The measures of central tendency are crucial statistical tools that summarize and dictate the 'typical' value within a data set. The mean, often referred to as the arithmetic average, is calculated by dividing the sum of all observations by the total number of observations. The median represents the middle value in a sorted data set, and in instances where the number of observations is even, it is the average of the two central values. The mode identifies the most frequently occurring value in a data set. Understanding these measures assists in data analysis and interpretation, which are foundational skills in statistics.