In words: The ratio of Rs. 6 to Rs. 2
In symbol: Rs.6: Rs.2
Ratio of national income to population
Ratio of population to land areas
Ratio of consumption to Income
In economic rates like rate of economic growth, rate of growth of population, birth rate, death rate, agricultural rate are calculated.
For example: Rate of yield per hectare of a crop.
Rate of yield (in kg.) per hectare of crop
Rate and ratio calculation method are generally same.
Rate is the ratio between two magnitudes shown over a period of time.
Rate can be expressed besides per unit, per 100, 1000, lakh etc and even higher.
Value of ratio per unit sometimes is so small.
Small base fails to convey importance of the rate or ratio.
Need to raise the base.
Arbitrary higher base for calculation of rate is chosen when:
Value of ratio is very small
Need to avoid fractions in comparisons
Percentage is type of rate or ratio with base 100.
Every ratio per unit when multiply by 100 is converted into percentage.
Clustering of items values in the central part of the distribution is known as central tendency.
Measure of central tendency means a value where the concentration of the items or values is found to be greatest.
Average also called measures of central tendency.
It is a value which is typical or representative of a set of data.
Average can be obtained by using 5 different measures of central tendency:
Average will help to compare its various sections according to their performance.