Median (market research)
For example, take the dataset: 3, 5, 7, 2, 8, 60, 4.
First, the values are arranged in ascending order:
2, 3, 4, 5, 7, 8, 60
In this case, the middle value is 5, which means the median of the dataset is 5.
One of the main advantages of using the median as an average is that it is not heavily influenced by extreme values or outliers. In the example above, the value 60 is much higher than the rest of the numbers, but it does not distort the median. As a result, the median often provides a more representative indication of the typical response within a dataset, particularly when the data is skewed or contains unusually high or low values.
In market research and data analysis, the median is commonly used when analysing responses such as income, spending, or ratings, where extreme values could otherwise distort the interpretation of the results.
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