Merits and Demerits of Mode

Mode as an average of position has a number of merits and demerits. These are outlined here as under:

Merits

1. It gives the most representative value of a series.
2. It is not affected by the extreme values of a series. For example, let a series be as under.

10

12

15

14

15

16

17

Here, the value of the Mode is 15. If, an extreme value, say 60 is added to the series, or 10 is deleted from the series, the value of the mode will remain the same 15.

3. It can be determined straight way from an open end series without estimating the two extreme class limits.
4. It is capable of studying qualitative data as its determination depends on the frequencies rather than the values of the items.
5. It can be determined graphically either through a histogram, or through a Frequency Polygon.
6. It is considered a reliable average for studying skewness of a distribution.
7. It is understood by a layman as it refers to a value that occurs for maximum times. Thus, when we talk of modal size of shoes. a layman easily understands that it refers a size of shoes which demanded by the maximum number of customers.
8. It is very much useful in the field of business, and commerce as it helps a businessman in taking a decision on the varieties of the goods he should procure in large quantities to enhance his sales.

Demerits

1. It is not rigidly defined, and so in certain cases it may come out with different results.
2. It is not based on all the observations of a series but on the concentration of frequencies of the items. If any non-modal value is left out of the series, or is added thereto, the value of  the mode is not altered.
3. It is not capable of further algebraic treatment like A.M., G.M. or H.M.
4. In case of a continuous and bimodal series, its determination becomes difficult, and lingering as it involves passing through a number of trials and use of interpolation formulae in those cases.
5. It cannot be easily determined graphically, if two, or more values of a series have the same highest frequency. Thus, for the following series, Mode can not be easily located through histogram.

Marks : F :

1-35

3-515

5-720

7-920

9-11 4

6. It cannot be determined from a series with unequal class intervals unless they are equalized on the assumption that the frequencies are evenly distributed, and such assumption may not also hold good.
7. In certain cases, it contradicts its very meaning and nature when certain value with lesser frequency is determined as the modal values.
8. There are different methods, and different formula which field different results of Mode, and so it is rightly remarked as the most ill defined average.