Measures of Central Tendency and DispersionMCQMTP Apr 21Question 3055 of 473
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Which of the following statements is true?

Options

AUsually mean is the best measure of central tendency.
BUsually median is the best measure of central tendency.
CUsually mode is the best measure of central tendency.
DNormally, GM is the best measure of central tendency.
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Correct Answer

✅ Option a — Usually mean is the best measure of central tendency.

All Options:

  • AUsually mean is the best measure of central tendency.
  • BUsually median is the best measure of central tendency.
  • CUsually mode is the best measure of central tendency.
  • DNormally, GM is the best measure of central tendency.

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Detailed Solution & Explanation

**Step 1: Recall characteristics of measures of central tendency.** - **Arithmetic Mean (AM)** is the most widely used measure of central tendency. It uses all observations, is algebraically defined, lends itself to further mathematical treatment, and is least affected by sampling fluctuations. It is considered the 'best' measure for most purposes. - **Median** is useful when data is skewed or has outliers but ignores many values. - **Mode** is useful for qualitative data or finding the most common value. - **GM** is used for ratio/rate data. **Step 2: Conclusion.** The arithmetic mean is generally considered the best and most ideal measure of central tendency for quantitative data. Hence, **Option A** 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.

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