Question

There are four measures of central tendency that we will study this week. They may yield different results for the same set of data. They each really serve the same purpose in different ways. Please share your idea of when one may hope to have a higher measure of center and in which situation one may hope to have a lower measure of center for a set of data.

For example, if I am a business owner, then I may look at my profits each month as a set of data. I would want my profits to have a higher central measure if I was listing my business for sale. I would hope that my business would look really profitable and therefore a potential buyer would want to pay a high price to purchase my business. On the other hand, when I go to file my taxes, I would like my profits to have a lower measure of center. I would want the government to tax me on this lower central measure of my profits.

Answer 1

Measure of central tendency means the variable which are representative of the entire population or data.

basically there are five measure of central tendency .1) Arithmatic Mean 2) Median 3)Mode 4) Geometric Mean

5) Harmonic Mean .

Let us discuss a one example . Suppose I am a Farmer , Then I am looking for maximum production from the firm and get more money or profit as possible for every season . I would want my production of yield of crop is higher central measure ,if I listing to my profit of yield of a crop and in market my yield of production may purchase on high price .

On other hand When I looking for my expenditure for production of yield is as low as possible that it have a lower measure of center I would want the transport expenditure, labour expenditure, fertilizer expenditure ,all type of expenditure are lower central measure for my production of yield of a crop .