A large organization reports that base wages range from $18k to more than $1 million. Which measure most reliably indicates typical wages in this data set featuring widely varying values?
Mean
Median
Mode
Measure of dispersion
The median, or central value in a sorted list, remains steady even if some wages are exceptionally high or low. The mean, or arithmetic average, can be pulled up or down by a few large or small values. The mode, or most frequent figure, may not reflect a broad wage range if that value appears due to a local cluster. A measure of dispersion focuses on spread, not on a typical value.
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