 50
3. Mode (Most Frequent Value)
- The number that appears most often in a dataset
- Useful for finding the most common item
- Example: In 5, 6, 6, 6, 7 – Mode is 6
When to Use Which
- Use Mean for balanced data
- Use Median when data has outliers
- Use Mode when you need the most common figure
Formulas and Types of Data
This chapter also explains how to calculate these values for different types of data:
- Ungrouped Data – Raw numbers
- Discrete Series – Data with separate values
- Frequency Distribution – Data grouped into intervals
It gives step-by-step methods and also short-cuts like the Assumed Mean method to make long calculations easier.
Here’s a simple example table:
Marks Range | Frequency |
---|---|
10–20 | 5 |
20–30 | 8 |
30–40 | 12 |
From such a table, you can calculate Mean using assumed mean or step deviation method as shown in the NCERT book.
Why This Chapter Matters in Real Life
- Averages are used in calculating GDP, inflation, and literacy rates
- Helps in summarising data in business reports
- Used in market research, surveys, and policymaking
- Common in competitive exams and entrance tests
For example, when the government reports “average income of Indians increased”, it’s mostly based on one of these central tendency measures.
Download PDF
Click Here to Download NCERT Class 11 Economics Chapter 5: Measures of Central Tendency PDF