Measure of central tendency, Financial Management

One of the most important objectives of statistical analysis is to get one single value that describes the characteristic of the entire mass of unwieldy data. Such a value is called the central value or an 'average' or the expected value of the variable. This single value is the point of location around which individual values cluster and, therefore, called the measure of location. Since this single value has a tendency to be somewhere at the center and within the range of all values it is also known as the measure of central tendency. The very purpose of computing an average value for a set of observations is to obtain a single value which is representative of all the items.

Posted Date: 9/14/2012 12:41:44 AM | Location : United States







Related Discussions:- Measure of central tendency, Assignment Help, Ask Question on Measure of central tendency, Get Answer, Expert's Help, Measure of central tendency Discussions

Write discussion on Measure of central tendency
Your posts are moderated
Related Questions
Explain official reserve assets and its major components. Answer:  Official reserve assets are those financial assets which can be employed as international means of payments.

ESTIMATING WORKING CAPITAL REQUIREMENTS To facilitate, estimate the extent of working capital requirement of a firm, various factors are to be considered. There are various me

Source documents of an accounting system: Source documents are those documents that identify the particular transaction that is being recorded.  They act as an internal control

Profit maximisation criterion Profit maximisation criterion is unsuitable and inappropriate as an operational objective of financing, investment and dividend decisions of a fi

Q. What do you signify by Cost of Capital? What do you signify by 'Cost of Capital'? What is its meaning and what are the problems in determination of cost of capital? Ans.

Q. Accounting Principles Board ? Accounting Principles Board (APB) -senior technical committee of AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA) that issued pronoun

Functional Classification of Mutual Funds Functional classification of Mutual Funds is based on the basic characteristics of the mutual fund schemes for subscription. Mutual Fu

Explain contingent exposure and define the advantages of using currency options to manage this type of currency exposure. Answer: Companies may come across a state where they m

Explain the term - Timing of Benefits A more significant technical objection to profit maximisation, as a guide to financial decision making, is that it ignores the differen

Stock A has settled into a constant dividend growth pattern of 6 percent per year. The current dividend is $1.50, its current price is $15.90. You are an analyst and believe that