You are analyzing the crossstore sales of a grocery store ch

You are analyzing the cross-store sales of a grocery store chain. As part of your analysis, you compute two measures of central tendency

Solution

For an ideal distribution mean should equal median.

But for practical reasons, the two differ slightly.

But in the data given there is a huge difference between mean and median.

Median is 163.1 million but mean is to the extreme right of median 358.4 million.This gives an indication that the number of items below 163.1 are exactly half, but the other half has outliers such that the mean comes to 358.4 million.

It is a strongly left skewed distribution.

Though both have their own limitations for a strong skewed distribution, mean is better to take here.

But if outliers are very less in numbers, then excluding them and taking mean fresh and applying would be ideal.