Practice question
Question
A researcher has access to data pertaining to the health expenditure of individuals. If each value of this data series is multiplied by 10, then what will be the effect on the median?
Explanation
Median is positional average resistant to outliers but sensitive to scale transformation. Multiplying every observation by constant multiplies ordered middle value by same factor, preserving rank. Hence median becomes ten times original, maintaining distribution shape proportionally.
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