Income distributions almost always have a positive skew (since there are only a few very wealthy people). Therefore, the preferred measure of central tendency for this variable would be the________.

Question

Quizplus · Accepted Answer

The median would be the best measure of central tendency for income distributions with a positive skew because it is less affected by extreme values or outliers than the mean. The mode may not accurately represent the typical income if there are multiple modes or if the most common income level is not a good representation of the entire distribution. The mean can be greatly influenced by extreme values or outliers, which are more likely to occur in a positively skewed distribution.

Income Distributions Almost Always Have a Positive Skew (Since There