When Is the Median a Better Measure of Central Tendency

question 14

Multiple Choice

When is the median a better measure of central tendency than the mean?

• A)when several of the scores are the same score
• B)when there are a few scores that are much higher or lower than the others
• C)when the scores are normally distributed
• D)none of the above; the mean is always preferred

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Definitions:

Required Rate Of Return

The minimum percentage return an investor expects to achieve from an investment to make it worthwhile, considering the risk.

Contribution Margin Ratio

The percentage of each sales dollar that remains after deducting variable costs, used to cover fixed costs and provide profit.

ROI

Return on Investment (ROI) measures the efficiency of an investment, calculated as net profit divided by the cost of the invested capital.

Margin

An accounting term that refers to the difference between the selling price of a product or service and its cost, often expressed as a percentage of the selling price.