The mean, median, and mode are frequently referred to as the measures of central tendency. All three of these are used commonly, especially by the media when trying to make a point or persuade an audience to some point of view. However, each of these three statistical measures has their own shortcomings.
For your own original contribution to this Discussion Board, complete the following:
Research the shortcomings of measures of central tendency. Summarize your findings and cite your sources.
Find an example where a mean, median, or mode was used by the media or a company to make a specific point. Evaluate this use and then share your evaluation with the class. Be sure to specifically discuss any caveats or risks associated with the way the organization in your example used their central tendency metric.
Discuss if you think the right measure was used. Share a recommendation for a better measure if you think there is one.
Shortcomings of measures of central tendency
Mean
The mean, or average, is the most commonly used measure of central tendency. However, it has a number of shortcomings, including:
Median
The median is the middle value in a dataset when the values are arranged in order of magnitude. It is less sensitive to outliers than the mean, and it is a more accurate measure of central tendency for skewed data. However, the median also has a number of shortcomings, including:
Mode
The mode is the most frequent value in a dataset. It is the easiest measure of central tendency to calculate, and it is a good measure of central tendency for categorical data. However, the mode also has a number of shortcomings, including:
Example from the media
In a recent article, a news organization reported that the average salary for software engineers in the United States is $110,000. The article used a mean salary to calculate this average. However, it is important to note that the distribution of salaries for software engineers is skewed, with a small number of engineers earning very high salaries. This means that the mean salary is likely to be inflated by the salaries of these high-earning engineers.
A more accurate measure of central tendency for software engineer salaries would be the median salary. The median salary for software engineers is $95,000. This means that half of all software engineers earn $95,000 or more, and the other half earn less than $95,000.
Evaluation
The news organization used the wrong measure of central tendency to report the average salary for software engineers. The mean salary is not an accurate measure of central tendency for skewed data. The median salary would be a more accurate measure of central tendency in this case.
Recommendation
The news organization should use the median salary to report the average salary for software engineers. The median salary is a more accurate measure of central tendency for skewed data.
Conclusion
It is important to be aware of the shortcomings of measures of central tendency when using them to describe data. The mean, median, and mode all have their own strengths and weaknesses. It is important to choose the right measure of central tendency for the data you are using and to be aware of the limitations of that measure.