Mean, Median, Mode & Range
The four basic ways to summarize a set of numbers.
What is Mean, Median, Mode & Range?
Mean is the arithmetic average. Median is the middle value when sorted, and resists distortion from outliers. Mode is the most frequent value. Range is the highest minus the lowest. When a few extreme values skew the data, the median describes the typical case better than the mean.
Mean, Median, Mode & Range: a worked example
Annual returns of 2%, 4%, 4%, 10%, 30%: mean 10%, median 4%, mode 4%, range 28%.
More terms in Economics & Financial Reporting
Business Cycle
The recurring pattern of expansion, peak, contraction, and trough.
Leading, Coincident & Lagging Indicators
Data series that move before, with, or after the business cycle.
Deflation vs. Disinflation
Falling prices versus a slowing rate of price increases.
Currency Valuation & Exchange Rates
What one currency buys of another, and who wins when it moves.
Sovereign Debt
Bonds issued by a national government.
Trade Deficit
A country imports more goods and services than it exports.
Income Statement
Revenue, expenses, and profit over a period of time.
Balance Sheet
Assets, liabilities, and equity at a single point in time.