What are the uses of average in business in statistics?
Answers
Answer:
The term average is used frequently in everyday life to express an amount that is typical for a group of people or things. For example, you may read in a newspaper that on average people watch 3 hours of television per day. We understand from the use of the term average that not everybody watches 3 hours of television each day, but that some watch more and some less. However, we realize from the use of the term average that the figure of 3 hours per day is a good indicator of the amount of TV watched in general.
Averages are useful because they:
summarise a large amount of data into a single value; and
indicate that there is some variability around this single value within the original data.
In everyday language most people have an inherent understanding of what the term average means. However, within the language of mathematics there are three different definitions of average known as the mean, median and mode.
The mean, median and mode are each calculated using different methods and when applied to the same set of original data they often result in different average values. It is important to understand what each of these mathematical measures of average tells you about the original data and consider which measure, the mean, median or mode, is the most appropriate to calculate should you wish to use an average value to describe a dataset.
Answer:
The term average is often used in statistics to represent the median. B. The term average is often used in statistics to represent the mean. ... The term median should be used for the result obtained by adding all of the sample values and dividing by the total number of sample values.