Question: We know many types of data fall into a normal distribution with most of the observations falling toward the middle. However, sometimes data are outliers,

We know many types of data fall into a normal distribution with most of the observations falling toward the middle. However, sometimes data are outliers, or data that are very differentlarger or smallerfrom the rest of the members of the sample. Think of an example in the real world of an outlier and discuss its effect.

Income is an example of an outlier. In normal distribution, most items or objects lie at the middle. As such, income vary great, but most people earn within a given range. Only few people could be on the lower or the upper end. With large outliers, the mean is skewed, and this gives a wrong interpretation. With outlier's present, the median is a better representation of the center value or object.

QUESTIONS:

1, DEFINE THE MEAN IS SKEWED.

2. HOW IS THE MEDIAN A BETTER REPRESENTSTION OF THE CENTER VALUE OR PROJECT?

3. CREATE ONE REAL-LIFE SCENARIO AND PROVIDE AN EXAMPLE ON HOW THE MEDIATIONS WOULD BE IMPLENTED IN THE WORLD OF FIANACING. (PLEASE SHOW YOUR WORK)

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