In case of presence of outliers in a data set, which of the following can better measure the central…
When a dataset contains extreme outliers, parametric averages like the arithmetic mean and harmonic mean become heavily distorted. The median (a positional average…
Choose your answer
In case of presence of outliers in a data set, which of the following can better measure the central tendency?
a) Mode
b) Trimmed Mean
c) Arithmetic Mean
d) Median
e) Harmonic Mean
Answer and explanation
Correct answer D
When a dataset contains extreme outliers, parametric averages like the arithmetic mean and harmonic mean become heavily distorted. The median (a positional average unaffected by extreme values) and the trimmed mean (which removes a fixed percentage of extreme observations from both tails before averaging) provide robust and reliable measures of central tendency.
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UGC NET Commerce