Question

16. A company collected funds for charity from employees. The amount donated by some employees on the first day is as

follows:

$10, $20, $15, $100, $10, $15, $10

Which measure of central tendency best represents the data? Justify your selection and then find the measure of central

tendency

(SHOW WORK)

Answer 1

Answer: Median is the best measure of central tendency best represents the data.

Value of median= 15

Explanation:

The given data : $10, $20, $15, $100, $10, $15, $10.

We observe that the above data has an outlier in it .

$100 is an extremely large value as compare to the other values in the data.

It means the data contains outlier.

Commonly , mean is the best measure of the central tendency.

We know that , when there is an outlier in the data , we prefer Median over Mean to measure the central tenancy of the data.

So for the given data set ,

Median is the best measure of central tendency best represents the data.

To find median , first arrange data in an order , we get

10 , 10 , 10 , 15 , 15 , 20 , 100

Number of data values = 7 (odd)

So Median= Middle-most number= 15

Hence, the median of data = 15