Some_words_about_central_tendency

Some_words_about_central_tendency - GM 400 a few words...

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GM 400 – a few words about measures of central tendency: mean, median, mode, and standard deviation. Which measure is the best measure of central tendency? That depends on the nature of the data and what your purpose is in collecting the data. Mean : The mean can be pretty good when you have a lot of data and they don’t vary too much from each other. The mean can be skewed way up or down if you include “outlier” values that are much different from the other data. Consider this data set: 30 40 60 750 n = 4, the sum = 880, so the mean is 880/4 = 220 NONE of the data points are ANYWHERE NEAR the mean. So how about median? For the above data set, the median is (40+60)/2 = 50 Although 50 provides a pretty good idea of where ¾ of the data are, it is a deceptive measure of central tendency because the 750 is sort of hidden. In that data set, the mean and median are both not very good measures of central tendency. That’s because it isn’t a “nice” data set, and in the real world,
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This note was uploaded on 12/13/2010 for the course GM 400 taught by Professor - during the Spring '10 term at Keller Graduate School of Management.

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Some_words_about_central_tendency - GM 400 a few words...

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