Which descriptive statistic indicates the average of a data set?

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Study for the Peregrine MBA Exam. Test your knowledge with flashcards and multiple choice questions, each with explanations. Get ready for your MBA exam!

The mean is the descriptive statistic that indicates the average of a data set. It is calculated by summing all the values in the data set and then dividing by the number of values. This provides a measure of central tendency that represents the "center" of the data points. The mean is particularly useful when all values in the data set are taken into consideration, making it a comprehensive indicator of the overall performance or characteristics of the group being analyzed.

In contrast, the mode refers to the most frequently occurring value in a data set, which does not necessarily represent the average. The median, while also a measure of central tendency, represents the middle value when the data set is ordered, and may not coincide with the mean, especially in skewed distributions. Variance, on the other hand, measures the dispersion of the data points around the mean, rather than indicating an average. Thus, the mean is the most appropriate choice for representing the average of a data set.

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