Economy, asked by yoyomsd9735, 9 months ago

Discuss the considerations that determine the selection of a suitable average. Explain with the help of suitable examples.

Answers

Answered by Anonymous
7

Answer:

Model selection is the task of selecting a statistical model from a set of candidate models, given data. In the simplest cases, a pre-existing set of data is considered. However, the task can also involve the design of experiments such that the data collected is well-suited to the problem of model selection. Given candidate models of similar predictive or explanatory power, the simplest model is most likely to be the best choice (Occam's razor).

Answered by Anonymous
1

Answer:

The average is a simple term with several meanings. The type of average to use depends on whether you’re adding, multiplying, grouping or dividing work among the items in your set.

Quick quiz: You drove to work at 30 mph, and drove back at 60 mph. What was your average speed?

Hint: It’s not 45 mph, and it doesn’t matter how far your commute is. Read on to understand the many uses of this statistical tool.

Explanation:

But What Does It Mean?

Let’s step back a bit: what is the “average” all about?

To most of us, it’s “the number in the middle” or a number that is “balanced”. I’m a fan of taking multipleviewpoints, so here’s another interpretation of the average:

The average is the value that can replace every existing item, and have the same result. If I could throw away my data and replace it with one “average” value, what would it be?

One goal of the average is to understand a data set by getting a “representative” sample. But the calculation depends on how the items in the group interact. Let’s take a look.

The Arithmetic Mean

The arithmetic mean is the most common type of average:

\displaystyle{\text{average} = \frac{\text{sum}}{\text{number}}}

Arithmetic mean

Let’s say you weigh 150 lbs, and are in an elevator with a 100lb kid and 350lb walrus. What’s the average weight?

The real question is “If you replaced this merry group with 3 identical people and want the same load in the elevator, what should each clone weigh?”

In this case, we’d swap in three people weighing 200 lbs each [(150 + 100 + 350)/3], and nobody would be the wiser.

Pros:

It works well for lists that are simply combined (added) together.

Easy to calculate: just add and divide.

It’s intuitive — it’s the number “in the middle”, pulled up by large values and brought down by smaller ones.

Cons:

The average can be skewed by outliers — it doesn’t deal well with wildly varying samples. The average of 100, 200 and -300 is 0, which is misleading.

The arithmetic mean works great 80% of the time; many quantities are added together. Unfortunately, there’s always those 20% of situations where the average doesn’t quite fit.

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