EXAMPLE 3.2.10

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.

EXAMPLE 3.2.10 SOLUTION

n = 48 + 42 + 31 + 28 + 22 + 1 = 172

mode = $0 because 0 is the value with the greatest frequency.

median:

= 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 0s, and the next 42 numbers are 50s; in particular, the 86th and 87th numbers are both 50.

The median is $50.