STATISTICAL ANALYSIS: MEAN, MEDIAN, MODE

DEFINITIONS:

1. Mean:

The mean is the average of the data set.

2. Median:

The median is the middle term in a data set with an odd number of terms that have been sorted in ascending order.

The median is the average of the two middle terms in a data set with an even number of terms that have been sorted in ascending order.

3. Mode:

The mode is the term that occurs most often in a data set. There may be one mode, multiple modes, or no modes.

HOW TO CALCULATE (Do this in the spreadsheet you downloaded your historical prices into):

1. Mean:

Add up all of the terms and divide the sum by the number of terms.

2. Median:

Sort the data in ascending order. If the data set has an odd number of terms, chose the middle term in the sorted list. If the data has an even number of terms, find the average of the two middle terms in the sorted list. THE DATA MUST BE SORTED IN ORDER TO FIND THE MEDIAN.

3. Mode:

Sort the data in ascending order. Find the value(s) that occur most often.