Another important measure of determining central tendency is the mode. The value that comes most often in the value series is called mode. It, means that the value for which the frequency is highest is called mode. 

For example: if the shops of size number ‘7’ are worn by most people, then the size ‘7’ will be mode.

Important definitions of mode : 

• According to Dr. Bowley : “The value of the classified quantity in a statistical group (wages, height, or any other measurable quantity) where the registered number is highest, is called the mode, or more density place, or the most important value. 
• According to Prof. Cannon : “The mode is that value which has been repeated most frequently in the category.” From the above definitions, it is clear that the mode is the value that occurs most often in the series. The mode is expressed hy the ‘Z’ or ‘M0’ of the English language.

Following are the merits of mode :

• Simple and popular : This is a simple and popular mean. In some circumstances it is calculated only by inspection. This mean is very popular in daily life. Daily usage items, e.g. average size in stitched clothes, etc. implies the mode. 
• Best representation : The value of the mode is the one whose recurrence is the highest. So it is the best representative of the series. Its value is also from among the values of the series. 
• Minimal impact of extreme values : Another important feature of mode is that it is not affected by the extreme values of the series. Extreme values have a great effect on the arithmetic mean. 
• The calculation of all the frequencies is not necessary : To calculate it, there is no need to know the frequency of all the values in the series. Only the preceding and succeding frequencies of the mode class serves the purpose.

Following are the demerits of mode :

• Uncertainty and ambiguity : Its biggest flaw is its uncertainty and ambiguity. If the frequency of all the values in the series is equal, then it cannot be calculated. Also, many times the series has more than one mode. All this reflects the uncertainty of this mean.
• Lack of algebraic interpretation : This flaw is also found in mode like the median. Its algebraic manipulation is not possible. Due to this defect, the use of this mean is very rare in many statistical methods. 
• Complexity in the calculation process : If the mode is determined by inspection method then it remains simpler, otherwise it becomes very difficult for the layman to compute it through grouping and interpolation process.

Utility of Mode : Mode is used by common people in routine life to a great extent. Mode is a useful mean in business sphere, meteorology, life-sciences, consumer preference, etc. Especially the greatest concentration point of values, such as average collar size, monthly expenses of students, number of average telephone calls per day, the number of words in an average page of a book, average number of children per couple, etc. can be determined using mode. Mode is thought to be more indicative and leading in business forecasting or prognostications. Rainfall, wind-speed, heat related forecasts are made using mode. In this way, mode is very useful in practical life.