Are the mean, mode, median dependable for making marketing, manufacturing decisions? why or why not?

Question

Thank you

Answer 1

Try these websites for information on the use of mean, median, and mode in marketing decisions:

http://www.learnpremium.co.uk/CIMA/lesson2/page4.aspx

http://www.quickmba.com/stats/centralten/

What is the appropriate use of mean, median and mode? It's not uncommon to get these three terms confused or misused. In addition, depending on which one is used -- the results can vary widely. So here's an easy way to remember which one is which. "Mean" is average (think mean people as being very average). "Median" is middle (think median strip of a highway) and "Mode" is most common (think "a la mode"). If you were measuring household income, all three measures could give you a different result. Mean income could be the total income divided by the number of households. Median, on the other hand, is that point which half of the people are below and half are above. Mode would be the most common answer. By using different definitions, your answer to "average" income could be $75,000,$56,000 and $45,000 respectively. Bottom line--be careful when you use any one of these terms

Answer 2

No. There is too much of a chance that these statistics produce results that are not representative of the actual data set being examined. While they have their place in certain types of measurements and analyses, basing decisions on them could be risky.