Main Answer
To find the mean and median of a list of household saving rates, follow option a:a) Mean: Σ(saving rates) / number of rates, Median: Middle value in the sorted list is correct option.
Explanation:
When finding the mean and median of a set of numbers, there are several methods that can be used.
Here, we will focus on option a, which involves calculating the mean (average) by adding up all the saving rates and dividing by the number of rates, and finding the median (middle value) by sorting the list of saving rates in order and finding the value in the middle.
The mean is a measure of central tendency that represents the average saving rate for all households. To calculate the mean, we add up all the saving rates and divide by the number of rates.
For example, if we have a list of ten saving rates, we would add them up and divide by ten to find the mean. This can help us understand what an average household saves each year.
The median is another measure of central tendency that represents the middle value in a sorted list. To find the median, we first sort the list of saving rates in order from lowest to highest.
hen, we find the value in the middle. If there is an odd number of saving rates, there will be one middle value. If there is an even number of saving rates, there will be two middle values that are averaged together to find the median. The median can help us understand what saving rate falls in the middle for all households.
In summary, option a provides a clear and straightforward method for finding both the mean and median of a list of household saving rates. By calculating both measures of central tendency, we can gain a better understanding of what an average household saves each year and where most households fall in terms of saving rates. A is correct option.