{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Selecting Among the Mode-ECO6416

# Selecting Among the Mode-ECO6416 - Selecting Among the Mode...

This preview shows pages 1–2. Sign up to view the full content.

Selecting Among the Mode, Median, and Mean It is a common mistake to specify the wrong index for central tenancy. Selecting Among the Mode, Median, and Mean The first consideration is the type of data, if the variable is categorical, the mode is the single measure that best describes that data. The second consideration in selecting the index is to ask whether the total of all observations is of any interest. If the answer is yes, then the mean is the proper index of central tendency. If the total is of no interest, then depending on whether the histogram is symmetric or skewed one must use either mean or median, respectively. In all cases the histogram must be unimodal. However, notice that, e.g., a Uniform distribution has uncountable number of modes having equal density value; therefore it is considered as a homogeneous population. Notice also that: |Mean - Median| ≤σ The main characteristics of these three statistics are tabulated below: The Main Characteristics of the Mode, the Median, and the Mean Fact No.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern