Apply: Descriptive Statistics Q and A

Apply: Descriptive Statistics Q and A

These are the questions from my professor that I need to answer:

This week we will study Descriptive Statistics including both charting methods and summary statistics.

1. Useful Charting Methods

We see charts and graphs used often in many media such as television, print and online in web sites.

What are some of the most important charting methods to use and understand?

In what cases are these most useful and in what cases are these tools used improperly in order to lie with statistics? Please cite examples of both proper and misleading uses.

2. Measures of Central Tendency, Advantages vs. Disadvantages

The main Measures of Central Tendency are the Mean, Median and Mode. Each one of these measures has certain advantages and disadvantages. In what situation should we use each one of these measures?

3. Coefficient of Variation (CV) Risk-Adjusted Return

“I had my Learning Teams in an MBA course do an analysis of risk/return using the Coefficient of Variation (CV = (St. Dev/Mean) 100). of all the major averages Dow Industrials, S & P 500, NASDAQ and Russell 2000 over the past 10 years. The CVs were stratospheric averaging over 250%, indicating a very risky stock market.“

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