Question

50 credit card holders are randomly selected and the amounts they currently owe are recorded. The researchers then find the mean and median.
The largest data value (550,000) in the set is then replaced with $1,000,000 and the statistics are
calculated again.
A) What type and how much of an effect will this change have on the mean?
B) What type and how much of an effect will this change have on the median?
I

Answer 1

Using the concepts of mean and median, it is found that:

a) The mean will be increased.

b) The median will remain unchanged.

• The mean of a data-set is the sum of all observations divided by the number of observations.

• The median of a data-set is the "middle value", that is, the value that separates the bottom 50% from the upper 50% of the data-set.

Item a:

The largest value is replaced by a higher value, hence, the sum of all observations will be greater, and the mean will be increased.

Item b:

Only the largest value is replaced, the "middle value" is still the same, hence, the median will remain unchanged.

To learn more about the mean and the median, you can check https://brainly.com/question/24732674