Excel is spreadsheet software that can be used in various implications of mathematics and statistics.
Finance and economics professionals especially use excel in a lot of their statistical measurements. For example- finance professionals have to identify stock price movements to know which stocks to invest in. In this case, the average of the stock price movements comes in handy.
In the case of economists, they frequently have to identify trends of certain countries’ economic indexes. So, they have to find the average value of certain indicators like Foreign Direct Investment (FDI), Gross Domestic Product (GDP), Unemployment Rate, etc.
Essentially, they have to identify the central value in a data set. The central value is an indicator of the usual way of things. These are called measures of central tendency.
The three main measures of central tendency are mean, median, and mode.
These measures can identify the central position of a statistical distribution or a data set that helps to predict trends.
Measures of central tendency are very important to find. But it can be tedious and time-consuming to calculate them manually.
However, there are simple formulas in excel by which you can calculate them in a split second.
So, let me show you how to find mean, median, and mode in excel.
What is Mean?
Mean is also known as the arithmetic mean. This is the most familiar central tendency. This is also known as average.
Mean is calculated by adding up a group of numbers and then dividing the sum by the count of those numbers.
So, let’s see how to calculate the mean in excel.
How to Calculate Mean in Excel?
To calculate the mean in excel you can use the AVERAGE formula. Type the following formula in excel to get the mean of a group of numbers in a data set:
You will see that the mean is 26 for the given data set in the picture.
A mean of 26 means that the average of the dataset is 26 or 26 is the usual tendency of the dataset’s inclination.
What is Median?
Median is the middle point of a data set.
The manual calculation of the median requires the data set to be numerically ordered. Then you can find the middle number of the data set which is the median.
So, let’s see how to calculate the median in excel.
How to Calculate Median in Excel?
In excel, there is a formula for the median. Type the following formula in excel to get the median of a group of numbers in a data set:
You will find the median to be 25 which means that if you numerically order the data set, 25 will be the middle number of the data set.
What is Mode?
The mode is also a central tendency that measures the repetitive data in a set.
So, if you want to calculate the mode in a data set you have to find the number which is present more than any other number in the data set.
So, let’s see how to calculate the mode in excel.
How to Calculate Mode in Excel?
In excel, there is a formula for the mode. Type the following formula in excel to get the mode of a group of numbers in a data set:
There is another formula in excel that finds multiple modes which means that if there are multiple numbers that repeat more than any other number in the data set, that formula will show those numbers.
The formula is:
The numbers will be shown consecutively in a column.
So, a mode of 36 means that the number 36 has been repeated more than any other number in the data set.
There you go, you know how to find mean, median, and mode in excel very easily.
So, this is all about central tendency. Now, you can save time and be more efficient as you know how to calculate mean, median, and mode in excel.
Hi there, I am Naimuz Saadat. I am an undergrad studying finance and banking. My academic and professional aspects have led me to revere Microsoft Excel. So, I am here to create a community that respects and loves Microsoft Excel. The community will be fun, helpful, and respectful and will nurture individuals into great excel enthusiasts.