- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 9. Symmetry and Skewness in Return Distributions

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**CFA Practice Question**

If a distribution is skewed heavily right or left, which of the following statistics should not be used as a measure of central tendency?

B. mean

C. median

A. mode

B. mean

C. median

Correct Answer: B

The mean is affected severely by outliers and therefore should not be used as a measure of central tendency with skewed distributions.

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**User Contributed Comments**
1

User |
Comment |
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viannie |
The mean is just distorted by the extremities! |