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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 ?
Table 3 Changes in the Width of the Central Tendency and Changes in Uncertainty Standard deviation 80th - 20th percentile Dependent variable (1) (2) Width of central tendency 0.
This illustrates how weak and idiosyncratic the mode can be as an indicator of central tendency.
But to the extent that inflation tracks toward expected inflation, and expected inflation tracks toward the central tendency, which tends to move slowly, it is the central tendency that gives the best view of inflation in the medium to longer term.
The best-fit trend lines represent the central tendency of the data set relative to size, with approximately half the data points above the line and half below.
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.
I think that measures of central tendency need to be personalized to accomplish student buy-in.
Whichever method is used, the value that is being predicted is called a measure of central tendency.
graphs, measures of central tendency, measures of dispersion and time series indexes.
The main conclusion is that these borrowing costs are prohibitive in central tendency and in dispersion.
For example, statistical fundamentals (such as the normal distribution and probability) are presented within the context of sampling theory early on in the text, which lays the groundwork for the later chapter on quantitative data analysis, which discusses issues of central tendency, dispersion, and statistical inference.

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