What does a trimmed mean exclude from its calculation?

What does a trimmed mean exclude from its calculation?

• A. The average of all data values
• B. The highest and lowest extreme values
• C. Data from unreliable sources
• D. Outdated data points

Answer: (B)

A trimmed mean is a statistical measure that involves excluding a specified percentage of the highest and lowest values from a dataset to reduce the effect of outliers on the mean. This method helps provide a more robust average by focusing on the central portion of the data, minimizing the influence of extreme deviations that could skew the results. By removing the highest and lowest extreme values, the trimmed mean better reflects the typical values within a dataset, especially in cases where there may be significant outliers that can distort the overall average. This is particularly useful in fields such as market pricing, where outlier salaries or prices can lead to misleading conclusions about overall compensation or value trends.

A trimmed mean is a statistical measure that involves excluding a specified percentage of the highest and lowest values from a dataset to reduce the effect of outliers on the mean. This method helps provide a more robust average by focusing on the central portion of the data, minimizing the influence of extreme deviations that could skew the results.

By removing the highest and lowest extreme values, the trimmed mean better reflects the typical values within a dataset, especially in cases where there may be significant outliers that can distort the overall average. This is particularly useful in fields such as market pricing, where outlier salaries or prices can lead to misleading conclusions about overall compensation or value trends.