Consider the data that was obtained from a random sample of 45 credit card accounts. Identify all the averages (mean, median, or mode) that can be used to summarize the outstanding balance on each account.
a. mean, median, and mode if it exists
b. only median if it exists
c. only mean if it exists
d. only mean and median if it exists
e. only mode if it exists
i think it is d ?
I agree.
Yes, you are correct. The correct answer is option d, which means that the mean and median can be used to summarize the outstanding balance on each account if they exist.
Let me explain why:
1. Mean: The mean is the average value obtained by summing up all the values and then dividing by the total number of values. The mean is commonly used to represent the average value when the data is normally distributed (bell-shaped curve) and does not have extreme outliers or skewed distributions. However, the mean can be influenced by extreme values, so it may not accurately represent the typical value if the data has outliers or is skewed.
2. Median: The median is the middle value in an ordered set of values. It is a measure of central tendency that is robust to outliers and does not rely on the data being normally distributed. The median is useful when there are extreme values or the data is skewed, as it represents the value that separates the upper and lower halves of the data set.
3. Mode: The mode is the value that occurs most frequently in a data set. It represents the most common value in the data. However, in the case of continuous data like the outstanding balance on credit card accounts, it is unlikely to have exact duplicates, so the mode may not exist or may not be meaningful for summarizing the data.
In summary, for summarizing the outstanding balance on each credit card account, the mean and median are generally the most useful measures. The mean provides a measure of the average balance, while the median provides the balance that separates the upper and lower half of the data.