Question

How expensive is Maui? A newspaper gave the following costs in dollars per day for a random sample of condominiums located throughout the island of Maui. 87 50 66 60 370 55 500 71 41 350 60 50 250 45 45 125 235 65 60 130

(a) Compute the mean, median, and mode for the data. (Round your answers to two decimal places.) mean $ median $ mode $

(b) Compute a 5% trimmed mean for the data, and compare it with the mean computed in part (a). (Round your answer to two decimal places.) $

Does the trimmed mean more accurately reflect the general level of the daily rental costs?

A. Yes, the trimmed mean is closer to the median and mode.

B. Yes, the trimmed mean is further from the median and mode.

C. No, the trimmed mean is further from the median and mode.

D. No, the trimmed mean is closer to the median and mode.

(c) If you were a travel agent and a client asked about the daily cost of renting a condominium on Maui, what average would you use? Explain.

A. mean

B. median m

C. mode

(d) Is there any other information about the costs that you think might be useful, such as the spread of the costs?

A. The lowest and highest prices of the condominiums would also be useful.

B. The average price of a condominium in 1980 would also be useful.

C. No other information about condominium costs would be useful.

D. The prices of condominiums in California would also be useful.

Answer 1

Solution-A:

mean=sum of values/total

=2715/20

=135.75

For finding median sort the numbers

41 45 45 50 50 55 60 60 60 65 66 71 87 125 130 235 250 350 370 500

median=65+66/2=65.5

mode is most repeating value

60 repeats 3 times

so mode=60

Solution-b:

5% *20=0.05*20=1

remove first and last

45 45 50 50 55 60 60 60 65 66 71 87 125 130 235 250 350 370

5% trimmed mean=2174/18

= 120.7778

5% trimmed mean= 120.7778

c) If you were a travel agent and a client asked about the daily cost of renting a condominium on Maui, what average would you use? Explain.

A. median

as median is not affected by outliers

(d) Is there any other information about the costs that you think might be useful, such as the spread of the costs?

A. The lowest and highest prices of the condominiums would also be usef

as standard deviation=max-min/4