Question

The head of accounting at delores inc. is computing a value that represents the company's financial performance for the previous year. the company made approximately $90,000 in 11 out of the 12 months. in the last month of the fiscal year, the company made $530,000. in this scenario, which measure of central tendency will be least effective as an accurate representation of financial performance?

Answer 1

In this scenario, the mean as a measure of central tendency will be least effective as an accurate representation of financial performance.
The mean is a measure of central tendency that is the average for a sample.
In this specific case the mean is not effective measure because there is a huge difference in the financial performance in the last month compared to the previous months.So the mean would not give the real picture.