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What are the advantages of the median?

Published in Statistics 3 mins read

The primary advantage of the median is its robustness to outliers and skewed data, making it a more representative measure of central tendency in certain situations.

Here's a more detailed breakdown of the advantages:

  • Less Sensitive to Outliers: Outliers are extreme values in a dataset. Unlike the mean (average), which is significantly affected by these extreme values, the median remains relatively stable. For instance, consider the dataset: 2, 4, 6, 8, 100. The mean is 24, while the median is 6. The outlier (100) drastically skews the mean, making the median a better representation of the "typical" value.

  • Suitable for Skewed Distributions: When data is skewed (asymmetrical), the mean is pulled towards the longer tail of the distribution. The median, being the middle value, is less affected by this skewness. Examples include income distributions (where a few individuals earn vastly more than the majority) or housing prices in certain areas.

  • Easy to Understand: The median is conceptually simple: it's the middle value when the data is ordered. This makes it easier to explain and interpret, especially for non-technical audiences.

  • Applicable to Ordinal Data: The median can be used with ordinal data (data that has a natural order, but the intervals between values are not equal or meaningful). For example, a satisfaction survey with responses like "Very Dissatisfied," "Dissatisfied," "Neutral," "Satisfied," and "Very Satisfied." While calculating a mean of these responses might not be meaningful, the median response can provide valuable insight into the overall satisfaction level.

  • Unaffected by Open-Ended Distributions: In some datasets, the highest or lowest values might be "open-ended." For example, an age category might be "85+." While you cannot calculate the mean accurately with such open-ended data, you can still determine the median if it falls within a defined range.

Advantage Description Example
Robust to Outliers Not significantly affected by extreme values. Real estate prices: a few multi-million dollar homes won't drastically change the median home price.
Suitable for Skewed Data Provides a more accurate representation of the center when the data is not symmetrical. Income distribution: median income provides a more accurate picture of typical earnings than the average income.
Easy to Understand Conceptually simple to grasp and explain. Explaining to a client the "typical" customer age is the median age because some customers are very old and distort the average.
Applicable to Ordinal Data Can be used with data that has a ranked order. Customer satisfaction surveys: Determining the median satisfaction level (e.g., "Satisfied").
Unaffected by Open-Ended Data Can be calculated even when the highest or lowest categories are open-ended (e.g., "85+"). Age demographics: finding the median age even if the highest age category is "85 years or older."

In summary, the median offers significant advantages over the mean, particularly in situations where the data is susceptible to outliers or exhibits a skewed distribution. Its simplicity and applicability to various data types make it a versatile tool for data analysis.

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