Probability and Statistics: Descriptive statistics · Measures of Central Tendency
How the mean, median and mode summarize data, how outliers and skew pull them apart, and which one to trust in a given situation.
Try 3 questions
1. The arithmetic mean is often called the "balance point" of the data. What property justifies that name?
- Half the values always lie on each side
- It is always one of the observed values
- Deviations from it always sum to zero
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Answer: Deviations from it always sum to zero
Distances above the mean exactly cancel distances below it, like weights balancing on a seesaw. Having half the values on each side is the median's property.
2. Five houses sit along a straight road. Where should a shared mailbox go to minimize the total walking distance for all households?
- At the position of the middle house
- Halfway between the two end houses
- At the mean position of the houses
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Answer: At the position of the middle house
The median minimizes the sum of absolute distances; the mean instead minimizes the sum of squared distances, which overweights far-off houses.
3. Household incomes in most countries are strongly right-skewed. Which measure best describes a typical household's income?
- The midrange of lowest and highest income
- The mean, because it uses every value
- The median, because extremes barely affect it
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Answer: The median, because extremes barely affect it
A small number of very high incomes pulls the mean upward, while the median stays where the middle household actually is.
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