The term measure of central tendency can be described as a single value which is used to define a set of data by classifying the central position within that set of data. That’s the reason measures of central tendency is also known as measures of central location. It is also categorised as summary statistics. Here, the mean (usually known as the average) mostly measure the central tendency which is the most common, apart from the median and the mode.
All three mean, median, and mode are the types of central tendency, however, they have different measures and conditions.
Objectives of Measuring Central Tendency
 To present a brief picture of data It helps in giving a brief description of the main feature of the entire data.
 Essential for comparison It helps in reducing the data to a single value which is used for doing comparative studies.
 Helps in decision making Most of the companies use measuring central tendency to plan and develop their businesses economy.
 Formulation of policies Many governments rely on this medium while forming any policies
Measuring Central Tendency
(A) MEANING OF MEASURE OF CENTRAL TENDENCY 
 It is a single value or figure that represents the entire set of data.
 It is a value to which most of the observations are closer.

(B) FOLLOWING ARE THE OBJECTIVES OF AVERAGES: 
(1) TO PRESENT A BRIEF PICTURE OF DATA 
 Averages summarise data into a single figure, which makes it easier to understand.

(2) TO MAKE COMPARISON EASIER 
 Averages are very helpful for making comparative studies as they reduce the bulky statistical data to a single figure.

(3) TO HELP IN DECISIONMAKING 
 Most of the decisions in research or planning are based on the average value of definite variables.

(4) TO HELP IN FORMULATION OF POLICY 
 It is very useful in policy formulation.
 For example: For the removal of poverty from India, government takes into consideration per capita income.

(A) ARITHMETIC MEAN 
 Arithmetic Mean is defined as “the sum of the values of all observations divided by the number of observations”.
 It is also known as ‘Mean’ or ‘Average’ by the common man.
 It is generally denoted by.

(B) TYPES 
 Simple arithmetic mean
 Weighted arithmetic mean

Q.NO 
FILL IN THE BLANKS 
1 
______ is a single value or figure that represents the entire set of data. 
2 
___________ is the sum of the values of all observations divided by the number of observations. 
3 
Arithmetic mean ______ be computed by simply observing the series (can/ cannot) 
Q.NO 
ANSWER KEY 
1 
Measure of Central tendency 
2 
Mean 
3 
cannot 
The above mentioned is the concept, that is elucidated in detail about the ‘measure of central tendency ’ for the class 12 Commerce students. To know more, stay tuned to BYJU’S.