The Median is the value that comes precisely in the center of any given group. It is the point at which half of the data is greater than the previous value, and half is lower than the last value. The Median is a valuable statistic that allows one data point to be used to represent a large number of other data points.
The Median is the statistical metric that can be calculated with the least effort. To calculate the Median, the data must first be ordered in ascending order. After that, the data point located in the center of the order will be used to represent the Median of the data.
In addition, the quantity of data points is an essential consideration in the computation of the Median. When there are many odd data points, the Median is the data point that falls precisely in the center, and when there are an even amount of data points, the Median is even the average of the middle two values.
In this article, we will learn more about the Median, how to calculate the Median when there are even and odd numbers of data points, and how to formulate the Median.
The Median is one of the three ways central tendency may be measured. When describing data collection, it is necessary to pinpoint the location of the data set’s center. The term for this kind of analysis is “measure of central tendency.” The mean, the Median, and the manner are the three measurements of central tendency that are used the most often.
The Formal Definition of Median
The value of the observation found to be in the center after the data have been arranged in ascending order is referred to as the Median of the data. In many situations, it isn’t easy to consider all of the data for representation, and the Median is helpful in these cases.
When it comes to the statistical summary metrics, calculating the Median is one of the more straightforward tasks. The data located in the center of a series is the data used to determine the Median. Another name for the Median is the place average.
The Median is the value that best represents the average. The value in the center of data correctly structured in increasing or decreasing order is known as the Median. The Median is useful for analyzing data that does not have a uniform distribution but is skewed to either end.
Examples of Median in Real-Life
Selecting the Movie Type
Let’s say you and several family members decide to go to a movie. When you arrive at the movie theatre, you will see that three distinct categories of films may be shown there. At this point, it is up to you to choose a film that the whole family will enjoy together.
Let there be cartoon films, thriller films, and biography films accessible to watch. Animated films are the ideal option for children, while thriller films are popular among teenagers (preferred by adults). Humans as young as six and as old as sixty have been recorded as having visited this location.
The following statistics have a mean or average that can be calculated, and it turns out to be the age of 22, which is considered part of the adult age group. You decide to watch the biopic. But if you go to the theatre, you won’t find more than one person enjoying it; the rest of the audience will be uninterested.
The calculation of the Median, as opposed to the mean, is the method that should be used in this kind of circumstance. The number 15 was chosen to represent the Median since it was in the center of the range of values presented in an orderly. Everyone has a better time when you go to the movies with friends and select to see a suspense film. The next time you need to determine which movie to see, you may use the notion of the Median to help you make your choice.
Data Grouping
Suppose you have been tasked with organizing a lesson in your classroom that requires the pupils to be split into two groups to complete the assignment. You cannot decide how to proceed since you cannot arbitrarily place individuals into various groups.
To do this, you must first settle on the criterion that will serve as the basis for the group. Take, as an example, the choice of the factor is the average height of the pupils. Now, make note student’s measurement, and then organize the data so
Let’s say the measurements are 152 centimeters, 158 centimeters, 160 centimeters, 162 centimeters, 189 centimeters, and 195 centimeters. The above facts provide a median value of 161 centimeters when run through the appropriate calculations.
Now, it shouldn’t be too difficult to divide the students into two distinct groups: the first will include those taller than 161 centimeters, and the second will consist of those shorter than 161 centimeters.
Explicating the Poverty Line
Calculating the poverty line is one of the most important uses of the idea of the Median, which also happens to be one of its most common applications. Let us imagine that we have information on the monthly income of several groups of individuals in the following range: 10, 20, 30, and 800. These numbers correspond to the following content: 10, 20, 300, and 800.
The mean value is calculated to be $235. It would be entirely wrong for someone to use the idea of mean to determine where the poverty line should be located. Because of this, we immediately go on to another concept: the Median.
The data presented above yields a median value of $30; this allows for a more precise resolution of whether or not a person is living in poverty based on whether or not they fall below this threshold.
Purchasing a Property
Investing in real estate is a weird choice to make in one’s lifetime. Let’s say you go to see a real estate broker, and while you’re there, he shows you photographs of several homes along with their pricing, such as 30L, 32L, 38L, 40L, 87L, 90L, and 95L. You ask him about the standard cost, and he tells you it is INR 60 L. You also see that the median price is forty thousand.
In this scenario, you can find yourself in a Catch-22 situation where the homes with lower costs could have some defects while the houses with higher prices go above the budget you have set for yourself.
When you consider all of the relevant information, you probably will conclude that the price of a home worth the middle or median amount, which is 40L, is the best option. As a result, while selecting an ideal home to buy, you could consider getting assistance from the Median.
Budget
Every one of us has the custom of preparing a monthly budget, regardless of whether or not we stick to it. Let’s say that your monthly expenses include $700 for personal care, $100 for the water bill, $800 for snacks, $500 for the electricity bill, and $6000 for the rent on your home. If you use the idea of mean to determine the average spending, you will find that it is $1,620.
However, if you use the median concept, you will find that it is $700. However, because of the skewed and asymmetrical form of the data, the idea of the Median is the one that works best in this situation.
Business
Statistics are an essential component in the administration of businesses. Let’s imagine that the proprietor of a firm that sells shoes has decided to charge various amounts for each of his offerings, such as $120, $180, $250, $400, and $1000. He has to adjust the prices of his products so that they are more palatable to most customers to boost his company.
The mean, which he estimates to be $390, is much higher than the Median, which he calculates to be $250. Mean will not be of much assistance in this situation because the person who typically spends $400 on shoes will not notice any difference in the new price, which is INR 390. In contrast, the other person who could afford shoes worth $120 will have to wait until he reaches the average price of $390.
On the other hand, the Median enables clients of all different types to achieve a more reasonable price within their financial means quickly. As a result, his business experiences success.
Salary
Rules and regulations at various workplaces might vary significantly from one another. Some prefer to establish a reference point based on the median wage, while others use the average salary as their point of departure.
The workers can better understand where they are in their careers when they have access to the median income.
It is also referred to as the income of the 50th percentile, which indicates that half of the workers have salaries higher than this median wage. In comparison, the other half have lower salaries. This fosters a spirit of competitiveness among them, which is beneficial to their development.