2
QuizMultiple Choice

Business Summary Statistics

Question 2 • FowU - Financial Math - B

Jerry has been a returning contestant on a game show for the last seven weeks. In a contestant's first seven appearances on the show they have a chance to answer one question and win anywhere between $200-$900. On their eighth appearance they get a chance to answer a question worth $10,000. Given Jerry's winnings in the following table, describe what would happen to the mean and median of the data set if he were to get the Week 8 question right.Week 1Week 2Week 3Week 4Week 5Week 6Week 7$684$770$481$647$277$853$712

Answer
A
The mean increases by $1,803, the median increases by $698.
B
The mean decreases by $1,803, the median decreases by $698.
C
The mean decreases by $1,171, the median decreases by $14.
D
The mean increases by $1,171, the median increases by $14.

Explanation

Jerry’s original winnings total $4,424, so his mean is $4,424 ÷ 7 = $632. With a $10,000 win, the total becomes $14,424 and the mean becomes $14,424 ÷ 8 = $1,803, an increase of $1,171. The original median is $684; after adding $10,000, the two middle values are $684 and $712, so the new median is $698, an increase of $14. This matches choice D.

AI-written and checked against the verified answer.

Previous
Next