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:

Profit-Maximizing

The process of adjusting production and sale strategies to achieve the highest possible profit under given conditions.

Incur A Loss

The situation in which the costs of operating a business exceed the revenues, leading to negative profits.

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.

Profit-Maximizing Firm

A business entity that focuses on activities and decisions that increase its net earnings to the highest possible level.