Mean, median, and mode are the three measures of central tendency in statistics — each describes the "centre" of a dataset in a different way. Choosing the wrong measure can lead to genuinely misleading conclusions, which is why understanding when to use each is a critical statistical skill. This guide explains the calculation for each measure, when it's appropriate, and how to avoid being misled by poorly chosen averages.
The Mean (Arithmetic Average)
Mean = Sum of all values ÷ Number of values
x̄ = Σxᵢ ÷ n
Calculation Example
Dataset: 12, 15, 18, 22, 25, 28
Sum = 120 | n = 6
Mean = 120 ÷ 6 = 20
When to Use the Mean
The mean is the most mathematically useful average and is appropriate when:
- The data is symmetrically distributed (roughly normal/bell-shaped)
- There are no extreme outliers
- The data is continuous (heights, temperatures, exam scores)
- You need to use the value in further calculations (e.g. standard deviation)
When NOT to Use the Mean
The mean is severely distorted by outliers. Classic example: average income. In the UK, a small number of very high earners pull the mean average salary well above the level most workers experience. When Bill Gates walks into a pub, the average wealth of everyone in the room suddenly becomes millions — but nobody is actually richer.
Dataset with outlier: 18, 19, 20, 21, 22, 23, 250
Mean = 373 ÷ 7 = 53.3 — far above 6 of the 7 values.
The Median
The median is the middle value when data is sorted in order. Half the values lie above it, half below.
For odd n: Median = value at position (n+1)/2
For even n: Median = mean of values at positions n/2 and (n/2)+1
Calculation Examples
Odd dataset: 3, 7, 9, 12, 15 → Median = 9 (middle value, position 3)
Even dataset: 3, 7, 9, 12, 15, 18 → Median = (9 + 12) ÷ 2 = 10.5
With outlier: 18, 19, 20, 21, 22, 23, 250 → Median = 21 — unaffected by the outlier of 250.
When to Use the Median
- Income and wealth distributions (skewed by high earners)
- Property prices (skewed by luxury properties)
- Survival times and waiting times (often skewed)
- Any data with significant outliers
- Ordinal data (e.g. ranked satisfaction scores 1–5)
The median UK salary (around £34,000 in 2024/25) is more representative of what a typical worker earns than the mean (around £37,000), which is pulled up by high earners.
The Mode
The mode is simply the most frequently occurring value in a dataset. A dataset can have:
- One mode (unimodal)
- Two modes (bimodal)
- Multiple modes (multimodal)
- No mode (all values appear equally frequently)
Example: 3, 5, 7, 5, 9, 5, 11, 3 → Mode = 5 (appears 3 times)
Bimodal: 2, 4, 4, 5, 7, 7, 9 → Modes = 4 and 7
When to Use the Mode
- Categorical data (most common colour, most common job title)
- Shoe or clothing sizes (retail stocking decisions)
- Survey responses (most common rating given)
- Any situation where you want the most common value rather than the average
Comparing the Three Measures
For a symmetric distribution (e.g. heights of adults), mean = median = mode. They all give the same answer.
For a right-skewed distribution (e.g. income):
- Mode: lowest (most common, typical value)
- Median: middle
- Mean: highest (pulled up by outliers)
This is why politicians arguing about "average" wages should always be asked: which average? Mean or median?
Beyond Central Tendency: Range and Standard Deviation
The three averages tell you where the centre is — but not how spread out the data is. A class where everyone scored 70% on an exam is very different from a class where scores range from 10% to 100% with a mean of 70%.
- Range: Maximum − Minimum. Quick but sensitive to outliers.
- Interquartile range (IQR): Q3 − Q1 (the middle 50% of data). More robust than range.
- Standard deviation (σ): The average distance from the mean. The most complete measure of spread.
Worked Example: House Price Data
Seven house sales in a street: £180k, £195k, £205k, £210k, £215k, £225k, £890k
- Mean: (180+195+205+210+215+225+890) ÷ 7 = 2,120 ÷ 7 = £302,857
- Median: 4th value (sorted) = £210,000
- Mode: None (all unique)
The mean of £303k makes this street appear far more expensive than it is for most properties, due to one outlier. The median of £210k is far more representative.
Summary
Mean = sum ÷ count — best for symmetric data without outliers. Median = middle value — best for skewed data and outlier-resistant summary. Mode = most frequent value — best for categorical data. Always question which "average" is being quoted in news stories and reports — the choice between them can dramatically change the story.