CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

Which measures of central tendency are not affected by extremely low or extremely high values?
A. Geometric mean and mean
B. Mode and median
C. Mean and median
Explanation: Mode and median are concepts which are based on the position of observations when ordered (median) and the number of most frequent occurrences (mode). These measures are not affected by extreme values.

User Contributed Comments 5

User Comment
Lamkerst Why median is not affected by extreme values? Low and high values define the range. The median is the middle point and therefore sensitive to extreme values, no?
sheenalim values 11,13,15. median = 13
values 1,13,50. median = 13
therefore median is not affected by extreme values
migena range and median are not the same thing. median is a measure of central tendency, whereas the range measures dispersion.
najat Lamkerst, the median is the middle point but you just need to take into account how many values there are, not their actual value.
GinnyB The median is not sensitive to outliers as it is a measure of central tendency. Outliers would only affect the median once they began to aggregate in frequency - and would no longer be outliers.
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