A Good Reason to Use the Trimmed Mean Instead of the Mean

question 14

Multiple Choice

A good reason to use the trimmed mean instead of the mean is to correct for

• A) Outliers
• B) Variation
• C) Discrepancies
• D) Bias

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Definitions:

Consumer Surplus

The disparity between what consumers are ready and able to spend for a product or service and the amount they end up paying.

Price

The financial expenditure involved in obtaining a product or service.

Competitive Industry

An industry characterized by many firms, free entry and exit, and a product for which every seller is a price taker.

Perfectly Elastic

A situation in which the quantity demanded or supplied changes infinitely in response to any change in price, represented by a horizontal demand or supply curve.