Median
The median is the middle value when observations are arranged in order. For an odd number of observations it is the central observation; for an even number, a common convention is the mean of the two central values. It is less affected by extreme observations than the arithmetic mean. For grouped data, the median is estimated from the class containing the middle position using a stated interpolation convention.
Worked example
Ordered salaries in thousands are 24,26,28,30 and 92. Median is 28, while the mean is 40. The high salary changes the mean substantially but does not change the middle observation.
Common mistake
Selecting the middle item from unsorted data or confusing the median with the most frequent value.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | MA | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |
