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A sample of single persons in Towson, Texas, receiving Social Security payments revealed these monthly benefits: $426, $299, $290, $687, $480, $439, and $565. (a) What is the median monthly benefit? (b) Is the mean you computed in (a) a statistic or a parameter? Why?

User Egonzal
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Answer:

a) Median Monthly Benefit = $439

b) The mean computed above is a STATISTIC. This is because, the mean of their monthly benefits ($455.14) was calculated from a SAMPLE (which could have been known or random) of single persons in Towson Texas.

Explanation:

In the above question, we are given:

: $426, $299, $290, $687, $480, $439, and $565.

a) Median Monthly benefits

First we arrange the monthly benefits from the lowest to the highest

$290, $299, $426, $439, $480, $565, $687

Median Monthly Benefit is the number found in the middle of the Monthly benefits.

We were given 7 monthly benefit

$290, $299, $426,) $439, ($480, $565, $687

The median monthly benefit = $439

(b) Is the mean you computed in (a) a statistic or a parameter? Why?

The Mean Monthly Benefit = Sum of terms/Number of terms

Number of terms = 7

($290 + $299 + $426 + $439 + $480 + $565 + $687)/ 7

= $3186/7

= $455.14285714286

Approximately ≈$455.14

In the question we are asked if the Mean calculated or computed above is a Statistic or a Parameter.

The mean computed above is a STATISTIC. This is because, the mean of their monthly benefits ($455.14) was calculated from a SAMPLE (which could have been known or random) of single persons in Towson Texas.

User Smasell
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