Question

For this exercise, use the following set of 16 scores (ranked) that con- sists of income levels ranging from about $50,000 to about $200,000. What is the best measure of central tendency and why? $199,999 $98,789$90,878 $87,678 $87,245 $83,675 $77,876 $77,743 $76,564 $76,465 $75,643 $66,768 $65,654 $58,768 $54,678 $51,354

Answer 1

The median = Median = $77,153.5

Explanation:

Given the data :

199999 98789 90878 87678 87245 83675 77876 77743 76564 76465 75643 66768 65654 58768 54678 51354

Measures of central tendency are used to describe the center or midpoint of a group of observation. They could include the mean, median and mode.

Mean described the average value of the distribution

Median, the middle observation.

Mode, the observation which occurs most

Using online calculator to save time ;

the mean = 83,111.06

Median = 77153.5

For the mode, all the values have a frequency of 1

Plotting the data on an histogram, it could be observed that the Data is positively skewed and hence, not symmetrical.

Since the distribution is not symmetrical, using the mean isn't the best and the mode is also not usable.

Therefore, the median seems to be the best of the 3 measures