Averaging the closest two out of three observations

The average of 3 observations is the standard method of estimating the loca tion of their distribution. The average of the closest 2 out of 3 observati ons, although often used, has more variability than the average of all 3 ob servations for a standard normal distribution. One statistic uses a thresho ld to decide when to use the average of all 3 observations rather than the closest 2. With the standard normal, this statistic still has more variabil ity than the average of all 3 observations.