Academic MBA Question:
Q. Which measure of central tendency is used for the following situations? Justify your answer.
- Government wanted to decide the living standard of people based on monthly income in various taluks in a state and wanted to compare the taluks economic status. The family monthly incomes of various taluks were collected. Which central tendency measure will be appropriate and why?
- The state government wanted to introduce two types of family card based on subsidy. The data were the same as the question (a). Lower the income the subsidy will be more and higher income group will have less subsidiary. In this situation which measures of central tendency is most suitable and give your reason.
- The government has a plan to introduce health policies based on the family income. The policies are to be designed so that the family members will get health benefits and the nominal payment levels will be fixed based on their annual income of families. How will you go about it using averages and which one you prefer in this case? Also state the reasons.