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There are two important measures for any data set. Its central tendency and its variability. These provide measures of expectation and variability/volatility, respectively.

Can there be examples of:

  1. Clear central tendency, no volatility.
  2. Clear central tendency, with volatility.
  3. Unclear central tendency, no volatility.
  4. Unclear central tendency, with volatility.
Eduardo J. Sanchez
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1 Answers1

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  1. All values in dataset take a constant value: clear central tendency, there's no volatility
  2. Clear central tendency, with volatility: any strong unimodal (single tall peak in histogram) distribution. For example, check normal distribution curves. There's volatility but central tendency is visible.
  3. Unclear central tendency, no volatility: I can't think of any example. Lack of central tendency implies there's some variability in the data.
  4. Unclear central tendency with volatility: think of uniform distribution or throw of a (unloaded) dice in discrete case. All values are equally likely so no clear central tendency exists.
hssay
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