Academic MBA Question:
Q: Which measure of central tendency would be most useful in each of the following instances?
- The production manager for a manufacturer of glass jars, who is concerned about the proper jar size to manufacture, has sample data on jar sizes ordered by customers. Would the mean, median, or modal jar size be of most value to the manager?
- The sales manager for a quality furniture manufacturer is interested in selecting the region’s most likely to purchase his firm’s products. Would he be most interested in the mean or median of family income in prospective sales areas?
- A security analyst is interested in describing the daily market price change of the common stock of a manufacturing company. Rarely the market price of the stock changes by more than one point, but occasionally the price will change by as many as four points in one day. Should the security analyst describe the daily price change of the stock in terms of the mean, median, or mode of daily market price change?