Which statement best describes how skewness affects the mean and median?

Prepare for the PHFO Quantitative Analysis For Business Exam. Study with flashcards, multiple choice questions, hints, and explanations to ensure confidence and success in your exam!

Multiple Choice

Which statement best describes how skewness affects the mean and median?

Explanation:
Skewness shifts how the mean compares to the median because the mean is pulled by extreme values, while the median stays near the center of the data. In a positively skewed distribution, a few very large values stretch the tail to the right and pull the mean upward, making it larger than the median. The median isn’t affected as much by those outliers, so it sits lower. That’s why the statement that the mean exceeds the median in positive skew is the best description. Conversely, in negative skew the tail is on the left and the mean is pulled downward, so it would be less than the median. Skewness does impact the mean relative to the median rather than having no effect.

Skewness shifts how the mean compares to the median because the mean is pulled by extreme values, while the median stays near the center of the data. In a positively skewed distribution, a few very large values stretch the tail to the right and pull the mean upward, making it larger than the median. The median isn’t affected as much by those outliers, so it sits lower. That’s why the statement that the mean exceeds the median in positive skew is the best description. Conversely, in negative skew the tail is on the left and the mean is pulled downward, so it would be less than the median. Skewness does impact the mean relative to the median rather than having no effect.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy