Question

1. Open the Salesum document, and add functions to calculate the average, Max, Min and Count on rows 18-21 in columns B-E. 2. In Cell B25 type an answer to the following question: Is the average computed in B18-E18 a good predictor of how much a new expense might cost, should we incur a new expense next year? Why or why not?

Answer 1

Answer :

1.Calculated values for average, max, min and count for expenses:

Expenses: Jan Feb Mar Apr

Average Expense 81,378 89,516 98,468 108,315

Maximum Expense 325,000 357,500 393,250 432,575

Minimum Expense 1,500 1,650 1,815 1,997

Count of Expenses 6 6 6 6

2. Average is not the good predictor for calculating the new expense cost because average is influenced by extreme values, given a sample is small, max and min values are far from each other for each expense.

Do not include expenses in next year because total expenses increase monthly by 10%.

Explanation :

1. Functions were used for average, max, min and count in excel are:

For Average =AVERAGE(number1 : number last)

For MAX =MAX(number1 : number last)

For MIN =MIN(number1 : number last)

For COUNT =COUNT(number1 : number last)

Calculated values for average, max, min and count for expenses:

Expenses: Jan Feb Mar Apr

Average Expense 81,378 89,516 98,468 108,315

Maximum Expense 325,000 357,500 393,250 432,575

Minimum Expense 1,500 1,650 1,815 1,997

Count of Expenses 6 6 6 6

2. Average is not the good predictor for calculating the new expense cost because average is influenced by extreme values.

Sample size is small.

In this data there is so much difference between maximum and minimum cost of expenses.

Do not include expenses in next year because total expenses increase monthly by 10%.