Which measurement is more important the Mode, the Mean, or the Median?

From a business perspective, which measurement is more important the Mode, the Mean, or the Median? Provide examples (business related) that demonstrate the appropriateness of one of these measures and the inappropriateness of the other two in a particular situation.

Can you think of situations where another one of the measures is more appropriate or relevant?

Solution Preview

From a business perspective, which measurement is more important the Mode, the Mean, or the Median? Provide examples (business related) that demonstrate the appropriateness of one of these measures and the inappropriateness of the other two in a particular situation.

Can you think of situations where another one of the measures is more appropriate or relevant?

Mean, Median and Mode are all measures of central tendency. The mean is the average value of all the data in the set. The median is the value that has exactly half the data above it and half below it. The mode is the value that occurs most frequently in the set.
Mean, Median and Mode are all important and used depending on the nature of variables. Thus the mean can be used only for quantitative data (interval or ratio data). It cannot be used for categorical data (nominal or ordinal data). Mean can be used only for interval, ratio or ordinal data. It cannot be used for nominal data. Mode is valid for all scales (ratio, interval, nominal and ordinal) but not very useful for interval or ratio scaled data because the values are typically spread too thin for duplicates to occur. ((Measurement scales: Nominal, Ordinal, Interval, Ratio are discussed below)

If all three measures can be used, mean is the best measure followed by median and then mode. However, the mean is sensitive to outliers whereas the median is not sensitive to outliers. Thus, although the mean is by far the most commonly quoted measure of central tendency (location), the sample median is a ...

Does all statistical data have a mean, median, or mode? Why? When is the mean the best measure of central tendency? When is the median the best measure of central tendency?

What are the characteristics of a population for which it would be appropriate to use mean/median/mode? When would the characteristics of a population make them inappropriate to use?

3. A retail store manager kept track of the number of car magazines sold each week over a 10-week period. The results are shown below. 27 30 21 62 28 18 23 22 26 28
a. Find themean, median, and mode of newspapers sold over the 10-week period.
b. Which measure(s) of central tendency best represent the data?

For the following measurement scales, indicate the measures of central tendency that are appropriate.
a. nominal scale
b. ordinal scale
c. interval scale
d. ratio scale

1) Over the past several months, customers at Stymie's department store have been asked to fill out customer satisfaction surveys. In the surveys, the customers rate their shopping experience on a scale of 0 to 100. Here are 25 recent ratings:
13, 16, 16, 21, 24, 33, 34, 37, 41, 45, 45, 49, 51, 56, 56, 56, 58, 61, 66, 70, 76,

What is theMean, Median, Mode and Standard Deviation using the following:
SAMPLE DATA: 2, 5, 7, 11, 12, 16, 16
1) What is the mean of X of the data above (TO THE NEAREST 1/10)?
2) What is the median of the data above?
3) What is the mode of the data above?
4) What is the standard deviation of the data ab

For each of the following, identify the scale of measurement (NOIR) and the best measure of central tendency for the data.
A survey reports that chocolate is the most popular ice cream flavor, followed by vanilla, strawberry, and chocolate chip. What scale of measurement is being used? Should the researcher report this inform