Median

AAA

DEFINITION of 'Median'

The middle number in a sorted list of numbers. To determine the median value in a sequence of numbers, the numbers must first be arranged in value order from lowest to highest. If there is an odd amount of numbers, the median value is the number that is in the middle, with the same amount of numbers below and above. If there is an even amount of numbers in the list, the middle pair must be determined, added together and divided by two to find the median value. The median can be used to determine an approximate average.

INVESTOPEDIA EXPLAINS 'Median'

To find the median value in a list with an odd amount of numbers, one would find the number that is in the middle with an equal amount of numbers on either side of the median. To find the median, first arrange the numbers in order from lowest to highest:
List: 3, 13, 2, 34, 11, 26, 47


Arranged in order, the list becomes: 2, 3, 11, 13, 26, 34, 47


The median is the number in the middle: 2, 3, 11, 13, 26, 34, 47


13 is the median in the list of numbers since there are 3 numbers on either side.


To find the median value in a list with an even amount of numbers, first arrange the numbers in order from lowest to highest:


List: 3, 13, 2, 34, 11, 26, 47, 17


Arranged in order, the list becomes: 2, 3, 11, 13, 17, 26, 34, 47


The median is the average of the two numbers in the middle: 2, 3, 11, 13, 17, 26, 34, 47


13 + 17 = 30 30/ 2 = 15. Fifteen is the median value in this list of numbers.

RELATED TERMS
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Distribution

    1. When trading volume is higher than that of the previous day ...
  3. Arithmetic Mean

    A mathematical representation of the typical value of a series ...
  4. Harmonic Average

    The mean of a set of positive variables. Calculated by dividing ...
  5. Kurtosis

    A statistical measure used to describe the distribution of observed ...
  6. Mode

    A statistical term that refers to the most frequently occurring ...
RELATED FAQS
  1. What are the consequences of one party violating the terms of a letter of intent?

    The chemicals sector consists of a diverse group of companies that operate in different industries, such as specialty chemicals, ... Read Full Answer >>
  2. How do you determine a tangible asset's useful life?

    The chemicals sector provides an attractive addition to a portfolio that offers stable growth potential. The chemicals sector ... Read Full Answer >>
  3. What is the difference between a bond's coupon rate and yield to maturity?

    The electronics sector offers an attractive addition to a portfolio because it provides strong growth opportunities. The ... Read Full Answer >>
  4. What's the average salary of an operations research analyst?

    The national median salary for an entry level operations research analyst is $50,350 as of 2014, with the middle 50th percentile ... Read Full Answer >>
  5. What are the top-paying jobs according to the Bureau of Labor Statistics?

    According to the Bureau of Labor Statistics figures from 2012, the most recent statistics available as of September 2014, ... Read Full Answer >>
  6. What is the criteria for a simple random sample?

    Simple random sampling is the most basic form of sampling and can be a component of more precise, more complex sampling methods. ... Read Full Answer >>
Related Articles
  1. Active Trading Fundamentals

    Simple Moving Averages Make Trends Stand Out

    The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trend-spotting tool.
  2. Active Trading

    Competitive Advantage Counts

    What's the best indicator of a company's future success? Its ability to succeed when others fail.
  3. Technical Indicators

    Investors Intelligence Sentiment Index

    This indicator can give a overall sense of bull and bear forces - learn what it is and how it's constructed.
  4. Forex Education

    Break Into Forex In 12 Steps

    Learn how to get started in forex trading.
  5. Active Trading Fundamentals

    Support And Resistance Basics

    Understanding the concept of Support and Resistance in trading can drastically improve your short-term investing strategy.
  6. Options & Futures

    How To Read The Market's Psychological State

    Discover what on-balance volume, accumulation/distribution and open interest can tell you about the market mood.
  7. Retirement

    Economic Indicators To Know

    The economy has a large impact on the market. Learn how to interpret the most important reports.
  8. Fundamental Analysis

    Calculating the Herfindahl-Hirschman Index (HHI)

    The Herfindhal-Hirschman Index, (HHI) is a measure of market concentration and competition among market participants.
  9. Fundamental Analysis

    Calculating Net Interest Margin

    Net interest margin is a metric used to measure the effectiveness of a company’s investment decisions, particularly financial institutions.
  10. Investing

    How To Implement A Smart Beta Investing Strategy

    Smart beta investing is the notion of re-writing investment rules to improve investment outcomes by targeting exposures to intuitive ideas or factors.

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center