Answer:
The mean will be (significantly) less.
Depending on the other items, the median is either affected only slightly or not at all.
Of all the answer choices, B is the correct one.
Explanation:
So, we know that initially, Chucky had a total of 12 items. Each of the items has a different price, but the average cost of them is $7.41.
One item of the twelve was a wheel of cheese that costs $39.99.
And we want to know how the average cost and median cost will be affected if we remove this wheel of cheese.
The important thing to note here is that the average cost is $7.41. The wheel of cheese, however, costs $39.99. Thus, it is an outlier. It is significantly more expensive than the other items.
Initially, to find the mean, we had to add the 12 items together and then divide by 12. However, now that we removed the expensive outlier, the average cost will now be less.
Algebraically, we can see this. Let t be the total cost of the items excluding the cheese. Thus, the mean initially is:
Find t. Multiply both sides by 12:
Therefore, all the other items excluding the cheese totals $48.93.
If we remove the cheese, the total is now $48.93 and with only 11 items. Thus, the mean is now:
This is almost $3 less than the original mean. Thus, the mean has decreased significantly.
For the median, we really don't know. Recall that the median is simply the "middle" quantity. Assuming all the other products are similarly priced, the median may only change slightly or it may not at all. However, we can only guess for the median as it will depend on the prices of the other products. Nevertheless, it mostly likely decrease.
Edit: Added Letter Answer