- CFA Exams
- CFA Exam: Level I 2021
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 9. Symmetry and Skewness in Return Distributions
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.
User Contributed Comments 1
| User | Comment |
|---|---|
| viannie | The mean is just distorted by the extremities! |