The three common measures of central tendency are:
Mean
Mode
Median
1. Mean
The mean of a dataset is the average- derived by summing all values then dividing by the number of values.
Use Case in Data Science:
The mean can be used to find indicators such as average consumer spending, average products sold, average cost of products, to inform sales and marketing decisions.
Note: Outliers affect the mean of a dataset, thus one should check their data for the same to identify the potential of obtaining skewed data.
2. Mode
The mode is the most frequently occurring value(s) in a dataset.
Use Case in Data Science:
The mode reveals patterns in data that a data scientist or analyst can use to make conclusions about certain element. For instance, the mode in a dataset of sales would reveal the most sold product a business and aid business intelligence analysts in identifying the contribution of the product to their turnover.
3. Median
This is the middle value of a dataset when the data is ordered, typically in ascending order.
Use Case in Data Science:
The median can help in evaluating elements such as household income and educational attainment during household surveys. This helps retrieve a representative figure that policy makers can base their planning and development decisions.