The measures of central tendency are mean, median, and mode. They help us find out the center of the distribution. The measures of central tendency are used to define the center of gravity of a dataset we are working with. They are fundamental concepts in descriptive statistics for summarizing and interpreting data.

The mean is often preferred when dealing with normally distributed data, while the median is robust against outliers, making it suitable for skewed distributions. The mode, however, highlights the most frequently occurring value, which can be informative in certain contexts such as identifying popular product preferences or peak usage times.

This open-access Excel template is a useful tool for statisticians, data analysts, data scientists, asset managers, portfolio managers, and anyone studying finance. If you are looking to explore key statistics concepts and their real-world applications, you can enroll in our comprehensive Statistics course.

You can also examine other open-access resources, such as Variance and Standard Deviation, Skewness, and Kurtosis.