Which measure of central tendency is most affected by extreme values? MCQ with Answer and Explanation

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Which measure of central tendency is most affected by extreme values?

A. Geometric mean

B. Median

C. Arithmetic mean

D. Mode

Answer: Option C

Solution (By JKExamLibrary)

The arithmetic mean uses all values and is pulled towards outliers.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1 Report Error

The harmonic mean is most appropriate for averaging:

A. Income

B. Growth rates

C. Speeds when the distance is constant

D. Ratings

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Correct Answer: Option C

Explanation:
Harmonic mean is used for rates where the numerator is constant, such as average speed for fixed distances.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

Fisher's ideal index is the geometric mean of:

A. Laspeyres and Paasche indices

B. Time reversal and factor reversal

C. Simple aggregative and weighted average

D. WPI and CPI

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Correct Answer: Option A

Explanation:
Fisher = √(Laspeyres × Paasche).

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

The Family Budget Method for calculating the Consumer Price Index is equivalent to:

A. Fisher's Method

B. Paasche's Method

C. Laspeyres' Method

D. Simple Aggregative Method

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Correct Answer: Option C

Explanation:
The family budget method (weighted average of price relatives) mathematically reduces to Laspeyres' formula (using base year weights).

This question belongs to: Accountancy and Statistics Statistics

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