Question

The data set below provides the monthly rent (in dollars) paid by 7 tenants.990, 879, 940, 1010,950, 920, 1430Suppose the rent for one of the tenants changes from $1430 to $1115.What is the mean before the rent change?What is the mean after the change?

Answer 1

To solve this question, we need to find the mean for both cases. The mean is given by summing the given values and then dividing them by the number of values (or given cases).

We have that, before the rent chance, we have the following monthly rent (in dollars):

990, 879, 940, 1010,950, 920, 1430

There are seven (7) values. Then, the mean, in this case, is:

`m_{\text{before}}=(990+879+940+1010+950+920+1430)/(7)=(7119)/(7)\Rightarrow m=1017`

Therefore, the mean, in this case, is equal to $1017.

Now, we have that the rent change for the one with $1430 to $1115, now the values are:

990, 879, 940, 1010,950, 920, 1115.

We can proceed as before to obtain the mean:

`m_{\text{after}}=(990+879+940+1010+950+920+1115)/(7)=(6804)/(7)\Rightarrow m_(after)=972`

Thus, the mean after the change is equal to $972.

In summary, we have that:

• The mean before the rent change is equal to $1017

,

• The mean after the rent change is equal to $972.