Asked by Hannah Neighbors on Apr 28, 2024
Verified
In analyzing compensation data that include extreme values,what would be an advisable measure of central tendency to use?
A) compa-ratio
B) mean
C) median
D) inter-quartile range
Central Tendency
A statistical measure that identifies the center of a data distribution, commonly represented by the mean, median, or mode.
Extreme Values
Data points in a set that significantly deviate from the rest, often used in statistical analyses to identify outliers or anomalies.
- Identify the appropriate measure of central tendency to use in compensation data analysis.
Verified Answer
AS
Alesha ShereeApr 29, 2024
Final Answer :
C
Explanation :
When analyzing compensation data that includes extreme values, the median is a better measure of central tendency than the mean. The median is the middle value in a dataset when all values are arranged in order. It is less affected by extreme values than the mean, which can be skewed by outliers. Therefore, the median provides a more accurate representation of the typical value in the dataset.
Learning Objectives
- Identify the appropriate measure of central tendency to use in compensation data analysis.