Frequently Asked Questions on Mode

What is the mode in statistics?

The mode is the value that appears most frequently in a data set. In economics, the mode can be used to determine the most common value in a set of economic data, such as household income, prices, or quantities.

How is the mode different from the mean and median?

• Mean: The average of all values in a data set.
• Median: The middle value when the data set is ordered.
• Mode: The value that appears most frequently.

The mean takes all values into account, the median gives the central value, and the mode focuses on the most common value.

Can there be more than one mode?

Yes, a data set can have more than one mode. If two values appear with the same highest frequency, the data set is bimodal. If more than two values appear with the highest frequency, it is multimodal. If no value repeats, the data set is said to have no mode.

Why is the mode important in economics?

The mode is useful in economics for identifying the most common or typical value in a data set, such as the most common income level, price point, or quantity demanded. It provides insights into the most frequent occurrences, which can inform policy decisions and market strategies.

The word mode is derived from the French word ‘La Mode’, meaning anything that is in fashion or vogue. A measure of central tendency in statistical series that determines the value occurring most frequently in a given series is known as mode. In other words, the modal value of the series has the highest frequency in the given series. For example, if in a class of 100 students, 20 students have opted for Mathematics, 50 students have opted for IP, and the rest 30 have opted for Physical Education, then the modal opted subject of the class would be IP. 

Mode is represented by the letter Z.

According to Kenny, “The value of the variable which occurs most frequently in a distribution is called the mode.”

According to Croxton and Cowden, “The mode may be regarded as the most typical of a series of value.”