We have been that Chucky grabbed 11 items in the grocery store that each had a different price and had a mean cost of about $4.44. On his way to the register, he gave in to an impulse to add a 12th item: an entire wheel of cheese that cost $39.99.
We are asked to how adding the wheel of cheese will affect the mean and median.
The mean of cost of 11 items is $4.44, so when we will add 12th item with cost of $39.99, it will increase the mean and median.
$39.99 is a large valued outlier for the given data set. We know that median is less affected by outliers, while mean is much more sensitive to extreme values than the median.
One or two extreme valued outliers can change the mean a lot, it will not change the median very much.
Therefore, after adding the wheel of cheese will increase both mean and median, but the mean will increase by more than the median.
