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You are on the city council and would like to determine your expected tax revenue in...

You are on the city council and would like to determine your expected tax revenue in order to come up with a budget. Your city uses a flat tax, so you are going to use a measure of center for the salaries of each citizen. You want to use that measure of center to determine the amount of tax collected per person.

Which measure of center would be most appropriate?

  • Mode
  • Median
  • Mean
  • None of these

Why?

  • No measure of center would have the right information.?
  • We only care about the value that occurs the most frequently.?
  • We are looking for the middle value, but want to ignore outliers.?
  • We want to take into account all data points, even outliers.?
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Answer #1

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As,distribution of taxes will be skewed,there will be very few,who will be paying higher taxes and many people who pay lower taxes.(right skewed).We use median as a measure of center for skewed distribution.

So,median would be most appropriate as a measure of center.

We are looking for the middle value, but want to ignore outliers

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