Monday, January 3, 2011

Median

The median is the number that occurs in the middle of a group of numbers, this number is often used instead of an average because it ignores the impact of outliers. In a series with odd numbers the median is the middle number, while in a series with even numbers the median is the average of the two middle numbers. As an example the median in the following series would be 19 (1, 3, 7, 10, 14, 19, 20, 26, 28, 32, 35). Medians may be used in reporting of returns, or comparisons to other funds, or in the analysis of a portfolio e.g. median market cap.

Synonyms: Median

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