Revisiting Median vs. Average With Accelerator Data
I was in a board meeting yesterday at BigDoor where we were benchmarking our current numbers against a couple of recent studies on SaaS-based companies including the 2011 Pacific Crest Private SaaS Company Survey. Several of the things we looked at were averages; the Pacific Crest data was presented as medians. I subsequently had a short conversation in the evening where someone asked me about what I thought the mean was across our investments on a particular metric; I responded that the mean was meaningless – we should be using the median (which I then gave the person asking the question.) ...