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Health issues are a concern of managers, especially as they evaluate the cost of medical insurance. A recent study of 150 executives at Elvers Industries, a large insurance and financial firm located in the Southwest, reported the number of pounds by which the executives were overweight. a. Compute the mean and the standard deviation.

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Answer:

Explanation:

The question is incomplete. The complete question is:

Health issues are a concern of managers, especially as they evaluate the cost of medical insurance. A recent survey of 150 executives at Elvers Industries, a large insurance and financial firm located in the Southwest, reported the number of pounds by which the executives were overweight. Compute the mean and the standard deviation.

Pounds Overweight Frequency

0 up to 6 14

6 up to 12 42

12 up to 18 58

18 up to 24. 28

24 up to 30. 8

Solution:

This is grouped data. We would determine the midpoint or class mark, x of each class by taking their averages.

The table would become

Class. x f fx

0 up to 6 (0+6)/2 = 3 14 42

6 up to 12 (6+12)/2 = 9 42 378

12 up to 18 (12+18)/2 = 15 58 870

18 up to 24 (18+24)/2= 21 28 588

24 up to 30 (24+30)/2 = 27 8 216

Summation f = 14 + 42 + 58 + 28 + 8 = 150

Summation fx = 42 + 378 + 870 + 588 + 216 = 2094

Mean = Summation fx/Summation f

Mean, m = 2094/150 = 13.96

Standard deviation = √summation of f(x - m)²)/(n - 1)

We would create another column on the table

f x x - m f(x - m)²

14 3 - 10.96 1681.7024

42 9 - 4.96 1033.2672

58 15 1.04 62.7328

28 21 7.04 1387.7248

8 27 12.04 1159.6928

Total = 5325.12

Standard deviation = √5325.12/150 - 1)

Standard deviation = 5.98

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