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Home/Practice questions/Economics
EconomicsMeasures of Central Tendency

Which of the following is generally used to describe the qualitative…

Which of the following is generally used to describe the qualitative data?

Answer & explanation+

Correct answer: option 3

The correct answer is option 3: Mode

Measures of central tendency or averages are used to summarise the data. It specifies a single most representative value to describe the data set. Arithmetic mean is the most commonly used average. It is simple to calculate and is based on all the observations. But it is unduly affected by the presence of extreme items. Median is a better summary for such data. Mode is generally used to describe the qualitative data. Median and mode can be easily computed graphically. In case of open-ended distribution they can also be easily computed. Thus, it is important to select an appropriate average depending upon the purpose of analysis and the nature of the distribution.

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