Click here to Get Complete Solved Assignments
List of Fresher Jobs, Walk in Interview
Right place for Job Seeker. Fresher Job, Walkin Interview, Exam results.
Visit www.walkinjobstoday.com

MB0040 – Q1. What are the characteristics of a good measure of central tendency? (b) What are the uses of averages?

Answer:
a). The characteristics of a good measure of central tendency are:
Present mass data in a concise form
The mass data is condensed to make the data readable and to use it for further analysis.
•Facilitate comparison
It is difficult to compare two different sets of mass data. But we can compare those two after computing the averages of individual data sets.

While comparing, the same measure of average should be used. It leads to incorrect conclusions when the mean salary of employees is compared with the median salary of the employees.

•Establish relationship between data sets
The average can be used to draw inferences about the unknown relationships between the data sets. Computing the averages of the data sets is helpful for estimating the average of population.

•Provide basis for decision-making
In many fields, such as business, finance, insurance and other sectors, managers compute the averages and draw useful inferences or conclusions for taking effective decisions.

The following are the requisites of a measure of central tendency:
•It should be simple to calculate and easy to understand
•It should be based on all values
•It should not be affected by extreme values
•It should not be affected by sampling fluctuation
•It should be rigidly defined
•It should be capable of further algebraic treatment


b) Appropriate Situations for the use of Various Averages
1. Arithmetic mean is used when:
a. In depth study of the variable is needed
b. The variable is continuous and additive in nature
c. The data are in the interval or ratio scale
d. When the distribution is symmetrical

2. Median is used when:
a. The variable is discrete
b. There exists abnormal values
c. The distribution is skewed
d. The extreme values are missing
e. The characteristics studied are qualitative
f. The data are on the ordinal scale

3. Mode is used when:
a. The variable is discrete
b. There exists abnormal values
c. The distribution is skewed
d. The extreme values are missing
e. The characteristics studied are qualitative

4. Geometric mean is used when:
a. The rate of growth, ratios and percentages are to be studied
b. The variable is of multiplicative nature

5. Harmonic mean is used when:
a. The study is related to speed, time
b. Average of rates which produce equal effects has to be found.

0 comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...
 
x

Get Our Latest Posts Via Email - It's Free

Enter your email address:

Delivered by FeedBurner