State with reasons whether you agree or disagree with the following statement: Average can misinterpret the representative value. - Economics

QUESTION

State with reasons whether you agree or disagree with the following statement:

Average can misinterpret the representative value.

Options

• Agree

• Disagree

True or False

MCQ

SOLUTION

Yes, I agree With this statement.

Reasons :

1. The arithmetic mean, mode and median are the types of averages which have certain limitations.
2. Arithmetic mean gets affected by extreme values. Its value may not exist in the given series. Mode does not have any significance When the data given is small and none of the items repeat. In case of the median, the array of huge data is laborious.
3. Arithmetic mean mode and median are not amenable to mathematical treatment.

Thus, the average can misinterpret the representative value.