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Which estimate of the center, the median or the mean, seems more representative of the
amount of money the "typical" child has in this group?
The median is 25 cents (rounded to 30 cents in the graph) and
seems fairly typical for all the but the largest amount. The kid in this group with ten
dollars just isn't typical. The median is not affected by the extreme value of ten
dollars. The mean is $2.27 (rounded to $2.30 in the graph)
and doesn't seem representative of any of the amounts. The mean
is considerably higher (by at least $1.27) than all but the most extreme amount and it
isn't very close to the exteme amount. In short, the mean does not represent any of the
money amounts very well.
Lesson: When there are a few
extreme observations, the mean may provide a very poor estimate of the center of the data.
The median, however, remains in the center of the bulk of the data values and is therefore
still a typical value. Thus, the median is more resistant to extreme values than the mean
and is therefore preferred for data where there might be a few extreme values, especially
on one side of the center.
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