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?

Question

Quizplus · Accepted Answer

The mean (average) will be least effective in this scenario because the significantly higher income in the last month ($530,000) will skew the average, making it not representative of the typical monthly income. The median, mode, and range do not get affected by extreme values as much as the mean does.

The Head of Accounting at Delores Inc