Question

1. Compute the Mean and Median. Explain the meaning of these statistics. Which measure is  more appropriate for this sample? Explain why

The starting annual salaries of a sample of 20 recent MBA graduates are recorded. The data is presented below.

	285	283	285	277	290	265	285	291	279	291
	281	282	266	699	279	283	287	291	291	968

Answer 1

X
285
283
285
277
290
265
285
291
279
291
281
282
266
699
279
283
287
291
291
968

mean =    ΣX/n =    6758.000   /   20   =   337.9

Median=0.5(n+1)th value =    10.5th
=   285

quartile , Q1 = 0.25(n+1)th value=   5.25th
=   279.5
  
Quartile , Q3 = 0.75(n+1)th value=   15.75th
=   291
  
IQR = Q3-Q1 =    11.5
  
1.5IQR =    17.25
  
lower bound=Q1-1.5IQR=   262.25
  
upper bound=Q3+1.5IQR=   308.25
  
outlier =values outside lower bound and upper bound  
total outlier below lower bound=   0
total outlier above upper bound=   2
total outlier =    2

As you can we have 2 outlier present , so Median is appropriate for this data

Please revert back in case of any doubt.

Please upvote. Thanks in advance.