The Most Important Reason That the Median Is Preferred to the Mean

question 21

Multiple Choice

The most important reason that the median is preferred to the mean is

• A)it is more useful than the mean in inferential statistics
• B)it is an unbiased estimator of the population median value
• C)it is a more accurate measure of central tendency in highly skewed distributions
• D)it is a better measure of variation

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Definitions:

Finance Charges

Fees and interest charged on borrowed money, typically associated with loans, credit cards, and financed purchases.

Credit Card Company

A financial institution that issues credit cards, allowing cardholders to purchase goods and services on credit.

Installment Plan

A method of payment of a purchase or services over a period of time.

Finance Charge

A fee representing the cost of credit or the cost of borrowing, including interest and other associated expenses.