Question

A family of four (two kids and two parents) spend the day at an amusement park. At the end of the day, the family adds up all of the receipts from their meals: $16.25, $17.96, $3.58, $4.61, $5.23. What is the mean and median cost spent? What does the mean cost represent? Why is the mean cost significantly different from the median cost? Which measurement of central tendency is a better representation of the amount of money that the family spent at the amusement park?

Answer 1

A family of four spent the following for their meals $16.25, $17.96, $3.58, $4.61, $5.23.

Mean cost spent is calculated by:

Total Cost/Number of Meals

(16.25+17.96+3.58+4.61+5.23)/5

47.63/5

$9.53

Mean Cost represents the average amount per meal the family has spent.

Median cost is the cost that in the middle of the five costs which is $5.23.

The mean cost is significantly different from the median cost because it is higher.

Median cost is a better representation of the amount of money that the family spent because, with regard to meal costs, this means that exactly half of the meals in the amusement park are above this price ($5.23) and exactly half are below.