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The monthly rents (in dollars) paid by 9 people are given below.(Note that these are already ordered from least to greatest.)940, 960, 975, 1005, 1035, 1045, 1120, 1130, 1195Suppose that one of the people moves. His rent changes from $940 to $1075.Answer the following.(a)   What happens to the median? It decreases by$.It increases by$.It stays the same.(b)   What happens to the mean? It decreases by$.It increases by$.It stays the same.

Question

The monthly rents (in dollars) paid by 9 people are given below.(Note that these are already ordered from least to greatest.)940, 960, 975, 1005, 1035, 1045, 1120, 1130, 1195Suppose that one of the people moves. His rent changes from 940to940 to 1075.Answer the following.(a)   What happens to the median? It decreases by.Itincreasesby.It increases by.It stays the same.(b)   What happens to the mean? It decreases by.Itincreasesby.It increases by.It stays the same.

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Solution

(a) The median of the original data set is 1035 (the middle value). When the 940rentchangesto940 rent changes to 1075, the data set becomes: 960, 975, 1005, 1035, 1045, 1075, 1120, 1130, 1195. The median remains 1035. So, the median stays the same.

(b) The mean of the original data set is the sum of all the rents divided by the number of rents. That is (940+960+975+1005+1035+1045+1120+1130+1195)/9 = 1028.33.Whenthe1028.33. When the 940 rent changes to 1075,thenewmeanbecomes(960+975+1005+1035+1045+1075+1120+1130+1195)/9=1075, the new mean becomes (960+975+1005+1035+1045+1075+1120+1130+1195)/9 = 1050. So, the mean increases by 10501050 - 1028.33 = $21.67.

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