what is the use of Mean , Median and Mode in business world.?

Answer 1

Mean and median are the two standard kinds of average. Median is used when it's obvious the mean would be misleading, perhaps because of a few enormous readings -- e.g., MEDIAN household income is commonly considered, even though Gross Domestic Product per person is an equally accurately known MEAN.

I don't know that the mode is used so much, but a more complex related concept of "clustering" is used. Look up "psychographics" for examples.

Answer 2

Math is a part of everyday life... And in business, we also use Math... How?! Well lets read...

==>MEAN- list of numbers is the sum of all the members of the list divided by the number of items in the list. If one particular number occurs more times than others in the list, it is called a mode. The arithmetic mean is what students are taught very early to call the "average". If the list is a statistical population, then the mean of that population is called a population mean. If the list is a statistical sample, we call the resulting statistic a sample mean.

you can use it when you are getting the average of the yearly sales or monthly income. some people call it "average"... but it's the same with the mean...

==>The median of a finite list of numbers can be found by arranging all the observations from lowest value to highest value and picking the middle one. If there are an even number of observations, the median is not unique, so one often takes the mean of the two middle values.

At most half the population have values less than the median and at most half have values greater than the median. If both groups contain less than half the population, then some of the population is exactly equal to the median.

you can use the mean to track if your business is doing fine....

==>If one particular number occurs more times than others in the list, it is called a mode.

you can use it to track how many sales are the same...(ex. there are 45 $100,000.00 sales and it's the largest number, then it's the mode...)

sorry for my errors... i hope you appreciate my answer......
i'm the consistent top one in math and im expecting good feedback... thanks...

Answer 3

i'm only a high school student so what i'm going to say might not be 100% correct since i'm going to take this in a general sense and only from what i know about the business world...

in business, math is always involved especially statistics... think about it, year-end reports, sales reports or summaries, business trends, so on and so forth, are more or less statistical data... statistics is, no matter what business venture you're into, a stable language in the business world, not to mention, it can provide very good grounds and support to say, a decreasing trend in your sales and such. observations are all good and well, but they're just that, just observations. But given a wide range of observations (esp if they're conflicting), it's hard to make a sound conclusion. statistics based on gathered data on the other hand, can give accurate measures of such and such trends...

in statistics, median, mode and mean are the basic foundations... even if you don't know the different statistical techniques like anova test or spearman's, mean, median and mode can still be used to give a basic statistical interpretation of well, statistical trends...

yeah, so there... i don't know if that made a lot of sense so forgive me if it doesn't...

good luck

Answer 4

In a set of numbers Mean is the average, Median is the number or numbers in the middle of the set and Mode is the most frequently appearing number.

Answer 5

These number are the basics of all statistics that "common people" understand.
As many of us math people know, statistics is much more than these 3 values, but people dont tend to understand them, due to the complex methods used to calculate them, such as significance factors.

Means, Medians, and Modes are simple ways to see averages (mean), most of an item chosen or (mode) , simply locating the middle of a data set (median).

people love simple statistics, they are everywhere!
beware though.... 40% of all statistics are wrong.....
wait, so is the one i just said wrong or right? you decide!

Answer 6

use of mean mode and median is everywhere in daily routine. if yu r a housewife even when application of mean,median ,mode used.