## Measure of central tendency, Financial Management

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One of the most important objectives of statistical analysis is to get one single value that describes the characteristic of the entire mass of unwieldy data. Such a value is called the central value or an 'average' or the expected value of the variable. This single value is the point of location around which individual values cluster and, therefore, called the measure of location. Since this single value has a tendency to be somewhere at the center and within the range of all values it is also known as the measure of central tendency. The very purpose of computing an average value for a set of observations is to obtain a single value which is representative of all the items.

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