Economics » Methods and Tools of Economic Analysis » Measures Of Central Tendency

Mode

Mode

This is defined as the most frequently occurring number in a set of data.

Example:

Find the mode of the following scores: 30, 25, 60, 80, 60, 25, 80, 60, 40, 60, 80, 30, 20.

Solution:

The mode is 60. This is because 60 appeared or occurred 4 times and that is the highest number of times a figure appeared in the data set.

Merits of Mode:

  1. It is easy to determine.
  2. It is easy to understand.
  3. It is not affected by extreme values.
  4. It is easy to compute.

Demerits of Mode

  1. It is not a very accurate measure of central tendency.
  2. It is irrelevant in further statistical calculation.
  3. It represents a very poor statistical average.
  4. There may be uncertainty in the exact location.

[Attributions and Licenses]


This is a lesson from the tutorial, Methods and Tools of Economic Analysis and you are encouraged to log in or register, so that you can track your progress.

Log In

Share Thoughts