Question

which measure of central tendency would be most useful in each of the following instances? (a) The production manager for a manufacturer of glass jars, who is concerned about the jar size to manufacture, has sample data on jar sizes ordered by customers. would the mean, median, or modal jars be of the most value to the manager? (b) the sales manager for a quality furniture manufacturer is interested in selecting the regions most likely to purchase his firms products. would he be most interested in the mean or median of family income in prospective sales areas? (c) a security analyst is interested in describing the daily market price change of the common stock of a manufacturing company. rarely the market price of the stock changes by more than one point in one day. should the security analyst describe the daily price change of the stock in terms of mean, median, or mode of the daily market price change?

Answer 1

(a)median
(b) mean
(c) mean

Answer 2

The measures of central tendency are as follows :

1) Mean

2) Median

3) Mode

Mean gives the average measure.

Median gives the center value.

Mode gives the value that appears most.

a) The mode of the jar sizes will be important to the manufacturer since it will help him know what jar sizes are order most by the customers.

b) He would be interested in the mean of the family income in the prospective sales areas.

c) The security analyst should describe the daily price change of the stock in terms of median of the daily market price change since here variation is present.