Question

Market researchers often compute the “mean” or average of data collected. Wha is the mean income of the following three people surveyed? Person A: $34,000, Person B: $44,000, Person C:$21,000

Answer 1

Answer: The mean income of the three people surveyed is $33,000.

The mean or average of a data set is nothing but the sum total of all the observations in a given set of data divided by the number of observations.

The formula for calculating the mean is:

$\mathbf{\overline{X} = \frac{X_{1}+X_{2}+X_{3}.....+X_{n}}{N} }$

where

$\overline{X}$ is the mean or average

X₁ , X₂, X₃ .......Xn refers to the observations

N is the total number of observations

Substituting the values in the formula for mean we get,

$\mathbf{\overline{X} = \frac{34000+44000+21000}{3}}$

$\mathbf{\overline{X} = \frac{99000}{3}}$

$\mathbf{\overline{X} = 33,000}$