Measures of Central Tendency Analysis

Hard Statistical Concepts And Returns Measures Of Central Tendency

Consider the following dataset representing the monthly returns (in percentage) of a hypothetical investment:

5, 7, 3, 8, 10, 5, 6

Calculate the mean, median, and mode of these returns. The measures of central tendency will help you analyze the return patterns of this investment.

After computing these values, which of the following statements is true regarding the measure of central tendency that best represents the typical return of this dataset?

The mean return is greater than the median return.

The mode is the most frequently occurring return.

The median return is affected by extreme values.

Hint

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