Q.Compare the median with the arithmetic mean: state two situations where median is preferable to mean, and one genuine limitation of median that mean does not share.
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Start your 14-day free trial to unlock the full solution →Two situations where median is preferable to arithmetic mean:
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Data containing extreme values (outliers): income or wealth distributions typically have a small number of very high earners. The arithmetic mean gets pulled sharply upward by these few large values and no longer represents a "typical" income, whereas the median — being purely a positional measure — stays close to what a typical individual actually earns.
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Open-ended class intervals: a frequency distribution with a class like "above ₹1,00,000" or "below ₹5,000" has no defined upper/lower limit, making the arithmetic mean impossible to compute without an artificial assumption about the missing limit. The median can still be computed correctly as long as the median class itself is not the open-ended one, since only the middle POSITION matters, not the exact bounds of every class. …
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