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CHAPTER 4
Central Tendency and Variability
Central Tendency
Mean, the Arithmetic Average
Median, the Middle Score
Mode, the Most Common Score
How Outliers Affect Measures of Central Tendency
Which Measure of Central Tendency Is Best?
Measures of Variability
Range
Variance
Standard Deviation
You should understand what a distribution is (Chapter 2).
You should be able to interpret histograms and frequency polygons (Chapter 2).
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Chance variability in the cloud cover diverted a B-
4-
Five years after the bombing, an American statistician named W. Edwards Deming persuaded Japan’s leading engineers and businesspeople that a simple statistical insight could lead the devastated nation to economic recovery: Low variability means high reliability. Consumers want things that work and are willing to pay more for reliable products. For Japan, controlling variability translated into developing thousands of small manufacturing solutions that transformed Japanese products from cheap junk into merchandise of exceptional quality. Consider that this took place in a small country where the landscape, people, and morale had just been ravaged by war.
Variability is the central idea driving this powerful insight, and in this chapter, we learn about three ways to measure the variability of any observations we make: range, variance, and standard deviation. But to fully understand variability, we first have to know what observations are varying from—