The head of accounting at Delores Inc. is computing a value that represents the company’s financial performance for the previous year. The company made approximately $90,000 in 11 out of the 12 months. In the last month of the fiscal year, the company made $530,000. In this scenario, which measure of central tendency will be least effective as an accurate representation of financial performance?a) modeb) medianc) ranged) mean

Respuesta :

Answer: d. mean

Explanation:

The accurate representation of financial performance for the year would be one that shows that for most of the year the company made less than $90,000.

For this reason the mean would be the least accurate measure of financial performance because as an average, it will inflate the yearly average due to the last month income that was a significantly higher amount than anything that was accrued during the year such that it would represent a grossly inaccurate measure of yearly average income.

Using mean, the monthly income would be;

= (530,000 + 90,000)/12

= $51,667

This would not represent an accurate depiction because up to the 11th month, the monthly average was;

= 90,000/11

= $8,182