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Related to Central Tendency: standard deviation, measures of dispersion


An arithmetic mean return of selected stocks intended to represent the behavior of the market or some component of it. One good example is the widely quoted Dow Jones Industrial Average, which adds the current prices of the 30 DJIA stocks, and divides the results by a predetermined number, the divisor.

Average (across-day) measures

An estimation of price that uses the average or representative price of a large number of trades.


A simple way to calculate the relative price of an index of stocks that involves adding the prices of all the stocks in the index and dividing by the total number of stocks. Market averages may be weighted, for example, for price or market capitalization. Movements in the market average of an index are considered a way to observe trends in the health of the companies represented in it. Some market averages are taken as an indicator of health in the broader economy; prominent examples of this include the Dow Jones Industrial Average and S&P 500 indices.


See averages.


A stock market average is a mathematical way of reporting the composite change in prices of the stocks that the average includes.

Each average is designed to reflect the general movement of the broad market or a certain segment of the market and often serves as a benchmark for the performance of individual stocks in its sphere.

A true average adds the prices of the stocks it covers and divides that amount by the number of stocks.

However, many averages are weighted, which usually means they count stocks with the largest market capitalizations more heavily than they do others. Weighting reflects the impact that the stocks of the biggest companies have on the markets and on the economy in general.

The Dow Jones Industrial Average (DJIA), which tracks the performance of 30 large-company stocks, is the most widely followed market average in the United States.

References in periodicals archive ?
Although analysis of the central tendency is the most popular method of analyzing RT, there are drawbacks to this approach.
5) The first study was McNees (1995), which tabulated how often the actual forecast fell within each of the two intervals, the full range and the central tendency.
The cafeteria looks at meal participation to plan the ordering for the meals--How might they use alternative measures of central tendency to help them with their ordering and meal planning?
We gather data, then find a measure of central tendency, the standard deviation, the coefficient of variation, and the time of occurrence and duration.
Under lognormality one can define the relative poverty lines by denoting [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] with [alpha] = 0 when the median is used as the central tendency, [alpha] = 1/2 for the mean, and [alpha ] = -1 for the mode.
In the case of the Federal Reserve, the forecasts are the central tendency of the forecasts of the members of the policymaking body, the Federal Open Market Committee.
1 represents the best fit for the average yearly value with the 95% prediction region between lines above and below that central tendency.
EPA using the one-compartment pharmacokinetic model contains two areas of significant uncertainty: It does not directly account for the influence of the ratio of cord blood:maternal blood Hg concentration, and it does not resolve uncertainty regarding the most appropriate central tendency estimates for pregnancy and third-trimester--specific model parameters.
The second chapter, "A Few Basics," explains introductory statistical methods such as measures of dispersion, measures of central tendency, and sampling.
Because of the nonsymmetric nature of the observations, the median value might be more representative of the central tendency of the data than is the mean value.
Researchers describe the data by presenting information about the shape of the distribution and including measures of central tendency and dispersion.
The outline of statistical methods moves very quickly from descriptive to inferential statistics having briefly outlined the ideas of central tendency and inadequately presented measures of dispersion.

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