Consider the following types of data that were obtained from a random sample of 49 credit card accounts. Identify all the averages that can be used to summarize the data.(Select all that apply)
1.Outstanding balance on each account:
mode,median,mean?
Although all are measures of central tendency, only the mean is an average.
To summarize the data on the outstanding balance of each account, we can consider calculating the mode, median, and mean.
1. Mode: The mode represents the most frequently occurring outstanding balance in the sample. To find the mode, you can arrange the outstanding balances in ascending order and determine the value(s) that appear(s) most frequently. If there are multiple values with equal frequencies, the data set is considered multimodal.
2. Median: The median is the middle value of the data set when it is arranged in ascending or descending order. To find the median, you can rearrange the outstanding balances in ascending order and identify the middle value. If there is an even number of observations, the median is the average of the two middle values.
3. Mean: The mean, also known as the average, is calculated by summing all the outstanding balances in the sample and dividing the total by the number of credit card accounts (49 in this case). To calculate the mean, add up all the outstanding balances and divide the sum by 49.
In summary, the averages that can be used to summarize the data are mode, median, and mean.