EXAMPLE 2.9.10
A number of people invested $1000 each in the Gomer Family of Mutual Funds. The frequency table below shows the current values of those investments after Gomer hit the trifecta at the dog track, and hit the Cash 5 jackpot.
Compute the mean, median and mode.
| VALUE | FREQUENCY |
|---|---|
| Value 0 | Frequency 48 |
| Value 50 | Frequency 42 |
| Value 75 | Frequency 31 |
| Value 100 | Frequency 28 |
| Value 150 | Frequency 22 |
| Value 2,876,423 | Frequency 1 |
EXAMPLE 2.9.10 SOLUTION
n = 48 + 42 + 31 + 28 + 22 + 1 = 172
mode = $0 because 0 is the value with the greatest frequency.
mean = [(48 times 0) plus (42 times 50) plus (31 times 75) plus (28 times 100) plus (22 times 150) plus (1 times 2,876,423)] divided by 172
median:
(n + 1) divided by 2 = 86.5
The median will be the average of the 86th and 87th numbers in the ordered distribution.
The first 48 numbers in the distribution are zeroes, and the next 42 numbers are fifties; in particular, the 86th and 87th numbers are both 50.
The median is $50.