BUS306 - Quantitative Reasoning - Measures of Central Tendency

1. State again the type of data you have been collecting.

Calculate and report the mean, median, and mode of the data (at lease 20 observations, preferably more). Now calculate the standard deviation of the data. For this calculation compute the difference between each one of the observations and the mean, (this number may be positive or negative), then multiply each of these differences by itself, then add all of these products, and finally divide the sum total by the number of observations. You'll get the "VARIANCE". Now take the square root of this number and you get what is called the "STANDARD DEVIATION" that measures the dispersion of the data from their mean.

Refer first to the measures of central tendency - the mean, the median and the mode. Are these numbers higher or lower that you would have expected? Which of these measures of central tendency do you think most accurately describes the lifestyle variable you are looking at?

Are you surprised by the number you have obtained for the standard deviation?

Write a brief paper with your calculations and the answers to these questions.

(Aside from the above assignment, answer questions in a small paragraph): From a business perspective, which measurement is more important the Mode, the Mean, or the Median? Provide examples (business related) that demonstrate the appropriateness of one of these measures and the inappropriateness of the other two in a particular situation.

Can you think of situations where another one of the measures is more appropriate or relevant?