Mean, Median, Mode

How the Mean, Median and Mode are defined and calcualted

Valentine Strunz-Happe avatar
Written by Valentine Strunz-Happe
Updated over a week ago

Different ways to define the average.


Explanation

  • Mean - what is commonly referred to as average. Dividing the sum of revenue by the count of order

  • Median - the middle value. Line all orders up by size and what's the value of the middle order.

  • Most - the most frequently occurring value.

So let's say we 11 order with the following values:

  • 20

  • 20

  • 20

  • 20

  • 26

  • 32

  • 32

  • 45

  • 60

  • 90

  • 120

In this case, we would have the following results:

Mean = 485/10 = 44.1

Median = 32 (the sixth highest value)

Mode = 20 (the most frequently occurring -> 4 times)

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