A Disadvantage of Using an Arithmetic Mean to Summarize a Set

question 16

Multiple Choice

A disadvantage of using an arithmetic mean to summarize a set of data is

• A) The arithmetic mean sometimes has two values.
• B) It can be used for interval and ratio data
• C) It is always different from the median.
• D) It can be biased by one or two extremely small or large values.
• E) It doesn't always exist.

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Definitions:

Service Company

A business that generates revenue through the provision of services rather than selling physical products.

Sales Returns And Allowances

Transactions where a customer returns goods to the seller or receives a reduction in the invoice price, thereby reducing the seller's sales revenue.

Sales Discounts

Reductions in the amount charged to customers as an incentive for early payment, recorded as a deduction from gross sales to calculate net sales.

Pay Accounts Promptly

The practice of settling owed amounts to suppliers or creditors within the agreed payment terms to avoid late fees and maintain good business relationships.