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A group of diners were asked how much they would pay for a meal. Their responses were: \(\$ 7.50, \$ 25.00\), \(\$ 10.00, \$ 10.00, \$ 7.50, \$ 8.25, \$ 9.00, \$ 5.00, \$ 15.00, \$ 8.00, \$ 7.25, \$ 7.50, \$ 8.00, \$ 7.00 . \$ 12.00\) a. Find the mean, including units. b. Find the median, including units. c. Based on the mean and the median, would you expect the distribution to be symmetric, skewed left, or skewed right? Explain.

Short Answer

Expert verified
a. Mean: \(\$9.07\); b. Median: \(\$8.00\); c. Expect skewed right.

Step by step solution

01

Calculate the Mean

To find the mean, first sum all the responses given by the diners. The amounts are: \[ 7.50, 25.00, 10.00, 10.00, 7.50, 8.25, 9.00, 5.00, 15.00, 8.00, 7.25, 7.50, 8.00, 7.00, 12.00 \]Calculate the sum: \[ 7.50 + 25.00 + 10.00 + 10.00 + 7.50 + 8.25 + 9.00 + 5.00 + 15.00 + 8.00 + 7.25 + 7.50 + 8.00 + 7.00 + 12.00 = 136.00 \]Now, divide this sum by the total number of amounts (15) to find the mean:\[ \text{Mean} = \frac{136.00}{15} \approx 9.07 \]Thus, the mean is approximately \( \$9.07 \).
02

Calculate the Median

First, arrange the amounts in increasing order:\[ 5.00, 7.00, 7.25, 7.50, 7.50, 7.50, 8.00, 8.00, 8.25, 9.00, 10.00, 10.00, 12.00, 15.00, 25.00 \]Since there are 15 amounts, the median is the middle value, which is the 8th value in the sorted list:\[ \text{Median} = 8.00 \]Thus, the median is \( \$8.00 \).
03

Determine the Distribution Shape

The mean is \( \\(9.07 \) and the median is \( \\)8.00 \). When the mean is greater than the median, it suggests that the distribution is skewed right (positively skewed). This is because high outliers can raise the mean more than the median, which reflects more typical mid-range values.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Mean Calculation
In descriptive statistics, the mean is a measure often referred to as the "average." It gives us a central value of a dataset and is calculated by summing all values in the dataset and then dividing by the number of values.

To find the mean of the diners' responses, start by adding together all the amounts they reported:
  • Sum: \(7.50 + 25.00 + 10.00 + 10.00 + 7.50 + 8.25 + 9.00 + 5.00 + 15.00 + 8.00 + 7.25 + 7.50 + 8.00 + 7.00 + 12.00 = 136.00\)
The next step involves dividing this total sum by the number of responses, which is 15:
  • \(\text{Mean} = \frac{136.00}{15} = 9.07\)
Thus, the mean cost diners are willing to pay is approximately \( \$9.07 \). The mean gives us an idea of the "typical" amount diners are considering, assuming all amounts contribute equally to this picture.
Median Calculation
The median represents the middle value of a dataset when values are arranged in order. Unlike the mean, the median provides us with the most central point of data, free from the influence of outliers.

To find the median in the diners' data, arrange all amounts in ascending order:
  • \([5.00, 7.00, 7.25, 7.50, 7.50, 7.50, 8.00, 8.00, 8.25, 9.00, 10.00, 10.00, 12.00, 15.00, 25.00]\)
Once sorted, find the middle number. Since there are 15 numbers, the median is the 8th number:
  • \( \text{Median} = 8.00 \)
This median of \( \$8.00 \) indicates that half of the diners would pay less than or equal to this amount for a meal, reflecting what is most typical without distortion by extreme values.
Distribution Shape Analysis
Analyzing the shape of a distribution provides insight into the data's characteristics and tendencies. By comparing the mean and median, we can understand much about the symmetry or skew of the distribution.

In this exercise, the mean was calculated to be \( \\(9.07 \) while the median is \( \\)8.00 \). Notably, the mean is greater than the median, which often indicates a right (positive) skew in the data distribution.

This pattern occurs when high values, like the particularly large \( \$25.00 \) response, pull the mean upward, more so than the median, which remains unaffected by such outliers.

To determine skewness:
  • If the mean > median: expect a right skew.
  • If the mean < median: expect a left skew.
  • If the mean = median: the distribution is likely symmetric.
Hence, in this scenario, the data distribution leans towards a positive skew, which signifies the presence of higher values affecting the central tendency measure.

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