- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Statistical Measures of Asset Returns
- Subject 3. Measures of Shape of a Distribution
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! |