- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 4. Measures of Center Tendency

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**CFA Practice Question**

In what sense is the mean of any distribution the "best guess" of the score of any single individual selected at random from the group?

II. The mean score will occur more often than any other single score.

III. The chances are 50-50 that any individual will be above or below the mean.

I. In a series of such guesses, the sum of the errors in one direction will balance the sum of the errors in the other direction.

II. The mean score will occur more often than any other single score.

III. The chances are 50-50 that any individual will be above or below the mean.

A. I only

B. II and III

C. I and II

**Explanation:**II and III are not necessarily true with distributions other than normal distributions.

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**User Contributed Comments**
1

User |
Comment |
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migena |
For a normal distribution, mean=mode=median |