Question

There are several reasons why it is useful to consider the descriptions of central tendency and dispersion together. For the discussions, describe three reasons why it is useful to consider these measures together in the business world. Provide examples.

Answer 1

measures of central tendency are used to estimate "normal" valves of a dataset, measures of dispersion are important for decribling the spread of the data, or its variation around a central valve.two distinct samples may have the same mean or median, but completely different levels of variability, or vice versa. a proper description of a set of data include both of these characterstics.

There are many reasons why the measure of the spread of data values is important, but one of the main reasons regards its relationship with measures of central tendency. A measure of spread gives us an idea of how well the mean, for example, represents the data. If the spread of values in the data set is large, the mean is not as representative of the data as if the spread of data is small. This is because a large spread indicates that there are probably large differences between individual scores. Additionally, in research, it is often seen as positive if there is little variation in each data group as it indicates that the similar.