The Mean Is _______ Sensitive to Extreme Scores Than the Median

question 3

Multiple Choice

The mean is _______ sensitive to extreme scores than the median.

• A) more
• B) less
• C) equally
• D) The correct answer cannot be determined without the scores.

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Definitions:

Positively Skewed

Describes a distribution of data where the right tail (higher values) is longer than the left, indicating that a variable has more values that are significantly higher than the mean.

Underestimates Risk

The situation where the potential for loss in investments or strategies is not fully recognized or assessed.

Standard Deviation

A statistical measure of the dispersion or variability in a set of data, often used in finance to gauge the volatility of an investment.

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable, indicating how much the distribution leans to the left or right of the mean.