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Statement I): The arithmetic mean is an all purpose average.

Statement II): Median and mode are called positional averages.

In the context of the above two statements, which one of the following codes is correct?


1. Both the statements I) and II) are correct
2. Both the statements I) and II) are incorrect
3. Statement I) is correct but II) is incorrect
4. Statement II) is correct but I) is incorrect

1 Answer

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Correct Answer - Option 1 : Both the statements I) and II) are correct

Statement I): The arithmetic mean is an all-purpose average.

Explanation:

Mean:

  • The Arithmetic Mean is commonly known as Mean.
  • It is a measure of central tendency because other figures of the data congregate around it.
  • The arithmetic mean is obtained by dividing the sum of the values of all observations in the given data set by the number of observations in that set. I
  • t is the most commonly used statistical average in disciplines such as commerce, management, economics, finance, production, etc.
  • Thus, it is considered an all-purpose average.
  • The arithmetic mean is also called as Simple Arithmetic Mean. 

Statement II): Median and mode are called positional averages.

Explanation:

1. Median:

  • The Median is also a measure of central tendency.
  • Unlike the arithmetic mean, this median is based on the position of a given observation in a series arranged in an ascending or descending order. Therefore, it is called a positional average. It has nothing to do with the magnitude of all the observations, as in the case of the arithmetic mean. 

2. Mode

  • The mode is also a measure of central tendency.
  • The mode is the value of a variate which is repeated most often in the data set.
  • The mode is often considered to be that value of the variate which occurs most frequently.
  • But it is not exactly true for every frequency distribution.
  • Rather it is that value of the variate around which the other items tend to concentrate most heavily. It shows the centre of concentration of the frequency in and around a given value.
  • It is not the center of gravity like mean. It is a positional measure similar to the median.

Therefore, Both statements I) and II) are correct.

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