17. A nonprofit organization ran a fundraiser and would like to determine the amount of a typical donation. Which statistic is less affected by outliers and skewed data and should be used to determine the amount of a typical donation?
Answer: B
The median is less affected by outliers and skewed data.
Using the median as a statistic allows the nonprofit organization to determine a typical donation amount that is less influenced by extreme values or skewed distributions.
A) Mode
The mode represents the most frequently occurring value in a data set. While it can provide insight into common donation amounts, it is not a robust measure in the presence of outliers or skewed data, as it may not reflect the typical amount donated effectively.
B) Median
The median is the middle value of a data set when arranged in ascending order. It is particularly effective in situations with outliers or skewed data, as it accurately represents the central tendency without being distorted by extreme values, making it the ideal choice for assessing typical donation amounts.
C) Z-score
The Z-score measures how many standard deviations an element is from the mean. While it can be useful for standardizing data, it does not provide a measure of central tendency and is not suitable for determining a typical donation amount, especially in skewed distributions.
D) Mean
The mean is the average of all values in the data set. However, it is highly sensitive to outliers and skewed data, which can significantly distort the representation of a typical donation amount. Therefore, it is not the best choice for this scenario.
Conclusion
The median is the most appropriate statistic for determining the typical donation amount for the nonprofit organization, as it effectively mitigates the influence of outliers and skewed data. In contrast, the mode, Z-score, and mean each have limitations that make them less suitable for accurately reflecting typical donation amounts in this context.