Mathematical property of median, Financial Management

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Mathematical Property

The sum of the deviations of the items from median, ignoring signs, is the least. For example, the median of 6, 10, 14, 18 and 22 is 14. The deviations from 14 ignoring signs are 8, 4, 0, 4 and 8 and the total is 24. This total is smaller than the one we obtain, if deviations are taken from any other value. Thus if deviations are taken from 12, values ignoring signs would be 6, 2, 2, 6 and 10 and the total would be 26. Mathematical Property

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