Merits of Mode:
- It is simple to understand and easy to calculate.
- It is not affected by extreme values
In the table above, the value 500 creates a huge difference in the mean but brings no change in the mode and median.
- It can be calculated for open end class intervals
- It can be determined graphically
- It is an actual value and occurs in the data if data is discrete.
Demerits of Mode:
- It cannot be uniquely determined if the data contains two or more values with same frequency. In this case, there will be more than one values of the mode.
- It cannot be used for further algebraic analysis.
- It is not based on all observations
- It may not be a good representative of data always, as the observation with highest frequency may not be always equidistant from other observations.