Find the mean deviation from the mean for the following continuous frequency distribution.
Sales
in Rs. thousand 40-50 50-60 60-70 70-80 80-90 90-100
Number of
Companies 5 15 25 30 20 5

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Solution

Sales Mean Sales No of companies
40-50 45 5
50-60 55 15
60-70 65 25
70-80 75 30
80-90 85 20
90-100 45 5
Mean $= \frac{\sum f_{i} x_{i}}{\sum f_{i}} = \frac{7100}{100} = 71$
Deviation from mean $= \frac{\sum f_{i} | x_{i} - ¯ x |}{\sum f_{i}} = \frac{1040}{100} = 10.4$

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Sales in Rs. thousand	40-50	50-60	60-70	70-80	80-90	90-100
Number of Companies	5	15	25	30	20	5