Once data is collected it has to be summarised. Two numbers do most of the work: one for the centre and one for the spread. Choosing the right pair, and knowing what each hides, is the substance of this topic.
Measures of central tendency
For the data 4,7,9,12,18:
mean xˉ=n∑x=550=10
The median is the middle of the ordered data: 9.
The mode is the most frequent value — here there is none, since every value occurs once.
Measure
Best when
Weakness
Mean
data is roughly symmetric
one extreme value shifts it a long way
Median
there are outliers or skew
ignores the size of the other values
Mode
data is qualitative
may not exist or may not be central
For grouped data the mean is estimated using class midpoints:
xˉ=∑f∑fx
Measures of spread
range=largest−smallest
For 4,7,9,12,18 the range is 18−4=14. Simple, but determined entirely by the two most extreme values.
interquartile range=Q3−Q1
For 3,5,7,8,10,12,15,18: the median is 9, Q1=25+7=6 and Q3=212+15=13.5, so
IQR=13.5−6=7.5
The IQR describes the middle half of the data and is unaffected by extremes — which is exactly why it pairs with the median.
Variance and standard deviation
The variance is the mean squared deviation from the mean:
Check by the definition: 536+9+1+4+64=5114=22.8 ✓
For a frequency table:
σ2=∑f∑fx2−xˉ2
Stem-and-leaf diagrams and box plots
A stem-and-leaf diagram shows the shape of the distribution while keeping every original value, so the median and quartiles can be read straight off. It must have a key — "2∣4 means 24" — or it means nothing.
A box plot shows five numbers: minimum, Q1, median, Q3, maximum. The box spans the IQR with the median marked inside it, and whiskers reach to the extremes (or to the outlier boundaries, with any outliers plotted separately).
Box plots are at their most useful when two or more are drawn on the same scale: differences in centre and spread become visible at a glance.
Outliers and skewness
An outlier is conventionally a value
below Q1−1.5×IQRorabove Q3+1.5×IQR
For the data above, with Q1=6, Q3=13.5 and IQR =7.5:
6−11.25=−5.2513.5+11.25=24.75
Every value lies between those bounds, so there are no outliers.
Skewness describes asymmetry:
Shape
Relationship
Tail
Positive (right) skew
mean > median
long tail to the right
Symmetric
mean ≈ median
balanced
Negative (left) skew
mean < median
long tail to the left
Income data is the standard example of positive skew: a few very high earners pull the mean above the median, which is why "median income" is the figure usually reported.
Coding
Substituting y=bx−a makes awkward numbers manageable. The statistics transform back as:
xˉ=a+byˉσx=bσy
If x is coded as y=x−100, with yˉ=3.2 and σy=1.5:
xˉ=100+3.2=103.2σx=1.5
So if 5 is added to every value, the mean rises by 5 and the standard deviation does not move. If every value is doubled, the mean doubles and so does the standard deviation — while the variance is multiplied by 4.