Explain when median is a better descriptive summary than mean for skewed business data.
The average can be numerically correct and managerially misleading. What the mean captures The mean uses every value, so it is sensitive to large wins or losses. That makes it useful for planning totals, but also vulnerable to outliers. What the median protects The median resists long tails. It is often the better description of the typical customer, rep, or transaction when the distribution is lopsided. The practical move When the distribution is skewed, show both. The gap between mean and median is often the signal that the room actually needs.
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in