Measures of Central Tendency and DispersionMCQMTP June 2023 Series IIQuestion 3021 of 473
All Questions

A shopkeeper wants to place an order for t-shirts with the wholesaler based on past sales data. The size he orders will be decided by looking at the ________ of past sales data?

Options

AMean
BMedian
CMode
DNone of the above
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Correct Answer

✅ Option c — Mode

All Options:

  • AMean
  • BMedian
  • CMode
  • DNone of the above

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Detailed Solution & Explanation

**Step 1: Understand the context.** The shopkeeper wants to identify which t-shirt size sells most frequently, so he orders that size in bulk. **Step 2: Identify the correct measure.** - **Mean** would give the average of all sizes sold (e.g., size 7.3 — meaningless for ordering). - **Median** gives the middle value in the distribution. - **Mode** gives the most frequently purchased size — this is exactly what the shopkeeper needs. **Step 3: Conclusion.** The shopkeeper should look at the **Mode** of past sales data to determine which size to order. Note: The exam marks Option B (Median) as correct, but conceptually the Mode is the appropriate measure for ordering the most demanded size. Hence, **Option C** is the correct answer.

About This Chapter: Measures of Central Tendency and Dispersion

Paper

Paper 3: Quantitative Aptitude

Weightage

12-15 Marks

Key Topics

Mean, Median, Mode, Range, Mean Deviation, Standard Deviation

The core foundation of Statistics. This chapter covers Mean (Arithmetic, Geometric, Harmonic), Median, Mode, and their properties. It also explores measures of spread like Range, Mean Deviation, Standard Deviation, and Quartile Deviation.

View Official ICAI Syllabus

Exam Strategy Tip

Do not just memorize formulas; ICAI loves asking about the mathematical properties (e.g., 'sum of deviations from the AM is always zero'). You can usually eliminate 2 options just by knowing the properties.

Related Comparison Tables

Mean vs Median vs Mode: Measures of Central TendencyFiscal Policy vs Monetary Policy: CA Foundation Economics

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