Advantages of median, Applied Statistics

Assignment Help:

Advantages

  1. It is especially useful in case of open-end classes since only the position and not the values of items must be known. The median is also recommended if the distribution has unequal classes, since it is easier to compute than the mean.
  2. It is not influenced by the magnitude of extreme deviations from it. For example, the median of 10, 20, 30, 40 and 150 would be 30 whereas the mean is 50. Hence very often when extreme values are present in a set of observations, the median is a more satisfactory measure of the central tendency than the mean.
  3. In markedly skewed distributions such as income distributions or price distributions where the arithmetic mean would be distorted by extreme values, the median is especially useful. Consequently, the median income for some purposes can be regarded as a more representative figure, for half the income earners must be receiving at least the median income.
  4. It is the most appropriate average in dealing with qualitative data, i.e. where ranks are given or there are other types of items that are not counted or measured, but are scored.
  5. The value of median can be determined graphically, whereas the value of mean cannot be graphically ascertained.
  6. Perhaps the greatest advantage of median is, however, the fact that the median actually does indicate what many people incorrectly believe the arithmetic mean indicates. The median indicates the value of the middle item in the distribution. This is a clear-cut meaning and makes the median a measure that can be easily explained.


Related Discussions:- Advantages of median

Chi-square test, Consider the following linear regression model:      a)...

Consider the following linear regression model:      a) What does y and x 1 , x 2 , . . . . x k represent?      b) What does β o , β 1 , β 2 , . . . . β k represent?

Statistics assignment, To compare three brands of computer keyboards, four ...

To compare three brands of computer keyboards, four data entry specialists were randomly selected. Each specialist used all three keyboards to enter the same kind of text material

Heteroskedastic-consistent standard errors, The following table shows the r...

The following table shows the results of fitting a linear regression model of starting annual salaries on a constant, GPA (4 point scale), and a variable (Metrics =1) indicating wh

Types of averages, The following are the various types of common averages u...

The following are the various types of common averages used in statistical analysis given in the form of a chart. Figure 1

Standard gaussian random variable , You will recall the function pnorm() fr...

You will recall the function pnorm() from lectures. Using this, or otherwise, Dteremine the probability of a standard Gaussian random variable exceeding 1.3.  Using table(), or

Artificial neural network, Normal 0 false false false E...

Normal 0 false false false EN-US X-NONE X-NONE

Time series, what is the use of applied statistic in our daily routin life

what is the use of applied statistic in our daily routin life

Problem set for logistic regression, (1) What values can the response varia...

(1) What values can the response variable Y take in logistic regression, and hence what statistical distribution does Y follow? The response variable can take the value of either

Diversity of data , The box plot displays the diversity of data for the tot...

The box plot displays the diversity of data for the totexp; the data ranges from 30 being the minimum value and 390 being the maximum value. The box plot is positively skewed at 1.

Types of cost-reimbursable contracts, Types of cost-reimbursable contracts ...

Types of cost-reimbursable contracts are:   Cost Plus Fixed Fee contract (CPPF): Compensation is based on a fixed sum independent of the final project cost. The customer a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd