this is for economist we observed that for a highly skewed distribution the median may be a more logical measure of central tendency. Remember that the specification for building the store said "average," a term that may be satisfied by the use of the median. The median is defined as the "middle" value of a set of population values. Therefore, in the population, half of the observations are above and half of the observations are below the median. In a random sample then, observationsshouldbeeitherhigherorlowerthanthemedianwithequalprobability. Defining values above the median as successes, wehaveasamplefrom abinomialpopulationwith p = 0.5.Wecanthensimplycounthowmanyofthe sample values fall above the hypothesized median value and use the binomial distribution to conduct a hypothesis test.InChapter1weobservedthatforahighlyskeweddistribution the median may be a more logical measure of central tendency. Remember that the specification for building the store said "average," a term that may be satisfied by the use of the median. The median is defined as the "middle" value of a set of population values. Therefore, in the population, half of the observations are above and half of the observations are below the median. In a random sample then, observationsshouldbeeitherhigherorlowerthanthemedianwithequalprobability. Defining values above the median as successes, wehaveasamplefrom abinomialpopulationwith p = 0.5.Wecanthensimplycounthowmanyofthe sample values fall above the hypothesized median value and use the binomial distribution to conduct a hypothesis test.