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.