Okay, so in this example, we're going to be calculating the mean, median, and mode of this dataset and then we're going to fill in the blanks of this statement here. So let's just start with the mean, median, and mode. Now the first thing that I did, if you have a small enough dataset, it's very useful to just write out all of your numbers in order. That's going to make it easier to calculate the median. But we're going to start by calculating the mean which is just adding up all of the numbers in our dataset and then dividing it by the number of data points that we have, which in our case is 7.
We have 7 data points here. So I'm going to add up all of our numbers which gets us 3,500,000 and then that divided by 7 is going to get us 500,000 for our mean. Alright. So that is our mean. Now our median is literally just our center value.
Right? And so to do that, you have to put your numbers in numerical order, which we already did, and then literally just find the value in the middle. So we're just going to tick off these numbers on either end until we get to the center value which is 325,000. Alright. So that's our median.
And then the mode is just the value that occurs the most often or the most frequently in our dataset. And in this dataset, every single number occurs one time except for 325,000, which occurs twice. And so that is going to be our mode. Alright. Now you may have noticed something here which is that the mean is quite a bit higher than the median and mode.
And that happened because we have this number here in our dataset which is significantly higher than the next highest value, which is only 425,000 which is nowhere near 1,500,000. Right? And so the mean really is not reflecting most of our data. If you look at these numbers here, you know, the mean does not look like the average of those numbers, does it? So in this case, we have an outlier in our data.
That 1,500,000 is an outlier and it's skewing the mean and really dragging it up and making it a lot higher than it really should be. So we're going to fill in the blanks of this statement and we're going to say in this dataset the mean is not as useful because it's been skewed by an outlier. And so in a dataset like this where you have one really clear outlier, the median is probably going to be your best bet when you're describing the data if you had to pick just one measure. In this case, the mean is really not describing the data in a very accurate way. Alright.
So that was our example and I'll see you guys in the next one. Bye bye.